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Strickland: Stimulus cuts 'devastating' for Ohio

Analysis shows that Ohio would receive $1.2B less in Senate's recovery package.

By William Hershey and Jessica Wehrman

Staff Writers

Tuesday, February 10, 2009

COLUMBUS — Gov. Ted Strickland painted a doomsday scenario of thousands of lost jobs, spikes in college tuition and babies without needed immunizations, all resulting from the potential loss of more than $1.2 billion to Ohio in the federal stimulus bill the U.S. Senate is expected to vote on today, Feb. 10.

In a letter to the state's congressional delegation on Monday, Strickland said that the Senate stimulus plan, with $25 million less in state general government aid than the House-passed plan, would have a "devastating impact" on Ohio.

Federal Fund Information for States released an analysis that showed Ohio would receive $1.2 billion less in the Senate plan than in the House version in the state fiscal stabilization fund, including $293 million for schools.

Ohio's two U.S. senators are split on the Senate bill.

Republican George Voinovich plans to oppose it, saying it has too much in it that "did not provide the jump-start our economy so desperately needs."

Democrat Sherrod Brown said he wasn't happy with cuts from the House version but would vote "yes" with hopes of restoring some of the cuts when the House and Senate iron out a compromise version.

Strickland has included $3.4 billion in anticipated federal stimulus aid in his proposed $54.7 billion, two-year state budget, based on the House stimulus plan. Amanda Wurst, his spokeswoman, said the Senate version would result in the loss of $930 million in general purpose aid for the state budget. Strickland's aides still are analyzing how a projected $293 million loss in support for schools would affect the state budget, Wurst said.

"Put simply, without substantial fiscal relief for states more Ohioans will lose jobs and fewer Ohioans will have access to the critical services that our state and local communities provide," Strickland wrote in his letter. "Those negative consequences will undermine the very purpose of the bill by slowing the stimulative effects of the infrastructure investments and tax cuts."

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