Apr 16, 8:06 PM EDT

Auditor: Ohio gov.'s budget would leave $8B gap

By STEPHEN MAJORS
Associated Press Writer



COLUMBUS, Ohio (AP) -- Gov. Ted Strickland's use of federal stimulus 
money and other one-time sources of cash to balance the upcoming 
two-year budget would leave an $8 billion hole to fill in the following 
two years, Ohio's Republican auditor said Thursday.

Auditor Mary Taylor took the unusual step of making state budget 
projections, saying she wanted to raise questions about the 
sustainability of the Democratic governor's budget proposal so that 
Ohioans know budget challenges have not been solved with the infusion of 
stimulus money.

"They probably don't know that there still is a hole at some point in 
time in the future," Taylor told The Associated Press in an interview 
preceding the release of the budget projections. "Our message is to 
proceed with caution and recognize what it is, and make decisions with a 
full understanding of what we're facing."

Republicans have criticized the governor for relying heavily on federal 
economic stimulus money, arguing that the state will be forced to raise 
taxes or make drastic cuts two years from now. But they, including 
Taylor, have offered few alternatives, as lawmakers on both sides have 
acknowledged the state has no choice but to use the federal money unless 
it wants to see the aid go to other states.

"We don't get to vote on the budget," Taylor said. "We're not a 
policymaker. It's certainly up to the Legislature and the governor to 
make decisions about the use of one-time money."

In a statement, Strickland challenged Taylor and Republicans to say 
whether they would raise taxes or make more program cuts in place of 
using stimulus money.

The governor said at a news conference later Thursday that he did not 
agree with Taylor's numbers. He said his budget proposal restructures 
the way the government spends money and Taylor was not taking that into 
account when she did her projections.

"If we put aside heated rhetoric and partisan gamesmanship, there 
emerges a simple truth about federal stimulus resources," Strickland 
said in the statement. "Without them, more Ohioans would lose jobs, 
fewer Ohioans would have access to health care, teachers would be laid 
off, tuition would increase, prisons would be forced to close. ... If 
these are the actions that Mary Taylor and legislative Republicans are 
advocating for, they should come out and say so."

Republicans used one-time sources of funding to balance recent budgets 
when they were in control of the House, Senate and governor's office, 
including taking nearly $700 million from a local government fund to 
help balance the 2006-2007 budget. Strickland was elected in 2006, and 
Democrats won the House in last November's election.

As the state's auditor, Taylor frequently makes budget and revenue 
projections for local governments, but not for the state. But concerns 
about Strickland's use of stimulus money and other one-time funding 
sources, and the lack of public acknowledgment of its consequences, led 
Taylor to devote staff time to running the state's numbers, she said.

Before Strickland developed his two-year budget plan, he warned of a 
roughly $7 billion deficit based on current spending levels. His plan 
relies on federal stimulus money, the state's rainy day fund, fee 
increases, program cuts, and pushing debt obligations off to future 
years to balance the budget.

The budget plan would increase spending by about 4 percent over the 
current budget - largely because of the use of the one-time money.

Taylor said her projections for the fiscal years of 2012 and 2013 are 
based on publicly available information from the governor's budget 
proposal and revenue projections. The figures include the same roughly 
$1 billion projected increase in tax revenue the administration has 
forecast, as well as cost savings the administration is making in the 
Medicaid program.

---

Associated Press writer Matt Leingang contributed to this report.

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