State budget deliberations a struggle; first interim budget in 18 years signed.

• Position: Legislative DEVELOPMENTS

A test of wills between Senate leaders and Gov. Strickland forced the legislature to pass its first interim budget in 18 years. A seven-day budget, funding the state at 70% of prior year's levels, was signed by Gov. Strickland on June 30, the last day of FY 2009. Exceptions to the 70% funding model were made for K-12 and higher education programs, debt service and the Medicaid entitlement.

As of press time, a second seven-day budget is almost sure to happen, though Strickland said he would not sign a third extension.

While most of the hundreds of differences in the Democrat-controlled House and Republican-controlled Senate version of House Bill 1 were ironed out, Strickland and Senate Republican leaders reached a stalemate on one key issue--the expansion of gambling. Strickland asked legislators to approve the placement of video lottery terminals (VLTs) in Ohio's seven racetracks. Republican leaders in the Senate insist that he can approve the...