As Ohio kicks off the 130th General Assembly in 2013, we expect to see a full plate of major policy items for the Kasich Administration and Ohio House and Senate.
The Ohio Senate has two new members joining the chamber this session and incoming
Senate President Keith Faber will lead the chamber with a 23-10 Republican majority. The Ohio House will have a class of 17 freshmen join their ranks, while Speaker Bill Batchelder directs a 60-39 Republican majority. A "freshman" House member of note is Ohio Democratic Party Chairman Chris Redfern who is returning to the chamber following a four-year hiatus.
As with any General Assembly, a host of policy initiatives will be unveiled in the coming weeks. In what is shaping up to be the
"Year of Reform" the issues summarized below will occupy the most attention in the days ahead.
State Operating budgetGovernor Kasich's 2014-2015 biennial operating budget will be introduced in early February. In addition to allocating the $55+ billion of state spending, the budget is expected to contain many significant policy issues. The budget bill will occupy the bulk of lawmakers and other interested parties attention for the first half of 2013 as they work to enact the measure by July 1st.
Tax ReformThe Governor will unveil shortly a sweeping tax reform proposal. Kasich has already
signaled his strong desire to increase severance taxes increases paid by the shale gas industry after failing to move the measure through the legislature in 2012. As the Utica Shale play begins to produce, the Governor intends to use revenue generated by the severance tax to pay for a reduction in the state's personal income tax. Beyond the severance tax proposal, Governor Kasich's tax plan is expected to target income and sales tax "loopholes" such as tax credits, deductions and exemptions, which may also tie-in to the overall income tax reduction plan.
Health Care ReformWith implementation of the federal Affordable Care Act and many of the Governor's Office of Health Transformation initiatives, Ohioans can expect continued changes in Medicaid and the health care policy arena. Ohio recently gained federal approval to conduct an
"Integrated Care Delivery System" for persons who are dually eligible for both Medicaid and Medicare to better coordinate care. Additionally, the Governor has announced a plan to create a new cabinet-level Department of Medicaid to better align the many Medicaid programs and policies across state agencies, as well as merging the Ohio Department of Alcohol and Drug Addiction Services into the Department of Mental Health. Look for many of these and other health care reform efforts to be contained within the Governor's budget proposal.
School Funding ReformOhio's ongoing school funding reform saga will return to the policy forefront this year. Two years ago, the Governor and legislature abolished Ohio's "Evidence Based" funding model and installed a temporary formula to fund schools. A new permanent funding model is expected to be unveiled soon. While details remain elusive at this point, there is a general desire to push more money into the classroom instead of administrative costs and ensure children from every school district in the state can compete with their peers. Expect this effort to receive an abundance of testimony and numerous hours of committee action.
Turnpike ReformFollowing an extensive review of options to monetize the Ohio Turnpike, the Kasich Administration decided not to lease the turnpike to a private company as other states
have, but rather issue $1.5 billion in bonds backed by turnpike revenues. This funding will be used to address a backlog of transportation construction projects across the state, with the majority of the funds being invested in northern Ohio. The Governor's plan requires legislative approval so we will see this plan surface in legislative form early this year.
Reapportionment ReformFollowing Ohio's controversial redistricting battles, there has been renewed emphasis on reforming how state legislative and congressional districts are drawn. In the closing days of the 129th General Assembly the Ohio Senate passed a bill to restructure the process, but there was not enough time for the House to evaluate the measure before the session came to a close. Senate President Keith Faber has indicated this issue will resurface in 2013.
If you are interested in these or any other legislative initiatives at the Statehouse, please contact
Zach Holzapfel or
Tony Brigano to see how Hicks Partners can be of service.
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