"Gov. Kasich Unveils Plans for FY16-17 State Budget
On Feb. 2, Governor John Kasich released his proposed $72.3 billion state budget for fiscal years (FY) 2016-17, which begin July 1, 2015. It includes a combination of tax cuts and tax increases. Overall, the administration claims it amounts to $500 million net tax cut, even though it includes increases in sales, commercial activity, tobacco, and severance taxes. Some of the high points of the proposal include:
- Cuts the income tax by 23% across-the-board (15% income tax cut this year and 8% cut next year);
- Raises the Commercial Activity Tax (CAT) on gross receipts from .26% to .32%;
- Increases the Cigarette Tax from $1.25 to $2.25 per pack;
- Proposes a 6.5% Severance Tax on high volume oil and gas horizontal wells;
- Increases the state sales tax from 5.75% to 6.25%;
- And expands the sales tax base to include the following services: cable TV, parking, lobbying, public relations, consulting, and travel packages."
For a summary of Gov. Kasich's Tax Proposal
So, what does that mean for Ohio libraries?
According to Michelle Francis of OLC, Director of Government & Legal Services:
"According to Office of Budget and Management (OBM) budget documents, the Governor’s proposed budget does not change the PLF percentage from 1.66% of the total General Revenue Fund (GRF) tax receipts. However, due to the various tax reform proposals and state revenue estimates, if the Governor’s proposal were to be enacted as proposed, the distribution to the PLF would increase by 5.7% in FY16 and 3.9% in FY17."