BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau
COLUMBUS -- Public schools would get promises but no money for construction projects, while utilities would be protected from paying more taxes under legislation approved Thursday by the General Assembly.
Schools also would be the only public and private employers restricted from using a $2 billion rebate of workers' compensation premiums as they please.
On votes of 23-9 in the Senate and 82-15 in the House, state lawmakers sent the package of unrelated proposals to Gov. George Voinovich before adjourning for the summer.
The governor's office is still studying the changes, many of which were hastily added to the grab-bag measure as it zipped through the House and Senate during the past two weeks.
Republican legislative leaders defended their decision to promise more money for needed school construction instead of actually appropriating additional funds.
They contend the pledge bolsters their response to an Ohio Supreme Court decision that ordered the General Assembly to overhaul the way public schools are funded, constructed and operated.
"I view it as a very practical step," said House Speaker Jo Ann Davidson, R-Reynoldsburg. "Simply to appropriate more money that is just going to sit on the shelf isn't practical."
Lawmakers had mulled earmarking an extra $160 million in surplus state revenues for school construction, but decided to direct the cash to tax cuts for individuals.
Twelve poor school districts waiting for state building funds instead were authorized to put tax levies on the November ballot for local matching funds. The measure also instructed future governors to recommend at least $300 million for school construction and repairs during each of the next six years.
Majority Republicans rebuffed several school-related amendments offered by Democrats, including one that would have authorized $300 million in bonds for school construction and another that would have given schools the option of using union-negotiated prevailing wages if it was cost-effective.
Democrats complained the measure sent to Mr. Voinovich was full of empty promises.
"Even though it is pathetic, it is the best this General Assembly has to offer," said Rep. Vernon Sykes, an Akron Democrat who voted for the legislation.
While public schools wait for additional state aid, the Senate rejected a Democratic amendment that would have limited enrollment in a program that uses public money to send 3,000 Cleveland children to private and religious schools.
The measure requires the Cleveland Public Schools to start paying to transport students in the voucher program, a move that would provide the $10 million-a-year program with an extra $3 million to help cover cost overruns due to increased enrollment.
In another school-related matter, the Senate included a last-minute amendment in the bill that requires school districts to deposit their share of recently announced workers' compensation insurance rebates into funds set aside for financial emergencies.
Lawmakers also moved to discourage cities from taxing utilities and other businesses.
The measure specifically prohibits municipalities from taxing utility companies. If cities and villages try to impose such a tax before the measure becomes law, the state would reduce that municipality's share of state tax revenues by a like amount.
Utility companies pushed for the penalty after the Ohio Supreme Court ruled May 13 that cities have the right to impose various taxes unless lawmakers prohibit them from doing so.
The court decision favored Cincinnati, Blue Ash and Fairfax in a lawsuit filed by Cincinnati Bell Telephone. The company had sued for more than $955,000 in combined refunds of taxes paid to the municipalities.
Cincinnati stands to lose about $360,000 a year under the measure.
