Deal On MCO Tax That Local Transit Relies On Could Stop Another Potential Veto Override

Sep 27, 2017

State lawmakers overrode six of Gov. John Kasich’s 47 budget vetoes. But one headline-making veto may survive – the one that stops a plan to ask the federal government to increase the tax on managed care organizations.

Local authorities rely on that MCO tax to raise more than $200 million for transit. The House overrode Kasich’s veto of the MCO tax increase plan, and the Senate was considering it. But Senate President Larry Obhof of Medina said there’s a deal to put more than $200 million toward counties, plus $50 million next year and up to $30 million more if state revenues stay positive. “If they exceed expectations month after month, there would be some sort of revenue sharing between the state and the local governments, including the transit authorities.”

Kasich had said he doubted the federal government would approve the MCO tax increase request. And Obhof said that this is a better solution than rolling the dice with the feds.