By Liz Sidoti
The Associated Press

COLUMBUS - The state and its largest workers union are starting to negotiate a new contract as Ohio anticipates more budget problems while it weathers the poor economy.

The Ohio Civil Service Employees Association, representing 37,000 public employees - including those in the prisons, highway and human services departments - is the first of several unions to start contract talks. Its agreement expires Feb. 28.

Typically, other unions and nonunion employees can expect to get benefits and wages similar to OCSEA's contract.

Health benefits, job security and wages will be the main issues for OCSEA and the other three unions that make up the United Coalition of State Workers, the unions said at a news conference Monday.

"We all know there's a deficit that's looming in the state," said Dave Regan, president of the Service Employees International Union Local 1199, which represents 4,300 workers, mainly in the health care field.

However, Mr. Regan said, he hopes the state doesn't deny workers wage increases or cut health benefits. He said workers' biggest fear is losing their jobs.

"State employees didn't create the current budget situation we are in today, and shouldn't be punished because of it," said Irwin Scharfeld, OCSEA's executive director and chief negotiator.

Steve Loeffler, deputy director of the state's Office of Collective Bargaining, said Ohio is in the same situation as many other state governments, public entities and private industries.

"Everyone's making tough personnel choices," Mr. Loeffler said.

He said that while Tuesday was to be the first official day of negotiations under Ohio law, the state and unions have discussed the budgetary problems frequently. "Negotiations always are going to be difficult whether you have a lot of money to divvy up or none," Mr. Loeffler said.

Three years ago, the state had plenty of money and OCSEA members received raises of 3 percent, 3.5 percent and 4 percent over the three years of the contract.

Then, the economy worsened. Gov. Bob Taft's administration laid off hundreds of workers and cut agency budgets.

Mr. Taft acknowledges there likely will be a budget deficit when the new fiscal year begins July 1. The deficit has been estimated at $4 billion, but Mr. Taft won't predict how large it will be, because of the volatile economy. Increased Medicaid costs and education funding likely would contribute to the shortfall.

To keep up with inflation, Mr. Scharfeld said, he will push for a wage increase over the three years the contract is expected to cover, and said he would expect larger increases in the last two years.