Kasich vetoes tax hike that would've sent money to counties - Cleveland 19 News Cleveland, OH

Kasich vetoes tax hike that would've sent money to counties

John Kasich (Source: WOIO) John Kasich (Source: WOIO)

By JOHN SEEWER
Associated Press

Among the items vetoed by Gov. John Kasich (KAY'-sik) in Ohio's new budget is a proposal to increase taxes on health insurers that would have sent money to counties and regional bus services.

State lawmakers proposed the idea to make up for lost revenue from a sales tax that is being discontinued on Medicaid managed care organizations.

But the Kasich administration says the governor vetoed the tax increase proposal because it would've risked losing a bigger chunk of money and created a $615 million loss for Medicaid.

The administration says the proposed tax increase would've needed to be approved by the U.S. Department of Health and Human Services.

Kasich officials say all indications are that wouldn't have happened.

County leaders now say they're worried they may have to cut program.

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