After much anticipation, the House version of the state operating budget was unveiled last week.

This budget has been tough, given that it has to fill in an $8 billion financial hole caused by the loss of Obama stimulus funds.

Since its introduction in March, the House has developed a number of significant changes to the proposed budget. These changes are integral, helping the budget retain vital state services while continuing to improve our job market and economy.

For instance, it increases state funding to public schools by $40 million per year. Most school districts in the 87th House District receive about a 3 percent increase each year of the biennium in state foundation aid.

However, with the loss of federal funds from President Obama’s stimulus package, our school districts face a net loss ranging from reductions of 1 to 8 percent over the next two years.

Stated more clearly, while state funding for schools is increasing, federal assistance is being lost. At this point, the state does not have the resources to completely fill the budget gap, although it is possible that we will continue to address this issue as the budget bill goes to the Senate and is discussed in a joint conference committee.

The House has made cuts to state agencies and made other adjustments in order to provide access to $50 million per year to local governments.

This boost in funding will help our local communities streamline their operations, which is a necessary step in development for the future.

Possible results of this change could potentially include purchasing equipment, covering personnel costs, covering the start of shared services, as well as allowing other types of cooperative agreements, such as joint fire districts.

The grants will be processed through the local integrating committees that already exist through Ohio Valley Regional Development Commission. This budget is particularly hard on Ohio’s local governments, and we need to help them in every possible way as the budgeting process continues.

The House budget proposal also moves to eliminate the estate tax—commonly called the “death tax”—starting in the year 2013.

This tax is often cited as one of the major factors that has continued to drive away Ohio’s population, with people subsequently investing outside our borders. The estate tax has proven to be a major hindrance to farmers as well.

Agricultural investment in Ohio is just as important as job investment and retention. The budget will reconcile this by restoring funding to the Cooperative Extension Service and the Ohio Agriculture Research Development Center.

With this proposal, the framework is set for additional economic development and job creation. We will be able to leverage resources significantly more, allowing Ohio to draw more investment from across the country.

Maintaining health care for the poor is also one of our highest priorities, next to education, in the budget. The House version restores some funding to the community health centers. PASSPORT also received a $15 million increase from the introduced version, although this is still a major decrease in funds for the program.

Funding for nursing home care, hospitals, home care, mental health and other related issues in the budget will most likely be addressed in the House-Senate joint conference committee in June, when the new — and expected higher — revenue estimates will be available to more accurately assess these areas.

The introduced budget was one in which the vast majority of every part of state government unfortunately suffers in financial reductions. The House version does not change that picture, but will hopefully help meet the goal of providing more efficient services and bringing jobs to Ohio.

I anticipate the bill will be approved by the House in the coming week and then move on to the Senate for further consideration.

John Carey serves in Ohio’s 87th District of the House of Representatives, which includes eastern Lawrence County. He may be reached at (614) 466-1366 or by writing to: Ohio House of Representatives, 77 S. High St., Columbus, OH 43215. He can also be reached via e-mail his office at District87@ohr.state.oh.us.