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Kasich Budget Trims Aid To Over Half Of Ohio Districts

More than half of Ohio's public school districts would get less money from the state under Gov. John Kasich's proposed education budget as the administration seeks to adjust the funding formula to better reflect district incomes.

Those cuts come even as Kasich's $72.3 billion, two-year budget increases state foundation funding by $700 million over two years.

The state budget director and superintendent both said the spending blueprint doles out state education aid under a formula adjusted to better reflect a district's wealth.

Budget director Tim Keen told state lawmakers a formula that's ineffective in getting dollars to the neediest districts is unacceptable.

Kasich's budget also reduces districts' state guarantee and resumes phase-out of two tax streams they've received, reducing state payments by $235 million over two years.

Budget director, Keen is also defending a proposed increase in the state sales tax, saying he believes reductions in the state income tax would allow consumers more choice in how they spend their money.

Members of the House Finance Committee on Tuesday questioned the impact that the half-cent jump could have on their constituents' pocketbooks.   

Keen said the governor's budget helps give money back to Ohioans by cutting the income-tax rate by 23 percent over the next two years.

Kasich also has proposed boosting the state's sales tax from 5.75 percent to 6.25 percent and broadening it to include services such as cable TV subscriptions, parking and lobbying.

Democratic Rep. Denise Driehaus of Cincinnati criticized the plan as tax shifting.