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Government & Politics

A New Plan May Replace the $200 Million Public Transit Lost in the Ohio Budget

Rosenberger, Kasich and Obhof

State lawmakers overrode six of Gov. John Kasich’s 47 budget vetoes. But one headline-making veto may survive – the one that stops a plan to ask the federal government to increase the tax on managed-care organizations. 

Local authorities rely on that tax to raise more than $200 million for transit. The House overrode Kasich’s veto of a plan to boost the tax, and the Senate was considering it. But Senate President Larry Obhof of Medina says there’s a deal to put more than $200 million toward counties, plus $50 million next year and up to $30 million more if state revenues stay positive.

“If they exceed expectations month after month, there would be some sort of revenue sharing between the state and the local governments, including the transit authorities.”

Kasich had said he doubted the federal government would approve the tax increase request. And Obhof says that this is a better solution than rolling the dice with the feds.