CINCINNATI - Ohio Gov. John Kasich released a new two-year budget proposal that would cut the state sales tax a half percent while making more services taxable.
It would also cut the state income tax, but only give funds for local government a small increase, which has some city council members crying foul.
Councilmember P.G. Sittenfeld called the governor's proposed budget "out of touch" on Monday.
Sittenfeld told 9 On Your Side that’s because while the state has extra money, city governments like Cincinnati are trying to fill massive budget deficits.
The city of Cincinnati needs to fill a $34 million budget deficit. Most of that money is expected to come from the sale of the city's parking assets, which is something Sittenfeld is strongly against.
"We're bearing the burden at the local level so we pay our taxes so that we can keep cops on the streets so that we can pave our roads, instead they're keeping that money up in Columbus so I think there is a lot of frustration across the board,” said Sittenfeld.
Sittenfeld says local governments receive about half of the state funding they did just a few years ago, which forces communities to make tough decisions across the state.
“It's not good governance to say we're going to have the state look good, but do it at the expense of the cities that comprise the state," said Sittenfeld.
The councilman said he hoped the plan would also include more money coming to local governments.
"I figure he's boasting about having so much money maybe he's going to give back some of the local government funding that he raided previously, was expecting to see that, didn't and I’m obviously disappointed," Sittenfeld said.
Gov. Kasich says local governments will make up for the state cuts by sharing services and with relief they'll get on some spending requirements.
Robert Nichols, a spokesperson for the governor's office, said Monday evening that local government fund will grow at least $28 million over the two years of the proposed budget.
“It’s just different priorities. We want reduce taxes to make Ohio jobs-friendly and put Ohioans back to work, and they think growing government should be our focus," said Nichols. "While we have a long way to go, Ohio businesses have created over 120,000 jobs since Gov. Kasich has been in office, after losing 400,000 jobs over the previous four years. We’re confident that our job creation priority is the right one.”
Gov. Kasich's budget plan still needs approval from the state legislature. Sittenfeld hopes some changes are made before that happens.
A chart of the governor's budget proposal income tax savings is available in the media player above.
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