LWV OHIO ACTION ALERT

LWVO ACTION ALERT:
Support Governor Strickland's Proposal to Postpone4.2% State Income Tax Reduction

Ask your state senator and representative to support the Governor's proposal to postpone the final reduction included in Ohio's five-year 21 percent tax cut. Without this step, Ohio will be forced to make even more drastic cuts in education funding or to vital health, human and other essential government services.

Ohio is facing a large budget deficit following the ruling by the Ohio Supreme Court that the authorization for video lottery terminals (VLTs) provided for in Am. Sub. H.B1 (the biennium budget) is subject to referendum. Petitions are being circulated, and it is anticipated that the issue will be on the ballot in November of 2010. This means that the $851.5 million anticipated VLT revenue, which the state had earmarked for education in the current biennium budget, will not be forthcoming. Governor Strickland has proposed that the gap be closed by delaying the implementation of the final 4.2% installment of the five-year income tax reduction which began in 2005. It is anticipated that this action would raise $844 million, enough to offset most of the lost VLT revenue.

Background
The biennium budget passed in July included approximately $2 billion in cuts that necessitated drastic reductions in health and human services. These cuts have already undermined the ability of the state to provide essential services at a time when the number of Ohioans in need is increasing dramatically. The loss of an additional $851.5 million would be catastrophic to the education of Ohio's youth, and education funds cannot be realistically restored by shifting moneys from other human services, given the drastic cuts already made.

The Governor has made the right decision by proposing to delay the last phase of the 21% reduction in personal income taxes. It is time for the Ohio House and Senate to join the Governor, put politics aside and support this proposal.

Action Needed
Please contact your state senator and representative now and urge them to support the Governor's proposal to delay the last phase of the 21% reduction in personal income taxes so that Ohio can ensure support for education and other essential health and human services.

Find your legislator by clicking the link below.

http://www.legislature.state.oh.us/