November 5, 2010

BUDGET MANAGEMENT & PLANNING COMMISSION

This week, CCAO submitted written testimony for the State Budget Management & Planning Commission. The document includes a brief introduction, several recommendations, and policy items that CCAO has highlighted in prior publications.

The testimony notes that “members of the County Commissioners Association of (CCAO) recognize that state and local tax revenues will not be able to solely fix today’s fiscal challenges.” It continues, “CCAO acknowledges that government must adopt and develop innovative ways to provide services through collaboration, consolidation, restructuring, shared services, and other new approaches.”

The submission argues that, in order to accomplish a portion of this goal, “counties need statutory authority and tools to improve efficiency and modernize county operations.” Examples given include “empowering the board of county commissioners to streamline administrative functions among county offices, proactively manage and be further authorized to control county spending, reduce litigation between county offices over budget decisions, and modernize public notice requirements”. More examples are included in this document.

To view the testimony, please use the following link: http://www.ccao.org/LinkClick.aspx?link=CLIPS%2f10-11- 02+budget+management+%26+planning+commission.pdf&tabid=52&mid=488&language=en- US

OHIO REPUBLICANS RIDE WAVE OF DISCONTENT BACK INTO POWER

Reminiscent of the midterm election 16 years ago, an anti-incumbency mood and frustration over the economy swept the Republican Party into power in all five statewide offices. The GOP also regained the control of the Ohio House with at least a dozen pickups, gained five seats in the Congressional delegation and extended an already-strong Senate majority.

Democrats had ridden a similar, albeit far less encompassing surge into power in Ohio over the last two elections, first by taking four of the five statewide offices in 2006, then seizing control of

1 the House in 2008. But with the state slow to recover from the worst national recession in decades, voters were clearly impatient and looking for different answers from their government.

Statewide Races

Democratic Gov. Ted Strickland seemed to have the momentum heading into Election Day following months of polls showing him trailing in the gubernatorial race, but Republican challenger ultimately won the keys to the Governor’s office next year.

Unofficial election results with all precincts around the state reporting show Kasich won the gubernatorial race with 49.3 percent of the 3.75 million votes cast, while Strickland finished with 46.7 percent. A total of 97,052 votes separated the candidates, according to details from the ’s office.

Republicans captured the bonus prize in Tuesday's elections by taking the statewide offices of Auditor and Secretary of State along with Governor: control of the Apportionment Board, which will redraw the legislative districts next year based on the 2010 Census.

The race for state auditor went to Delaware County Prosecutor Dave Yost, who beat Hamilton County Commissioner David Pepper. The Republican won by about 51-44%, according to unofficial results from the Secretary of State's office.

Sen. (R-Kettering), the former House Speaker, beat Maryellen O'Shaughnessy, the Franklin County Common Pleas Court Clerk, in the race for secretary of state, an office left open with 's failed run for the U.S. Senate. The unofficial margin was about 54.5- 40.6%.

In the other non-judicial statewide contests, according to unofficial results: Rep. Josh Mandel (R-Lyndhurst) ousted appointed State Treasurer with more than 55% of the vote; and Republican Mike DeWine defeated Democratic Attorney General (about 48-45.5%).

Ohio House

Echoing a national trend, voters reinstalled Republicans in control of the Ohio House Tuesday, with the minority usurping at least a dozen seats from Democrats in a stunning reversal of fortunes.

House Democrats, who seized control of the chamber in 2008 by winning seven seats and capturing a 53-46 majority, lost most of those back as well as some other districts they thought were relatively safe.

As expected, a few key races determined the outcome in a chamber that Democrats took control of in 2008 for the first time in 14 years. What was unexpected was the extent of the GOP rout, which included the ouster of multi-term incumbents Rep. Linda Bolon (D-E. Palestine); Rep. Dan Dodd (D-Licking Twp.); Rep. Steve Dyer (D-Green); and Rep. Brian Williams (D- Akron).

Among the contested House races won by Republicans, according to unofficial results:

• defeated Rep. Linda Bolon in the 1 st House District.

2 • Rep. Nan Baker (R-Westlake) fended off former Rep. Jennifer Brady in the 16 th District.

• Mike Dovilla knocked off Rep. Matt Patten (D-Strongsville) in the 18 th District.

• Anne Gonzales defeated Rep. Marian Harris (D-Columbus) in the 19 th District.

• beat David Robinson in the 21 st District.

• Lynn Slaby bested Rep. Williams in the 41 st District.

• Kristina Roegner won out over Rep. Mike Moran (D-Hudson) in the 42 nd District.

• Todd McKenney ousted Rep. Dyer in the 43 rd District.

• Former Rep. defeated Rep. Mark Schneider (D-Mentor) in the 63 rd District

• Former Rep. Rex Damschroder defeated Seneca County Commissioner Ben Nutter in the 81 st District.

• Fayette County Commissioner Bob Peterson beat Rep. Raymond Pryor (D-Huntington Twp.) in the 85 th District.

• Terry Johnson swamped Ron Hadsell in the 89 th District.

• Bill Hayes, in his third try for the office, beat Rep. Dodd in the 91 st District.

• Andy Thompson defeated Linda Secrest in the 93 rd District.

• Al Landis bested Joshua O'Farrell in the 96 th District.

• Casey Kozlowski held a narrow lead over Rep. Deborah Newcomb (D-Conneaut) in the 99 th District, which could be subject to a recount.

Even the two apparent key wins for Democrats were close contests. Rep. (D- New Albany) narrowly held on in the 20 th District by 133 votes over Matt Carle and Rep. Connie Pillich (D-Montgomery) clung to a five-vote lead over Mike Wilson in the 28 th District in a race that will likely be subject to an automatic recount after provisional ballots are added.

Ohio Senate

Already a foregone conclusion given the longtime Republican domination of the chamber, the power in the Senate nevertheless tilted even further to the right Tuesday with two GOP pickups.

First-term Sen. Sue Morano (D-Lorain), who won election to the 13 th Senate District four years ago on her second try, was defeated by GOP candidate Gayle Manning, the wife of the late former Rep. Jeff Manning. Republican Bill Beagle of Tipp City defeated Sen. (D- Dayton) in the 5 th District, which the GOP had unsuccessfully targeted in several past elections.

3 KASICH NAMES KEY STAFFERS, PROMISES TO BALANCE BUDGET AND ‘RESTORE THE TAX CUT'

Less than a day after he defeated Gov. Ted Strickland, Governor-elect John Kasich announced three members of his senior staff that will be heavily involved in budgeting and guiding policy for the new administration.

The Republican on Wednesday named Beth Hansen to serve as his chief of staff, Wayne Struble to be policy director for the Governor's Office, and Tim Keen as director of the Office of Budget and Management.

Ms. Hansen, who was his campaign manager, previously served 11 years as state director to U.S. Sen. (R-) and worked in the U.S. House, according to spokesman Rob Nichols. She is a graduate of the University of Michigan.

Mr. Kasich said he planned to create the new position of policy director for Mr. Struble, who would be charged with coordinating policy by working with cabinet members. He called the former congressional aide "an intellectual giant" who played a key role during federal budget negotiations when he chaired the U.S. House Budget Committee.

Mr. Struble previously served as Chief of Staff to U.S. Rep. Steve Austria (R-Springfield) and former U.S. Rep. David Hobson. He holds masters degrees from the University of Notre Dame and the University of Missouri at St. Louis.

Mr. Keen previously headed OBM under Gov. before becoming a senior policy advisor for State Auditor . He has also held senior policy positions in the Ohio Legislative Budget Office, the House, and Senate and has a master's degree from Rutgers University.

Executive Budget

Mr. Kasich said he was confident that his team could introduce an executive budget on time that would "get the job done and restore the tax cut."

Asked whether he planned to reinstate the final 4.2% income tax reduction, which Democrats postponed to generate $851 million to balance the current budget, Mr. Kasich declined to elaborate but promised further details would be forthcoming.

The Governor-Elect said his newly appointed advisors would meet with Gov. Strickland's aides Thursday to discuss revenue projections for the upcoming biennial budget. "We intend to move very quickly. We have a lot of work that's already been done, but its not complete because again we don't have the revenue numbers. But we will be ready without any question to put together a comprehensive budget within the deadlines," he said.

School Funding

In response to questions about education funding, Mr. Kasich said he would push a plan to reduce administrative costs and "put more dollars in the classroom." As for Gov. Strickland's Evidence-Based Model for school funding, Mr. Kasich said he considered it an unfunded mandate on schools.

4 Labor Disputes

Mr. Kasich expressed concern about the impact of binding arbitration in settling labor disputes with municipalities. "You have a situation where an outside person comes in, they mandate a settlement on a community, the community has no say and then that person leaves. That's a flawed system," he said. "This is a very big problem and it is something that we are going to take a look at."

Passenger Rail

The Republican reiterated his campaign promise to reject Gov. Strickland's plan to accept $400 million in federal stimulus funding to create a passenger rail line linking Cleveland, Columbus, Dayton and . "That train is dead, we are not going to have it," he said. However, he expressed interest in expanding intermodal freight rail infrastructure.

GOP GAINS COULD MAKE FOR EASY LAME DUCK SESSION

Lame duck session could be relatively quiet this year as Senate Republicans now have little incentive to cooperate with House Democrats since the GOP will dominate the legislative process next year with control of both chambers and the Governor's Office.

Spokespersons for both Senate President Bill Harris (R-Ashland) and Speaker Armond Budish (D-Beachwood) said they planned to convene caucus members next week to discuss strategies for the remaining weeks of the 128 th General Assembly.

Both chambers have sessions scheduled on Tuesday for the first time in half a year. On Wednesday there will be a joint session at the Franklin County Veterans Memorial to honor Ohio Military Medal of Distinction winners.

One likely item on the Senate's lame duck agenda will be to review Gov. Ted Strickland's Casino Control Commission appointees, who will be considered automatically confirmed next session unless the chamber takes action. Before the election, some Republicans suggested John Kasich should have a say in appointing the panel if he wins.

The prospects of passing a capital appropriations measure before the year's end appear doubtful as Senate leadership has questioned the necessity of taking action on the issue this session.

Prior to the summer recess, both chambers had identified several measures as priorities, including: an update to elections administration (SB 8), new campaign finance rules (SB 240 , HB 504), and consolidating and eliminating dozens of defunct and obscure boards and commissions (SB 268, HB 495). But again, with Republicans assuming complete control of the legislative process in less than two months, they might well decide to wait.

After Republicans won control of the House Tuesday, Minority Leader and presumptive House speaker Bill Batchelder (R-Medina) said he expects his caucus will hold a vote on next session's leadership positions very soon.

Sen. Harris's spokeswoman Maggie Ostrowski said timing for leadership elections and potential vacancies in the Senate would be determined in coming weeks.

5 At least three Senate seats are opening up next year as mid-term senators take up new offices. Sen. Jon Husted (R-Kettering) will be the next secretary of state, Sen. (R-Lakeville) won the 18 th Congressional District race, and Sen. Tim Grendell (R-Chesterland) decided to switch to the House with two years remaining before term limits force him from office.

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