Last week the State Supreme Court ruled that Governor Strickland's plan to put slots in casinos needed voter approval. Now the governor has a new plan to patch the budget.

Strickland said the solution to the state's $800 million budget gap is to postpone a scheduled tax cut.

"This would freeze income tax rates so they'd remain exactly the same as last year," Strickland said at a press conference.

Strickland would roll back the lower 2009 income tax rate to the 2008 level. The governor argued the other choices to fix the budget were worse.

"We can protect our schools from destructive cuts while avoiding a sales tax increase on Ohio's families and businesses," Strickland said.

House Republicans were quick to pounce.

"This is a retroactive tax increase going back to the first of the year," Ohio House Minority Leader William Batchelder said.
 
Republicans claim they could find $800 million in government waste. They call the income tax freeze a tax increase.

"Regardless of what Party you belong to, raising taxes simply defies economics 101," Republican Representative John Adams said.

Strickland seemed ready for the battle ahead.

"Some will try to score political points by saying this is a tax increase. But again tax rates will stay the same as last year," Strickland said.

The key to any deal between the governor and lawmakers rests with Republican Senate President Bill Harris.

"I think it's a plan the governor thinks is a doable plan and we're going to look at it very close," Harris said.

Harris would not call Strickland's proposal a tax increase.

"I think my responsibility more is to identify and focus on what we can do to get us out of this situation that's not good for the state," said Harris.

One thing Strickland and Harris agree on is that the budget is unbalanced, and time is running out for a viable solution.

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September 30, 2009: Strickland Proposes Freeze On Income Tax Cut 

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