COLUMBUS, Ohio -- Some Ohio senators were curious Wednesday about the possibility of plugging the state's budget hole with money from casinos, should they be approved by voters next week.
A few senators asked officials in Gov. Ted Strickland's administration whether the state could use potential revenue from proposed casinos in Cleveland, Columbus, Cincinnati and Toledo.
The hearing in the Senate Finance committee was the first time senators had a chance to question Strickland administration officials about their proposal to patch an $850 million budget gap by freezing the last round of planned income tax reductions. Strickland and the Democratic-controlled House believe the freeze would be the best and most efficient way to close the gap.
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But the Republican-controlled Senate used a good portion of the hearing to explore alternatives to the plan, which many Republicans have dubbed a tax hike. Part of the brainstorming involved looking at the Nov. 3 vote on casinos.
The plan would raise an estimated $650 million in tax revenue for the state, with about 90 percent of the revenue designated for local governments and school districts. Also, the casinos would each pay a $50 million license fee to the state.
Senators were curious whether either of the revenue streams could be tapped for the state's budget difficulties, which are expected to worsen.
Sen. Mark Wagoner, a Toledo Republican, expressed interest in the state using the $200 million from the casino licenses, although the casino amendment says the money must go toward regional work force training.
"It seems to me that we can at least make a good faith argument that we could use that $200 million and put it into K-12 education," Wagoner said.
Strickland's budget director didn't rule out the possibility, but said there's a good chance the money wouldn't be available in time to reduce the current deficit.
Sen. Dale Miller, a Cleveland Democrat, asked the administration whether the state could reduce the amount it contributes to local governments and schools if casino money begins flowing to those places. Tax Commissioner Rich Levin said he wasn't sure if that would be legal.
Sen. Keith Faber, a Celina Republican, argued with state officials attending the meeting that delaying the final 4.2 percent reduction in income taxes was, in fact, a tax hike. And Republican Sen. Gary Cates of West Chester said lawmakers should consider going back on changes made to the school-funding system, at Strickland's suggestion, because it will cost billions of additional dollars to implement them.
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