Just hours before a midnight Thursday deadline, Ohio Gov. John Kasich signed into law a nearly $56 billion state budget that contains broad policy changes for the state, after vetoing a provision that would have given the state first dibs on repurchasing state prisons sold to private developers.

The 3,262-page bill privatizes five state prisons, overhauls Medicaid, eliminates Ohio's estate tax in 2013, bans most abortions in public hospitals, and ties teachers' pay more closely to student achievement.

"We promised Ohioans a new way and a new day, and we're delivering," Kasich said. He signed the two-year spending plan on the eve of a new fiscal year after striking the prison language and six other items.

In his veto message, Kasich said he thought the state guarantee would dramatically decrease the value of the prisons and raise costs. Kasich also struck a provision requiring the Ohio Lottery to list how much it gives to education, and restored wording allowing schools to screen children's body mass index to combat obesity.

Read more: http://nation.foxnews.com/gov-john-kasich/2011/07/01/gov-kasich-signs-sweeping-budget-ohio#ixzz1QtYVecPA