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by Jack Fisher, executive vice president
Ohio Farm Bureau Federation

The state's new two-year budget is done and one thing is for sure - Ohio Farm Bureau played a major role in its development.

I'm not just talking our influence on agriculture's traditional interests - Extension, OARDC, Soil and Water and ODA - I'm talking about Farm Bureau's role at the center of what this budget was all about: Fixing Ohio's economy.

Never have I been more proud of Farm Bureau members who recognized that this budget debate afforded us an opportunity to make a truly positive difference in the lives of every citizen of Ohio. This was the chance to reign in the growth of government spending and to reform Medicaid, to implement tax reforms that are predicted to reduce tax burdens on farms, families and businesses and to encourage growth in Ohio's economy by returning the state to a competitive position.

Stepping into the fray over things like tax reform, Medicaid and fiscal responsibility was not an easy decision. We knew that stepping outside our "agricultural comfort zone" carried risks. But we heard early and often - from individuals, advisory councils and others - that this was not the time to play it safe. This was the time for Farm Bureau to step to the forefront, and that's exactly what we did.

We sought lower state spending and got it. This two-year budget grows at 4.1 percent compared with double-digit increases in recent budgets. A big portion of the savings came from holding down growth in Medicaid. Prior to this budget, Medicaid expenses were forecast to increase by 18 percent in the next two years; this budget holds the increase to less than 5 percent.

A major part of the budget OFBF weighed in on was the new commercial activity tax (CAT). We supported the CAT as part of an overall package of reforms to boost Ohio jobs. The CAT creates a broad-based low-rate replacement for the corporate franchise and tangible personal property taxes that previously made Ohio unfriendly to business. With those two tax impediments eliminated, Ohio becomes a more favorable place for existing or new businesses to buy your commodities, create off-farm jobs and generate tax revenue for roads, schools and hundreds of other state-funded services.

While Farm Bureau believes the CAT is good for Ohio's overall economic well-being, I'll readily admit it's also created some challenges for our organization. Farm Bureau members are diverse, running different kinds of enterprises and operating farms of all sizes. In the final analysis, some farmers and agricultural businesses won't fare as well as others. But taken as a part of our entire package of business climate improvements, the elimination of penalties on investment and capital growth will rejuvenate Ohio’s economy to everyone’s advantage.

Also to help Ohioans, Farm Bureau supported the 21 percent across-the-board cut in personal and business income tax rates that will cut everyone's tax bill. We succeeded in eliminating the 30 percent increase in the kilowatt-hour tax that would have hurt rural Ohioans. And by insisting that the growth in government spending be curtailed, we reduced the likelihood that CAUV, sales-tax exemptions and other farmer-friendly tax policies would be targeted in the future. Also eliminated, thanks to Farm Bureau’s voice, was the proposed land transfer tax and one-half of the state sales tax increase.

Also noteworthy is that this budget exercise helped us progress toward Farm Bureau's long-term goal of forging partnerships. While many lawmakers and others were helpful to Farm Bureau in the budget process, several champions emerged to make our success possible. They include Sen. Ron Amstutz, R-Wooster, Sen. Larry Mumper, R-Marion, House Speaker Jon Husted, R-Kettering, Rep. Bob Gibbs, R-Lakeville, Rep. Steve Reinhard, R-Bucyrus, and Lt. Gov. Bruce Johnson, on behalf of the Taft administration.

In spite of our successes, Farm Bureau won’t rest just because a budget has been signed. Work will continue on important issues like finding a more equitable tax system for grain sales; reviewing the public policy of "pay-as-you-go’" fees for agencies; implementation of the tax program, and continued emphasis on fiscal responsibility.

Let me offer my thanks to all the Farm Bureau members, leaders and staff who worked diligently to secure a budget that is far more than a two-year spending plan. Our organization played a role - a significant role - in shaping a sound blueprint for Ohio's economic future. It's a job we can be proud of.