Ohio governor presents dire budget cut scenario

COLUMBUS, Ohio (AP) - Ohio would close state parks and prisons, raise tuition at public colleges by $2,000 and leave local school districts without money to meet payroll under the governor's worst-case budget scenario released Thursday.

In a plea for federal aid, Gov. Ted Strickland said he created the scenario to show how bad things could be without help from Washington. Governors from around the U.S. are seeking tens of billions of dollars to help with day-to-day operating costs, in addition to requests for Medicaid and infrastructure projects.

Ohio faces a $7.3 billion deficit in the next two years based on current tax revenue projections, which are heading downward as all major economics indicators have plummeted.

Without Washington's help, state agencies would need to cut 25 percent off their current funding levels if the state wants to preserve Medicaid, a tax reduction and continue making debt payments, Strickland said.

The dire picture foreshadows what is sure to be one of the most challenging budget-crafting environments lawmakers have faced in recent Ohio history.

A Republican-controlled Senate, a Democratic-controlled House and a Democratic governor will have to decide what to cut, what to spare and whether they need to do anything to increase revenue.

Policy debates are likely to ensue, especially in the area of how the state handles its inmate population, which increasingly consists of offenders only in prison for a brief time.

Strickland has said a tax increase would further harm an already damaged economic environment, but has stopped short of completely ruling out the option.

Some Republicans say it's unrealistic to maintain Medicaid funding levels when the state-federal health care program for low-income individuals makes up about 40 percent of the state budget.

Strickland's worst-case budget projections would:

_ Reduce the amount the state spends per student on college education by $1,987 to its lowest level in recent history. Ohio already ranks poorly among states in affordable cost to attend state colleges and universities.

_ Eliminate 5,237 positions at the state prisons department, including corrections and parole officers. Ohio also would close six institutions at a time when prisons are already crowded.

_ Cut job creating programs at the Department of Development just when the state needs it the most. The department might also close a number of its foreign trade offices, which help open countries to exports from Ohio companies. Exports are the one bright spot for the hard-hit manufacturing industry, which has been able to take advantage of the weak U.S. dollar.