Last week the Supreme Court issued a decision saying Governor Ted Strickland’s plan to implement video slots at horse racing facilities in the state needed to be placed as a referendum in front of Ohio voters.

The lawsuit was led by the Ohio Policy Roundtable.

In a speech on Wednesday, Gov. Strickland outlined three possible options to make up for the budget shortfall: 1) raise taxes, like the state sales tax; 2) cut the corresponding amount from Ohio schools; or 3) eliminate a planned tax cut.

Gov. Strickland is proposing the legislature go with the last option.

If the legislature adopts this proposal, Ohio taxpayers will continue to pay at a tax rate 16.8 percent less than it was in 2004. The state will collect approximately $844 million in revenue, close to the $851 million needed to protect education funding and balance the budget.

The rest will be made up in cuts if necessary, Gov. Strickland said.

The cut had been expected to equal 4.2% for the 2009 tax year if implemented.

Gov. Strickland pointed out during his remarks that the Court has not ruled on whether the Ohio Lottery has the authority to implement video lottery terminals without legislative approval.