Gov. John Kasich is now actively talking up some of the controversial elements of his spending plan as many leaders in his own party continue to line up against it

Gov. John Kasich doesn’t often do one-on-one interviews on any subject, but he sat down to talk about the budget, which he admits is not going over well with lawmakers, including his Republican colleagues, many of whom don’t like the proposal to pay for a state income tax cut in part with revenue from an expansion of the state sales tax onto some 80 services that are not taxed now.

Tax reform is always something – don’t tax me, tax the guy who’s hiding behind the tree. And so, this is just the usual, this is just the usual kind of hubbub around the issue of tax reform.

Reporter: “But specifically the broadening of the state sales tax. That’s gotten some concerns there.”
Kasich: “Sure.”
Reporter: “You know, you just said it yourself – that Ohio’s taxes are too high, we need to lower them to be competitive. But when you broaden a tax and impose it on services that didn’t have a tax before – isn’t that a tax increase?”
Kasich: “No, because it’s a net $1.4 billion tax cut. And here’s the thing. About 75% of our economy now are services. Do you know you pay taxes on dry cleaning? Did you know that? And that’s a service, okay. What the legislature has seen fit to do is whenever they’re short money they go and tax a service that doesn’t have any lobbyists, and that’s how they plug their holes.

“I want to make sure that we have a modern tax system and use it to reduce taxes to help small business and help us to be more competitive.”

But what are the budget’s chances? Fellow Republican House Speaker Bill Batchelder, who leads a supermajority caucus 60 that includes members who were very supportive of Kasich’s first budget, is clear.

As it is, as it is submitted? That would not be possible.

Batchelder says Republicans’ concerns about the budget are no surprise to the governor.

“He’s aware of this, of course. We speak to each other often. There are a number of things there that have to change,” Batchelder says.

“Some of them are not very significant in terms of the quantity but they’re important to the members of the caucus. Others are very expansive and sweeping in their nature and those would include obviously the tax, obviously Obamacare, and we still have confusion over the language involved in school support.”

The tax Batchelder refers to here is the expansion of the state sales tax, but he’s also said he and many other Republicans don’t like the tax on big oil and natural gas drillers.

And when the Speaker references Obamacare, he’s talking about the expansion of Medicaid to people who make up to 138 percent of the federal poverty level – a plan that Kasich has put forward even though he opposes the Affordable Care Act.

But even as Kasich continues to promote the controversial elements of his budget, he remains confident.

“What do I think at the end of the day? I’m hopeful we’re going to get there. But it’s always a bumpy ride. Change is very difficult.

But he won’t talk about the behind-the-scenes conversations he’s having with the Democrats he needs to pass the Medicaid expansion, or the Republicans he hopes to persuade to support that and the other elements of his budget.

“I would love to talk to you about all the negotiations, but I’m not going to.”

The budget needs to be in place by the end of June. It’s still in a House committee, but the Speaker says he’s urging his colleagues in the Senate to start hearings of their own to make sure that deadline isn’t missed.

Statehouse correspondent Bill Cohen reports on what lawmakers heard in the House Finance Committee, and how the panel will have a big say in what the final tax reform package looks like. Click the play button above to hear his full report.

Statehouse correspondent Bill Cohen has our preview on that and other issues lawmakers are considering. Click the play button above for details.

Monday was the first day of legislative hearings on the proposed $63 billion budget for the two-year period beginning July 1.

The budget contains a 20 percent cut to the state income tax, while increasing sales tax revenue by applying the tax to several new sectors and services such as haircuts and legal fees. Gov. Kasich calls it a $1.3 billion overall tax cut, while a liberal think tank has said the shift would increase the overall tax burden of many Ohioans, including the poor.

“Everywhere I go, I can’t get away from these taxes. I can’t leave the state because if I try to, (the state) will tax the travel agent who gets me out of here and the agent that gets me a ticket back,” said Dem. State Rep. Dan Ramos.

The plan has the backing of most Republicans and small businesses, which would benefit from a lower income tax. Small business lobbyist Roger Geiger.

“The more money you put in the pockets of small business owners and entrepreneurs, the more they’re willing to expand their business,” said small business lobbyist Roger Geiger.

But Geiger says his industry would object to the state requiring new jobs at businesses receiving tax cuts.

Click the play button above to hear more from Monday’s first day of legislative discussion on the proposed budget.

Click the play button to hear more about the study, and a response from a top Ohio Republican.

But they’d also face a five percent sales tax on services that have previously gone un-taxed. If you’ve been trying to figure out whether you’d be a net financial winner or loser, you’re not alone. Statehouse correspondent Bill Cohen has been wondering the same thing. Click the play button above to hear his report.

But, at the same time, a reduced five percent state sales tax would be applied to many services that are now un-taxed. Statehouse correspondent Bill Cohen reports on who would pay more for that. Click the play button above to hear his full report.

So what’s the GOP majority likely to do with that continued hold on power? And can the minority Democrats do much to stop them ? Ohio Public Radio’s Bill Cohen reports there’s already one battle brewing. Click the play button above to hear his full report.