Senate Approves Seven-Day Interim Budget
June 30, 2009 As deliberations on the state's two-year budget remained at a standstill for a third straight day, the Senate on Monday approved a one-week spending plan that would keep government operating from July 1 through July 7. The interim budget, which also authorizes Gov. Ted Strickland's administration to transfer rainy day balances, funds government programs at 70% of fiscal year 2009 spending - a level the majority Republican caucus said is in line with estimates budget negotiators have been using. The stop-gap measure is expected to clear the House on Tuesday. Sen. President Bill Harris (R-Ashland) maintained that the interim plan was needed to give legislative officials time to process the final two-year spending plan, but insisted that his chamber wouldn't vote for a budget that includes a statutory provision allowing the installation of video lottery terminals at Ohio horse tracks. He said Mr. Strickland, who proposed the idea as a way to raise state revenues, should implement the plan administratively. House Speaker Armond Budish (D-Beachwood) said it is regrettable that the Senate has not accepted a balanced budget framework that Gov. Strickland detailed. "Although we have made progress over the last few weeks, we must now pass a seven-day interim budget, which will only prolong a difficult and painful process for many Ohioans," the speaker said. "House Democrats and Gov. Strickland have offered difficult, but needed solutions to address the $3.2 billion budget shortfall," Speaker Budish added. "Since the Senate does not agree with our approach, they have a responsibility to come forward with an alternative plan to balance the budget. So far, they have failed to do so." Gov. Strickland said immediate resolution of the budget impasse was critical to ensure the stability of state operations. Taking a break before passing the two-year measure would be "unseemly, unconscionable even." "I think we should stay here and work through the weekend. I think working on this budget is more important than participating in a parade or eating hot dogs at an outdoor cookout," he told reporters. Despite frustration over the gambling issue, the sides have made considerable progress on other contentious issues, he said. "I still have hope, realistic hope I think, that we can reach an agreement." Interim Budget: The interim plan provides a handful of exceptions from the 70% funding level. Protected are:
 ) - was developed with the assistance of the Strickland administration and the House. Sen. Dale Miller (D-Cleveland) said he didn't think the state would suffer "any great harm" if a temporary spending plan were adopted, noting that the key sticking point remains the VLT issue. He observed that the Senate last session approved a bill that would have added slots-like instant racing terminals at racetracks, without sending it for a vote of the people. "All but a few of us in the senate voted for it," he said of the bill (SB125). (See Gongwer Ohio Report, May 23, 2007) Sen. Steve Buehrer (R-Delta) urged support for the Industrial Commission's "break even" budget, saying the initial measure provides sufficient funding for the agency's operations over the next two years. He said the Senate made a handful of changes - including adjusting open records laws, updating the injured worker appeal process and adding two more members to the commission's nominating council. Slots Debate: Mr. Strickland said the budget debate could be settled quickly if the Senate would approve the VLT language. "Quite frankly, I think we could solve the budget dilemma by this afternoon if there was a willingness on the part of Sen. Harris to bring the VLT issue to a vote in the Senate because, in my judgment, the only remaining hurdle to bringing this budget to a conclusion is the VLT issue," he said. Gov. Strickland questioned Sen. Harris's opposition to the plan and noted he was one of seven Republican senators that voted in favor of the 2007 proposal to install video racing terminals at racetracks. "They are machines where people sit and gamble. I don't see any moral distinction really. In fact, I don't see any significant distinction between what these seven senators previously voted on and what we are asking to be included in this budget," he said. "There doesn't seem to be any objection to using the resources to balance the budget," he said, referring to Sen. Harris's willingness to factor slot machine revenue projections into the budget. The governor expressed frustration with a lack of a counter proposal from Senate Republicans as alternatives his slot machine plan. "I said to Sen. Harris this is a shared responsibility. I'm willing as governor to take the lead and I did. But if you won't accept what I put forth as the path forward, then you've got a responsibility to do more than just say no." Sen. Harris said Mr. Strickland initially told him he would add the VLTs to the tracks through the lottery, and said the Senate will hold him to that position. "When the governor told us that he intended to put the VLTs in the race tracks, it was not a question," he said. "His statement was, 'I've decided to do this.'" "We realize that leadership causes you to make decisions that sometimes you don't want to make," he said, but noted that Mr. Strickland had committed to the action. "I encourage him to move forward with that plan and stop procrastinating." He also rejected assertions that VLT investors won't get in the business in Ohio without having the industry specifically allowed in law. "As I recall, the people who were bidding for keno never came to the legislature and asked for approval or asked for support," he said. "They invested millions of dollars on the hope that they could get that contract." Sen. Harris said there is a difference between VLTs and video racing terminals, saying the racing terminals give bettors an opportunity to study odds and other factors before they decide to bet. Weekend Maneuvering: In the days leading up to the weekend, the parties mostly kept a lid on the rhetoric over the lingering differences. That changed on Saturday. (Subscribers note: A version of the following budget report was published and distributed in email format over the weekend) Frustrations over the failure of the Democrats and GOP to come to terms on a budget agreement spilled over into the public arena Saturday and led to the scrapping of planned weekend committee action as the governor put pressure on the Republican Senate to offer up alternatives to his slots revenue. "The legislature is responsible for sending the governor a balanced budget by Tuesday, June 30," Gov. Strickland said in a statement issued late Saturday. "It has now been more than one week since I outlined a balanced budget framework to address the $3.2 billion state budget gap without raising taxes and without undermining our commitment to K-12 education." "Regrettably, Senate President Bill Harris informed me this afternoon that he does not support my balanced budget proposal. I believe that he and the Senate Majority have an obligation to say what taxes they would increase or what services they would further reduce in order to balance the budget." The slots provision is key to the budget negotiations because projected state revenues from the machines would fill more than a quarter of the massive shortfall facing policymakers as they finalize the two-year spending blueprint. Senate Republicans want the governor to issue an executive order to implement slots like he did when the state began running keno games at bars and other locations. Gov. Ted Strickland argues that the gambling expansion must be statutory for several reasons, among them a legal comfort level for investors who would be asked to pay large licensing fees for the seven racetracks. (See Gongwer Ohio Report, June 24, 2009) "Let's be clear: The issue that divides us is whether or not the legislature should authorize expanded gambling without a vote of the people," Sen. Harris said. "I have acknowledged many times that the Governor has the authority to expand the lottery," Sen. Harris added. "He has done it before and should he decide to exercise his authority again in allowing VLTs at racetracks around the state, the Senate will account for the revenues to balance the budget." "However, I cannot get past the fact that the voters of Ohio - our constituents -- have spoken on expanded gambling time and again. Asking the General Assembly to circumvent their will in such a short time frame when there has been no formal public debate and there are so many questions left unanswered is unreasonable." Gov. Strickland said he had been pleased with the budget talk progress up to this point and as recently as Friday was holding out hope for an on-time plan enacted by June 30. Since then, further closure has reportedly been made in other major areas of disagreement, such as K-12 education and funding for nursing homes and other Medicaid-backed programs. "I look forward to hearing from the Senate what other source of revenue, or what additional cuts, they will suggest in the three remaining days of the legislative conference committee," The governor said. "I continue to be available around the clock and will remain accessible to the legislative leadership." The governor remains opposed to any temporary budget that extends beyond a few days to accommodate administrative paperwork involved with enacting the measure. |
