States wrestle with deficits

State governments in Ohio, Kentucky and Indiana all face hefty budget deficits in 2003 that range from about $500 million in Kentucky to $760 million in Indiana to as much as $4 billion over the next two years in Ohio.

Ohio Gov. BOB TAFT is warning of another tax increase, which could come by applying the state's 5 percent sales tax to such things as legal work, accounting and cable television.

State officials are particularly concerned about the growth in Medicaid, whose costs have grown 14 percent and 8 percent in the last two fiscal years. "This rate of growth funding appears unsustainable," said Tom Hayes, director of the Ohio Job and Family Services Department. "If we don't act to slow the rate of growth in Medicaid we may have to choose between providing health care to elderly and disabled Ohioans or to children and working families."

Kentucky Gov. Paul Patton, who has already sliced nearly $800 million from the two-year budget, and released prisoners this month to save money, says education, spared thus far, may be cut.

Indiana lawmakers have already increased cigarette, gambling and sales taxes this summer.

Gambling could pay the bills

Lawmakers looking for ways to fund schools and services without raising taxes may look at Indiana. There, 10 riverboat casinos turn over millions of dollars each month to state and local governments. In November alone, the casinos' take was nearly $52 million

Watch for Kentucky to move first to legalize some form of Vegas-style gambling. This could be at racetracks or casinos that developers Jerry Carroll and Bill Butler have discussed building on Covington's riverfront.

GOV. PAUL PATTON may call a special session, possibly in January, to focus on gambling.

In Ohio, Sen. Lou Blessing, a Colerain Township Republican, is promoting a bill that would allow video gambling at racetracks. That effort is expected to continue, even though Gov. Taft has threatened a veto.

Police, citizens partner up

Two landmark settlements that ended a federal probe of the police department and suspended a civil-rights lawsuit will change the way citizens and police interact. Lawyer AL GERHARDSTEIN says the settlement has five goals:

Set up a partnership of police and residents.

Build respect and trust.

Improve education, oversight, monitoring, hiring practices and accountability of the police department.

Ensure fair treatment for all citizens.

Create methods to increase the public's understanding of police policies.

City struggles, 'burbs boom

Butler County leaders try to keep their boom going by accelerating plans for an eastward interchange in Liberty Township off the Michael A. Fox Highway at Interstate 75.

Cincinnati City Councilman John Cranley unsuccessfully tried to halt the interchange. He argues developed areas in Cincinnati and Hamilton County's suburbs should be revitalized and see road improvements before new ones are built on farmland. But a regional transportation board disagreed.

Butler County Commissioner MIKE FOX predicts resources and tax revenues follow suburban growth.

Health-care costs a key issue

Tristate workers will notice the soaring costs of health insurance as soon as they get their first paycheck this year. Premiums are rising as much as 30 percent for some HMO plans. Changes in coverage also are likely to mean greater out-of-pocket expenses for doctor visits and prescription drugs.

In Ohio there's a move to get the state to force drug companies to lower prices for the 2.2 million uninsured. If the General Assembly declines to act, a coalition of religious, labor and social action groups will take the question directly to voters in November.