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Strickland proposes cutting 2,700 workers; adds lottery initiative
By Dennis J. Willard
Beacon Journal Columbus bureau
Published on Friday, Feb 01, 2008
COLUMBUS: Just last year, Gov. Ted Strickland and Ohio Attorney General Marc Dann worked together to put operators of video gambling machines out of business.
On Thursday, with the state facing a budget deficit ranging from $733 million to $1.9 billion, Strickland announced the Ohio Lottery Commission was expanding into Keno and other electronic gambling devices that would be placed in bars and similar venues.
The about-face value of the new venture is an estimated $73 million a year.
The governor announced the Keno initiative at the same time he outlined a series of steps to address the budget deficit, including trimming as many as 2,700 jobs from the state's 63,000 employees through attrition, early retirements or layoffs.
Strickland said the state will regulate the lottery operations, restrict times and ensure minors do not have access to the electronic gambling devices.
Keith Dailey, the governor's spokesman, issued a statement following the governor's press conference that attempted to distinguish the state's plans and the devices deemed illegal last year.
''Keno is not a slot-like, electronic gambling device like those outlawed last year. Instead, it is a numbers-drawing game similar to the traditional lottery with two key differences. First, it is a game played at greater frequency; and second, the numbers are drawn and displayed directly on TV monitors located in age and time-controlled settings,'' Dailey said.
The governor said the job reductions were based on filling a $733 million hole in the budget, but if the economy worsens and an anticipated recession comes then the state may have to dip into the $1 billion-plus rainy day fund.
''I believe today's decision is the most common sense approach. The budget reductions I'm ordering today represent real sacrifice. There will be job reductions. Some programs will be curtailed or eliminated. Some institutions will be closed. But we will also be able to protect recent tax reforms and investments that I believe are crucial to Ohio's economic recovery.''
Some jobs exempt
A number of job descriptions, programs and funding streams were exempt from the cuts.
Strickland said the state will continue to fully fund basic aid for classrooms to local school districts and ensure tuition freezes at public universities remain intact. He also said no corrections officers, parole officers or nurse positions in the state prison system are at risk.
He said new programs that increase the homestead tax exemption for the elderly and expand health care benefits for impoverished children will not be touched.
Despites his assurances, the largest hits in terms of dollars will affect the departments dealing with education, state universities, prisons, job and family services, and aging.
The Ohio Department of Education will have to trim the largest amount of money — $101 million — and the prescription outlined for making the cuts by the governor was vague. Unlike most other departments where a range of employee cuts were noted, no specific number was tied to education.
State Superintendent of Public Education Susan Zelman is not a member of the governor's cabinet. She is hired by the state Board of Education, which is comprised of elected officials and members appointed by the governor.
Strickland said his steps will not jeopardize security in state prisons, but the Ohio Department of Rehabilitation and Correction will lose the most jobs, between 434 and 815.
The governor said his state prisons director, Terry Collins, has assured him the cuts can be made by taking steps like consolidating operations and reducing the number of assistant wardens.
Employee cuts planned
Three agencies will also face large numbers of job cuts: Mental Retardation and Developmental Disabilities (390-540 jobs), Natural Resources (85-157 jobs), and Job and Family Services (309-574 jobs).
In the Department of Aging, scheduled increases in reimbursement rates for the Passport program that allows seniors citizens to stay in their own houses and out of nursing homes would be frozen.
And the governor said two mental health institutions — in Cambridge and Dayton — would be closed.
Strickland said he worked with each cabinet member to develop specific cost savings plans for each department rather than just slice spending by 10 percent across the board.
He also briefed Ohio Senate President Bill Harris, R-Ashland, and House Speaker Jon Husted, R-Kettering, Wednesday evening. While neither signed off on the proposed cuts and policy changes, some of which will need legislative approval, Strickland said he believed the leaders were open to his ideas and willing to work to address the budget problems.
Husted issued a tepid response to the governor's initiatives.
''We hope to review the details of the governor's proposal over the coming days. As we do, we plan to discuss the potential impact of these decisions with Ohioans across the state. After doing so, we will take a thoughtful approach in addressing the governor's plan for the budget shortfall in a responsible manner,'' Husted said.
Strickland was careful to exempt a pet project of Husted's — the Science, Technology, Engineering and Mathematics (STEM) program for primary and secondary schools, but the governor did make changes to the funding schedule for three scholarship programs pushed by the speaker in the two-year budget passed last year.
The Board of Regents will save $90 million between now and June 30 by delaying payments for the Choose Ohio First, Ohio Research Scholars and James A. Rhodes scholarship programs.
Strickland said universities were being paid upfront for four years in scholarship dollars for each qualified student, and he wants to change the reimbursement schedule to coincide with when a student matriculates from one year to the next.
The ''pay-as-you'' go method would still ensure students and universities receive the scholarship money, Strickland said.
A lawsuit against the Ohio Department of Youth Services and a corresponding report that outlined staffing shortages, mistreatment of youthful inmates, lack of educational opportunities, general fear and the system itself prevented the governor from taking too large of a cut from that department.
Office to cut spending
Strickland said his office is not exempt. He will cut spending by 25 percent before the end of June and then an additional 16.1 percent in the ensuing 12 months, which will save about $1.2 million.
The governor also issued an executive order to ban all out of country travel, nonessential U.S. travel, and limit hiring, personal service contracts, equipment purchases, and printing unless the expenditures were needed for health, safety or other critical state functions.
No timetable has been established for the legislature to introduce a budget corrections bill.
Dennis J. Willard can be reached at 614-224-1613 or dwillard@thebeaconjournal.com.
COLUMBUS: Just last year, Gov. Ted Strickland and Ohio Attorney General Marc Dann worked together to put operators of video gambling machines out of business.
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