owner

Kasich escalates public ed defunding

Ohioans would see income taxes fall, but would pay for them through higher sales and property taxes in the final Republican proposal

That's how the Cincinnati Enquirer opens its report on the massive last minute tax plan the Ohio GOP are planning to dump on the state, after months of internal disagreements.

Of particular concern to those who support public education, the budget conference committee decided not to restore the historic school funding cuts they made in the previous budget, but instead build upon it. Here was their starting point

FY12 (2011-2012 school year), which was the first year under Kasich's budget, saw a total of $7.52 billion in total state revenues. That's an 8% cut in total state revenue -- easily the largest cut since ODE started keeping these total state revenue figures in 1995.

And the bad news for districts is that FY12 won't represent the entire state divestment from education during Kasich's first budget. That's because the governor's budget phased down the Tangible Personal Property and Killowatt Hour tax reimbursement payments over two years. So the cut will be likely continued in FY13, pushing the total revenue figure down even lower.

As it stands, that $7.52 billion is the lowest amount provided by the state since the 2007-2008 school year.

Where they have ended up is even worse. In order to pay for their income tax cut, they have decided to eliminate the 12.5% property tax rollback.

The elimination of the property tax rollback will make future school levies harder to pass and more expensive, further shifting the burden from the state to local communities already struggling to support the needs of their students.

Eliminating the 12.5 percent property tax rollback for new taxes could make school levies harder to sell to voters. For example, without the rollback, last year's 15-mill Cleveland school levy would have cost $263 a year instead of $230 for the owner of a $50,000 home, and $525 a year instead of $459 for the owner of a $100,000 home.

The Governor and his legislative allies continue to shift the burden from millionaires to working people and their communities. We're going backwards at a time when the state can afford to move forward.