Ohio Gov. John Kasich, mirroring the moves of other newly elected Republicans, proposed a two-year budget Tuesday that would close an $8 billion gap by selling prisons, reshaping Medicaid and sharply cutting aid to cities.
Mr. Kasich said his proposal would help local governments offset their loss of state contributions by making it easier for them to share services and by erasing a requirement that they pay prevailing union wages on construction projects.
Pending legislation that would curtail public-employee bargaining rights also would help local governments deal with the cuts, he said. That bill, which passed the state Senate and is expected to pass the House, sparked weeks of protests from tens of thousands of union members and their supporters.