Ohio budgets billions more than it needs to

www.themediabriefing.com

As the Ohio General Assembly debates the state’s biennial budget, a new report says the state is spending too much.

Gov. John Kasich’s proposed budget increases spending by $5.4 billion, “representing a trend of unsustainable public-spending growth” the 2015 Piglet Book says.

And taxpayers will end up paying nearly $1.8 billion of that increase.

The House-passed budget isn’t much better, with taxpayers footing the bill for $1.7 billion in increased spending.

Greg Lawson, a policy analyst with the Buckeye Institute for Public Policy Solutions and a co-author of the report, said now is good time to look at historical spending growth, especially with tax reforms included in the budget proposals.

“The governor wants to get rid of the income tax – and we agree with that,” Lawson said. “Our difference with him is how we get there. The solution to eliminating the income tax is to reduce spending in a strategic way over a period of time so we don’t have to look at increasing taxes elsewhere to offset that reduction, like the governor’s budget does.”

Lawson and co-author Tom Lampman say policy recommendations in the report could save taxpayers $2.6 billion in the 2016-17 budget.

One recommendation is to limit spending growth to not more than 3 percent, taking into account inflation and population.

“Some people question if it should grow even that much,” Lawson said. “But I’m a realist. Before you can run you have to be able to walk and we have yet to walk in terms of keeping spending at that 3 percent level.”

Ohio’s spending over the past 20 years was 17 percent over the rates of inflation and population, the report says.

But if the state loses population, should the spending decrease accordingly?

“A very cogent case can be made that that should happen,” Lawson said.

Overall, Ohio hasn’t lost population, “but in theory, if we do, we absolutely should reduce spending,” he said.
The second recommendation is to end corporate welfare, saving taxpayers $212.9 million.

The Piglet Book specifically names the Horseracing Development Fund, Agriculture Market Development fund and TourismOhio as examples of corporate welfare.

“You’re using a government entity to impose and collect taxes within an industry and then the government is paying to produce ads to promote the industry,” Lawson explained. “You don’t need the government to do that for you. If you want to spend that money, you can hire an advertising firm and pay them out of pooled resources from within the industry.”

Lawson said this type of “user tax” is better than using General Revenue Funds directly, but still is not something government should be doing.

“Why does it need to be funneled through a government entity? Just keep the government hands out of it and hire someone to do it for you,” he said.

It’s also duplicative.

“Attractions and areas have their own advertising budgets. Look at the Rock and Roll Hall of Fame or the Hocking Hills area. There are numerous entities and chambers of commerce that do advertising all the time,” Lawson said. “Let thousands of marketing ideas bloom. It doesn’t need to be cycled through and have the government spend money on it.”

The third recommendation is to end government advocacy and philanthropy, saving nearly $55.7 million.

The Ohio Arts Council, the report states, receives $20.9 million in income and sales tax revenue to distribute to artists and galleries, making the state the “arbiter of taste and culture.” It says Ohioans are “more than capable” of choosing what artists to support “without the government’s guidance.”
Lawson said there were a lot of examples they could have highlighted but they tried to be pragmatic.

“We understand that changing minds on this is not something that is likely to occur overnight,” he explained. “It comes down to the core functions of government and if you decide something really is a core function, then how are you going to sustain the growth in funding that it will require?”

He says it really is about jobs and the quality of living in Ohio.

“The expanding scope of government makes cutting spending harder,” Lawson said. “As long as we keep spending like we are, when the next recession hits we’ll end up cutting a lot more of government in order to meet the budget, or we’re going to have to raise taxes and eliminate all the reforms we’ve made to date.”

Lawson said the recommendations are intended to put Ohio’s budget in the best position to weather future recessions so that the current economic growth can continue.

“We’re still not where we should be in terms of job growth,” he said. “We have some systemic problems we have yet to address and we cannot address those if we simply keep spending.”

Lawson also had a recommendation for Ohioans.

“Keep your eyes on government,” he said. “This book is just a snapshot of what is going on. We’re spending more than we need to – at all levels of government.”

But, Lawson warned, it will be a tough road to follow.

“There are a lot of people on both sides of the aisle who get it, even if they don’t always agree on the specifics,” he said. “At least there will be a dialogue and an effort at making the big-picture reforms so we can be freer and have a more prosperous Ohio.”

Gov. John Kasich’s office did not respond to a request to comment on the report and the recommendations.

Waniewski 1 of 4 recommended to fill PUCO seat

Toledo city councilman Tom Waniewski, R-District 5, is one of four individuals recommended to fill a seat on the Public Utilities Commission of Ohio (PUCO).

The others, all Republicans, are former Rep. Thomas Johnson, Stacey Polk and Patrick Donlon.

Gov. John Kasich has 30 days to select one of the nominees to replace Todd Snitchler, or he can request a new list of recommendations from the Nominating Council.

The open position is a five-year term beginning in April. The governor's nominee will have to be confirmed by the Senate.

Johnson, who was a state rep from 1977 to 1999, also served as director of the Office of Budget and Management.

Polk is an attorney based in Cleveland who works as a sustainability consultant helping businesses implement green and advanced energy measures. She previously served as an assistant director in the City of Cleveland's of the Department of Economic Development.

Donlon currently works for the PUCO as a utility rates and tariff administrator. He previously worked for American Electric Power and for Time Warner Cable.

Waniewski, who is also a member of the Ohio Public Works Commission, chairs the Environmental Services Committee.

Federal judge issues preliminary injunction against new Ohio law limiting minor parties

Writing for Ohio Watchdog, I've previously covered the so-called Gov. John Kasich reelection protection act, also known as Senate Bill 193 which would impose stricter requirements on minor political parties in the state.

The Ohio Libertarian Party opposed the law and filed suit in federal court to stop it from taking effect for the 2014 elections.

Today, Judge Michael Watson of the U.S. District Court for the Southern District of Ohio issued a preliminary injunction against the law.

Here is the press release from the Ohio Libertarian Party:

COLUMBUS—An Ohio law known as the “John Kasich Re-election Protection Act” will not be able to ban the Libertarian Party and other so-called “minor” parties from the 2014 ballot, a federal judge ruled Tuesday.

The preliminary injunction in Libertarian Party of Ohio v. Husted blocks the state of Ohio “from retroactively applying SB 193 to Ohio’s 2014 primary and general elections.”

Political analysts from Ohio and across the nation have speculated that SB 193 was designed to protect Kasich’s 2014 re-election chances against a challenge from Libertarian Charile Earl, a former state legislator who is very popular with liberty-oriented and Tea Party groups in Ohio angered by Kasich’s support for Obamacare, his crony capitalism, and lack of fiscal responsibility.

The ruling from Judge Michael H. Watson of the United States District Court for the Southern District of Ohio means that challenger parties in Ohio will be allowed to continue to participate in the 2014 election cycle without being forced to comply with the several onerous “party formation” requirements mandated by SB 193.

“Once again, the courts stand with us and with the First Amendment rights of all Ohioans to political freedom and suffrage in Ohio,” said Kevin Knedler, chair of the LPO executive committee. “The foundation of a democratic society is the right to vote and to have real choices on the ballot. A lot of voters—especially young voters—refuse to be put in either the Republican or Democrat boxes, and the Libertarian Party offers a true alternative for voters who want individual freedom in every area of life.”

Tuesday’s victory is the fourth in federal court for the LPO since 2006, when LPO v. Blackwell struck down a ballot law concerning "minor" political parties. The LPO won two more federal court fights over ballot access before SB 193 was passed, while consistently, but unsuccessfully, lobbying the state legislature for a fair election law.

State attorneys may appeal Tuesday’s ruling, Knedler said, but “they would have almost no chance of winning” less than a month before the February 5 deadline by which petitions are due for candidates running in the May 5 primary.

Kasich signed SB 193 in November after it was rushed through both houses of the Ohio legislature with all but a handful of GOP legislators voting for it. In the several hearings on the bill in both houses, no one testified in favor of SB 193, save the bill’s sponsor, Republican Senator Bill Seitz.

“Kasich and the Republican party thought they were silencing the growing liberty movement in Ohio, but now they have one hell of a fight on their hands,” said Aaron Keith Harris, LPO central committee chairman and candidate for secretary of state. “Voters no longer trust them when they pretend to oppose Democrats on issues like health care freedom and the runaway growth of government power over their everyday lives.”

One Libertarian statewide candidate—attorney general hopeful Steven Linnabary—has already submitted his petition, as have several Libertarian state legislature and state central committee candidates.

Libertarian governor candidate Charlie Earl, along with a full slate of statewide candidates and up to 50 other Libertarian candidates across the state will file by February 5, Knedler said.

Guest Post: The Myths of Medicaid Expansion

The following is a guest post from Rep. Ron Young, Republican from Leroy Township, District 61.

I believe Ronald Reagan summed up what we face today way back in 1961. He said, “In 1927 an American socialist, Norman Thomas, six time candidate for president on the Socialist Party ticket, said the American people would never vote for socialism. But he said under the name of liberalism the American people will adopt every fragment of the socialist program. One of the traditional methods of imposing socialism on a people has been by way of medicine. It's very easy to disguise a medical program as a humanitarian project. Most people are a little reluctant to oppose anything that suggests medical care for people who possibly can't afford it.”

Today, our nation and Ohio are experiencing an expansion of government intrusion into our health care industry of unparalleled magnitude. Full implementation of Obamacare will mean about one- sixth of our nation’s total economy will fall under even tighter government regulation and bureaucracy. 

My comments in this report are focused on the impacts of expanding the Medicaid program. Contrary to some reports, it is impossible to oppose Obamacare and yet support Medicaid expansion. Medicaid expansion is a major part of Obamacare and represents about half of all Obamacare spending. 

In order to understand why Medicaid expansion is bad for Ohio, we need to first understand a few points about the current Medicaid program. 

• About two million Ohioans are on the Medicaid program today, or about 20 percent of Ohio’s total population.
• The current program is by far the biggest expense of the state’s budget, consuming about 42% of it, because Medicaid spending increases much faster than inflation. It is crowding out education, infrastructure improvements, prison funding, and other critical needs. The current program, even without expansion, is financially unsustainable
• The program has been in effect for more than 40 years and is designed to care for pregnant women, children and individuals with disabilities of low or no income. Medicaid expansion is designed to a different population, healthy individuals who fall below the poverty line. The largest group in this population is comprised of single young adults with no dependent children. Of course, this begs the question, are we incentivizing people not to work?  

Former Speaker of the House Nancy Pelosi is famous for her statement regarding Obamacare, “We have to pass this bill so we can find out what’s in it.” However, I believe one of her even more insightful quotes is, "Think of an economy where people could be an artist or a photographer or a writer without worrying about keeping their day job in order to have health insurance."  

 

Her vision of incentivizing unemployment to create an underclass of starving artists is absurd. However, while operating an employment firm in Ohio for more than 30 years, I can recall numerous occasions where individuals rejected job offers and even promotions in order to retain government benefits. Incentivizing unemployment and underemployment is a real problem with the Medicaid program. 

MEDICAID MYTH BUSTING 

In an effort to win public support, a number of myths have been perpetrated regarding Medicaid expansion. By contrasting some of these myths with reality I believe a clearer portrait of the effects of Medicaid expansion can be seen.  

MYTH #1: “Medicaid offers good health care and expanding Medicaid will save countless lives.” 

REALITY: The health outcomes for those our government places on Medicaid are poor and the best research supports this statement. It should not be surprising that Medicaid offers sub-par medical services. Medicaid patients have a significant problem getting access to medical care. One major reason for lack of access is that Medicaid pays doctors only a fraction of what private insurers pay. According to a Heritage Foundation 2012 study, “Medicaid Patients Have Worse Access and Outcomes than the Privately Insured,” Medicaid typically pays physicians only 56% of the amount private insurers pay. Other studies indicate that for a physician in Ohio practicing in an office setting the reimbursement average for Medicaid is even lower. 

As a result, many doctors choose not to see Medicaid patients because it is more difficult to keep their practices alive if they do. That, in turn, makes it hard for Medicaid patients to get doctor’s appointments for annual checkups, routine care, and even urgent medical problems. A 2011 study published in the New England Journal of Medicine found that many doctors even refuse to see Medicaid children complaining of seizures, uncontrolled asthma, and even broken arms.  

These types of access problems also cause huge overcrowding issues in hospital emergency rooms. Since they have difficulty finding available doctors, Medicaid recipients visit emergency rooms at much higher rates than the uninsured. According a study reported in USA Today, “Uninsured Don’t Go to the ER more than the Insured” by Mary Brophy Marcus, Medicaid recipients visit the ER about twice as much as the uninsured.  

After reviewing the research described below I hope each reader will ask a simple question. Is it moral to promote a health program that consumes hundreds of billions of taxpayer dollars, but offers such questionable health outcomes? 

RESEARCH 

University of Virginia Study: A very large study by the University of Virginia found that surgical patients on Medicaid are 13% more likely to die during their hospital stay than those with no insurance coverage and 97% more likely to die than those with private insurance. The Virginia group evaluated 893,658 major surgical operations from the Nationwide Inpatient Sample database from 2003 to 2007. They adjusted the database in order to control for age, gender, income, geographic region, operation, and co-morbid conditions (having 2 or more diseases simultaneously). That way, they corrected for the obvious differences in the patient populations (for example, older and poorer patients being more likely to have ill health). 

Oregon Study: The 2008 Medicaid expansion in Oregon based on lottery drawings from a waiting list provided an opportunity to evaluate the health impacts of the expansion. Approximately 2 years after the lottery, data was obtained from 6387 adults who won the lottery and received Medicaid coverage. Data on health outcomes was also collected on 5842 adults who lost the lottery and did not receive Medicaid coverage. This randomized and controlled two year study that was published in the prestigious Harvard School of Public Health showed that Medicaid coverage generated no significant improvements in measured physical health outcomes. 

A University of Pennsylvania study published in Cancer found that, in patients undergoing surgery for colon cancer, the mortality rate was 2.8% for Medicaid patients, 2.2% for uninsured patients, and 0.9% for those with private insurance. The rate of surgical complications was highest for Medicaid at 26.7%, as compared to 24.5% for the uninsured and 21.2% for the privately insured. 

A Columbia-Cornell study in the Journal of Vascular Surgery examined outcomes for vascular disease. Patients with clogged blood vessels in their legs or clogged carotid arteries (the arteries of the neck that feed the brain) fared worse on Medicaid than did the uninsured; Medicaid patients outperformed the uninsured if they had abdominal aortic aneurysms. 

A Harvard Study suggests there are some instances where Medicaid coverage may save lives. The authors compared three states that expanded their Medicaid programs — Maine, Arizona, and New York — with neighboring states that did not — New Hampshire, Nevada and New Mexico, and Pennsylvania. The Medicaid expansion was associated with increased mortality in Maine, and with decreased mortality in Arizona and New York. 

While the results suggest Medicaid could be helpful in some instances the study has problems. For example, demographic differences between New York and Pennsylvania could explain the entirety of the “benefit” that the authors ascribed to New York’s Medicaid program. Yet the authors’ conclusion — that Medicaid saves lives — hinges entirely on the comparison of New York with Pennsylvania. Without it, the authors would have shown no difference in outcomes between those with Medicaid and the uninsured, because the results in Maine and Arizona would have canceled each other out. 

Another obvious problem with the study is that the Harvard economists looked only at county- level data about mortality and Medicaid; they had to make assumptions about which patients had enrolled in the program, and when. The extensive clinical research showing Medicaid’s poor outcomes, such as the UVA study, has reviewed millions of individual patient records to learn what happened to specific patients with specific forms of health insurance. 

MYTH #2: “If we don't expand Medicaid Ohio will lose federal tax dollars that are earmarked for us. It would be foolish of Ohio to turn down all these free federal dollars."

REALITY: There are no federal Medicaid dollars earmarked for Ohio and it is not free money. There is no pot of gold with Ohio's name on it in Washington waiting to be dispersed the day we expand Medicaid. Most of the money we would receive from the federal government by expanding Medicaid would simply increase the national debt. Many members of the Ohio General Assembly are constantly bemoaning excessive and out of control federal spending. This is reasonable given the fact our federal government is currently more than $16 trillion in debt and going deeper in debt every day. Not only do they not have a balanced budget, they don't even have a real budget. To expand Medicaid only makes the hole this nation is digging for our grandkids deeper. 

MYTH #3: “The federal government has made some great promises to Ohio in the form of special dollar matches if we expand our Medicaid program. The federal government funds about 62% of Ohio’s current Medicaid program. For the expanded program they have promised to pay 100% of the cost of the program for 3 years and 90% of the cost thereafter. A promise from our federal government is rock solid. They have to live up to their promises; we should trust them and take the deal.”  

REALITY: There are no iron clad guarantees in any of the promises offered by the federal government. The federal government can change the Medicaid match amount at any time. To accept Medicaid expansion means Ohio is trusting its financial future to a government that is deeply in debt and addicted to over spending. The calls for a balanced federal budget and entitlement cuts should send a chilling message to those that would support the expansion. Also, we must consider potential changes caused by future administrations. Remember Medicaid is not a road project, or some other short term building project. No one foresees an end date for Medicaid. Whatever budget sources we use to fund the program must be deep, dependable and wide.  The current program is growing so rapidly that its cost is often described as unsustainable. Expanding the program now by signing on hundreds of thousands of new participants would be irresponsible.  Perhaps the old saying, "today's promises are tomorrows taxes" applies in this case as new revenue would have to be found to sustain the program at some point in the future. In any case the long term commitments required to make this deal even somewhat financially feasible are very dubious. 

MYTH 4: “If the expansion program doesn’t work then we’ll just shut it down and walk away.”

REALITY: We could probably argue all day about how Health and Human Services, the courts, a future Governor, a future President, a future Secretary of Health and Human Services, etc., might interpret the law. Most of the “experts” seem to agree that once a state accepts the federal offer and expands Medicaid there is no easy withdraw from the expansion portions of the program. However, I believe the legal argument is a moot point. The reality is that Ohio would simply not drop hundreds of thousands of voting citizens from a Medicaid program. We do not have the political will to do such a thing. Just consider the political pressure being applied today for expanding the program and then consider how much greater that pressure would be if the subject of the discussion was one of taking it away. 

MYTH 5: “We will use the expansion of Medicaid as an opportunity to reform the program.”  

REALITY: It defies logic to expand a government program that needs to be reformed. If we can meaningfully reform Medicaid we should start with the existing program. After the reforms are in place and operating effectively then, and only then, should we consider expansion. 

CONCLUSION: Regardless of the sweeping rhetoric and marketing techniques used by those that support Medicaid expansion the science to support claims of significant improvements in public health are not supported by the facts. How many lives and families could be saved by leaving these billions of dollars in the private sector to create jobs and expand our economy, as opposed to burdening the nation with more debt and bigger government in order to expand a very questionable, if not failed, government program? 

UPDATED: Kasich seeks Controlling Board approval for Medicaid expansion

Gongwer is reporting that Ohio Gov. John Kasich's administration will seek approval from the Controlling Board to expand Medicaid up to 138% of the federal poverty level.

The Department of Medicaid on Friday submitted a request to the panel seeking authorization to spend federal funds totaling $500,000 million in FY14 and $2 billion in FY15 to extend the program to cover citizens up to 138% of the federal poverty level, as originally proposed by Gov. John Kasich in his biennium budget bill.

The Controlling Board’s next meeting is Oct. 21. GOP legislative leaders have thus far been coy about providing votes for the plan; at least one Republican vote will be needed to clear the spending through the seven-member panel.

“Only the General Assembly can authorize Medicaid to spend funds in this way, either through a bill or the Controlling Board,” Kasich spokesman Rob Nichols said in an email. “The Administration has been preparing to implement this change when the General Assembly gives its ok and we’ll be ready.”

Despite the shutdown, federal officials approved Ohio’s proposal to expand the entitlement program earlier this week...apparently, such approval is an 'essential' function of government.

See Jason Hart's post at MediaTrackers for more background on the continuing saga.

UPDATE: Statement from Chairman of the House Finance and Appropriations Committee and member of the State Controlling Board Ron Amstutz (R-Wooster):

"I have grave concerns about the place, the time and the substance of this proposed Controlling Board action. Based on our solid track record of passing tough bills, I would expect a far superior and more creative solution by legislative enactment than what I fear may result from effectively crimping the legislative process."

Guest Post - Oops! A whopping $47B Obamacare-Medicaid expansion error for Ohio

Opportunity Ohio found a whopping error in the recent claims that expanding Medicaid in Ohio would save us money. Aside from the fact that adding more people into a program cannot possibly result in less cost, the key is capping the rates. But what if we cap the rates and don't expand Medicaid?

As the Bard says, "Aye, there's the rub."

Here's the text of the report. For the full details, including footnotes, go here.

A number of individuals have falsely characterized a recent PowerPoint presentation given to the Ohio Senate Finance Committee’s Medicaid Subcommittee by the Health Policy Institute of Ohio (HPIO).

The Columbus Dispatch flashed a headline that erroneously claims the presentation proved “Medicaid expansion would cost Ohio less than doing nothing.” The Dispatch’s editorial board followed up by asserting that the presentation proved that expanding Medicaid would “save the state money in the long term.” The Columbus Business First reported that the presentation showed that “Ohio could actually save by expanding Medicaid.” These headlines and reports would have Ohioans believe expanding one of the largest and fastest-growing line items in the state budget can reduce spending. But this is not what the HPIO actually found.

The authors created three different scenarios. In the first scenario, Ohio does not expand Medicaid and the program grows at 7.2 percent annually, what HPIO reports as the average annual growth rate since 2004. It should be noted that in a report released earlier this year, HPIO expected future Medicaid growth to average 5.6 percent per year without expansion, based on Ohio’s most recent actuarial analysis of Medicaid. It does not explain why it now assumes 7.2 percent growth as the baseline (without expansion) moving forward.

In the second scenario, Ohio caps its annual Medicaid spending growth at 5 percent and also expands Medicaid eligibility. In the final scenario, Ohio caps its annual Medicaid spending growth at 4.5 percent while also expanding Medicaid eligibility. Capping Medicaid spending growth is not related to expanding Medicaid eligibility. If Ohio wished to impose such a cap, it could do so without expanding Medicaid. The only valid comparison is one in which the only changing variable is whether or not the state expands Medicaid eligibility.

For example, the presentation asserts that by capping annual Medicaid spending growth at 5 percent, Ohio can expand Medicaid and still save $2 billion between now and 2025, when compared to 7.2 percent annual growth. But, using that same data, Ohio could save more than $48 billion during the same time period by capping annual growth at 5 percent and not expanding Medicaid eligibility. So, when using an honest comparison, Medicaid expansion will actually increase taxpayers’ costs by $46 billion, even if the state is able to aggressively reduce annual growth.

Choosing not to provide any specific recommendations to reduce the annual growth in Medicaid, HPIO instead provides a listing of possible new revenues to offset higher costs. Of course, increasing revenues does not lower spending. But even at the assumed lower annual growth rates, Medicaid spending would still double within the next 15 years. For comparison, the U.S. economy is expected to grow only 4.9 percent during the next decade. Ohio can expect to see slower growth, as the U.S. economy has historically grown 1.5 times as fast as Ohio’s economy.  If this trend continues, Ohio’s economy will grow by just 3.3 percent during the next decade. The Ohio Department of Development also expects Ohio’s economy to grow slower than the national average in the coming years.

This means Medicaid will continue to consume more and more funding, crowding out resources for other state priorities, even under the HPIO’s assumed lower Medicaid growth rates. Worse yet, the HPIO spending projections are based on the same flawed designs highlighted in a  Foundation for Government Accountability-Opportunity Ohio report published earlier this year. For example, HPIO uses Medicaid managed care rates for current adult enrollees to estimate the costs of covering newly-eligible individuals. However, evidence from states that previously expanded Medicaid eligibility to cover working-age adults without children found this population to be much more expensive to cover than parents. Additional research published by the federal Centers for Medicare and Medicaid Services found that costs were an average of 60 percent higher to provide the same benefits package to childless adults as they were for low- income parents.

HPIO flawed analysis is also evident in its assumption that just 58 percent of all newly-eligible individuals will sign up for Medicaid after expansion. Even among the uninsured, HPIO assumes just 70 percent of newly-eligible individuals will enroll. These are much lower than other projections of participation, including projections by actuaries at the Centers for Medicare and Medicaid Services. States that have previously expanded Medicaid to cover working-age adults without children also relied on projections similar to those given by HPIO.  Those states experienced participation rates that far exceeded what was initially expected.

The HPIO presentation given to the Medicaid Subcommittee adds very little to the debate over Medicaid expansion in Ohio. It recycles old projections based upon faulty assumptions. The only “new” material is the conclusion that capping the annual growth in Medicaid spending will reduce total Medicaid spending, but this has no relevance to the debate at hand. Such a cap has nothing to do with Medicaid expansion, and conflating the two is intellectually dishonest. When comparing apples to apples, where the only changing variable is whether or not the state expands Medicaid, the only valid and fact-based conclusion is that Medicaid expansion will cost taxpayers much more.”

Ohio Watchdog roundup: theft in office, good bills, bad bills, balanced budget amendment

I wanted to share with you a roundup of some of the stories on Ohio Watchdog:

Two thefts paint strange tales in Ohio takes a look at the two public officials who stole from their employer - and the way the public bodies dealt with the crime:

Gary Madrzykowski, director of the Olander Park System in Sylvania, Ohio, wrote himself a $2,500 check from the park’s bank account.

He also was taking cash out of the park’s cash drawer, but replaced it the next day so it would go unnoticed.

Earlier this month, Madrzykowski was questioned about the check after the park’s bookkeeper brought it to the attention of a board member. He resigned his $71,000 per year position.

The three-member park board does not plan to press charges. The $2,500 has not yet been repaid.

Sharon R. Vankanegan was the clerk and treasurer of the Kinsman Free Public Library in Kinsman, Ohio, a small community about a half-hour north of Youngstown.

For two years beginning in January 2010, she used the library’s credit card and Sam’s Club card to make $22,830 worth of purchases that were not for the library or for which receipts could not be located.

Continue reading...

OH court ruling hurts bonding companies, taxpayers examines the story of former Toledo Public Schools business manager Dan Burns who stole hundreds of thousands from the district and continued the thefts when he moved to the Cleveland school system.

Should a school official convicted of theft in office still get a state pension?

According to Ohio law he does, and bonding companies that insure against such illegalities are not entitled to restitution, an appeals court has ruled.

In Ohio, many public officials, especially those who handle money, are bonded to ensure the “faithful execution of their duties.” The public employer pays the cost of bond, like an insurance policy, and if money goes missing or is misspent, the bonding company will reimburse the public employer.

But with this latest ruling, the courts have made it clear a public employee’s pension cannot be garnished to recoup any money paid by a bonding company when an employee steals from a public employer.

Continue reading...

The good, the bad and the ugly in Ohio’s summer recess bills examines some of the bills that state legislators have introduced - from outlawing special elections in February and August to mandating the color of car headlights.

Then there is the latest from Gov. John Kasich who wants a constitutional convention to address a balanced budget amendment. My concern is whether or not a constitutional convention can be limited to just one topic and, if not, what damage might be done if some decide to just start re-writing it?

Surprise! No Republican wants to run against Kasich

Kasich probably won't face
a primary challenger.

According to various reports and information I've received, it looks like there won't be a primary challenge against Gov. John Kasich.

Despite intense anger from many conservatives and tea party groups, potential candidates are calling it 'political suicide' to challenge the incumbent. And they're probably right.

"If they want to have a future at the party, they're told not to run," Tom Zawistowski, former president of the Ohio Liberty Coalition who was unsuccessful in his bid for GOP state chairman, recently told Gongwer Ohio.

Mounting a primary challenge would require raising significant amounts of money from many of the same people already committed to Kasich. And it's never easy going up against the party's standard bearer, even when the 'bearer' is short on consistency with cord standards and principles.

Which is not to say that incumbents should not face challenges - just that the ideal candidate to do so has to have considerable resources, reputation and support already in place and not have too much to risk if they lose.

Charlie Earl, the gubernatorial candidate from the Libertarian Party, might prove to be an option in the general election for those who just can't pull the lever (yes, an old reference) for Kasich, but I don't think most Republicans will change party affiliation by pulling a Libertarian ballot in the primary.

Of course, it's still early and, as upset as conservatives are with Kasich, he's still a better choice than the Democrat, Ed FitzGerald.

***Side note: I'm headed to Indianapolis for the weekend to participate in the Smart Girl Summit and will try to blog about some of the sessions, especially the ones focusing on culture. ***

Kasich, new TV ads, Obamacare and Medicaid expansion in Ohio

Despite the fact that it's summer when political things usually slow down, there's a lot of activity going on when it comes to Medicaid and Obamacare...

At a rally yesterday in Columbus, Ohio Gov. John Kasich continued his push for an expansion of Medicaid and enrolling up to 366,000 new members by the end of the year.

The General Assembly rejected this expansion as part of the state's two-year budget which they passed last month.

Jason Hart at MediaTrackers has good coverage of the event starting with:

Governor John Kasich stuck to his practiced Medicaid expansion pitch – a mix of progressive pseudo-Christianity and outright falsehoods about the program’s funding – during a speech at a July 9 Statehouse rally for socialized medicine.

As his administration has done for months, the Republican governor conflated Medicaid coverage with “health care,” though 28 percent of Ohio’s office-based physicians were already refusing new Medicaid patients in 2011 and a recent study found that Medicaid coverage does not improve physical health.

Americans for Prosperity - Ohio, one of the leading critics of expanding the state's Medicaid rolls (as allowed under law), argues that expanding Medicaid rolls will push thousands of low-income Ohioans into a shoddy system at enormous cost.

"AFP will continue to educate Ohioans about the problems with Medicaid expansion. Ohioans need more health care choices, not more sub-par, bureaucrat-controlled health care and higher taxes," Eli Miller, State Director of AFP-Ohio, said.

Also yesterday, in conjunction with the AFP-Ohio efforts, broadcast and cable networks in Ohio started airing a new ad from Americans for Prosperity. The goal of the ad is to "expose the major problems with the Pres. Obama's health care law, the Affordable Care Act also known as Obamacare."

It's called “Questions,” and features the story of Julie, a mother of two who started paying close attention to her family’s health care options after her son began having seizures. The threat of shrinking options, higher premiums, and Washington bureaucrats making health care decisions leaves her with serious concerns about ObamaCare.



"The American people have serious questions and concerns about the negative impact of ObamaCare," Miller said."Ohioans are waking up to higher premiums and fewer choices, but are being told by President Obama and outside groups that everything is just fine. Well President Obama, everything isn't just fine. We feel it is important to educate Ohioans on the true consequences of government intrusion into the private health care decisions of families."

AFP-OH and state chapters across the nation plan to host events and meet-ups to further educate and provide information on the negative consequences of ObamaCare.

AFP describes itself as "a nationwide organization of citizen-leaders committed to advancing every individual’s right to economic freedom and opportunity. AFP believes reducing the size and intrusiveness of government is the best way to promote individual productivity and prosperity for all Americans."

The AFP ad competes with a national buy from the pro-Obama Organizing for Action, though both groups say the timing is coincidental.

Called "Better Coverage," the OFA ad features Stacey Lihn, who is also a young mom, and focuses on the Obamacare provision that eliminates a lifetime cap on benefits. “Thanks to Obamacare, we can now afford the care that Zoe needs. And for her, that’s a lifesaver,” she says.



Both ads are going after a key demographic in the health care debate, as this quote from a 2010 Time article explains:

Women make the primary health care decisions in two-thirds of American households. They account for 80 cents out of every dollar spent in drugstores and are likelier than men to choose the family's health insurance. Even when both parents work, wives shoulder 75% of domestic responsibilities, including making the kids' doctor appointments and getting them there on time. "Women are the main brokers of health care in the United States," says Dr. William Norcross, a family physician and faculty member at the University of California, San Diego, School of Medicine. "This has long been the case and is probably true elsewhere in the world too."

But be ready, Ohio, because the push for Ohio to expand the Medicaid program and the ad wars on Obamacare are just getting started.

Kasich Announces $1 Billion In Workers’ Compensation Rebates

Gongwers is reporting:

Gov. John Kasich announced plans Thursday to give Ohio employers a $1 billion rebate from the Bureau of Workers’ Compensation and another $900 million credit as the agency revamps its payment system.

“I would call this one of the most important economic stimulus measures that you can see. We’re actually going to do cash rebates,” he said during a news conference at a small T-shirt shop in Columbus.

“Being able to give $1 billion in cash means there’s going to be a heck of a lot more money floating around inside the state of Ohio and it will be of significant benefit to the employers, particularly the small business people,” he said.

Gov. Kasich and BWC Administrator Steve Buehrer said they would submit the rebate proposal to the Board of Directors for approval at its next meeting in late May.

Where's the beer?

Anheuser-Busch objected to new bill .

Should brewers be able to purchase wholesale distributors in Ohio?

Shouldn't a free market allow anyone to purchase a distributorship in order to further distribute their products, especially beer?

Well, Ohio says no, according to a new law passed in a matter of hours two weeks ago.

Senate Bill 48 was introduced Feb. 20th and passed by the Senate on March 20th. It was sent to the House on March 21st.

On April 17th, the bill received a single hearing, a substitute bill was introduced and approved by the committee, then approved unanimously by the House and the Senate concurred. It was sent to the Governor on April 23rd.

On first examination, it looks like a good bill in that it sets up a two-tiered liquor licensing system that allows smaller brewers (making less than 31 million gallons a year) to sell directly to retail markets and bypass the wholesale distributors in the state.

It does a number of others things, but one aspect generated some controversy: it prohibits large brewers from owning a distributor.

And that was a problem for many, but especially Anheuser-Busch InBev which has numerous options to purchase, or determine the purchaser, of distributorships throughout the state.

So they objected to the terms of the bill - and the rapid process with which it was passed.

According to Rep. Jim Buchy, R-Greenville, the bill’s floor manager, "We want to maintain a good system that has worked so well so we don’t get into a noncompetitive situation. That’s what could happen here," he told the Columbus Dispatch.

Anheuser-Busch said they were not given any chance to comment upon the implications of the provision.

Interestingly, the Ohio Wholesale Wine and Beer Association, which is the direct beneficiary of the provision, has donated over $600,000 to various legislative and state campaigns in the past several years.

Anheuser-Busch's North American president, Luiz Edmond, met with Gov. John Kasich to see if he would veto the bill.

“This thing passed the House and the Senate unanimously,” Kasich said. “I’m not going to just veto something that has, basically, unanimous support across the board. I don’t see why I would do that," he told the Dispatch.

Scott Corbitt, Region Director for State Affairs at Anheuser-Busch, issued the following statement:

We have shared our concerns with legislators and Governor Kasich regarding the lack of transparency in the legislative process and that the legislation’s restrictions on competition and constraints on the free market will ultimately harm consumer choice. Positive assurances were given to us by policymakers to address the issues that could significantly impact our investments in the state. We are working to identify a solution that maintains consumer choice and the free market principles that make Ohio a great state to do business.

The Governor has until May 4th to sign or veto the bill, after which it will go into effect with or without his action.

Quote of the Day - a lesson on government vs. private charity

Perhaps Gov. John Kasich should pay attention to this, especially when he thinks expanding Medicaid is the 'charitable' thing to do...

"We are all doubtless bound to contribute a certain portion of our income to the support of charitable and other useful public institutions. But it is a part of our duty also to apply our contributions in the most effectual way we can to secure this object. The question then is whether this will not be better done by each of us appropriating our whole contribution to the institutions within our reach, under our own eye, and over which we can exercise some useful control? Or would it be better that each should divide the sum he can spare among all the institutions of his State or the United States? Reason and the interest of these institutions themselves, certainly decide in favor of the former practice." ~ Thomas Jefferson

What you'll pay taxes on if Kasich's budget plan is approved

The Columbus Dispatch has provided the complete list of Gov. John Kasich's sales tax plan included in his budget proposal. While he'd lower the sales tax by a half a percentage point, to 5%, he's adding it to more things.

As if we don't pay through the nose for our garbage through the (questionable) trash tax, refuse services are on the list. We'll be paying sales tax on top of our garbage tax!

While Kasich's proposal will lower individual income tax rates, and taxes on business, how much more will individuals and businesses be paying when they have to pay sales tax on accounting and bookkeeping, attorneys and other consultants? Of course, those costs will passed on to consumers, so you will probably pay twice.

But look at the entire list. Aren't funerals bad enough without being hit with sales tax on top of the other costs?

And if you're in need of debt counseling, do you really have enough money to pay sales tax on it?

How, exactly, are you going to pay sales tax on a coin-operated washing machine? Do they even have slots for pennies?

Magazine subscriptions? Downloaded books, movies and music? Parking lots and parking garages?

As Matt Mayer of Opportunity Ohio wrote in an email:

Yes, I know that Governor Kasich's proposed budget contains an income tax cut, but that tax cut is funded by tax hikes elsewhere instead of government spending reductions. And, yes, taxing consumption is generally preferred over taxing income, but, by refusing to reduce high government spending, that choice really is a choice between the lesser of two inferior choices. Some of those tax hikes will come right back to consumers as businesses will pass along those taxes to consumers or, worse, businesses and consumers who can move the location of their service purchases will do so, thereby harming Ohio businesses.

To back that up, he included some startling budget data:

1. Governor John Kasich's Budgets: 24.4% increase in General Revenue Fund expenditures in 4 years or 6.1% increase per year average.

2. Even within his own budgets, Governor Kasich increases General Revenue Fund expenditures by 20.7% from 2012 to 2015.

3. From 1990 to 2015, General Revenue Fund expenditures grew by 182% or 63% adjusted for inflation.

4. Ohio Governor Term General Revenue Fund Expenditures Growth: Voinovich Term I=19.8%; Voinovich Term II=20.3%; Taft Term I=25.7%; Taft Term II=11%; Strickland=4.4%; and Kasich=24.4%.

Additionally, Kasich is again proposing to raise the severance tax on oil and gas drilling (fracking). This idea was rejected by the legislature previously, but it's back - and he's hoping to *purchase* the new tax on one of our most economically promising industries through a class warfare approach: we'll tack from the evil big oil and big gas and give to you, the average, hard-working Ohioan. How is that any different from Pres. Barack Obama's class warfare of tax the rich and give to the poor?

It's the spending, stupid. Cut that and maybe we can truly lower the taxes - without having to increase them elsewhere.

And here's the kicker: counties get to add a percentage to the state sales tax and collect it as well, though the amount varies from county to county. In Lucas, they add 1% for a total of 6.5%. So local governments will see an increase in revenue just because the taxable list has been expanded to apply to additional items. Some might think this is a good thing as it could avoid other taxes, but remember: sales taxes are regressive - hitting lower income individuals harder than others.

This is not the path to growth for Ohio - only a path to the growth of government.

Here are the previously exempt items that you'll have to pay sales tax on - if his budget plan is approved by the General Assembly:

* Pet Grooming
* Intrastate Courier Services
* Marine Towing Services
* Packing and Crating
* Refuse Collection
* Insurance Services (not policy purchases)
* Investment Counselling
* Loan Broker Fees
* Property sales agents (real estate or personal)
* Real estate management fees (rental agents)
* Real estate title abstract services
* Service charges of banking institutions
* Tickertape reporting (financial reporting)
* Accounting (Personal services)
* Cutting, coloring, styling of hair
* Dating Services
* Debt Counseling
* Fishing and hunting guide services
* Funeral Services
* Laundry and dry cleaning services, coin-op
* Legal Services (Personal services)
* Mailbox Rentals
* Tax Return Preparation
* Travel Agent Services
* Accounting and Bookkeeping (Business services)
* Advertising agency fees (other than ad placement)
* Architectural, engineering, and related services
* Bail Bond Fees
* Call Center
* Check and Debt Collection
* Commercial art and graphic design
* Credit information, credit bureaus
* Interior Design and Decorating
* Legal Services (Business services)
* Lobbying and Consulting
* Magazine Subscriptions
* Mailroom Services
* Management consultant services
* Marketing
* Process Server Fees
* Sale of Advertising time or space (billboards, magazine, newspaper, local radio and television)
* Public relations, management consulting
* Secretarial and court reporting services (excludes temporary hiring)
* Telemarketing services on contract
* Telephone Answering Service
* Test laboratories (excluding medical)
* Software - custom programs - programming and modifications to pre-written program
* Downloaded books, music, movies/digital, other electronic goods
* Parking lots and garages
* Admission to: cultural events; professional sports events; school and college sports events' park admission and rides; circuses and fairs - admission and rides.
* Billiard Parlors
* Bowling Alleys
* Cable TV services
* Coin-operated video games
* Pari-mutuel racing events
* Pinball and other mechanical amusements
* Rental of films and tapes by theaters
* Professional Services: accounting & bookkeeping; architects, attorneys; credit rating services; data mining services; engineers; land surveying; public relations; sound recording; Stenographic services.
* Trailer Parks - overnight

Ohio Watchdog round-up: sales tax, hypocrisy, several tax

A round-up of article from Ohio Watchdog:

Sales tax, property tax and - oh yeah - children: Discussions about how to fund education in the state include raising the sales tax to replace the property taxes being charged locally. How much, who gets it and who decides is always the discussion - but where do the children fit into the equation?

Dear Mr. President - your campaign is out of control: The same day Ohio was celebrating being recognized as an All-Star state for our efforts to protect the military vote, the Obama For America campaign, the Democratic National Committee and the Ohio Democratic Party sued the state to overturn the very law that help us win the recognition.

Oh - and overlooked by everyone is the sheer hypocrisy of the ODP, along with chairman Chris Redfern, of suing to overturn a bill that every Democrat - including Redfern - voted for.

Yes, you read that correctly. The ODP is suing to overturn a bill that received unanimous support when it was passed.

Kasich renews calls for high oil, gas severance tax: I written in opposition to the severance tax, and several groups (here and here) have announced their opposition as well. This article describes the proposal and what proponents and opponents have to say. Tom Blumer also lists Another reason to oppose gas hikes on Ohio's oil, gas industry.

Lastly, Ohio Watchdog has done a series of articles exposing the bias and 'untruthfulness' of PolitiFact's truth or lie conclusions. The latest article looks at how PolitiFact slams a GOP spokeswoman's 'literally true' statement as somehow untrue. Unbelievable! But read all the posts in the series and you'll see how PolitiFact is just a tool to support liberals while criticizing conservatives. That's my opinion, but you'll see how valid it is after reading the series and you can judge for yourself.

Another group says 'no' to Kasich's severance tax increase

An email from Americans For Prosperity - Ohio urges members to oppose Gov. John Kasich's proposal to increase the oil and gas severance tax in order to redistribute that extra revenue in the form of an income tax cut. They are the second group to do so.

It's the "Tell them to STOP!" campaign and here is the text of the email:

For the last several years, news of Ohio's economy and jobs picture has been bleak. But now, Ohio has a unique and very exciting opportunity -- the exploration for oil and natural gas.

The opportunity presented through shale exploration is nothing short of a boom for Ohio's economy. Whether you live on the eastern side or the western side of the state-- all of Ohio is bound to be positively impacted through the exploration and extraction of energy producing resources from our ground.

Unfortunately, some leaders in Ohio, including Governor Kasich, have suggested that taxes be increased on the oil and natural gas explorers to fund regulation and provide a tax decrease at legislative discretion -- in essence, the plan will slow or stifle energy exploration, pick winners and losers again, and fail to secure true tax reform which is necessary in Ohio.

If our elected officials want to lower taxes they should they should do it by following through on cuts to Ohio's bloated government rather than raising taxes on job creators and stifling the true creation of wealth by private landowners.

This issue promises to continue to be heated throughout the summer and fall and we at Americans for Prosperity -- Ohio aren't going to just go away.

You have responded to our calls to action before on this issue and NOW WE ARE ASKING YOU TO RESPOND AGAIN.

Please let your leaders know that you:

1. Want to them to stop picking winners and losers
2. Oppose this tax increase that will impact private land holder rights
3. Support exploring for energy in Ohio and are committed to keeping government intrusion at a minimum
4. Believe government stifling private economic growth WILL NOT lead to true job creation

Action items:

1. Email Governor Kasich (http://www.governor.ohio.gov/Contact/ContacttheGovernor.aspx) and the Senate leadership (http://www.ohiosenate.gov/leadership.html) including your Senator (http://www.ohiosenate.gov/directory.html) -- tell them you don't want to see new taxes raised on energy explorers and land holders in Ohio.
2. Email Speaker of the House Batchelder (http://www.house.state.oh.us/index.php?option=com_displaymembers&task=detail&district=69), the House leadership (http://www.house.state.oh.us/index.php?option=com_displaymembers&Itemid=52) and your Representative (http://www.house.state.oh.us/index.php?option=com_displaymembers&Itemid=58) and thank them for standing up for landholders, job creation, and liberty in Ohio. Ask them to remain resolved to fight this proposal.

The general assembly might be "out of session" right now, but the fight for liberty and sound economic policy never ceases -- WE NEED YOU TO ACT NOW!

Ohio Liberty Coalition opposes Kasich's severance tax

The Ohio Liberty Coalition agrees with me that taxing one entity more to give a break to others is nothing more than redistribution of wealth. It's not a conservative position, a moral position, a good-government position, nor is it good policy.

OH: Kasich renews call for higher oil, gas severance tax has more information about Gov. John Kasich's tax increase proposal.

Here is the Press Release:

Columbus, Ohio – The Ohio Liberty Coalition today came out against Governor Kasich’s proposed tax increase on the Ohio oil and gas industry. Tom Zawistowski, President of the OLC said, “What Governor Kasich is proposing is unnecessary and unwise. Under the current rules, the severance tax on oil and gas produced $11 million in state taxes in 2009, and by 2014 it is projected by the Ohio Chamber of Commerce to increase to $433 million per year. If the Governor wants to cut personal income taxes he can use that new money to do so. It is unnecessary to raise taxes when this industry is already on track to dramatically increase tax revenue. It is also unwise to throw roadblocks in front of an industry that is critical to the economic future of our state. Some companies are already leaving Ohio. That is not what we want.”

He went on to explain, “We understand the argument that the Governor wants to bring energy taxes in line with other states, but we do not agree that this is what Ohio should do. If we have a tax advantage then we think we should exploit that advantage and use it to attract more businesses. Then we will get more tax revenue from taxes generated by ‘downstream’ industrial and business activity.”

Zawistowski concluded by saying, “From a TEA Party perspective, to raise taxes on one group to give a tax cut to another group is simply redistribution of wealth. It is not the Governor’s job to pick winners and losers; his job is to run the state government as efficiently as possible. If he wants to cut taxes, he should cut state spending so he can cut taxes. We will encourage our member groups to contact their state senators and house representatives and ask them to oppose the Governor’s proposal.”

The Ohio Liberty Coalition is a coalition of Ohio Liberty Groups whose purpose is to unite conservative grassroots organizations for greater effectiveness in the state and nation, and to provide resources for member organizations to strengthen their groups. The OLC currently has over 75 liberty-minded groups across Ohio who are members of its coalition.

###

Quote of the Day - redistribution

You'd think our Governor and our President would understand this concept....

"To take from one, because it is thought his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers, have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, the guarantee to everyone the free exercise of his industry and the fruits acquired by it." ~ Thomas Jefferson, letter to Joseph Milligan, 1816

Ohio declares State of Emergency, requests federal aid

Gov. John Kasich has declared a State of Emergency for Ohio and requested federal assistance in providing generators, power generation teams and water.

Details from the request to Pres. Obama:

* There are still nearly 1 million customer outages (as of 1 p.m. on June 30th).
* Full power restoration is not expected for 5-7 days.
* Power outages are disrupting communications across the state - Multi-Agency Regional Communication Systems (MARCS) towers are out in 10 counties and several 911 centers and sheriff's offices are running on generators.
* Ohio National Guard has been activated.
* Generator supplies are being exhausted and the state has no generator supply
* Water commodities will decrease as power continues to be out.
* Neighboring states were also affected, increasing the likelihood of reduced resources.

The letter specifically requests a 54 pack of generators with a Type 3 Emergency Response Package and enough water for 500,000 people for five days. The estimated cost of the assistance is $5 million.

Press Release on State of Emergency:

KASICH DECLARES A STATEWIDE STATE OF EMERGENCY AFTER SEVERE STORMS KNOCK OUT POWER ACROSS 2/3 OF OHIO

Power Outages for One Million Homes, Businesses and Looming Heat Wave Mandate Immediate Statewide Response

COLUMBUS – Today Governor John R. Kasich declared a state of emergency for the entire state of Ohio after severe storms and high winds knocked out power for approximately one million power company customers across two-thirds of the state. The widespread outages could take up to a week to fully restore and, together with the current severe heat wave, could create crisis situations for the elderly, young children and those with sensitive medical conditions.

The governor’s declaration authorizes state agencies to take any necessary actions to assist local government authorities anywhere in Ohio to help respond, cleanup and recovery efforts and coordinate activities.

“I’m very concerned with the problems created by the combination of power outages and severe heat, and so I’ve declared an emergency for all of Ohio so that state resources and personnel can help local governments meet the needs and challenges that they face. Ohioans in affected areas should, if possible, stay tuned to their radios or TVs for information on where they can go for assistance. Those without power can call their local 211 numbers for information on where to turn for help. Folks should also knock on their neighbors’ doors to make sure they’re ok and look out for those who they know might need some extra help. Together we’ll get through this,” said Kasich.

Kasich has directed Ohio Emergency Management Agency Executive Director Nancy Dragani to open the state’s Emergency Operations Center in Columbus to coordinate state and local resources. Officials from all state agencies, volunteer organizations such as Citizen Corps and the American Red Cross are converging at the Emergency Operations Center to monitor response and recovery efforts within the affected areas. The state has already been in contact with Federal Emergency Management Agency officials and will request federal assistance if it is needed.

State agencies supporting the response efforts include the, Ohio Departments of Transportation, Natural Resources, Agriculture, Health, Public Safety, Environmental Protection Agency, and the Public Utilities Commission of Ohio.
###

Link to State of Emergency Proclamation

Press Release on Federal Aid Request:

GOV. KASICH REQUESTS FEDERAL DISASTER ASSISTANCE FOR OHIO

Response to Power Outages, Storm Damage May Exceed State Resources

COLUMBUS – In the wake of Friday’s severe storms and massive power outages across Ohio, Governor John R. Kasich today asked the President for an Emergency Declaration for Direct Federal Assistance so that Ohio could begin receiving badly-needed generators and water from the federal government. The governor spoke to the President today to make the request, and also spoke with Federal Emergency Management Agency Administrator Craig Fugate.

“I shared my concerns with the President that we have a serious situation and will need extra federal help. Massive power outages combined with severe heat create dangerous conditions, especially for the elderly and those with medical needs. The state has been working closely with local emergency management officials to meet immediate needs and going forward we need to make sure we have every available asset to protect Ohioans,” said Kasich.

Earlier in the day the governor declared a statewide emergency so that Ohio resources could begin flowing to local officials and aid their efforts to help Ohioans respond to and recover from the storms.

The governor’s request for federal assistance can be viewed here.

Chronology

* June 30: Gov. Kasich spoke to the President and requested federal assistance to respond to the storm. He also spoke with utility company CEOs and local elected officials to make state resources available to expedite recovery activities.
* June 30: Gov. Kasich declared an emergency for the entire state of Ohio so state agencies can assist local government response and recovery efforts. The National Guard was activated to help deliver needed supplies and conduct door-to-door checks in select areas to identify vulnerable Ohioans threatened by the severe heat.
* June 29: Ohio’s Emergency Operations Center in Columbus was activated to coordinate state and local storm recovery efforts. The state contacted Federal Emergency Management Agency officials to let them know federal assistance may be needed.
* June 29: Severe storms and high winds during evening rush hour knocked out power for approximately one million homes and businesses across two-thirds of the state.

Residents without power can call their local 211 numbers for information and assistance, or 911 in an emergency. Information is also available online at www.ema.ohio.gov and on Twitter at #OHwx and #severeweather.
###

Email from Gov. John Kasich:

Today I declared a state emergency and asked President Obama for federal assistance with the hundreds of thousands of people experiencing power outages. Friday's storm came at a time when we were already experiencing tremendous heat and we are doing everything we can to get help to those who need it.

I am calling on people to help their neighbors, especially seniors and those with medical situations. Knocking on someone's door and asking if they need a hand just might save a life.

If you have a local, non-emergency situation please contact your local EMA or dial 211.

Remember to stay away from downed power lines, drink lots of water, and help your neighbor.

Sincerely,

John Kasich
Governor of Ohio

As a side note - they need to think about gasoline supplies. We were in Columbus for the We The People Convention and had trouble locating a gas station that had power - or that could process a credit card transaction. In fact, the closest we found for our route (which we changed from normal due to the traffic from power outages) was in Carey, shortly before I-23 meets up with I-75.

Kasich's severance tax increase a bad idea

I'm not sure what's up with Gov. John Kasich, but he wants to increase taxes on one segment of our state in order to provide a tax cut to other segments.

In case you're not clear, this is exactly the same line of reasoning Pres. Barack Obama has when he says he wants to 'tax the rich' to provide funds for various government give-aways.

Kasich believes that an increase in taxes paid by oil and gas drillers in the state would be enough income to cover a reduction in taxes paid by individuals. Many individuals, not versed in Economics 101, hear 'tax cut' for themselves and are ready to jump all over the provision.

But if oil and gas drillers are taxed more, they'll just add the extra taxes to the cost of their product, driving up what individuals will pay. Which means that tax cut we'd get will go right back out to pay for the increased costs of the gas and oil products.

Not smart ... but appealing to people who don't think.

Jason Hart at MediaTrackers.org recently interviewed Jerry James, president of Marietta-based Artex Oil Company, about the proposal. As Hart writes, "While it may go without saying that James opposes higher taxes on oil and gas drilling, the perspective of Ohio employers should not be discounted simply because they have a financial interest at stake."

You can view the interview here.

Hart writes (emphasis added):

According to James — who currently serves as president of the Ohio Oil and Gas Association — leaving the severance tax unchanged would not only benefit Ohio landowners, energy companies, and blue-collar workers, but would drive overall economic growth in eastern Ohio. James predicts this would result in greater tax revenues under the more competitive current rate.

As a supplement to his comments in the above interview, James provided a chart showing a 50% drop in drilling activity in Arkansas after that state passed a comparable tax increase early in a similar energy boom. The Arkansas example was also cited by industry spokesman Terry Fleming of the Ohio Petroleum Council when Kasich’s proposal was first being discussed this spring.

James noted that in addition to the severance tax, energy companies in Ohio pay income tax, sales tax, an “ad valorem” tax on the value of underground minerals, and the state commercial activity tax (CAT). He disputed drilling cost and output estimates from the governor’s office, pointing to the oil & gas industry’s narrow profit margins.

Kasich’s proposal, which remains delayed in the General Assembly, has been endorsed by the Cincinnati Chamber of Commerce and the Columbus Chamber of Commerce on the premise that increased energy production from the Utica Shale in eastern Ohio should be leveraged for lower taxes statewide.

The combined severance tax hike/income tax rebate plan is opposed by the National Taxpayers Union, although it has been deemed compliant with the Americans for Tax Reform pledge.

The last thing Ohio needs is to duplicate Pres. Obama's mantra and politics of division by raising taxes on one industry in order to provide tax relief to others.

It's robbing Peter to pay Paul, which certainly makes it popular with Paul.

But it's bad policy and will hurt all of us in the long run.

Breaking: DeWine to resign at April 13 GOP meeting

The Columbus Dispatch is reporting:

Under unrelenting pressure from Gov. John Kasich and his political aides, Kevin DeWine will announce his resignation tonight as chairman of the Ohio Republican Party.


DeWine, 44, has prepared a letter to the 66 members of the GOP state central committee, saying he will step down when the party’s governing body meets to reorganize on April 13.

DeWine had previously announced he would not seek re-election to the chairman's position, but Kasich and others had asked him to resign immediately.   Following the primary election, Kasich was thought to have the votes to oust DeWine.

According to The Dispatch, DeWine's resignation letter was to be emailed at 9 p.m..

“Now, factions within our party are aligned to fight over who is best to lead us forward. A meeting looms where that fight could erupt into a party-splitting dispute that no one will win and everyone will lament.

“I am honored by the large number of State Central Committee members who are willing, even eager, to fight to sustain my leadership. Yet I cannot in good conscience let that fight go forward. If I did, it would be putting my personal interests over the party’s best interests. And I care too much about our work to do that.”

Past party chairman Bob Bennet is rumored to be the choice to lead the party, at least on an interim basis.

Matt Hurley at Weapons of Mass Discussion has the text of the resignation letter.