Kasich lauds Ohio's progress, pitches cuts in taxes, changes to education ...

MEDINA, Ohio - Saying Ohio has made progress, but is 'not at the summit yet,' Gov. John Kasich laid down a series of goals Monday in his State of the State address to further lower taxes, help veterans and increase educational opportunities from pre-kindergarten through college.

'Together, we've breathed new life into Ohio in just three short years, but we're not at the summit yet,' Kasich said. 'Think about what Ohio will be like when we get there. What will it look like on the top of that mountain.'

Speaking at the Medina Performing Arts Center, Kasich told members of the Ohio General Assembly he would be sending them requests for legislation soon for his plans. But he also acknowledged some of them might spill into a second term.

'Not all of this going to get done this spring and this summer, and maybe some of it won't get done this year,' Kasich said. 'It's OK to take our time to get things right, but we can't drag our feet. If we're not moving forward, we're moving backward.'

The governor, up for re-election, faces a challenges from both his left and his right. Cuyahoga County Executive Ed FitzGerald is his likely Democratic challenger. Charlie Earl, a former Republican state legislator, is running as a Libertarian.

Kasich declared that the state is stronger, more optimistic, more excited and more confident' and touted the state's fiscal accomplishments: Overcoming an $8 billion shortfall in the Ohio budget, building a surplus and cutting taxes to Ohioans by about $3 billion while the state added more than 170,000 private sector jobs.

'The nation and the world have their eyes on Ohio. They see we're coming back and they want to know how we're doing it,' Kasich said. 'We're not done, but we've made good progress. We're getting there, and it's great to see it happen and to be a part of it.'

Democratic legislative leaders responded to Kasich's assessment and proposals with skepticism.

'The governor asked a lot of rhetorical questions when he delivered his speech,' said Senate Minority Leader Joe Schiavoni of the Youngstown area. 'But I'd ask him to tell it like it is, because his facts did not match reality.'

FitzGerald, in a prepared response, said he found hope in the governor's pledges, but 'his record is what we have to go on.'

He criticized Kasich's agenda -- as he has criticized Kasich's tax reforms -- as benefiting 'the well connected and privileged few, while everyday Ohioans remain anxious about their future.'

Republican lawmakers were generally receptive to the governor's proposals, but did not commit to pushing them through the General Assembly.

One reporter noted that Kasich put forth a policy agenda that could keep lawmakers busy during a re-election year. House Speaker William G. Batchelder, a Republican whose hometown hosted the event, seemed to acknowledge the point.

'I can't get enough of this last year,' the outgoing speaker said, 'because it's my last year.'

Here is some of the governor's key proposals:

Income taxes

The governor proposed lowering the state's income taxes so that the top bracket is below 5 percent.

Kasich, as a candidate in 2010, pledged to eliminate the state's income tax eventually. The state budget approved last June lowered income taxes across the board and included a 50 percent deduction for small business income.

But the governor's original proposals were modified as they worked their way through the General Assembly. And legislators balked at passing a severance tax, something the administration says it will need to further lower the income tax.

Batchelder and Senate President Keith Faber, a Republican from Celina, were noncommittal when asked whether their caucuses would support a severance tax increase.

'I fully anticipate efforts to lower the tax rate, and that means tax reform,' Faber told reporters after the speech.

Higher education

Kasich said he will ask legislators to change the formula for state aid to Ohio's public colleges and universities so that it rewards them for graduation rates, rather than funds them for enrollments.

The governor praised the state's colleges and university presidents for embracing the plan, just as they worked together last year to recommend as a group capital improvements for their institutions.

Veterans benefits

Kasich proposes giving veterans free college and academic credits for training and experience they get in the armed forces.

'Whether it's engineering, heavy machinery, construction, auto and truck repair, or advanced technology, the U.S Armed Forces trains more people, in more sophisticated ways, than probably any other organization in the world,' he said. 'If you can drive a truck from Kabul to Kandahar in Afghanistan, don't you think you should be able to drive a from Columbus to Cleveland.'

Education

Kasich proposed a series of initiatives ranging from bolstering pre-kindergarten programs to helping dropouts.

The governor wants to mandate that school districts offer vocational classes beginning with the seventh grade. Some school districts do so already, but he proposes expanding it to statewide.

Likewise, he proposes requiring high schools to allow students take some college-level classes while students. Many schools already have these programs in place, too.