Ten Ways to Reform the State Budget
The
state's budget is in fiscal crisis with legislators and the governor
attempting to cover a $3 billion shortfall between revenue and
spending. That's a significant amount of money, but it's not an
insurmountable problem. Here are ten things for policymakers to
consider to help cover the gap:
1. Eliminate the Department of Development - a corporate welfare agency. It hasn't helped Ohio's economy and few would miss it if it were eliminated completely. Savings: $157 million over two years.
2. Move away from Medicaid institutional care. Unlike most other states, Ohio relies on expensive institutional care like nursing homes for its Medicaid recipients. Most recipients prefer cheaper alternatives like in-home care over nursing homes. Savings: $400 million per year.
3. Reform Medicaid Florida-Style. Medicaid offers low-quality, high-cost care and it takes up a large portion of the budget. Reforms enacted in Florida provide Ohio lawmakers an excellent roadmap for tackling this difficult issue. Savings: $1.5 billion per year.
4. Education funding should follow the student. If the state implemented a plan where the dollars followed students to whatever school they choose, it would lead to a better education for students as well as savings to the taxpayers. Savings: $500 million per year.
5. Eliminate the increases from Fiscal Year 2009's level -- Legislators gave some agencies an increase from last year. If these agencies' funding was held at the same level as Fiscal Year 2009, it would save $343.6 million.
6. Increase state employee health insurance premiums. On average, state employees pay 15% of the premiums for health insurance. Their private sector colleagues pay roughly 20%. State employees should pay the same. Savings: $57 million over 2 years.
7. Eliminate non-vital agencies. The Ohio Arts Council, the Cultural Facilities Commission, the Commission on Minority Health, e-Tech Ohio, the Commission on Hispanic/Latino Affairs, and the Ohioana Library Association may serve certain special interest groups well, but in this budget crisis the services they provide are hardly vital. Savings: $111 million over 2 years.
8. Make users of government services shoulder the cost. The state park system's millions of visitors each year can pay increased user fees. Savings: $70 million.
9. Don't expand government health insurance to the middle class. In 2007 the governor and legislators of both parties expanded a government health insurance program to middle class children. The increase has yet to be implemented and should be permanently abandoned. Savings: $119 million over two years.
10. Eliminate some Medicaid services. If the state would stop paying for Medicaid recipients' usage of chiropractors, hospice, and a few other services, the state could save $712 million over two years.
Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.
