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Marc Kovac - Statehouse tidbits: Holiday shopping, Medicaid and Elmo

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COLUMBUS -- Consumers are expected to spend about 3.2 percent less during the holidays this year than they did last year, according to the latest stats released by the National Retail Federation.

In an early glimpse of how the economic downturn is affecting Christmas cheer, the group estimates shoppers will spend about $682.74, down from last year's $705.01.

A total of 84.2 percent of those surveyed said they would spend less money this year.

"In anticipation of weak demand, many retailers scaled back on inventory levels to prevent unplanned markdowns at the end of the season," Tracy Mullin, the federation's president and chief executive officer, said in a released statement. "Once the most popular items are gone, retailers won't have anywhere to get them, so if there was ever a holiday season to buy early, this is it."

To raise or not to raise

Past income tax increases used to preserve public services in times of recessions were followed by years of "robust job growth," according to a study released last week.

The Center for Community Solutions, a Cleveland think tank, reported that both Democratic and Republican governors upped income tax rates to deal with downturns.

In the 1980s, an average of 118,000 jobs per year were created, while in the 1990s 108,000 per year were created, according to the study.

"Economic trends suggest that Ohio should cancel -- rather than just postpone -- the final income tax cut and respond to the current crisis with a balanced approach that includes new revenues," Jon Honeck, director of public policy and advocacy, said in a released statement. "Tax cuts have not delivered the employment growth that was promised in 2005. Current policies rely too much on spending cuts that harm Ohio families and will have long-lasting negative effects."

Health concerns

House Minority Leader William Batchelder, a Republican from Medina, sent a letter to Gov. Ted Strickland voicing "deep concern" over federal health care reform.

At issue is the state's ever-growing Medicaid roles and spending.

"While protecting the wellbeing of Ohio's low-income families, elderly and people with disabilities, we must work to rein in costs to ensure that the program operates in an efficient, cost-effective manner," Batchelder wrote. "Adopting the universal health care bill in Ohio will further increase Medicaid's share of the state operating budget and almost certainly guarantee tax increases on hardworking Ohioans and small businesses."

He added, "It is important as our state considers ideas for expanding health coverage for the uninsured that we do so without crippling our state budget or putting our health care industry and the jobs it provides in jeopardy. If Gov. Strickland truly hopes to change Ohio's health care system for the better, adopting Washington's inflexible and costly plan is not the best approach."

Tickled

If you haven't heard it yet, it's worth taking a moment to listen to Gov. Strickland's new public service announcement on swine flu.

The state's chief executive appears with Sesame Street's Elmo to remind kids about ways to avoid infection.

"Elmo has emerged as one of our best partners in fighting the flu this year," Federal Health and Human Services Secretary Kathleen Sebelius said in a released statement. "That's why we are excited for Elmo to join some of the nation's governors in promoting important flu prevention tips. We know that kids are especially vulnerable against H1N1, and we hope that hearing flu prevention tips from Elmo will help them stay healthy and flu free."

You can find a copy online at www.flu.gov/psa.>

(Marc Kovac is the Dix Capital Bureau Chief. E-mail him at mkovac@dixcom.com.)