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Do IT this week: Layering
Need big savings? Look at the big programs.
By Steve Hoffman
Beacon Journal editorial writer
Published on Thursday, May 28, 2009
As a Statehouse wag once recalled, a downstate legislator immersed in his first budget bill quickly pronounced that he had the thing all figured out. ''The state of Ohio,'' came the analysis, ''is in the business of educatin', medicatin' and incarceratin'.''
It's still true, and a useful guide to following the budget bill expected to emerge from the Senate by early next week.
The House passed its version of the $54 billion, two-year spending plan in April. A joint conference committee will soon hash out the details.
Since a new (and balanced) budget must be in place by July 1, discussions will proceed at a furious pace. There is always the option of draping black cloth over the clocks at midnight on June 30, but such practices have fallen out of favor these days.
You'll know things are getting serious when the debate turns to education, Medicaid and prisons. Together, spending in these areas takes up more than 80 percent of the state's general fund, with Medicaid alone consuming about 40 percent.
There is no way to confront the budget crisis hitting economically battered Ohio without making big changes in these areas. Spending more and more time examining the other 20 percent of general revenue spending would be an exercise in futility.
Once they got their turn to rewrite Gov. Strickland's spending plan, the Republican majority in the Ohio Senate promised a line-by-line review of what the Democratic-controlled House sent them.
Since Republicans have controlled the upper chamber since 1985, one would think earlier reviews would have found the easy trims. The Republican plan is expected to cut about $1 billion from the House budget bill.
But that won't be enough. It is almost certain that another $1 billion, perhaps more, will be needed to close a yawning deficit, largely the creation of deteriorating revenues. Since nobody wants to talk about even a temporary tax increase yet, it will be back to the basics of educatin', medicatin' and incarceratin'.
Deep cuts to education should be out of the question. Almost everybody realizes that to do so without damaging the employment prospects of future generations would take a major consolidation of the more than 600 school districts in the state, plus more cooperation among 14 public colleges and universities.
That's not going to happen in the next two years. Meanwhile, a skilled work force, augmented by university-level research, is the only way to boost employment and income levels, increasing tax revenues.
Movement is possible on Medicaid and prisons, if legislators have the toughness to take on the nursing home lobby and to be honest with constituents about how to handle crime, instead of shamelessly pandering to the lock-'em-up-throw-away-the-key crowd.
Ohio remains overly reliant on nursing homes, which cost a lot more than in-home care and assisted-living options used by other states. While it would be cruel, and difficult, to cut Medicaid payments for medical care for the poor, expanding options for the elderly who are eligible for Medicaid would be popular with just about everybody but the nursing home lobby. And adding options would save money.
Gov. Ted Strickland promises to pursue sentencing reforms, which House Democrats stripped from his budget proposal. Republicans in the Senate have a longer history of pandering on crime, tough sentencing laws passed with little regard to the cost (now about $23,000 a year per inmate) of housing prisoners, many low-level offenders.
Not only would it be cheaper to handle such offenders in community-based facilities, with access to drug and alcohol treatment and educational programs, but the possibility of repeat offenses would be reduced.
Are we at $1 billion yet? Maybe in the long run, as alternatives to expensive nursing homes and expensive prison beds are expanded, but budgets must be balanced in the here and now. It could, some experts say, take 10 to 12 years to see Medicaid savings from reducing the use of nursing homes.
That leaves a tax increase. Leaders in both parties say even a temporary increase in the sales tax or a rollback of income-tax relief are off the table. But a lot can change in 30 days.
Hoffman is a Beacon Journal editorial writer. He can be reached at 330-996-3740 or e-mailed at slhoffman@thebeaconjournal.com.
As a Statehouse wag once recalled, a downstate legislator immersed in his first budget bill quickly pronounced that he had the thing all figured out. ''The state of Ohio,'' came the analysis, ''is in the business of educatin', medicatin' and incarceratin'.''
Get the full article here.
Comments
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Akron, Oh
Posted 09:09 AM, 05/28/2009
I've already posted on what I think of school and university consolidation, as well as political subdivision consolidation. All are long overdue.
As foe the nursing home industry..good luck! Those leaches are draining millions upon millions from the state coffers while fattening the campaigm chests of politicans on both sides of the isle and bankrolling "scare" commercials on radio and TV.. All this while serving only a few. They are the prototype "Fatcats".
