When crafting a budget, there are several factors to take into consideration. People who have written budgets for their households knows how difficult it can be to estimate what their incomes will be for a given time period with any degree of certainty. In most cases, it's even more difficult to estimate the expenses one's income will need to cover as emergencies and unexpected circumstances arise. As lawmakers work to craft Ohio's next state budget plan, we are met with similar challenges.
Among the many factors that influence the writing of the state budget is Ohio's economy. We are all aware that the state and national economy sustained several blows in recent years following the terrorist attacks, corporate scandals and trends toward outsourcing. Current data show that as America has worked to regain its economic footing, Ohio has lagged behind in several important areas. A particular goal for Ohio leaders has been to focus on job creation as statistics show that our state has been hit hard, particularly by losses in manufacturing jobs. Figures show that manufacturing employment in Ohio has declined by 20 percent in the past four years. That compares to a 17 percent decline nationally during the same time period.
Added to the loss of manufacturing jobs is data showing that non-manufacturing employment has been nearly flat for the past two years in the aftermath of sharp declines in previous years. Nationwide, the trend has been different as non-manufacturing employment reached an all-time peak in 2004 that seems to be continuing into 2005. As a matter of fact, between June of 2000 and December of 2004, Ohio lost 78,000 non-manufacturing jobs while across the U.S. the number of non-manufacturing jobs rose by nearly 3.6 million.
As you might imagine, the number of Ohioans who are working steadily and earning an income have a direct impact on the state budget. It certainly impacts the amount of revenue, or income, the state has to spend, and it also impacts the number of services and expenditures the state has the financial ability to fund.
As we set about the task of writing Ohio's budget plan for the next biennium, we are working to address the challenges posed by our economy. One of our primary goals is to enact comprehensive tax reform to kick-start job growth, encourage entrepreneurship and innovation, and promote a competitive business climate. In addition to tax reform, we are also working to restrain state spending wherever possible without compromising priority services.
It is my hope that this brief overview provides some insight into the deliberations taking place at the Statehouse now and in the coming months. As a member of the Senate Finance and Financial Institutions Committee, I will have an opportunity to directly weigh-in on behalf of our area as Ohio's budget plan is being crafted. Rest assured that my plans are to continue to keep you updated on the various aspects that affect this process. My commitment is to make decisions based on what I believe is in the best interest of the 20th Senate District.
As always, your thoughts, ideas, comments and suggestions are important to me so that we can work together on behalf of the 20th Senate District.
-Sen. Joy Padgett, R-Coshocton, represents Athens in the State Senate. Contact her at (614) 466-8076 or via U.S. mail at Senator Joy Padgett, Statehouse, Columbus, Ohio 43215, or send e-mail to SD20@mailr.sen.state.oh.us.
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Letter to the Editor
