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by Joe Cornely

Following a review by state trustees and staff of Gov. Bob Taft’s budget and tax proposals (see story at right), Ohio Farm Bureau sent a letter to the governor commending his "clear efforts to support the concerns of Farm Bureau and the business community." The letter also states that OFBF "believes you have made strenuous efforts to contain state spending and to boost economic growth through tax reform." OFBF also sent a news release to the media announcing its support.

The governor, in a public response, thanked Farm Bureau members for recognizing the importance of improving Ohio’s economic competitiveness and said, "I value the time I have spent with the bureau’s leadership and the tremendous feedback they have offered."

Farm Bureau also said there are some areas of Taft’s plan that could be improved.

OFBF Executive Jack Fisher told Buckeye Farm News that Medicaid is at the top of the list. "We believe there are some long-term changes that need to be implemented so that Medicaid can better serve the needy without breaking the budget, " Fisher said. Among the systemic changes Farm Bureau favors are elimination of fraud, improved efficiency in administering and delivering services, and making providers earn business through competition. OFBF is examining a number of cost-saving measures suggested in a report from the Ohio Commission to Reform Medicaid. Fisher said he expects OFBF to endorse many of the commission’s findings.

Farm Bureau also would like to see the state get more aggressive in reducing overhead. The governor’s proposal is a start, according to Fisher, but eventually the state needs to get serious about streamlining.

"I heard a statistic the other day that really drove this home. Middle managers in private business typically oversee 15 people. In the Ohio government, middle managers oversee four. This is the kind of situation that needs addressed," Fisher said.

There are several aspects of the governor’s tax reform package that Farm Bureau would like to see altered. The proposed commercial activity tax includes a $100 fee for all businesses that have between $40,000 and $1 million in sales. OFBF is studying whether a $500,000 floor would be more appropriate. In its letter to Taft, Farm Bureau noted that at the $40,000 level, 20,000 small family farms would be affected.

Another part of Taft’s tax plan OFBF opposes is an increase in the kilowatt hour tax. OFBF encourages its elimination because of its anti-business nature and its impact on rural Ohio.

Farm Bureau did not give its support to the Taft plan without a great deal of consideration, Fisher said. "Farmers understand that a healthy state economy is in their best interest. The public also needs to understand that a healthy agriculture is in their interest," he said.

Fisher cited an example from the Taft budget where the priorities of farmers and consumers converge. The budget calls for reduced spending on the ODA livestock permitting program and on ODNR’s cost share funding for soil and water conservation districts. According to Fisher, "Both these programs protect the environment while helping farmers run competitive businesses. If we stop overspending on things like Medicaid and overhead we can afford the programs that really do some good."

The Farm Bureau letter to Taft recommended increased support for the livestock permitting and Soil and Water Conservation District cost-share programs, but only if further spending cuts are found elsewhere. And OFBF reiterated its long-standing support for adequate financing of research programs at the Ohio Agricultural Research and Development Center.