BUDGET AGREEMENT MAY BE NEAR

 

News reports today raised the possibility that a budget agreement may be in the works among the House and Senate and Governor Strickland.  In this regard, the six-member budget Conference Committee is scheduled to meet this Saturday and possibly Sunday to try and come to agreement on a Conference Committee report.  This would pave the way for a vote by the House and Senate as early as Monday.  The bill would then go to Governor Strickland for his signature before the July 1st deadline.  While this is the current speculation, there is still the possibility that the negotiations could fall apart and the State may have to operate on an interim budget if an agreement cannot be reached prior to July 1st.

 

Last Friday, Governor Strickland unveiled a plan to raise approximately $765 million in revenues by authorizing slot machines at Ohio’s seven racetracks and making cuts of $2.4 billion to plug the gap in the House and Senate versions of the budget now pending before the Conference Committee.  Under the Governor’s proposal major cuts over the biennium would occur in the following areas:

1.      $227 million in cuts to the Public Library Fund

2.      Reducing state employee retirement contributions saving $94 million in non-GRF funds

3.      Waiving the fiscal year-ending balance requirement which would save $130 million

4.      $770 million in cuts to the state GRF share of Medicaid

5.      Reductions of $1.3 billion in funding for numerous state agencies, boards and commissions

6.      A $162 million GRF increase from the retirement contribution reduction

7.      A $201 million in “cash management” moves.

 

 

OPEN ENROLLMENT REFORM STILL A HOT BUDGET ISSUE

 

One of the budget issues of great importance to OAHU is reform of Ohio’s open enrollment program that provides health insurance to those uninsurable in Ohio’s individual market.  All stakeholders agree that premiums in the program are not affordable for the vast majority of consumers, but there is disagreement on how to best solve this problem.  As you may remember, the Governor’s budget proposal was to cap open enrollment rates at 1.5 times the base rate.  The Ohio Department of Insurance’s actuary determined that 52,000 additional consumers would buy health insurance through open enrollment, but rates in the standard individual market would increase by 5.5%.

 

While one major insurer apparently supports this proposal other insurers are working to phase-in the caps at a slightly higher rate and to bring new enrollees in the program over 3 or 4 years as opposed to all 52,000 in one year.  While it is unclear what the compromise will be, there is a strong likelihood that revisions to the open enrollment program will be included in the final version of the budget. The revisions will likely provide an opportunity for OAHU members to find more affordable coverage for uninsurable individuals.

 

 

SENATOR SCHULER DIES AFTER BATTLE WITH CANCER

 

Cincinnati area State Senator Bob Schuler passed away last Friday after a long battle with cancer.  Senator Schuler served in the Ohio House from 1993-2000 and has served the 7th Senate District since 2003.  He will be missed by all of us who had the opportunity to work with this very kind man over the years.

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