Economic woes drive the legislative agenda: anyone with a newspaper or a floundering 401(k) knows the U.S. economy is struggling at best. Fiscal problems are especially grim here in Ohio.

• Author: Benton, Barbara
• Position: Inside THE STATEHOUSE

We reported on economic challenges in the last issue, but since then the realities have become even more dismal:

* The highest unemployment rate in 22 years, 7.8%, with more than 100,000 jobs lost in the last year

* More than 13% of Ohioans living in poverty

* An empty unemployment insurance fund

* Ballooning Medicaid spending

* A potential $7.3 billion deficit looming over the upcoming biennial budget deliberations--a hole that must be plugged by June 30

Our governor and the Ohio General Assembly have more than enough work cut out for them, as do our federal legislators.

The Strickland administration has already outlined plans to cut spending levels at many state agencies by 10% to 20%. However, Medicaid and K-12 education, which together represent a significant portion of Ohio's annual budget, are slated for increases rather than cuts. State employees have been asked to take 10 unpaid days off a year, cut their work week from 40 hours a week to 35, and give up paid holidays. Certainly union representatives will negotiate from there, but Gov. Strickland is making hard choices. Unfortunately, those changes alone won't be enough.

The federal government's economic stimulus package--touted at $8.2 billion for Ohio--is being held out by some as a beacon of hope to solve the state's problems. But it's a one-time fix and may simply delay the need to make tough changes. Ohio needs to quickly find longer-term, innovative approaches to stimulate its economy, train or otherwise attract talented workers, keep the jobs now in place, attract new jobs, and keep taxes low. It is a tall order indeed, but critical to Ohio's ability to dig out of this economic morass.

CPAs, more than any other profession, recognize that borrowed money eventually must be paid back. While many argue for the need to jolt the economy with a...