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Thursday, November 01, 2001

Rainy-day dip-in passes House


Budget also uses tobacco settlement

By Andrew Welsh-Huggins
The Associated Press

        COLUMBUS — The House easily passed a plan Wednesday to patch a $1.5 billion state budget deficit by tapping Ohio's rainy day fund and borrowing from the state's multibillion-dollar tobacco settlement.

        The GOP-controlled House passed the plan 55-44, with no Democratic votes. Four Republicans also voted against it, concerned about targeted tax increases on businesses.

        Democrats were prepared to debate the bill and offer changes but did not stand up in time after House Speaker Larry Householder called for a vote.

        The plan, which also includes a proposed sales tax holiday in late January, goes now to the Senate.

        The proposal raises about $344 million over two years in targeted tax increases on businesses, compared with $465 million in Gov. Bob Taft's budget proposal. It also borrows about $240 million from Ohio's share of the national tobacco settlement, compared with $100 million in Mr. Taft's version.

        However, Mr. Taft generally supports the House plan. Taft spokeswoman Mary Anne Sharkey on Wednesday called it a “responsible, balanced package.”

        The plan, introduced Monday night, passed the GOP-controlled House Finance Committee 21-10 along partisan lines about 1:30 a.m. Wednesday.

        Republican lawmakers tried to soften the blow of the targeted tax increases by urging the Ohio Bureau of Workers' Compensation to use $1.7 billion of its $3.4 billion surplus to provide additional credits to employers on their premium payments.

        The bureau approved a plan in April to spend $1.4 billion to reduce employers' upcoming payments by 75 percent.

       



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- Rainy-day dip-in passes House
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