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The State of Ohio

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With only about four hours to go, the two-year, $62 billion dollar state budget was signed just before the start of the new fiscal year on July 1. And the Sunday evening ceremony answered a lot of questions that had lingered throughout the weekend, but brought up even more going forward. Gov. John Kasich vetoed 22 items, and took no questions about any of them. Kasich struck lines that would have prohibited Medicaid expansion, as many Democrats and advocates for expansion had urged him to do. He also struck lines exempting spider monkeys from the new exotic animals law and redlined an additional $60 million for nursing homes. But the governor did not veto any of the abortion-related measures in the budget. That includes what Republican lawmakers called the reprioritization of Planned Parenthood funding - essentially stripping its $1.4 million in state funding - and a last-minute addition to require a doctor inform a woman of the presence of a fetal heartbeat before performing the procedure. Democrats and pro-choice groups were furious, e-mailing and tweeting angry responses to the governor's decision. As for what's next with the budget on the abortion-related issues, Kellie Copeland with NARAL/Pro Choice Ohio says activists are working on that.

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00:00:00	>> SUPPORT FOR "THE STATE OF OHIO" COMES FROM THE LAW OFFICES
00:00:07	OF PORTER, WRIGHT, MORRIS & ARTHUR LLP., HELPING BUSINESSES
00:00:09	AND INDIVIDUALS SOLVE COMPLEX LEGAL PROBLEMS THROUGHOUT OHIO,
00:00:12	ACROSS THE COUNTRY AND AROUND THE WORLD,
00:00:15	ON THE WEB AT PORTERWRIGHT.COM. AND FROM THE OHIO EDUCATION
00:00:20	ASSOCIATION, REPRESENTING 131,000 TEACHERS, SUPPORT
00:00:23	PROFESSIONALS, AND HIGHER EDUCATION FACULTY, WHO ARE
00:00:26	WORKING FOR GREAT PUBLIC SCHOOLS FOR EVERY CHILD, ONLINE
00:00:28	AT OHEA.ORG. ADDITIONAL SUPPORT FOR "THE
00:00:34	STATE OF OHIO" IS MADE POSSIBLE BY ETECH OHIO.
00:00:36	>> HAPPY NEW FISCAL YEAR, AND JUST IN TIME, THE STATE HAS A
00:00:45	NEW BUDGET. GOVERNOR KASICH USES HIS VETO
00:00:50	POWER, BUT NOT IN THE WAY SOME PEOPLE WANTED, AND TWO BUDGET
00:00:54	EXPERTS ARE BACK TO LOOK MORE INTO THE SPENDING PLAN, WHICH
00:00:57	ALSO CONTAINS SOME BIG CHANGES IN STATE POLICY, ALL THIS WEEK
00:01:01	ON "THE STATE OF OHIO." WITH ONLY FOUR HOURS TO GO, THE
00:01:09	BUDGET WAS SIGNED JUST BEFORE THE START OF THE NEW FISCAL YEAR
00:01:12	ON JULY 1, AND THE SUNDAY EVENING CEREMONY AND IT'S A LOT
00:01:16	OF QUESTIONS, BUT BROUGHT UP EVEN MORE GOING FORWARD.
00:01:19	GOVERNOR JOHN KASICH SIGNED THE BUDGET SURROUNDED BY THE
00:01:25	REPUBLICAN LEADERS WHO HAD HELPED TO PUT IT TOGETHER AND
00:01:29	THEN SHEPHERD IT THROUGH THE LEGISLATURE.
00:01:31	SENATORS BILL COLEY, AND SCOTT OELSLAGER, SENATE PRESIDENT
00:01:38	KEITH FABER, REPRESENTATIVES RON AMSTUTZ, AND JEFF MCLAIN AND
00:01:48	BUDGET DIRECTOR TIM KEEN. THE LAWMAKERS WERE THE
00:01:53	REPUBLICANS ON THE SIX-MEMBER CONFERENCE COMMITTEE.
00:01:55	FELIX IS THE SON ISTRACY PLOUCK, WHO ON SUNDAY WAS ALSO SWORN IN
00:02:06	AS THE DIRECTOR OF THE NEWLY CREATED DEPARTMENT OF HEALTH AND
00:02:10	DRUG ADDICTION SERVICES, IF THE MERGED AGENCY THAT SHE TALKED
00:02:13	ABOUT ON THE SHOW TWO WEEKS AGO. THE BUDGET INCLUDED A GRADUAL
00:02:19	INCOME TAX CUT OVER THREE YEARS, WHICH GOES BEYOND THE TWO-YEAR
00:02:23	BUDGET CYCLE, INCLUDING A 50% TAX CUT FOR SMALL BUSINESSES
00:02:28	BEYOND $250,000 IN INCOME. THERE IS ALSO THE ELIMINATION OF
00:02:32	THE 12.5% ROLLBACK ON NEW LEVIES AND MEANS TESTING FOR THE
00:02:37	HOMESTEAD TAX EXEMPTION FOR ELDERLY AND DISABLED HOMEOWNERS
00:02:41	MAKING MORE THAN $30,000 IN INCOME.
00:02:43	GOVERNOR KASICH SAID HE WAS PLEASED WITH THE BUDGET, THOUGH
00:02:48	IT DID NOT INCLUDE HIS PROPOSED MEDICAID EXPANSION.
00:02:52	>> WE ARE GOING TO CONTINUE TO PUSH FORWARD WITH ADDITIONAL
00:02:55	PROGRAMS TO HELP THOSE WHO ARE POOR AND DISADVANTAGED.
00:02:58	WE ARE PROUD OF OUR TAX CUTS, BECAUSE WE THINK THIS IS ANOTHER
00:03:01	INSTALLMENT IN OHIO'S COME BACK. >> FOR MANY, BIG QUESTIONS
00:03:09	CENTERED AROUND WHAT, IF ANYTHING, THE GOVERNOR WOULD
00:03:12	TARGET WITH HIS LINE-ITEM VETO. REPORTERS WERE NOT INFORMED OF
00:03:17	HIS VETO DECISIONS UNTIL AFTER HE HAD LEFT THE ROOM, AND AS
00:03:22	THOSE EXPECTED, HE STRUCK LINES THAT WOULD HAVE PROHIBITED
00:03:25	MEDICAID EXPANSION, AS MANY DEMOCRATS AND ADVOCATES FOR
00:03:29	EXPANSION HAD URGED HIM TO DO, BUT LAWMAKERS WOULD STILL HAVE
00:03:33	TO APPROVE MEDICAID EXPANSION FOR IT TO GO FORWARD.
00:03:35	IF THERE IS ALSO EXEMPTING SPIDER MONKEYS FROM THE NEW AND
00:03:40	EXOTIC ANIMALS LAW AND REDLINING AN ADDITIONAL $60 MILLION FOR
00:03:44	NURSING HAMAS. HE ALSO GOT OUT A PROVISION
00:03:47	EXEMPTING THE PURCHASES OF AEROSPACE RESEARCH AND
00:03:52	DEVELOPMENT FROM THE SALES TAX, AND HE NOTED THAT HE VETOED THAT
00:03:56	ITEM BEFORE, AS WELL, BUT THE GOVERNOR DID NOT VETO ANY OF THE
00:04:00	ABORTION-RELATED MEASURES IN THE BUDGET.
00:04:02	THAT INCLUDED WHAT REPUBLICAN LAWMAKERS CALLED THE RE-
00:04:07	PRIORITIZATION OF THE PLANNED PARENTHOOD FUNDING, HE
00:04:09	ESSENTIALLY STRIPPING ITS $1.40 MILLION IN STATE FUNDING, AND A
00:04:14	LAST-MINUTE ADDITION TO REQUIRE A DOCTOR TO INFORM THE WOMAN OF
00:04:17	THE PRESENCE OF A FETAL HEARTBEAT PERFORMED -- DURING
00:04:23	THE PROCEDURE. NATIONAL TALK SHOWS AND
00:04:26	THOUSANDS OF EMAILS AND TWEETS FEATURED THIS PICTURE, WHICH I
00:04:31	TWEETED DURING THE SIGNING CEREMONY, WHICH NOTED THERE WERE
00:04:37	NO WOMEN IN IT. THERE WERE NO WOMEN ON THE
00:04:40	CONFERENCE COMMITTEE, REPUBLICAN OR DEMOCRAT, AND THERE WAS THE
00:04:43	ONLY ONE WOMAN WHO VOTED AGAINST THE BUDGET, REPUBLICAN
00:04:46	REPRESENTATIVE KRISTINA ROEGNER OF HUDSON, WHO IS A STAUNCH
00:04:53	SUPPORTER OF THE RESTRICTIONS ON ABORTION.
00:04:55	KELLIE COPELAND WITH NARAL/PRO CHOICE OHIO SAYS ACTIVISTS ARE
00:05:06	WORKING ON THAT. >> TO DETERMINE WHAT KIND OF
00:05:09	LEGAL CHALLENGES WILL HAPPEN IN THE MEANTIME, BUT ULTIMATELY, IT
00:05:12	WILL BE THE VOTERS WHO HOLD GOVERNOR KASICH RESPONSIBLE FOR
00:05:18	IN DANGER IN WOMEN'S HEALTH. >> NOW THAT THE BUDGET IS SIGNED
00:05:21	AND IN PLACE, IT IS UP TO THE EXPERTS AND TO US STATE HOUSE
00:05:26	AND JOURNALISTS TO DIG INTO WHAT IS IN THE HUGE PLANT TO FIND OUT
00:05:29	MORE ABOUT IT. LAST WEEK, I TALKED WITH TWO
00:05:33	BUDGET WATCHERS WHO ARE ON DIFFERENT SIDES OF THE POLITICAL
00:05:36	SPECTRUM. JON HONECK IS WITH THE CENTER
00:05:41	FOR COMMUNITY SOLUTIONS, A PROGRESSIVE-LEADING RESEARCH
00:05:44	GROUP DEALING WITH FISCAL, HEALTH, SOCIAL, AND ECONOMIC
00:05:47	POLICY. GREG LAWSON IS A POLICY ANALYST
00:05:52	FOR THE CONSERVATIVE BUCKEYE INSTITUTE, WHICH DESCRIBES
00:05:56	ITSELF AS A FREE-MARKET THINK- TANK.
00:05:58	I STARTED THE SECOND PART OF OUR CONVERSATION BY ASKING THEM
00:06:01	ABOUT THE LESSER-REPORTED PART OF THE BUDGET DEAL, THE PROPERTY
00:06:05	TAX CHANGES. >> THERE WAS TREMENDOUS SUPPORT
00:06:08	THAT BASICALLY DECIDED TO MAKE IT UNIVERSAL.
00:06:10	YOU TURN 65, YOU KNOW, YOU ARE GOING TO GET IT.
00:06:14	THE COST OF THAT WAS TREMENDOUS. IT IS SOMETHING LIKE $400
00:06:18	MILLION PER YEAR TO SUPPORT THAT PROGRAM, AS THE OHIO POPULATION
00:06:22	AGES, BUT COST ONLY GOING UP. PEOPLE TALKING ABOUT THAT FOR A
00:06:26	NUMBER OF YEARS, WHAT ARE WE GOING TO DO?
00:06:28	THE PROPOSAL IN THE BUDGET, THE MEANS TEST, IT IS A GOOD ONE,
00:06:34	BUT IT IS DONE IN A WAY THAT IT GRANDFATHERS IN EVERYBODY WHO IS
00:06:38	GETTING IT NOW, SO IT CREATES TWO-CLASS SYSTEM, WHERE IF YOU
00:06:45	TURN 65 NEXT YEAR, AND YOU GET THE MEANS TESTED VERSION OF IT,
00:06:49	SO IF YOUR INCOME IS OVER $30,000, YOU DO NOT GET IT, BUT
00:06:53	EVERYONE ELSE IS GRANDFATHERED IN.
00:06:56	>> THAT IS A PRETTY LOW THRESHOLD.
00:06:59	>> IT IS PRETTY LOW. IT WILL BE ADJUSTED FOR
00:07:03	INFLATION. IT IS VERY SIMILAR TO WHAT IT
00:07:06	WAS IN 2007. THEY HAVE ADJUSTED UPWARD FOR
00:07:10	INFLATION A LITTLE BIT, BUT IT COULD HAVE BEEN DONE IN SUCH A
00:07:13	WAY MAYBE TOO SLOWLY PHASE OUT SOME OF THE FOLKS WHO WOULD BE
00:07:17	GRANDFATHERED IN, SO EVERYBODY IS ON THE SAME PAGE, SO TO
00:07:21	SPEAK, AND YOU GET SOME MORE COST SAVINGS.
00:07:24	THE OTHER PROPOSAL WOULD BASICALLY SAY FOR NEW LEVIES,
00:07:29	THE STATE IS NOT GOING TO GIVE THE 12.5% ROLLBACK.
00:07:32	THE STATE PAYS 10% ON ALL RESIDENTIAL AND AGRICULTURAL
00:07:37	PROPERTY. IF YOU OWN YOUR OWN HOME, THERE
00:07:38	IS ANOTHER 2.5%. I DO NOT THINK MOST PEOPLE KNOW
00:07:43	THAT, UNLESS YOU'RE REALLY STUDYING PROPERTY-TAX BILL, AND
00:07:46	THE TAX ARGUMENT AGAINST THIS IS IT IS NOT TRANSPARENT, AND YOU
00:07:50	HAVE A PASS, AND THEN YOU HAVE THE STATE COMING IN AND
00:07:54	SUBSIDIZING THAT, AND THE COST HAS SLOWLY GROWN OVER TIME, SO
00:07:58	THERE IS A LOT OF CONCERN OVER THAT.
00:08:01	ON THE OTHER HAND, WHAT WE HAVE SAID OVER THE LAST YEARS, I
00:08:04	THINK, THE SCHOOLS, AND MY ORGANIZATION A'S CONCERN, HUMAN
00:08:09	SERVICES LEVEES, CHILD PROTECTION AND OTHER AREAS, THEY
00:08:13	ARE SAYING THAT SINCE WE ARE NOT GOING TO USE THIS ROLL BACK
00:08:17	ANYMORE AND NEW LEVIES, IT IS GOING TO BE EXTREMELY DIFFICULT
00:08:21	TO GO TO THE VOTERS AND SAY, "OK, WE NEED THIS NEW LEVY," AND
00:08:28	PEOPLE ARE REALIZING WE ARE NOT GOING TO GET THIS ANYMORE, SO
00:08:31	MAYBE THEY SHOULD HAVE LOOKED FOR SOME MEANS TESTING THERE,
00:08:35	TOO, OR SOMETHING WITH WHAT THEY GET PAID FOR EACH HOUSEHOLD.
00:08:38	>> I WANT TO ASK YOU. YOU HAVE WRITTEN ABOUT THAT.
00:08:41	IF THERE IS TRANSPARENCY WITH TAXES WITH THIS ROLLBACK, YOU
00:08:45	FEEL THAT VOTERS MAY REJECT THE LEVIES, AND AS HE WROTE, THE
00:08:51	VOTERS MAY BE LESS LIKELY TO SUPPORT THE COLLECTIVE
00:08:53	BARGAINING PACKAGES. THAT IS VERY INTERESTING.
00:08:56	THIS IS AN ANTI-COLLECTIVE BARGAINING MOVE, YOU THINK?
00:09:00	>> I SERIOUSLY DOUBT THAT WAS THE INTENTION THAT DROVE IT.
00:09:03	I THINK IT WAS MORE THAT THE STATE NEEDED WITH THE INCOME TAX
00:09:06	AND OTHER ADJUSTMENTS MADE, THEY NEEDED SOME REVENUE.
00:09:09	THERE IS AN ARGUMENT ABOUT THE STATE COMING IN AND SUBSIDIZING
00:09:12	SOMETHING THAT MOST PEOPLE DO NOT EVEN REALIZE, AND I THINK
00:09:15	THAT THAT ISSUE HAS BEEN DISCUSSED OVER THE YEARS BEHIND
00:09:19	THE SCENES QUITE A BIT. BUT FROM OUR STANDPOINT, WE DO
00:09:24	NOT LIKE TO SEE TAXES GO UP AT ALL.
00:09:26	OBVIOUSLY, SOMETHING LIKE THIS MEANS MORE MONEY COMING OUT OF
00:09:30	TAXPAYERS' AND HOMEOWNERS' POCKETS.
00:09:38	THIS IS NOT TO SAY THAT NO LEVY SHOULD EVER PASS.
00:09:40	PAYING 12% MORE ON YOUR TAX BILL.
00:09:44	BUT NOW, IT GIVES YOU AN ADDED INCENTIVE TO ASK TOUGH
00:09:49	QUESTIONS, AND I THINK THAT IS REALLY WHERE WE SEE THERE COULD
00:09:52	BE SOME ADDITIONAL BENEFIT. THERE IS A GENERAL TRANSPARENCY
00:09:56	ARGUMENT THAT IS LEGITIMATE, I THINK, IN ITS OWN RIGHT, BUT I
00:10:00	THINK A COUPLE OF STEPS OUT, THIS CAN OVER TIME TO BE USED BY
00:10:04	FOLKS TO ASK QUESTIONS AT SCHOOL BOARDS, AT CITY COUNCILS, AND AT
00:10:09	OTHER ORGANIZATIONS, TRYING TO PUT BALANCE ISSUES ON.
00:10:12	WE THINK THERE IS STILL A LARGE ISSUE THAT IS LOOMING OUT THERE.
00:10:17	WE TALK ABOUT LOCAL GOVERNMENT, LOCAL GOVERNMENT TAXES, WHICH
00:10:20	NEEDS TO BE ADDRESSED. YOU CANNOT FOCUS ON THAT AND TO
00:10:23	FOCUS ON SPENDING, AND YOU CANNOT FOCUS ON SPENDING UNLESS
00:10:27	YOU FOCUS ON COLLECTIVE BARGAINING, AND THERE WAS AN
00:10:29	EFFORT TO DO THAT, AND THAT DID NOT GO SO WELL.
00:10:32	FROM OUR PERSPECTIVE, THAT IS TRUE, THE FACT THAT IT WAS
00:10:37	GENERALLY SUPPORTIVE OF THE CONCEPT, IF NOT SOME OF THE WAYS
00:10:40	IN WHICH IT MIGHT HAVE BEEN DONE.
00:10:41	THE ISSUE THOUGH IS WE HAVE GOT TO STILL DO IT.
00:10:44	THIS IS AN 800-POUND GORILLA THAT IS STILL OUT THERE, AND IS
00:10:49	STILL WAITING, ON A LONG-TERM SENSE AROUND THE NECK OF OHIO.
00:10:52	IS THERE IS ANY WAY TO FACILITATE RAISING THIS ISSUE IN
00:10:58	A SMALL WAY ON A CASE-BY-CASE BASIS, THEN THERE COULD BE SOME
00:11:02	POSITIVE THINGS. >> I WANT TO ASK YOU ABOUT SOME
00:11:05	FOLKS WHO HAVE DONE THE MATH ON THESE TAX CUTS, AND ESPECIALLY
00:11:09	FOR SMALL BUSINESSES, THEY ARE WAY TO A SMALL TO FINANCE EVEN
00:11:13	ONE JOB AT SOME OF THESE SMALL BUSINESSES, SO HOW IS IT THESE
00:11:17	TAX CUTS ARE REALLY CREATING JOBS HERE?
00:11:19	>> THERE ARE A NUMBER OF THINGS THAT ARE HAPPENING.
00:11:21	THERE IS A STATIC NOTION THAT THIS MEANS THEY ARE GOING TO PUT
00:11:25	THIS BACK INTO AN INDIVIDUAL JOB RIGHT AWAY.
00:11:28	YOU HAVE LONG-TERM CAPITAL FORMATION, WHICH CAN LEAD TO JOB
00:11:32	GROWTH OVER TIME, MAYBE NOT IN YEAR 1, BUT IN OTHER YEARS.
00:11:39	SOMETIMES, IT IS CAPITAL OR A NEW COMPUTER OR SOMETHING LIKE
00:11:42	THAT, IF YOU ARE A BARBER SHOP OR A SMALL BUSINESS, WHATEVER
00:11:46	YOU MIGHT BECOME A STOREFRONT KIND OF SITUATION, AND IF YOU
00:11:50	START TO SEE THAT AND ARE ABLE TO INVEST IN IMPROVED A, YOU
00:11:53	WILL BEGIN TO SEE AN EFFECT WHERE YOU CREATE OF THINGS,
00:11:57	ESPECIALLY IN CERTAIN UNDER- SERVED AREAS, WHERE THERE MAY
00:12:00	NOT BE AS MANY SMALL BUSINESSES RIGHT THERE, IN URBAN AREAS,
00:12:07	DISADVANTAGED NEIGHBORHOODS, AND THINGS LIKE THAT.
00:12:10	THESE KINDS OF THINGS OVER TIME CAN HELP TO CREATE MORE SMALLER
00:12:15	BUSINESSES STAYING OPEN, STAYING THERE, AND TREATING OTHER PEOPLE
00:12:18	COMING INTO THAT AREA, SO IT IS NOT JUST, OH, HAVE TO HIRE ONE
00:12:23	FOR ONE PERSON. IT IS A LONG-TERM THING WE WANT
00:12:28	TO SEE OVER A BROAD PERIOD OF TIME, SO I THINK WE HAVE TO BE
00:12:33	CAREFUL OF NOT LOOKING AT IT THAT IT HAS TO BE AT THE DROP OF
00:12:37	A HAT. WE HAVE TO LOOK AT THE LONG-TERM
00:12:39	FORMATION OF CAPITAL. >> LOOKING LONG TERM, YOU HAVE
00:12:42	GOT A LOT OF REPUBLICANS TALKING ABOUT THE TAX CUTS OVER THE
00:12:46	YEARS HAVE TURNED OUT TO IMPROVE THE ALL-ECONOMY.
00:12:49	THE UNEMPLOYMENT RATE IS DOWN. THERE ARE THINGS GOING WELL.
00:12:52	HOW DO YOU ARGUE WITH THAT, JON? >> I WOULD LOVE TO SEE THINGS
00:12:57	GOING WELL AND TO CONTINUE. I HAVE LIVED IN THE STATE MOST
00:13:01	OF MY LIFE AND HAVE LIVED HERE. WE ALL WANT TO PROSPER.
00:13:04	I THINK WITH RESPECT TO THE SMALL BUSINESS DEDUCTION, IN
00:13:09	PARTICULAR, IT HAS BEEN POINTED OUT BY MANY THAT MANY OF THESE
00:13:13	BUSINESSES ARE SELF-EMPLOYED. THEY HAVE NO INTENTION OF HIRING
00:13:17	ANYONE ELSE. SOME OF THE TAXPAYERS THAT WOULD
00:13:19	BE AFFECTED ACTUALLY LIVES OUT- OF-STATE, SO WE HAVE NO IDEA
00:13:24	WHERE THAT MONEY IS GOING TO GO. THERE ARE PROBABLY INVESTED IN
00:13:28	MULTIPLE BUSINESSES. IT THE POLICY DESIRE WAS TO
00:13:33	FOCUS THE TAX MECHANISM TO FOCUS ON JOB CREATION, WHICH IS VERY
00:13:37	DIFFICULT, IT IS VERY DIFFICULT TO DO THAT.
00:13:41	JOB CREATION DEPENDS ON A LOT OF DIFFERENT FACTORS, WORK FORCE
00:13:45	DEVELOPMENT, BUT THAT, THOSE RESOURCES SHOULD HAVE BEEN
00:13:49	FOCUSED ON COMPANIES THAT ACTUALLY WERE GOING TO CREATE
00:13:51	JOBS, AND MAY BE ALMOST A PAY FOR PERFORMANCE TYPE OF
00:13:54	SITUATION, A JOB-CREATION TAX CREDIT OR SOMETHING LIKE THAT.
00:13:58	YOU SHOW US YOU CAN INCREASE REPAY WILL COMPARE TO WHAT IT
00:14:02	WAS ONE YEAR AGO OR TWO YEARS AGO, AND YOU WILL GET A TAX CUT.
00:14:07	THE GENERAL TAX CUTS KIND OF PUT THE MONEY OUT THERE, LET'S CROSS
00:14:11	OUR FINGERS AND HOPE FOR THE BEST, AND THAT IS A LONG WAY TO
00:14:15	GO. >> DUTIES NOT DRIVE DOWN TAXES
00:14:18	TO THE LOCAL LEVEL? THIS IS COMMUNITIES AND SCHOOLS
00:14:22	COUNTING ON THE MONEY OVER THE YEARS.
00:14:24	DOES THAT NOT MEAN THEY WILL GO TO LOCAL RESIDENTS AND TRY TO
00:14:28	GET MORE FROM THEM? >> I KNOW THAT IS AN ARGUMENT
00:14:31	THAT IS OUT THERE A LOT, BUT BEFORE THE CUTS AND A LOT OF
00:14:34	OTHER THINGS, AND THE CURRENT ONE, THERE WAS AN ARGUMENT THAT
00:14:39	THE STATE WAS DOING HEAVY SUBSIDIZATION OF LOCAL
00:14:41	GOVERNMENT, AND MANY SHELL GAMES IS A WAY OF LOOKING AT IT.
00:14:47	THERE WAS A LOT OF THAT GOING ON.
00:14:50	A LOT OF TIMES, WE DID NOT APPRECIATE THE FULL COST.
00:14:55	YES, IT DOES COME TO SOME EXTENT SHIFT BACK DOWN.
00:14:59	IT SHIPS IT DOWN TO WHERE PEOPLE HAVE CONTROL AT THE BALLOT BOX
00:15:02	AND MAKING DECISIONS OF THE LOCAL LEVEL.
00:15:05	IN MOST CASES, TO TALK TO YOUR LOCAL CITY COUNCIL AND TALK TO
00:15:10	THEM, SOMETIMES IT IS THE UNDERSTANDING TO GET TO THE
00:15:14	COLUMBUS NETWORK, WHEN YOU ARE TALKING ABOUT THE STATE
00:15:18	LEGISLATURE OR THE GOVERNMENT -- GOVERNOR OR THINGS LIKE THAT.
00:15:23	AND NUMBER TWO, IT ALSO FORCES GOVERNMENTS TO DO THINGS THEY
00:15:27	MAY NOT WANT TO DO BUT SHOULD HAVE BEEN DOING.
00:15:29	WE HAVE MORE GOVERNMENT ENTITIES, TAXING AUTHORITIES PER
00:15:34	COUNTY, THAN MANY OTHER STATES DO.
00:15:37	THEY BROUGHT THIS BACK ABOUT REFORMING, SHARING OF SERVICES,
00:15:41	SOMETHING THE GOVERNOR HAS TALKED ABOUT, SOMETHING THE
00:15:45	STATE AUDITOR DAVE YOST HAS TALKED ABOUT.
00:15:53	THAT IS TRUE. WE, IF YOU'RE GOING TO HAVE AN
00:15:59	ECONOMY THAT TAKES OFF IN OHIO, WE WILL HAVE TO DEAL WITH A MUCH
00:16:03	LOWER TAX ENVIRONMENT OVERALL, AND WE WOULD HAVE TO DO THINGS
00:16:07	DIFFERENT. THAT DOES MEAN SHARING SERVICES.
00:16:09	THAT MIGHT MEAN SOME OTHER TYPES OF MODIFICATIONS DOWN THE ROAD,
00:16:13	ON A LOCALIZED BASIS. TO HAVE THAT CONVERSATION, --
00:16:23	>> I THINK THERE HAVE BEEN SUBSTANTIAL CUTS WITH THE LOCAL
00:16:26	GOVERNMENTS, WITH THE ELIMINATION OF THE TANGIBLE
00:16:31	PERSONAL PROPERTY TAX. THE STATE WAS SUPPOSED TO
00:16:33	REIMBURSE THEM FOR LOST REVENUE. CUTTING WAY BACK WITH THE LAST
00:16:41	BUDGET, HAVING A LOCAL GOVERNMENT FUND, SO THE STATE
00:16:46	CAN INCENTIVIZE LOCALITIES TO SHARE SERVICES AND COLLABORATE,
00:16:49	THAT IS GREAT. THAT IS SOMETHING WE SUPPORT,
00:16:53	AND WE WOULD LIKE TO SEE MORE OF THAT, EVEN IN THE HUMAN SERVICES
00:16:56	ARENA. ON THE OTHER HAND, AS YOU SAID,
00:17:01	KAREN, THEY REALLY PUSH MORE OF THE RESPONSIBILITY FOR
00:17:05	PROGRAMMING DOWN TO THE LOCAL LEVEL, AND WE HAVE SOME AREAS IN
00:17:09	THE STATE THAT HAVE VERY LITTLE TO TAX.
00:17:11	THEIR TAX CAPACITY, PARTICULARLY IN RURAL AREAS, THERE IS JUST
00:17:19	NOT MUCH THERE, SO YOU HAVE AN UNEVEN SITUATION.
00:17:22	PEOPLE DO NOT GET THE SAME SERVICES.
00:17:24	IF YOU ARE IN URBAN AREAS, ARE GENERALLY GOING TO GET MORE
00:17:27	SERVICES THAN O T -- OUT IN RURAL AREAS, AND IF WE DO NOT
00:17:36	WATCH IT, IT COULD GET WORSE FOR OUR SENIORS AND OTHERS.
00:17:40	>> TALKING ABOUT SOME THINGS NOT IN THE BUDGET, INCLUDING THE
00:17:45	MEDICAID EXPANSION. LET'S START WITH THAT.
00:17:48	WHAT DO YOU THINK IS THE NEXT STEP FOR THAT?
00:17:49	THERE IS A MEDICAID REFORM BILL THAT APPEARS TO BE THE WAY
00:17:53	THINGS ARE GOING. WHAT IS NEXT IN REGARD TO THIS
00:17:57	MEDICAID EXPANSION OF THE GOVERNOR WANTED?
00:18:00	>> WE HAVE BEEN VERY SUPPORTIVE OF MEDICAID EXPANSION.
00:18:02	OVER 300,000 PEOPLE, MANY OF WHOM ARE WORKING, THEY ARE
00:18:10	WORKING A LOW-WAGE JOBS. THEY ARE THE PEOPLE YOU SEE
00:18:14	EVERY DAY WORKING AT THE CASH REGISTER.
00:18:15	HAVE THEM COVERED. REALLY COLLAPSING FOR MANY OF
00:18:21	OUR CITIZENS FOR SEVERAL DECADES, AND IT IS ONLY GOING TO
00:18:25	CONTINUE. UNFORTUNATELY.
00:18:27	I DO NOT KNOW ABOUT THE NEXT STEP.
00:18:28	THERE SEEMS TO BE A COMMITMENT HERE IN BOTH HOUSES TO CONTINUE
00:18:32	THE DISCUSSION OVER THE SUMMER, MAYBE INTO THE FALL.
00:18:35	POLITICALLY, I AM NOT SURE EXACTLY WHAT HAS CHANGED THOUGH
00:18:42	IN THE OVERALL CALCULATION. THERE SEEMS TO BE A DESIRE TO
00:18:46	ADD THINGS INTO THE BILL HAVING TO DEAL WITH WORK REQUIREMENTS
00:18:49	AND THINGS LIKE THAT, SOME OF WHICH THE FEDERAL GOVERNMENT
00:18:53	PROBABLY WILL NOT ALLOW, AT LEAST IN THE MOST EXTREME FORM,
00:18:57	AND I THINK THERE IS SORT OF AN UNFORTUNATE EQUIVALENCY PUT UP
00:19:03	HERE THAT IF WE CAN JUST GET PEOPLE WORKING, WE WILL GET THEM
00:19:07	INTO BETTER JOBS AND GET EMPLOYER COVERAGE, BUT THEY ARE
00:19:10	MISSING THE POINT. THESE PEOPLE ARE WORKING.
00:19:12	SOMETIMES THEY ARE WORKING TWO JOBS, AND TO SAY TO THEM, WE ARE
00:19:18	GOING TO KIND OF KEEP YOU AT BAY FOR THE NEXT YOU ARE WHATEVER
00:19:21	UNTIL WE FIGURE THIS OUT IS, I THINK, EXTREMELY UNFORTUNATE,
00:19:26	ALMOST UNCONSCIONABLE, BECAUSE THE FEDERAL GOVERNMENT IS GOING
00:19:29	TO PAY 100% OF THIS EXPANSION AND THEN GO DOWN TO 90% AFTER
00:19:34	THAT, SO I HOPE THE LEGISLATURE REALLY GETS ITS ACT TOGETHER AND
00:19:38	TAKES A VOTE AND MOVES FORWARD. >> JON, THIS IS ONE THING WE DO
00:19:46	NOT AGREE ON. THE BUCKEYE INSTITUTE HAS BEEN
00:19:49	PRETTY OUTSPOKEN ON THIS. IT SEEMS LIKE A GOOD IDEA IN THE
00:19:54	SHORT RUN, BECAUSE AS MONT ALLUDED TO -- AS JON ALLUDED TO,
00:20:01	PERHAPS DEBT-FUNDED MONEY FROM THE GOVERNMENT, IT HAS ALREADY
00:20:06	GOT CLOSE TO $17 TRILLION IN DEBT, AND OPPRESSIVE AMOUNT OF
00:20:10	DEBT AT THE NATIONAL LEVEL. THAT IS A SERIOUS ISSUE.
00:20:14	I KNOW A LOT OF PEOPLE WOULD LIKE TO SAY IT IS NOT.
00:20:17	IT IS. WE ARE SEEING THAT IN
00:20:19	SEQUESTRATION AND IN WASHINGTON TRYING TO DEAL WITH IT, BUT THE
00:20:22	REAL THING IS THERE MIGHT BE OTHER WAYS WE CAN ADDRESS THIS.
00:20:25	WE DO NOT WANT OHIO TO GET INTO A SITUATION.
00:20:29	THE FORMER GOVERNOR PLAYING PACMAN, AND IT STILL IS.
00:20:33	QUITE FRANKLY, THE CURRENT GOVERNOR'S ADMINISTRATION HAS
00:20:38	DONE SOME WORK ON HOME CARE AND REBALANCING -- TERM CARE ISSUES,
00:20:42	SO THERE ARE SOME GOOD THINGS GOING ON THAT THEY DESERVE AN
00:20:47	INCREDIBLY LARGE AMOUNT OF KUDOS FOR.
00:20:50	BUT THAT SAID, THIS IS MOSTLY ADULTS WITHOUT DEPENDENT
00:20:55	CHILDREN. WE HAVE NEVER MADE THE DECISION
00:20:58	IN HISTORY. MEDICAID HAS ALWAYS BEEN A
00:21:00	SAFETY NET FOR CERTAIN POPULATIONS.
00:21:02	WE ARE NOW BASICALLY EXPANDING THAT IN THE LARGEST WAY WE HAVE
00:21:06	EVER POTENTIALLY EXPANDED THIS PROGRAM SINCE ITS INCEPTION.
00:21:11	WE ALSO, AND THIS IS NOT TALKED ABOUT NEARLY ENOUGH, BUT THE
00:21:14	OBAMA ADMINISTRATION IN WASHINGTON ITSELF ALREADY
00:21:17	THREATENED TO REDUCE THE RATES TO THE STATE BEFORE THE SUPREME
00:21:20	COURT DECISION LAST YEAR THAT FOUND THE ACT -- THERE WAS A
00:21:25	DESIRE TO CUT THAT. THE OBAMA ADMINISTRATION DID
00:21:30	THAT. THAT WOULD APPEAR OHIO IN A MUCH
00:21:32	DIFFERENT SITUATION. THERE ARE NUMBERS ABOUT WHAT WE
00:21:35	CAN EXPECT. THEY MIGHT NOT.
00:21:36	AND THEY MIGHT NOT FOREVER, AND THEN DOWN TO 90%, WHAT HAPPENS
00:21:43	IF THEY CHANGE THAT? OHIO CAN BE ON THE HOOK IN THE
00:21:46	LONG TERM ONCE THEY GET OUTSIDE THE NEXT THREE OR FOUR YEARS, SO
00:21:49	WE THINK IT IS ACTUALLY VERY PRUDENT THAT THE LEGISLATURE IS
00:21:53	TAKING TIME NOT TO RUN HEADLONG INTO THIS, BECAUSE THERE ARE
00:21:57	MANY THINGS, NOT TO MENTION OUR HEALTH OUTCOMES.
00:22:00	PEOPLE ON MEDICAID. THERE ARE A LOT OF ISSUES THAT
00:22:04	THEY ARE FLESHING OUT. THERE IS NOW TIME TO DO THAT.
00:22:07	WE CERTAINLY DO NOT NEED TO BE RUSHING INTO A DECISION.
00:22:11	>> REALLY QUICKLY, I WANT TO ASK YOU ABOUT THE SEVERANCE TAX.
00:22:14	IT APPEARS THE LEGISLATURE WAS SUPPORTIVE OF THAT LAST YEAR.
00:22:21	THIS YEAR IS A DIFFERENT YEAR. YOU HAVE LAWMAKERS SAY NO.
00:22:25	WHERE DO YOU THINK THIS IS, GIVEN THAT THIS OIL AND GAS BOOM
00:22:30	IS NOT GOING AWAY? >> I THINK AS YOU SEE MORE AND
00:22:34	MORE WELLS COMING ON LINE AND BEING DRILLED, AND YOU SEE MORE
00:22:38	OF A LOCAL IMPACT IN THAT INDUSTRY ON THE ROADS AND THE
00:22:42	ENVIRONMENT, I THINK THAT WILL ONLY GROW.
00:22:45	WE WILL SEE THAT INDUSTRY TAX, AS WE SEE IN OTHER STATES.
00:22:49	THE GOVERNOR WAS PROPOSING TAX RATES THAT WERE MUCH LOWER THAN
00:22:53	THE NATIONAL AVERAGE, AND YET, WE CAN SEE OTHER STATES OUT
00:22:57	WEST, AGAIN, NORTH DAKOTA COMES TO MIND -- JUST A HUGE BOOM OUT
00:23:02	THERE. THE ARGUMENT THAT THESE TAXES
00:23:05	WERE SOMEHOW GOING TO IMPEACH THE INDUSTRY I THINK OR JUSTIN
00:23:07	RONNY IS. -- TO IMPEDE THE INDUSTRY, I
00:23:16	THINK WAS JUST ERONEOUS. >> I THINK IT HAS BEEN A LITTLE
00:23:21	MORE SUNNY. THE NATURAL GAS IS AT A NATURAL
00:23:27	LOW RIGHT NOW. CHANGING THINGS.
00:23:31	RIGHT NOW, IT IS AT HISTORICAL LOWS.
00:23:34	THIS HAS NOT YET PROVEN TO BE PLAYING OUT AS WELL AS IT WOULD
00:23:40	APPEAR THE GOVERNOR HAD EXPECTED.
00:23:41	I THINK IT IS STILL A NASCENT INDUSTRY.
00:23:47	THINGS ARE GROWING WELL. BUT IT IS NOT REALLY TRULY CLEAR
00:23:53	THAT WE ARE GOING TO BE A NORTH DAKOTA OR TEXAS, AND PUTTING
00:23:59	THIS OUT THERE MAY NOT BE AS BENEFICIAL, SO IT IS SOMETHING
00:24:03	THAT WILL PROBABLY CONTINUE TO BE DISCUSSED, BUT I DO NOT THINK
00:24:06	THERE IS ANY REASON WE HAVE TO BE RUSHING TO MAKE A DECISION,
00:24:10	ESPECIALLY GIVEN THE STATUS OF THE INDUSTRY AS IT CURRENTLY
00:24:13	STANDS. >> VERY QUICKLY, I KNOW NEITHER
00:24:16	OF YOU, OUR SOCIAL ACTIVISTS. PARTICULARLY ABORTION, GETTING
00:24:20	INTO THIS BUDGET, MAYBE WHEREAS GUN LAWS AND SOME OTHER ISSUES
00:24:24	DID NOT. WHY IS ABORTION SUCH A BIG ISSUE
00:24:27	IN THIS BUDGET? GREG, LET ME ASK YOU.
00:24:32	>> IT IS INTERESTING. BUT IT'S BECOME CHRISTMAS TREES.
00:24:34	IT IS THE SINGLE BIGGEST POLICY LEGISLATION THAT YOU WILL FIND
00:24:38	IN ANY GIVEN TWO-YEAR CYCLE FOR THE GENERAL ASSEMBLY.
00:24:42	THERE IS A LOT OF ISSUES OUT THERE THAT PEOPLE WANT TO SEE
00:24:46	MOVE FORWARD. THIS PROVIDES THE OPPORTUNITY TO
00:24:49	BE ABLE TO DO IT, AS LONG AS THERE IS SOME TYPE OF
00:24:52	APPROPRIATION OR SOMETHING ASSOCIATED WITH IT.
00:24:53	THERE IS SOME QUESTION OF CONSTITUTIONAL ISSUES, A SINGLE
00:24:59	SUBJECT, THINGS LIKE THAT, BUT IF YOU CAN MAKE AN
00:25:01	APPROPRIATION, IS A VEHICLE. QUITE FRANKLY, IT IS AS SIMPLE
00:25:06	AS THAT. I KNOW PEOPLE GET FRUSTRATED,
00:25:09	BUT THEY DO IT IN CONGRESS. OTHERS STATEHOUSES DO IT.
00:25:12	THIS IS PART OF THE WITH THE LEGISLATIVE PROCESS WORKS.
00:25:16	>> THE LAST WORD. >> THINGS GET IN THERE AT THE
00:25:21	LAST MINUTE, AND SOMETIMES THEY ARE GOOD, AND IN THIS CASE, WITH
00:25:25	RESTRICTIONS ON ABORTION AND PLANNED PARENTHOOD, PROBABLY NOT
00:25:28	GOOD, ACCORDING TO OUR POINT OF VIEW, BUT WE WILL HAVE TO LIVE
00:25:32	WITH IT NOW, AND THE BATTLE WILL MOVE.
00:25:33	>> PAUL BECK, A POLITICAL SCIENCE PROFESSOR AT OHIO
00:25:41	UNIVERSITY AND A FREQUENT GUEST ON THIS SHOW, TOLD ME EARLIER
00:25:44	THIS WEEK THAT HE THINKS WE ARE GOING TO BE SPENDING WEEKS IF
00:25:47	NOT MONTHS FIGURING OUT WHAT IS IN THE BUDGET PACKAGE.
00:25:50	AND THAT IS IT FOR THIS WEEK. FROM MY COLLEAGUES AT OHIO
00:25:54	PUBLIC RADIO AND TELEVISION, THANKS FOR WATCHING.
00:25:57	IF YOU WOULD LIKE TO ASK QUESTIONS OR MAKE COMMENTS OR
00:26:01	WHAT TO THIS WEEK'S SHORT EARLIER EPISODES, PLEASE VISIT
00:26:03	OUR WEBSITE AT STATENEWS.ORG, AND YOU CAN ALSO CHECK US OUT ON
00:26:10	FACEBOOK, AND YOU CAN FOLLOW JO INGLES AND ME ON TWITTER.
00:26:15	PLEASE JOIN US NEXT TIME FOR "THE STATE OF OHIO."
00:26:19	>> SUPPORT FOR "THE STATE OF OHIO" COMES FROM THE LAW OFFICES
00:26:23	OF PORTER, WRIGHT, MORRIS & ARTHUR LLP., HELPING BUSINESSES
00:26:24	AND INDIVIDUALS SOLVE COMPLEX LEGAL PROBLEMS THROUGHOUT OHIO,
00:26:26	ACROSS THE COUNTRY AND AROUND THE WORLD,
00:26:27	ON THE WEB AT PORTERWRIGHT.COM. AND FROM THE OHIO EDUCATION
00:26:30	ASSOCIATION, REPRESENTING 131,000 TEACHERS, SUPPORT
00:26:32	PROFESSIONALS, AND HIGHER EDUCATION FACULTY, WHO ARE
00:26:35	WORKING FOR GREAT PUBLIC SCHOOLS FOR EVERY CHILD, ONLINE
00:26:37	AT OHEA.ORG. ADDITIONAL SUPPORT FOR "THE
00:26:42	STATE OF OHIO" IS MADE POSSIBLE BY ETECH OHIO.

Note : Transcripts are compiled from uncorrected captions