Gov. Kasich reveals budget plan

COLUMBUS (AP) - Ohio Gov. John Kasich has proposed a sweeping budget that reduces state income and small-business taxes through hikes in other areas, boosts school funding and expands Medicaid.

The Republican governor's plan was unveiled Monday.

Kasich said the proposed budget was comprehensive and would make sure no one was left behind.

"It's not enough that some citizens do well. Everyone in Ohio has to have the prospect of doing better and I think we're getting there. I think the Buckeye State is now being restored to it's rightful place as a great leader as a state in the United States of America," he said.
 

Here are some of the highlights:

• TAX CUTS: Reduces small business taxes by 50 percent, cuts state income tax by 20 percent over three years, and decreases sales tax from 5.5 percent to 5 percent.
• TAX INCREASES:  Places taxes on professional services such as lawyers and accountants, and increases tax on large-volume oil and gas drillers.
• MEDICAID EXPANSION: Expands Medicaid health care coverage for poor under the new federal health law, making 365,000 more Ohioans eligible.
• HIGHER EDUCATION: Puts higher priority on number of students who graduate from public colleges and universities by tying half of state funding to graduation rates, delivering combined $4.7 billion over the biennium.
• PRIMARY AND SECONDARY EDUCATION: Gives extra $1.2 billion to public school districts, eases disparities in revenues from local property tax levies, and offers more money to districts based on number of poor, special-needs, gifted and college-bound students.
• HIGHWAYS: Creates up to $3 billion for road and bridge projects mainly through bond sales backed by future Ohio Turnpike toll revenues.