A few Republican lawmakers complained that they didn't see the details of Gov. Kasich's proposal before he unveiled it publicly on Wednesday. Two days later, it was the Governor's turn to claim he was blindsided, when he found out that his plan to increase the severance tax on oil and gas drillers to fund an income tax cut was stripped from his updated budget.
"I'm disappointed that it's not going to happen now. I mean, I realize that the special interests have a different point of view than I have on this, but I want to make it clear to everybody that we will keep pursuing this. This appears to be the first inning of what's going to be a long ball game."
The oil and gas industry had blasted the governor's 4% severance tax proposal, saying it would hamper the development of an emerging industry. Kasich says he respects those who disagree with him, but that he'll fight for this.
"You ask yourselves - do you think that all the profits that they're going to get from this extremely valuable resource ought to be taken out of Ohio, or should Ohioans benefit from it - particularly small businesses and families?"
House Finance Committee chair Ron Amstutz of Wooster says hearings are set to begin Tuesday on the governor's revamped budget proposals on education, government and other changes. But the severance tax/income tax plan will not be considered now, and the governor's plans to change the taxes on financial institutions and close some loopholes will be considered in separate legislation before another committee.
