The academic community might be able to breathe a sigh of relief if the Senate’s version of the Fiscal year 2004-2005 budget bill is passed through legislature.

But it’s not that easy.

The House, which already passed their version of the biennium budget measure (HB-95) almost two months ago, will likely reject the amendments made by the Senate in yesterday’s passage. The bill would then go to a House-Senate conference committee consisting of four Republicans and two Democrats, who would then decide the final look of the bill.

One of the key discrepancies between the two bills is the allocation of university funding. Although the Senate’s share for higher education spending is $84 million less than Gov. Bob Taft’s proposal, it is significantly higher than the House’s proposal – by $225 million.

Taft’s spokesman said the governor is encouraged to see the increase in educational funding as part of the new Senate bill.

“He is pleased the funding levels for higher education and K-12 has been somewhat restored to the governor’s initial proposal,” Taft spokesman Orest Holubec said. “He understands the difficulty in passing the budget during such a difficult period of time economically.”

OSU President Karen A. Holbrook is happy with the Senate’s plans for higher education.

“We are very excited with the Senate’s measure,” Holbrook said. “It demonstrates that the state understands the significance of higher education.”

Holbrook and other members of OSU administration were concerned about the original House budget solution, which would have reduced OSU’s state allotment by about $19.8 million over fiscal year 2004 and 2005. Holbrook testified in front of the Senate Finance Committee May 22 about the long-term dangers of cutting funding further.

“The investments you make in higher education are making a substantial impact on the lives of Ohio citizens and the future prosperity of the state,” Holbrook said during her testimony. “It is critical to Ohio’s future that its state share of education be funded at the governor’s recommended level.”

OSU’s state appropriation has taken a substantial hit in the past three years, largely because of economic decline. The state has cut OSU funding by 9.5 percent since 2001. The most recent reduction came in March when the governor signed an executive order to cut $7.7 million to relieve a statewide deficit of more than $162 million. OSU officials eagerly await the conclusion of the budget bill because of its direct impact on the status of faculty and staff raises.

Another stumbling block in the potential conference committee would be the details of the video slot machine provision and its tie to a sales tax increase. The House’s version of the budget included a temporary penny increase on the existing 5 percent sales tax – starting July 1. It also included a stipulation where voters would have the option to repeal the sales tax increase in favor of revenue from video slot machines in place at horsetracks.

Randy Gardner said his fellow senators would rather pass a resolution that would allow voters to decide the fate of slot machines in the Nov. 4 election – without its tie to a sales tax and with its proceeds going to university scholarships for high school seniors.

“We wanted to decouple the issue because the governor said he would veto any slot machine measure that reached his desk,” said Gardner, the Republican from Bowling Green. “The scholarships would go to high-school seniors maintaining a 3.0 GPA.”

Ranking minority member Sen. Eric Fingerhut agrees with Gardner.

“The scholarship program sends a strong message that we are prioritizing higher education,” said Fingerhut (D-Shaker Heights). “It shows that despite the poor economy, we are making some progress with higher education.”

Another wrinkle to the budget saga occurred Tuesday night, when the state Budget Director Thomas Johnson announced a projected shortfall of $200 million in the current budget. The governor is obligated by Ohio’s Constitution to balance the budget before the end of the fiscal year (July 1). This marks the fourth time in two years that the office has uncovered a shortfall. In January, Taft announced a deficit of $720 million due to mis-projections and overspending.

The governor admits he is concerned about the shortfall, but contends it is still early in the game.

“The budget process is at second base right now. We still have a little ways to go,” Holubec said.

The House will vote on the Senate’s bill Tuesday.