Fulfilling his promise not to raise taxes, Ohio Gov. John Kasich Tuesday unveiled a budget that slashes spending for many agencies and seeks to privatize certain government functions to eliminate an $8 billion budget deficit.

"We can't tax our way to prosperity, but we can't cut our way either," said Kasich in his town-hall style budget address.

The governor said he found savings not only in the $26 billion in the state's general revenue fund, but also in the special accounts that are usually dedicated to specific needs. Altogether, the state funds total $52 billion.

Titled "The Jobs Budget," Kasich's two-year spending plan slashes funding for local governments by 25% in fiscal 2012, which starts July 1, and 50% the following year. However, he said local governments will have more flexibility to control costs, such as sharing more services, and will get revenues from casino operations.

Filed Under : Spending Cuts