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Ohio Gov. Kasich wants to expand Medicaid, cut and broaden taxes
Kasich's two-year budget would lower the state income and sales taxes, boost education funding and add 600,000 people to Medicaid

Web Editor
M.L. Schultze
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In The Region:

Gov. John Kasich wants to cut the state income tax by 20 percent, and scale back the the sales tax from 5.5 percent to 5 percent – but apply it to more services.

Kasich has repeatedly called for companies who are participating in Ohio’s oil and gas drilling boom to pay higher “severance taxes” so Ohio can cut those other taxes.

The two-year budget the governor released this afternoon also proposes:

  • More money from the state for primary and secondary education, with much of that funding going to poorer school districts. The budget also provides more money for private-school vouchers and special education program.
  • Tying state support for public colleges and universities to graduation rates.
  • Cutting small-business taxes in half for the first $750,000 in net income.
  • Expanding Medicaid to include families making up to 138 percent of the federal poverty level. That would cover hundreds of thousands of additional Ohioans, and the federal government would pay 100 percent of the additional cost for the first three years and 90 percent beginning in 2020.
  • So far, social welfare groups have been praising the governor's proposal for Medicaid and are predicting that other Republican governors will follow suit.

    The oil and gas industry has opposed any proposal to boost severance taxes, but lawmakers in both houses of the Legislature have predicted that some kind of tax hike will pass this year. 
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