Guest Column for Representative Richard Adams
In May, Ohio experienced its highest monthly job creation numbers since February 1999. Ohio was also the top job creator in the country that month, creating more than 32,000 jobs. Those were part of the more than 170,000 private sector jobs that have been created inside our borders in the last two-and-a-half years. With more people working and an economy continuing to steadily improve, there was more money coming into the state coffers at existing rates of taxation.
From the beginning of the budget process, Governor Kasich made it clear—and I agreed with him—that money should be kept in the hands of Ohioans, to be spent, invested or saved the way that they desire. In response to that vision, the final product of the state’s two-year operating budget included a net $2.7 billion income tax reduction. This action is expected to help stimulate the economy and promote Ohio’s economic recovery.
The income tax cut was one of many tax reforms that were aimed at rewarding hard work and simplifying the state’s tax code. Tax money needs to come from somewhere, but the goal and responsibility of legislators is to strive to find a system that is fair and that encourages economic growth. With substantial cuts to the income tax and a slight increase in the sales tax, people have more control over the taxes they pay because they are taxed based on their spending behavior, rather than on their work ethic or success.
Education was another major focus area, with nearly one-third of the budget allocated to K-12 schools. Under the proposal, no school district is receiving less funding than a year ago and in fact 80 percent of Ohio students will be attending school districts that are receiving increases in state funding.
Governor Kasich also recently announced that the state’s reserve fund—commonly called the “rainy day fund”—now contains $1.48 billion. It is necessary to have reserve funds on hand should Ohio face an economic downturn and need to fund schools, local governments and other public programs during tough times. Just three years ago, Ohio’s rainy day fund held less than a dollar, which is indicative of the challenge of balancing the state budget two years ago.
Nothing in the state budget—or any bill for that matter—is possible without jobs being created and filled. Therefore, the goal at the Statehouse remains finding ways to encourage private sector growth and making it easier for businesses and individuals to succeed.
