The General Assembly is taking a break on sessions for the next two weeks. Such a break is fairly traditional prior to a primary election in a state election year. On paper, these two weeks are set aside for committee meetings, though few committee meetings are scheduled.

The one committee that is expected to meet often during these two weeks is the Senate Finance and Financial Institutions Committee. That committee has been given SB 261, another state budget fix, to mull over during the session break. The committee is scheduled to meet for its first hearing on the bill on Tuesday of this week (April 30).

SB 261 attempts to fill an additional budget hole of $1.25 billion that is expected to haunt the state budget through June 30, 2003. Further cuts in local government assistance (LGF and L-GRAF) are not currently part of the General Assembly's or Administration's plans for filling this budget hole.

Currently, the administration plans to shave $207 million from the budget through state agency cuts, a continued hiring freeze and other administrative actions. There is also a plan to buoy the budget through another transfer from the state's "rainy day" fund of up to $460 million over the next 14 months. That fund currently contains $600 million. Another option under consideration is the decoupling of the state from new federal rules on depreciation. That option, if adopted, would save the state $150 million. SB 261 also contains a provision for an increase in the state's cigarette tax of 50 cents-per-pack. That move would raise almost $400 million over the rest of biennium, if adopted by June 1.

Now, that is what's on the table today. But, interest groups are already lining up against the cigarette tax and many members of the Senate have already said they won't vote for it. The decoupling from the new federal tax breaks on depreciation also has its critics. The decoupling, critics say, would leave Ohio business taxpayers paying more than businesses in other states which do not decouple. That situation would effectively be a tax increase on Ohio business, according to those who don't like the idea. Others will say, "Let's leave those ideas on the table and take up video gambling devices at Ohio's racetracks." Other views in the mix are those who are convinced that state government can simply cut its budget back into balance and those who feel the economic recovery for which everyone is waiting will come sooner than expected.

Obviously, we will keep a close eye on this very fluid situation. Fixing a budget in an election year at the Statehouse is never predictable. We will keep you informed on what is under consideration in this process.

Though events could change our schedule, we do not intend to publish a Legislative Bulletin this Friday. As you can see by our committee schedule for this week (there is none), we expect that much the same will be true for next week and there will be little to report. However, we do expect that much of the work on a Right-of-Way bill will continue over this break. Last week, the League, the Ohio Municipal Electric Association and several others with municipal interests met with ROW bill sponsors (SB 255-Blessing and SB 257-Mead) and utility company representatives to begin working those pieces of legislation. Those negotiations will continue this week and next.