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Tuesday, January 27, 2004

Taft's address will set agenda


It's his chance to reclaim political clout

By Spencer Hunt
Enquirer Columbus Bureau

COLUMBUS - Hampered by low voter approval and a legislature that frequently ignores or rewrites his initiatives, Gov. Bob Taft might have his best chance to reclaim political momentum Wednesday with his State of the State address.

WHAT'S YOUR TAKE?
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Taft, in his final three years as governor, has effectively used veto threats to reshape lawmakers' plans to legalize concealed weapons and block proposals for slot machines at Ohio racetracks.

But on substantive tax and spending issues, the Republican governor from Cincinnati has faced powerful resistance from the GOP-dominant General Assembly and from voters.

Whether he turns that around in 2004 could determine if he succeeds or fails with his priorities - creating more high-paying jobs and enacting tax and lawsuit reforms.

Taft must attack the perception he's a weak leader, said John Green, director of the Ray C. Bliss Institute of Applied Politics at the University of Akron.

"I think the State of the State speech could be instrumental in turning that perception around," Green said. He wonders if Taft, who is often an uncomfortable speaker, can step up. "If you look at the past," he said, "it would suggest that we won't see that strong and forceful governor."

Taft says he is unconcerned about his popularity or his clout.

"I'm focused less on my approval ratings than I am on trying to do a good job as governor, and doing the right thing," Taft said in December.

A tough 2003

STATE OF THE STATE
Borgman toon

Monday's story:
Blackwell tax drive sets stage for race

Sunday's stories:
Taft sticks with high-tech goal
Third Frontier's three-legged plan two-thirds funded
Third Frontier Project Awards
Editorial:
The real State of Ohio
Borgman cartoon:
No Girly State

At the beginning of Taft's first term in 1999, the state's economy was strong. Budget surpluses helped lawmakers raise state spending and still give back billions to taxpayers in one-time yearly rebates.

A recession that has cost Ohio more than 150,000 manufacturing jobs created the state's worst budget crisis since World War II. While there are signs of a national economic recovery, the state's unemployment rate increased from 5.7 percent in November to 6 percent in December.

Taft's response to a projected $4 billion, two-year budget deficit included a $2.3 billion tax reform proposal that would have expanded the goods and services subject to state sales tax and raised taxes paid by Ohio corporations. He also called for cuts in Medicaid services, including annual increases to nursing homes.

Lawmakers ignored the Medicaid cuts and persuaded Taft to support a temporary increase in the state sales tax. The state's sales tax increased from 5 cents to 6 cents on the dollar. The penny increase is set to expire on June 30, 2005.

Taft's decision to raise the sales tax broke a pledge he made during his re-election campaign. He promised not to support a major statewide tax increase without a vote of the people.

Spokesman Orest Holubec said the governor and the legislature did what was necessary to preserve state funding to schools and services to seniors.

"Unlike the federal government, we have to balance the budget. We don't have the benefit of running deficits," Holubec said. The tax decision and Ohio's economic woes helped sink Taft's approval ratings below 50 percent. In October, the University of Cincinnati's Ohio Poll showed only 44 percent of Ohioans approving of his performance. In November voters defeated Issue 1, the final piece of the governor's Third Frontier jobs initiative.

Taft wanted to borrow $500 million on top of the $1.1 billion he already plans to spend to create high-tech businesses and jobs in Ohio. He invested a lot of his clout in Issue 1, personally appearing in television commercials to make his case.

Wayne Whaley is one Ohioan unimpressed with the governor's work on the economy. Whaley lost a union job at printing company, Poly-Mark, in Woodlawn after operations were moved to Connecticut.

Whaley, 42, said he's since found a lower-paying, part-time job at another printing company. He wonders why Taft isn't doing more to bring back manufacturing jobs in addition to luring new high-tech businesses.

"You've got a lot of college graduates who will have the first chance to get those high-tech jobs," he said. "There are a lot of people who don't have higher educations who need a chance at a manufacturing type company."

Tough year ahead

Taft faces a challenge this year from Republican Secretary of State Ken Blackwell, who is pushing for an early repeal of the sales tax increase. Blackwell wants to succeed Taft in 2006.

Legislative leaders remain skeptical of Taft's jobs ideas and proposals. Among his biggest critics in the Legislature is House Speaker Larry Householder, R-Glenford.

Householder said he's frequently frustrated by what he says is Taft's inability or unwillingness to communicate. He said Taft's failed tax reform proposal last year is one good example.

"When we talked about tax reform, what I meant was that we would have a plan that was fair and would lower taxes across the board," Householder said. "Just as we're starting to move into the budget, he comes out with his tax reform plan, which included tax increases across the board."

Grover Norquist, leader of the national Americans for Tax Reform labeled Taft an "immature" Republican who is out of step with GOP philosophy.

"The mature Republican party at the national level knows you don't raise taxes," Norquist said.

"People like George Bush senior were thrown out of the party because they raised taxes," he added. "His son would never think of doing that."

Senate Minority Leader Greg DiDonato, D-New Philadelphia, said Taft hasn't done the hard work needed to get lawmakers to see things his way.

"There is no doubt that this governor does not have a strong arm with this body," DiDonato said. "I think he sells out too soon. I think he sells himself short."

Taft will lead

Holubec said the governor has scored significant wins under tough circumstances.

Lawmakers approved Taft's plan to raise the state's gasoline tax 6 cents a gallon over the next two years to expand highway funding.

He also used his veto to stop a renewed legislative push to put video slot machines at Ohio's racetracks. Taft's threatened veto also moved lawmakers to compromise on a bill that would let law-abiding Ohioans carry concealed weapons.

The bill Taft signed requires mandatory permits, a safety training course and a measure making the names of license holders open to press scrutiny.

Taft can claim victory at Piketon, where a $1.5 billion uranium enrichment plant will be built, creating up to 500 high-paying jobs.

While lawmakers did ignore most of the tax reform plan, Holubec points out that lawmakers did support changes to city income taxes and they approved some expansion of the state's sales tax base.Whether Taft will get what he wants remains the question.

"It's a give-and-take process," Holubec said.

Where to catch the speech

Gov. Bob Taft delivers his sixth State of the State address Wednesday at noon in the Ohio House chambers in Columbus before a special joint session of the General Assembly.

To tune in
Television: WCET (Channel 48); Ohio News Network
On the Web
Go to Cincinnati.Com for previous state of the state coverage. Keyword: State of the state
Live Web cast:
www.taftnews.com

chart

---

Email shunt@enquirer.com




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