House Republicans offered their solution to Ohio’s budget dilemma last week with a proposal that would cut spending and eliminate a tax increase on alcohol and cigarettes.

Gov. Bob Taft has estimated this year’s state’s budget deficit at $720 million. The Republican budget-balancing plan would raise $531 million to cover a budget shortage that they believe is smaller than originally estimated. The plan would include spending cuts and accelerated sales tax payments.

House Republicans said they are confident Ohio’s budget situation is not as doomed as the original numbers have indicated.

Representatives Mike Gilb, R-Findlay, and Timothy Grendell, R-Chesterland, question why Taft wants to raise taxes when Ohio has collected $400 million more in tax receipts this year than in the prior fiscal year. According to the Office of Budget and Management, Ohio is $145.1 million below anticipated revenues, but expenditures were $147.7 million less than expected in the first half of the fiscal year.

In lieu of those numbers, Gilb asked, “Why will the next six months cause us to be in a $720 million hole?”

The Ohio Constitution requires the state to have the budget balanced at the end of the fiscal year, which gives the state until June 30.

Taft gave lawmakers until Feb. 20 to enact his plan. We warned if they didn’t adopt the plan, he would be forced to makes cuts in state aid to schools, higher education and other programs that were designed to create jobs.

According to Taft’s office, Ohio State would stand to lose roughly $7.7 million if cuts are forced to be made to higher education.

Bill Shkurti, senior vice president of business and finance at OSU, said he hopes the General Assembly can balance the budget without cutting funding to schools across Ohio.

“The result of the potential cut would make it more difficult for us to give our students the support they need to graduate in a timely manner and be productive citizens,” Shkurti said.

Shkurti said there could be a potential mid-year tuition increase at OSU if the cuts become a reality, but maintains it would be a last resort reaction to higher education cuts.

Although not in total support of the new Republican plan, most Democrats are excited the “sin tax” proposal on alcohol and cigarettes was not adopted. House Minority Leader Chris Redfern, D-Port Clinton, said the sin tax would have unfairly affected poor and middle class families.

Redfern emphasizes fiscal responsibility for the governor.

“The governor needs to cut encumbrances and other frivolous spending while supporting his ‘priorities’ of higher education and the state’s working class,” he said.

Taft’s gubernatorial competitor for the 2002 election, Tim Hagan, said the governor is responsible for the state’s financial problems.

“He continued to spend and grant tax breaks while the state was operating at a surplus — now his own Republicans are running for cover,” Hagan said.

Hagan said he is concerned students across the state will suffer as a result of Taft’s mistakes.

“The governor will be forced to make cuts to higher ed, which will put a burden on students,” Hagan said. “Elite students will start looking out of state for their academic options, which will cripple our economy down the road.”

Campus Republicans said they hope a responsible plan can be enacted to solve the state’s budget problem.

“We are in favor of a proposal that would consist of as little taxes as possible,” said Roch Hammond, College Republican’s president. “Further taxing our citizens would be detrimental to our business community and our state’s economy.”

The Republicans’ bill will go to the finance committee today for consideration. They hope to put it to a House vote tomorrow.