Strickland budget reflects economic struggles, new approaches.

• Position: Legislative DEVELOPMENTS

Gov. Ted Strickland's approach to guiding Ohio through the current economic morass is through "shared sacrifice," innovative thinking, one-time accounting changes and $54.7 billion in spending over the next two years--an increase of 4.4% over the current biennium. The spending recommendations count on at least $3.4 billion in new, one-time federal stimulus funds.

There was immediate pushback from state labor unions, health care interests and fiscal conservatives who felt the package is either unfair or unwise.

ON THE REDUCTION SIDE

Strickland is proposing additional cuts of 10% to 20% by 33 state agencies, pay cuts of up to 6% for state workers, and consolidating the "administrative" functions of Ohio boards and commissions, including the Accountancy Board of Ohio (ABO). OSCPA will be closely analyzing the impact of the proposed consolidation to ensure that the ABO's current independent board, aggressive disciplinary activities and national regulatory leadership efforts are not impaired by the change.

EDUCATION SPENDING

Gov. Strickland announced a significantly changed approach to primary and secondary education, including a shift in school funding. The plan involves a 10-year implementation period, costing $925 million in additional spending in the 2010-2012 biennium, and a total of over $6 billion when fully implemented.

The long-awaited education plan also features enhanced teacher certification requirements and student achievement testing.

The proposal was met with accolades for the dramatically new approach to K-12 education, but also with significant questions about how to pay" for it--especially in a down economy.

As drafted, the plan includes moving away from the current funding mechanism of base cost per student, instead assigning cost based upon individual student needs, student enrollment and a teacher compensation index number that is based on student poverty, community wealth and community education.

The problem of phantom revenue--where the state funding formula assumes that local property tax revenue grows when it doesn't--is also eliminated under the proposal. Strickland's plan lowers from 23 mills to 20 the amount the state expects school districts to provide for education funding. The state will pick up the cost of the 3 mill difference, resulting in increased state funds to 55% of Ohio school districts. Schools will have the option of asking voters for a controversial new "conversion levy" that would allow for some...