Ohio Gov. John Kasich outlined his vision for the state Tuesday in Lima during his annual State of the State address

By Marc Kovac | R-C Capital Bureau Published:

LIMA -- Calling jobs "our greatest moral purpose" and defending a two-year spending plan that he says will ensure the state remains on the economic upswing, Gov. John Kasich outlined his vision for Ohio Tuesday night in Lima.

"My mission is to make sure that everybody in our state has a chance to realize their hopes and dreams and that their families can do much better," the governor said. "Because it's not good enough for some to do well while we leave others behind. We must (work) everyday to make sure that everyone has a chance in Ohio."

He added, "We are succeeding here in Ohio turning our state around, and it is fantastic."

Kasich didn't tread too much new ground before an audience of more than 1,700 lawmakers, state officials and other invited guests gathered in an auditorium just off the northwestern Ohio city's central square.

He reviewed statistics he's repeated to audiences since taking office -- how Ohio is now tops in the Midwest in job creation, how 120,000-plus new jobs have been created and how there's now $1.9 billion in the formerly depleted rainy day fund.

He touted his administration's policy decisions -- controlling Medicaid spending, reducing the size of state government, lowering taxes, refunding overpayments to businesses, establishing the JobsOhio nonprofit to coordinate the state's economic development programs.

He talked about visiting the state as a child, "the promised land" across the state border from his hometown of McKees Rocks, Pa.

"I fell in love," Kasich said. "I sensed Ohio's excitement then. I felt its opportunity. I knew Ohio was going to be my home. It's just so awesome here."

He added, "Ohio is a land of hope and opportunity, realized dreams for our families. We're safe. We're friendly. We're filled with the potential to pursue our passions. We take care of our neighbors. Ohio is a place where we can work, contribute, build a better community. We can be a shining example."

As he has in multiple appearances since unveiling his biennial budget earlier this month, Kasich explained his plan for a small business and personal income tax cut, sales tax cut and broadening to include services and the oil and gas tax hike. He defended the latter to lawmakers, including Republican members who continue to voice concern about the proposal.

He also asked the GOP-controlled legislature to move quickly on his plan to leverage billions of dollars for road and bridge projects using the Turnpike.

He sought backing for his school funding package, which he said will provide increased state support for the poorest school districts. The richest districts, he said, would receive about $110 per pupil, while the poorest would receive $7,500 per pupil.

And he lobbied hard for an extension of Medicaid benefits for more needy Ohioans, saying federal dollars paid by Ohio taxpayers will go to another state if the eligibility levels are not raised.

"I'm not a supporter of Obamacare," Kasich said, adding later, "I don't believe in the individual mandate. I don't like a lot of the programs that are going to drive insurance rates up. But in this case, extending Medicaid benefits will help us on many levels, including the positive impact this decision can have on the mentally ill and the addicted."

Kasich urged lawmakers to stay focused on the "mountaintop" and move his two-year, $63 billion budget despite calls from opposition to abandon the tax package, school funding reform and other provisions.

"Should we rest on our laurels?" he asked. "Should we put the state on cruise control? We're going to keep our foot on the gas in this administration, and we hope you will join us. The only thing that will stop us, ladies and gentlemen, is the fear of change, the fear of big ideas. Let's not go there."

As he did last year, Kasich presented several "Courage Awards," including one honoring the teachers and staff at Chardon High School Tuesday night with one of three Courage Medals, marking their response to a shooting last year that left three teens dead and three others injured.

Other medals went to the late Neil Armstrong, the Apollo 11 astronaut and first man to step onto the surface of the moon, and Sondra Williams, an autistic woman and author who serves as director of the Autism Research Institute's youth division.

Mixed Reaction

Lawmakers from both sides of the political aisle were supportive of some of Kasich's ideas but questioned others.

Republican leaders of the Ohio House and Senate were complimentary of the governor's tone and vision but noncommittal on his tax reform, Medicaid expansion and school funding proposals.

"This is a man who is looking ahead to our state's future," said Speaker Bill Batchelder, a Medina Republican. "I think it's important that as he went through those remarks, everyone realized that there was bipartisan recognition of what he was asking for, and I think it was an exciting evening for all of Ohio."

Statehouse Democrats, meanwhile, were supportive of Kasich's plan to expand medical coverage and other services to the needy, but remained opposed to other parts of the budget.

"The tax cuts for small businesses are something that would be beneficial for our state," said Sen. Joe Schiavoni, a Democrat from Boardman. "But when you add all this up and he says the most important thing is K-12 funding, the numbers don't reflect that."

It's OK and it's nice to give big happy speeches, but when you've you got to go through a very detailed budget, I'm not sure he's going to [gain approval for] all the things that he spoke about tonight," Schiavoni added.

Rep. Ronald Gerberry, a Democrat from Austintown, echoed those concerns, saying schools in his district will have to seek more tax levies, with no increase in state funding.

"Well over 300 school districts are getting absolutely no [additional] money in the next two years," he said. "How is K-12 so important if well over 300 school districts aren't getting an extra dime? ... We've gone from 89 cents in the rainy day fund to $2 billion. At the same time, we have school districts and county governments and township governments throughout the state of Ohio placing tax levies because they're broke."

Rep. Bob Hagan, a Democrat from Youngstown, added, "The tax system that he's trying to implement is so confusing. It's all over the place ... Increasing sales tax is certainly going to hurt the people in my district."

Marc Kovac is the Dix Capital Bureau Chief. Email him at mkovac@dixcom.com or on Twitter at OhioCapitalBlog.

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  • Bill, Are you saying that anyone in the state of Ohio who's net pay has decreased will not have to pay the additional sales tax in the Governor's plan? When one of the 300 school districts, that received no additional funding, pass a levy to stay afloat, is that not a tax increase? It is easy to say that the plan does not raise taxes but it would benefit all residents of the state to specifically state which taxes are not being raised because other taxes obviously are. In addition, it is puzzling that a concerted effort was made to refund overpayments to businesses but no such effort was made to refund overpayments to indivduals.

  • Wouldn't ever expect a democrat to understand the concept of not increasing taxes on people who have seen their net pay decrease.