The Ohio House of Representatives passed House Bill 1, the two-year, $54 billion state operating budget. The bill includes funding for the operation of state government agencies and services.

The House-passed version of House Bill 1 increases government spending by more than $1 billion over the next two years. House Democrats established the proposal using a more optimistic growth in tax revenue projections than the governor’s proposal, when all indicators point to a decline in revenues over the next two years. In addition, the plan maintains the governor’s original proposal to include more than $4.3 billion in one-time revenue sources, including approximately $2.2 billion in temporary federal funding and draining the state’s $1 billion rainy day fund.

“This expansion of government is out of touch with the hardships so many of our citizens are experiencing” State Representative Jeff McClain said. “We should be helping people get through this. Instead, this budget would guarantee higher taxes and massive cuts in two years.”

The Ohio Agricultural Research and Development Center (OARDC), along with the Ohio State University Extension, suffered cuts under the current budget. These programs are focused on developing and transferring new technologies to Ohio’s agricultural industry. In the final hearing of the House Finance and Appropriations Committee, McClain offered an amendment to restore funding to these important programs, which was rejected by House Democrats.

“The OSU Extension and the OARDC have been ill-treated in the past several budgets, especially when you consider how much advancement in agriculture comes out of these programs,” McClain said. “We want to make sure that the agricultural industry is given the resources it needs to continue to lead Ohio’s economy.”

While Medicaid spending increases, House Bill 1 flat funds state aid to Ohio’s local school districts. Overall, the proposal cuts state funding for education by $216 million and $167 million in fiscal years 2010 and 2011, respectively, compared to 2009 funding levels. In addition, House Democrats have underfunded their plan by $2.5 billion in fiscal year 2010 and $2.7 billion in fiscal year 2011.

“After many claims about fixing our education system, this proposal does nothing to improve funding for our schools,” McClain said. “In fact, over two years there are no schools that receive an increase in state money. For these and many other problems, I voted no with the hope that the Senate will craft a budget that will help all Ohioans get through these challenging economic times.”

House Bill 1 was approved by a 53-45 vote. The bill now moves to the Senate for further consideration.