The clock is ticking for Gov. John Kasich who has until Friday night to sign the $65 billion state budget that fills a revenue shortfall and makes some major policy changes. At least one of those changes that could set the stage for a veto fight.
The budget bill headed to Kasich’s desk cuts government spending across the board, gets rid of several funds that support local governments, reduces the number of tax brackets, and invests more than $175 million in the opioid epidemic.
State lawmakers long ago stripped out Kasich’s proposed income tax cut, which would have been paid for with hikes in sales, alcohol, cigarette and fracking taxes.
Republican House Finance Chair Ryan Smith of Bidwell says there are plenty of other provisions in the bill, which exceeds 4,700 pages. Bidwell says the budget process was even more challenging given the simultaneous debate in Congress over health care changes.
“This report, which is our budget, is very responsible at a time where heightened uncertainty and not knowing exactly where we’re headed in the form of Medicaid out of Washington,” Bidwell says. “But it makes the necessary investments in basic services while also making additional investment in education and it takes a big step towards combating our biggest challenge in this state.”
The billion-dollar shortfall that opened up after the budget was first proposed in January had lawmakers scrambling to make cuts to state agencies. But Medicaid turned out to be the main topic of debate on the House and Senate.
Democrats slammed the provision that freezes Medicaid enrollment for the expansion population next year. The freeze is for adults up to age 64 who earn less than 138 percent of the federal poverty level - $28,000 for a family of three.
Democratic Representative Emilia Sykes of Akron said cutting off access to Medicaid to that group would result in two things.
“First, people will die. People will die, I’m going to say that one more time, people will die. The second fact, this will cost more. People will die and this will cost more. These are the facts. That’s it,” said Sykes.
Democratic Representative Alicia Reece of Cincinnati suggested that the public might not fully realize the decisions their state lawmakers are making.
“While the world was watching Washington, everybody’s upset, everybody’s protesting, everybody’s calling, we were quietly coming in and cutting them at their needs as it relates to Medicaid cause everybody thought it was Washington, so if we can just ease our way in, we can get this stuff done and nobody will notice cause everybody’s because everybody is focused on Washington,” Reece said.
Medicaid expansion has been a cornerstone of Kasich’s time in office, propelling him into the national spotlight in the recent health care debate. He's said it's key to helping Ohio fight its deadly opioid crisis.
During a media event in his office before the budget was approved, Kasich was asked about the possibility of vetoing the provision.
“I’m not commenting on anything so forget it. We’ve got the House and Senate voting today, we’ll have plenty to say when the time is right.”
But unlike with previous budgets, lawmakers are ready for the veto threat. Republican House Speaker Cliff Rosenberger and Senate President Larry Obhof have both warned that their members are ready to come back over the Independence Day week for a possible vote to override any veto.
“Well we have 59 on the board depending on the several provisions that might happen. I don’t want to get ahead of myself, we don’t have any vetoes ahead of us, but I think we can definitely come back if we have to,” said Rosenberger.
Kasich has until midnight Friday evening to sign the bill and make any vetoes if necessary. The House and Senate would need a three-fifths majority to override the governor's veto. That means 60 votes in the House, and 20 in the Senate.