Wall Street Journal: Ohio Cuts Spending and Taxes—and Still Balances the Books

In this Wall Street Journal editorial, Governor Kasich is praised for his leadership in taking on the Ohio’s challenges rather than kicking them down the road. You can read a preview here and share your comments below:

The reform-minded GOP Governors across the upper Midwest have sustained a lot of political damage lately, but at least they’re delivering on their campaign promises and will be judged on the results. The latest is Ohio’s John Kasich, who signed an ambitious budget late last week that will help the Buckeye State’s economy and finances.

Mr. Kasich took office this year facing the largest deficit in Ohio history, close to $7.7 billion. His predecessor, Democrat Ted Strickland, had avoided any serious reform in advance of the 2010 election, despite a shrinking economy and tax base, and had concealed fiscal holes with federal stimulus dollars that have now run out. To close the gap with revenue alone, the Ohio tax department estimated that income rates for the average family would need to rise 56%.

Mr. Kasich’s budget is bringing Ohio’s finances into balance by cutting spending while also cutting taxes, which ought to be a lesson for Washington. The $55.8 billion two-year budget pares from nearly every state program and agency, and it privatizes some of them, including some prisons and maybe even the Ohio Turnpike, if the legislature approves. It restores a scheduled cut in the top income tax rate to 5.9% from 6.2%—part of a larger across-the-board cut over five years that Mr. Strickland deferred. And it eliminates Ohio’s estate tax and cuts property taxes by $1.7 billion.

And

Mr. Kasich’s approval ratings have fallen sharply as he’s pursued budget and labor change, though challenging the status quo is always disruptive. On the other hand, voters didn’t reward Mr. Strickland for making the problem worse by doing nothing.

You can read the entire editorial here.

Comments

  1. Steve Kimball says:

    Great work. We need to keep SB-5 in place. How can individuals help to make sure that happens?

  2. tom drakulich says:

    I commend Gov Kasich for leading the way in doing the hard work and the courage needed to accomplish it.
    Sincerely

  3. Scott A.Yurchuck says:

    ” THE BUCKEYE BUDGET LESSON ” is right !

  4. Teresa Ellis says:

    Thank God, Governor Kasich’s had the guts to do what it takes to bring spending under control.Like every family in this country has had to make. I believe his approval rating will go up,as the budget starts to work.I have worked in the private sector for many years.I haven’t had a raise since 2007.So my husband and I know what it is to tighen your belts.It’s about time the government realizes they can’t keep coming to the well ( the people) especially when the well is drying up.

  5. Robert Smith says:

    It is comforting to see the East Coast press realize Ohio has a governor who does what has said he will do–balance the budget. He did it as chairman of the House Banking Committee in Congress and now he is living up to what he promosed to do as governor of Ohio.

  6. What a tremendous feat Governor, I would like to the Federal Government run with a balanced budget. Keep up the great job, you are just getting started.

  7. Bill and Becky Shulaw says:

    It is about time that the goverment cuts out soon of these benifits for the people that CAN WORK AND WON’T. There needs to be less hand outs and more work.

  8. Kathleen Butler says:

    Governor Kasich is a man of his word. I am thrilled to see Ohio with a governor who will take a stand against union politics with their archaic notions of what progress and prosperity really are.

    Debt is a burden and puts a family, state, and a nation in bondage. We see the outcome of this kind of mentality playing out in Europe where socialism has reigned unchecked for decades.

    Countries collapsing economically and socially…riots in the streets as people addicted to government handouts…realize that they have been drinking from a well that was destined to run dry.

    I commend Governor Kasich for taking a bold and courageous stand against the tax and spend crowd that has nearly bankrupted the great state of Ohio.

    It may take years of thrift and common sense to get the state back on track, but the alternative…is a frightening scenario of debt, poverty and government rationing.

    Governor Kasich and his team have taken the first steps towards leading Ohio out of the dark days of overriding debt and dependency.

    Now it is up to the people of the great state of Ohio to work and restore that which was almost taken from them….freedom!

  9. John W. Milburn says:

    When then Rep. Kasich was Chairman of the Hoiuse Ways and Means committee in 1997, not the House Banking Committee, he did, indeed balance the National government budget for the first time in over 40 yeas of Democrat control……for which President Clinton received, unfortunately and incorrectly, the credit. I refuse to call our government Federal anymore. We now have a National government due to the many rights that have been USURPED by the national government via the Supreme Court over the past 100 years. Progressivism reigns. FEDERALISM IS DEAD..

  10. Jason C. Bryant says:

    Now that’s he’s balanced our budget, maybe Gov. Kasich can get us in the black and therefore provide more resources for schools so they can give kids the education they need and deserve. But to do so, you MUST have the necessary resources first. Right now, Ohio doesn’t. But here’s to Ohio getting those for schools so they can give kids the education they need and deserve.

  11. Again, you can not read the entire article apparently unless you subscribe to the Wall Street Journal. I would like to read the whole story as Paul Harvey used to say and not just your slanted version.

  12. Rick Zimmerman says:

    John,
    Attaboy! You are on the track to get things squared away, and I assume that you are telling US Speaker Boehner to hold the course too, come hell or high water…..buck him up so we don’t buckle in Washington or I fear for my country.

  13. Carolyn Atkinson says:

    Your start is great, but we still need a right to work law if we want industry to grow and provide jobs.

  14. Patricia says:

    I am concerned about the ability for citizens to vote. If you need a birth certificate to get a photo ID, what about older Americans who no longer have a birth certificate copy and not the money to get one. You would be surprised how many poor people do not have a copy of their birth certificate and not the $20.00 or $25.00 to purchase a ceritifed copy. Please give a solution. We don’t want the same affect as jim crow laws had on people’s ability to vote.

    Thank you

  15. cindy prendergast says:

    Please stop the progressives in OHIO.
    Our family stands behind you 100%
    I am working really hard to defeat Obama in 2012.
    We have to save our country!
    Thank you for all your hard work and the horrible pressure you are under. Don’t Stop!

  16. Governor Kasich, I’m aware of your hard work & commend you. Please remember that there are other factors that must also be addressed. Acquisitions that form Monopolies have a strong hold on our Food Markets. Those that Control the Food, Control the People. Several years ago, I spoke with Keith Cunnigham & brought to his attention that “Supported Living Clients” with Mental Disabilities were being registered to vote. These mentally disabled clients CAN NOT read nor write; therefore, the names of these clients & their vote, are being manipulated to vote Democrat. There’s much more “hidden” & “underground” TACTICS that are in play in Ohio & throughout America that has affected & will continue to effect our economy if not addressed.

  17. I am so tired of driving around and seeing vote no on two, or someone pettioning me to vote no on two. I ask them their reason and it’s a sound bite, “their taking away our collective bargaining rights. We’ve given the unions 40-50 years or so of their way, were broke, our town just won number 1 in the most poverty stricken city in the country. We have lost more industry to greed and strong are tactics over the past 30 years. I’m willing to take a chance and vote yes on two. Stop the bleeding. One more thing, I have for the past 12 months have found only one person in a union tell me that the present system is out of control, he’s voting yes on issue two. This next comment is not intended for all but a fair share, time to get to work all and do the job you were hired to do instead of depending on a strong union to keep you in the coffers no matter how poorly your work performance is or how poor a teacher you are. The nation is broke, no jobs, and what’s left to work has priced itself out of the bid.
    Good Luck Gov. Kasich
    Keep up the good work.

  18. Vote yes on Issue 2. I’ve always worked in the private sector and haven’t had a rise in too many years to count, my health insurance cost is out of control, no vision insurance and no dental insurance and must plan for my own retirment with a 401k and IRA. I’ve down sized my house, my car, spending habits, and it’s time for public employee to take a hit too.

  19. I am happy to see the comments from residents from the State of OHIO. Eventhough we no longer live there, we support the approach the Governor has taken to solve the Ohio problems. Keep up the good work!
    Barbara

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