Category Archives: Ohio

Ohio government is too big to pay for its employees pensions, taxpayers should pay for no more

Posted on January 6, 2010 by | Leave a comment

By Daniel Downs

Ohio public employee pension fund are suffering the same fate as their employers revenue streams. They are dwindling. Partly to blame is our spend-thrifty government; the other part is the financial industry that was willing to follow the lead of their liberal politicians.

According to an excellent report by the Columbus Dispatch, Ohio public pensions cost taxpayers $4.1 billion annually. Those costs are directly related to the size of government payrolls, which continue to grow. As noted, government employees get higher than average retirement incomes. These are guaranteed by law.

Because 401K and other sources of pension funds are subject to stock market volatility, the Ohio budget is now revealing another part of its budget shortfall.

To make up for the loss, Ohio public employee union-negotiated pension funds are asking taxpayers to foot the bill.

What is wrong with this picture?

As noted at the beginning, the growth of government bureaucracy outpaces the private sector. Socialistic and special interest programs along with related federal mandates drive much unnecessary growth and its costs to taxpayers. The answer is in cutting them. Ohio government should follow their private sector partner and downsize. Cut departments, programs, employees, and cut related expenses. By downsizing, the executive branch the savings would cover most, if not all, of the current budget deficit, which means covering pensions too.

And, what about all of Ohio’s private sector employee who are suffering either declines or loss of their retirement pensions? If taxpayers should maintain retired employee pension because they pour billions of dollars into Ohio’s economy as argued Democrat Rep. Todd Book and the unions, retired private sector employees pour in many more billions. It would be more profitable for the economy if taxpayers funded their retirement funds.

Then, there is the frequent practice of allowing double dippers to burden Ohio taxpayers. As with Xenia Community Schools Supt. Lewis, many government employees receive pension income as well as taxpayer funded paychecks. Why should taxpayers pay double for such employees, and pay double or triple amounts for bailouts, and pay double for levy debts to schools and to investors? Public corruption obviously is very profitable.

Ohio government is just too big and corrupt to pay for its employees’ pensions. That is why taxpayers should refuse to pay more.

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Revolving door undermines public trust in government

Posted on January 4, 2010 by | Leave a comment

By John Mitchel

RE: Local contractors under scrutiny for using paid military “mentors”, Dayton Daily News, December 30, 2009: Many consider Gen. Bill Creech as “father of the modern Air Force.”

During his distinguished career and before he died in 2003, Gen. Creech practiced and preached the notion that the most important responsibility of a leader is to train new leaders. “Mentoring” was on Gen. Creech’s short list of important tasks required to prepare Air Force leaders for the future. However, simultaneous receipt of $1600 a day mentoring fees plus a six-figure military pension plus hundreds of thousands in consulting fees from defense contractors doesn’t seem to fit Gen. Creech’s noble intentions of preparing Air Force leaders for challenges they may face in the future. Besides, each senior officer participating in the Air Force mentoring program has more than 30 years experience on active duty. That should be sufficient time to positively instill the core values of duty, honor, country in subordinates of all ranks, and especially the senior troops who more senior officers deal with on a daily basis.

“Mentors for hire” may seem abusive to some, but it pales in comparison to the ease and speed in which elected officials and their staff members pass through the “revolving door.” Take for example Congressman Dave Hobson, who retired a multi-millionaire after nearly 30 years of public service, then took a job as a lobbyist for Vorys Advisors, a subsidiary of Vorys, Sater, Seymour and Pease, LLC, a Columbus law firm. And let’s not forget Congressman Steve Austria’s wife Eileen, who moved from Congressman Dave Hobson’s District Director to Director of Sales and Marketing with Nextedge Development Corporation, a non-profit, tax exempt company 60-70 percent financed by tax dollars including federal earmarks requested by Dave Hobson and Third Frontier and other state funding sponsored by Steve Austria when he was in the Ohio General Assembly. It’s no wonder approval ratings for Congress are at all-time lows.

If the revolving door between government and the private sector should exist at all, it should be with two conditions; full and open disclosure, and a reasonable cooling off period, especially at the most senior levels. Instead, the usual suspects prefer to conceal their self-dealing with faceless private corporations, and more often than not, through non-profit, tax exempt entities financed mostly with taxpayer dollars. Term limits, self imposed or otherwise, would be a step in the right direction to mitigate the revolving door issue for federal elected officials. That would motivate our congressional leaders to act as citizen legislators who serve for a time, and then return to their home districts to enjoy the liberty and freedom they helped protect as representatives of the people. The longer we allow the self-dealing career politician mindset to prevail in Washington and Columbus, the closer we will come to America falling into the abyss.

John Mitchel was a candidate for Ohio governor in 1998 and ran for U.S. House of Representatives in the 7th Congressional District in 2008. In 2006 he wrote and self-published America at the Abyss: A View from the Heartland.

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Strickland Shouldn’t Count on Federal Bailout

Posted on December 29, 2009 by | Leave a comment

By Marc Kilmer

Governor Strickland and the General Assembly last week agreed on a tax hike to close this fiscal year’s budget deficit. When they return in January, though, they will have to deal with a projected deficit of roughly $5 billion for next fiscal year. The governor is hoping the federal government will send some money Ohio’s way to make this deficit disappear. While a federal bailout is unlikely, even if it happens Ohio’s budget problems won’t go away.

The seemingly endless debate in the General Assembly this year over closing the deficit clearly illustrates that Ohio has budget problems. The spending obligations made by politicians can’t be funded with the money being paid by state taxpayers. Politicians of both parties were unwilling to cut state spending to close the gap. Instead, they supported a federal “stimulus” bill that papered over part of the difference and then raised taxes.

Since the next fiscal year will also have a deficit, we can count on similar tactics in the 2010 legislative session. Trimming a little spending, “delaying” tax cuts, or hoping for a federal bailout won’t address the fundamental problem: Ohio’s politicians simply spend too much.

From 1998 to 2008, Ohio’s budget grew by 41%. New government programs were created, existing government programs were expanded, and various interest groups were given tax dollars for their desired projects. Republicans as well as Democrats were happy handing out tax dollars at ever-increasing rates and there was little fiscal discipline in Columbus.

When tax revenue was flowing in, it was easy to sustain the growth of Big Government. When tax revenue declines, though, those who now count on the new government spending fiercely resist seeing it stop or even decrease. Legislators and the governor are faced with an uncomfortable situation.

That seems to be why Governor Strickland has expressed his hope for another round of federal money to alleviate the state budget woes. Most other states are in a similar budget predicament, and they, too, would like to see the feds help them cover up their fiscal mismanagement. With estimates that state budget deficits could total $180 billion in the next fiscal year, a hefty federal bailout would be necessary at a time when even the big spenders in DC are blanching at adding to the record-high federal deficit.

Of course, whether the money comes from Columbus or Washington, DC, it comes from our pocketbook. Government can’t spend what it doesn’t first tax or borrow. Ultimately taxpayers will be paying for any federal bailout funds that come to Ohio. The only difference is whether it is funneled through the U.S. Treasury or the Ohio Department of Taxation.

Instead of hoping for an unlikely federal bailout, Ohio policymakers should learn from this year’s budget debacle and get serious about enacting reforms that will provide a more permanent solution to the state’s problems. Eliminating useless government programs, cutting the bloated state workforce and trimming its wages and benefits, and finding more efficient ways to provide necessary services is a good start. It’s also necessary to enact tax and regulatory reforms that will make Ohio an attractive place for businesses, which will increase tax revenue without the need to hike tax rates.

A federal bailout may make politicians’ jobs easier, but it’s not what Ohio really needs.

Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.

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Reversing the Exodus

Posted on December 28, 2009 by | Leave a comment

Ohio is facing numerous challenges, including a large budget deficit, soaring unemployment and an exodus of jobs, young people and retirees. Solving these problems requires responsible leadership and fresh thinking — and Rep. Josh Mandel is working hard every day to identify business-friendly, limited-government solutions to Ohio’s economic struggle. Here are some examples:

* Eliminating Ohio’s Estate Tax: Mandel supports efforts underway to eliminate Ohio’s estate tax. This form of double-taxation has had the unfortunate and predictable result of making Palm Beach, Naples and Phoenix second capitals of Ohio. By forcing retirees to become citizens of other states, we are losing an incredible amount of financial and intellectual capital that should be invested in our communities. Ohio’s estate tax hits the middle class, homeowners and farmers while driving jobs, capital and families out of Ohio. Mandel is committed to support the efforts of endohioestatetax.com as we fight to eliminate this economic burden on Ohio families.

* Consolidating State Government: Mandel also proudly supportd House Bill 25 which is an effort, authored by Representative John Adams, to reduce, reorganize and remove duplicative services in our state government. Facing large budget deficits, government must tighten its belt and reduce expenses rather than raise taxes and fees on Ohio families and businesses. Estimates show that by consolidating state agencies, Ohio could save over $1 billion dollars annually. In this tough economic environment, families and individuals are tightening their belts and our state government should do the same.

* Standing up for Seniors and Retirees: When Mandel learned that changes to the tax code by Congress and the IRS were going to cause unexpected end-of-year tax bills for Ohio’s seniors and retirees, he introduced a resolution calling on the federal government to correct its error. Working with State Senator Jimmy Stewart, and because of the leadership of Congressmen Jim Jordan and Pat Tiberi, this problem was resolved. Ohio’s seniors dedicated their lives to their state and community and Mandel says he is proud to fight for them at the Statehouse.

* Growing Ohio’s Economy through Independence from Foreign Oil: Mandel is a strong co-sponsor of House Bill 107 which is a measure to allow Ohioans to drill for oil and gas on state lands. This legislation would empower Ohioans to maximize the natural resources within our borders in order to create jobs, promote economic activity and foster independence from foreign oil. Mandel says that he believes responsible exploration of oil and gas in Ohio will help drive down energy prices for Ohio families and businesses and contribute to our nation’s fight against terrorism. He also supports efforts underway to build a coal gasification plant in Ohio, which would utilize Ohio coal to create Ohio jobs and foster independence from foreign oil.

These are just a handful of the issues on which Mandel is working to improve the lives of Ohioans and reverse the exodus of jobs, young people and retirees from Ohio. Through countless hours at the Statehouse and by traveling 61,323 miles throughout the state, Mandel has heard from thousands of people and the message is clear – Ohio needs new leadership. I am ready to provide Ohio with the leadership it needs in order to improve our economy through economic freedom, limited government and fiscal responsibility.

Rep. Mandel believes he will be able to improve Ohio’s economy if elected as State Treasurer in 2010. To learn more about Rep. Josh Mandel, visit his website at www.joshmandel.com

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Posted in business, economy, Ohio, politics

Lear: State government on the wrong path to balanced budget

Posted on December 22, 2009 by | Leave a comment

Ohio lost another opportunity to show its true strength last Thursday as state government failed again to balance its budget with Ohio resources. Beth Lear, candidate for the 2nd House District, decried the lack of moral courage by state leaders who raised the income tax, took a handout from Uncle Sam, and failed to reform education during the late night budget vote.

“Once again Ohio’s elected leaders failed the people. They knew what the right thing was,” Lear said Thursday. “Instead of hearing the wake-up call to focus our energy and assets on the basics of limited, constitutional government, they raised our taxes to balance their bloated budget on the backs of the people.”

Lear said the $894 million tax increase is unacceptable – especially because it is retroactive to the beginning of 2009. A retroactive tax destroys the tax planning of Ohio’s small business owners, many of whom are based in Delaware County.

“I’m especially disappointed with the Republicans who supported this tax-and-spend policy,” Lear continued. “After the last presidential election, Chairman DeWine was correct in saying the GOP is paying because it has left our conservative roots of fiscal responsibility and limited government. I will bring those values back to the state house next year.”

Implemented in 1972, the Ohio income tax has been a disaster, Lear said. Its very existence has damaged individual liberty, while facilitating the rapid growth of the public sector at all levels.

“Few people realize that spending is not free,” said Lear. “Study after study has shown that public sector spending kills jobs and creates economic woe for Ohioans. The unemployment rate rose in November to 10.6 percent. Perhaps the Democrats who supported this retroactive tax increase are trying to help Michigan inch ahead of Ohio in economic performance – that would make us 50th instead of 49th.”

Lear was raised in Delaware County, where she lives with her husband and two children. She is a former policy analyst with the Buckeye Institute for Public Policy and a long-time legislative aide. Her campaign website is www.BethLear.com.

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Mandating Higher Insurance Costs

Posted on December 21, 2009 by | 1 comment

By Marc Kilmer

At a time when the U.S. Senate is debating legislation that will supposedly bring down health insurance costs for Americans, the state House of Representatives just passed legislation that would hike these costs. While this legislation was passed with the best of intentions, it’s effect will be to hurt small businesses and lead to more uninsured in the state.

The legislation at question is two bills that mandate insurance companies cover treatment for autism (up to $36,000 a year) and treatment for diabetes. Some Ohioans will certainly benefit from these mandates and will find their costs for these treatments decline. The benefits from the legislation aren’t the whole story, though. The wider harm caused to everyone else that has health insurance was disregarded by legislators who promoted these measures.

Treatments for autistic children can be very expensive. Parents of these children understandably want someone else to help share their burden. Likewise, coverage for diabetics can cost a lot of money. But this legislation doesn’t really force insurance companies to pay for these treatments. Instead, legislators have forced everyone who has insurance to pay for them. Insurance companies don’t just print money to pay for services. They get money from the insurance premiums you pay. If they need more money, they raise the price of premiums.

While not the intended effect, if these bills become law it will lead to higher prices for health insurance in Ohio. Not all health insurance will be affected, though. Big companies that provide their own insurance aren’t covered by state law. Small businesses and individuals who purchase their own insurance are the ones who will be paying for this legislation.

Ohio has seen many small businesses close their doors or lay off workers in the past couple years. Business owners are cutting cut costs to stay in business. Even a modest price increase for health insurance will likely mean that some will drop such coverage completely. The result will be more people without insurance in the state. For those companies that do decide to keep insurance, it will mean either less profit for employers or lower wages for employees, both of which are especially unwelcome during a recession.

Ohio already mandates that insurance companies must cover a number of procedures, artificially raising the cost of insurance. For instance, even if you believe that chiropractors offer few legitimate medical treatments, your insurance must cover their services. Or even if you’ve never touched a drug in your life, state legislators mandate that your insurance cover drug addiction treatment. But compared to other states, Ohio does pretty well. Legislators have been steadily adding to these mandates over the years, though, and the governor wants even more regulation of health insurance. At the same time, these same politicians decry the rising cost of health insurance, even though they are directly responsible for part of this price increase.

All this is not to say that insurance should not cover treatment for autism or diabetes. Health insurance consumers should have the freedom to buy such insurance if they wish. But if you want to pay lower prices for a policy without such coverage, you should be free to do so, too. Not every one wants, or can afford, a policy that covers every disease or treatment. Ohioans should have the freedom to shop for insurance policies that meet their budgets and their medical needs. The Ohio House of Representatives wants to take that freedom from you, though. If this were the automobile market, it would be like legislators saying that if you don’t buy a Cadillac, you can’t own a car at all. For some people, a Kia works just fine.

The best way to help health insurance consumers is to remove government mandates and allow health insurance companies to tailor policies to meet individual consumers’ needs. Imposing politically-driven restrictions on insurance drives up the cost for all and helps only a very few. That’s not the kind of health insurance reform Ohioans need.

Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.

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Posted in economy, family, health, news, Ohio, politics, research, taxes

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A Real Job Creation Plan

Posted on December 15, 2009 by | Leave a comment

By Marc Kilmer

While the state budget impasse remains unresolved, legislative leaders are fighting over which government programs to cut. Unfortunately, one area of state spending seems sacrosanct — corporate welfare. As long as state politicians continue to lavish money on ineffective programs like the Third Frontier or the Department of Development instead of working on real reforms to promote economic growth, Ohio’s unemployed will continue to find little relief.

With a deficit of $853 million, it seems a strange time for state policymakers to be proposing to borrow $1 billion to spend on corporate welfare. Yet this, along with Governor Ted Strickland’s recent executive order to refinance the Ohio Venture Capital Program, shows that Ohio’s politicians have learned little about job creation.

Politicians support these programs because they think they provide jobs. This reflects a mindset that is all too prevalent among those who work in Columbus (or Washington, D.C.) — an inflated view of how much the government affects the economy. Instead of viewing job creation and economic growth as the result of the daily interactions of business owners, workers, and consumers, too many politicians see it as a top-down process that can be heavily influenced by government programs.

The constant talk of the jobs “created” by the government is a symptom of this peculiar mindset. The Obama Administration, for instance, claimed its stimulus plan would create or save 3.5 million jobs. As Buckeye Institute fellow Sam Staley wrote about in a recent National Review article, though, this estimate was entirely lacking in credibility. As he pointed out, the Obama Administration estimated Ohio’s Sixth Congressional District would benefit from 7,200 stimulus jobs. Between 2001 and 2007, the area had only seen 3,500 real jobs created. It strains one’s imagination to think the stimulus bill would double the job growth occurring during the national economic boom.

In early November the Obama Administration said that 640,000 jobs had already been created or saved by the stimulus. Of course, as this claim was investigated it quickly became apparent that this was just wishful thinking. Lynn Walsh of the Buckeye Institute pointed out that many of the jobs in Ohio were created or saved in Congressional districts that didn’t even exist. The Columbus Dispatch noted that many of the education jobs claimed to be “saved” by the stimulus weren’t in danger. Other news organizations around the nation also found that local job creation claims were just as bogus.

At the state level, supporters of extending the Third Frontier program tout the 40,000 jobs it has allegedly created. While this number comes from a consulting firm and is on firmer ground than the Obama job creation numbers, it too is suspect. To truly gauge the impact of this program on employment, the analysis should determine whether these jobs would have been created without government spending. It also needs to take into account the jobs destroyed by government taking this money out of the economy through taxes and borrowing.

While Ohio politicians have been relying on the Third Frontier, the Department of Development, and other government agencies to create jobs, the state’s economy has declined. Even before the current recession, Ohio’s job growth lagged behind the national average. Where is the evidence that the top-down, corporate welfare mentality so popular in Columbus has worked?

Instead of expanding state debt and wasting more money on the Department of Development, state policymakers should enact an economic growth platform of tax reduction, ending mandatory unionization, eliminating the prevailing wage law, and cutting state bureaucracy. Ohio will once again be an economic powerhouse when its politicians recognize that the only effective government job creation program comes from creating an environment for individuals to start businesses, employ workers, and grow the economy.

Marc Kilmer is a policy analyst with the Buckeye Institute for Public Policy Solutions, a research and educational institute located in Columbus, Ohio.

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Austria announces WPAFB commission…

Posted on December 14, 2009 by | Leave a comment

By Andy Myers

I sure hope this time around, the people of Greene County don’t fall again for Steve Austria’s “re-election” photo op he’s so well known for. The pictures of Steve meeting with various community leaders, students and business leaders are nothing but visual campaign ads he’s hoping might get him re-elected to a second term to the District of Criminals.

Mr. Austria is nothing more than a career tax-feeder, uh, I mean politician. He’s been groomed early on and is the “chosen one” with the local Republican Party. You get to be the “chosen one” because you sell out the Constitution and the oath you swore to uphold, and instead insure nothing drastically changes that would upset the “balance of power” here at home. Mr. Austria is also “bought and paid for” by the same old major players and special interests in our district who cough up hundreds of thousands of dollars to his election campaign to insure our confiscated tax-dollars flow back “to them” so that they can graciously put us poor saps back to work on our dime, all thanks to them. It’s nothing more than “welfare” and a redistribution of your hard earned money to “pay to play” players in his district.

Mr. Austria fits right in with the socialist philosophy in Washington. He voted FOR HR 1388, Obama Camps or better known as Generation Invigorating Volunteerism and Education Act. Somewhere in the Constitution he saw where he along with the other confiscators could vote FOR the Garrett amendment to HR 3269 authorizing another $2 Billion for the Cash for Clunkers. He voted FOR HR 2647 or the Hate Crimes Creation Act. And the list goes on. But hopefully this should be sufficient to get the good people of Congressional District 7 to hand Mr. Austria his pink slip in 2010.

We don’t need another politician who embraces the political ideologies of socialism. We need a leader who will stand up against those who have taken America to the brink of destruction. We need a statesman who understands and takes seriously the oath they swear by. We need someone who understands the limits of federal law according to article 1 section 8, someone who will represent the people instead of going along with the party and the beltway mafia. We need another Dr. NO in congress.

Andy Myers is Region Coordinator of the Ohio Freedom Alliance

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Austria’s Contracting Commission An Insult To Wright Patt Professionals

Posted on December 14, 2009 by | Leave a comment

By John Mitchel

RE: “Contracting process discussed,” Dayton Daily News, December 7, 2009

Steve Austria’s Blue Ribbon Commission on contracting is a classic example of “moral hazard,” or dishonest agents manufacturing a need that doesn’t exist. The tragic irony in Congressman Austria’s action is that he is asking special interests to “shed a light on the contracting process” that is dictated by Congress and Congress alone. Wright Patt acquisition professionals are bound by law to follow rules and regulations that emerge from Congress, so if Austria thinks he needs to alter or fix the process, he needs to go back to Washington and deal with the other 534 members of that “elite” body.

The simple truth is; Austria’s Blue Ribbon Commission is a reelection tool. He realizes he has done little to warrant a second term, and with the May 2010 primary approaching, he’s desperate to convince his constituents, not to mention his campaign contributors that he deserves the opportunity to get two years closer to qualifying for lucrative retirement and healthcare benefits, and other perks that go along with belonging to that elitist group known as “career politicians.”

Steve Austria’s motives are an open book and have been for years, but if you still aren’t convinced, a simple question will seal the deal. Ask Mr. Austria how he feels about term limits, self-imposed or otherwise. His answer will probably go like this, revealing yet another moral hazard – Mr. Austria most likely will respond, “I cannot leave Congress because no one else is capable of serving the 7th District as well as I can.” That is the deception that plagues America, and will continue to do so until we elect citizen legislators who serve the people, then return to their hometowns and families to enjoy the liberty and freedom they helped protect.

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Posted in economy, Greene County, news, Ohio, politics

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Rep. Steve Austria Commission On WPAFB Contracting With Local Business

Posted on December 14, 2009 by | Leave a comment

In a recent Dayton Daily News report, Rep. Steve Austria announced the formation of a local commission to study ways to improve contracting relations of area business with Wright Patterson Air Force Base.

The goal of commission of 20 regional industry, academic, and government leaders is to study WPAFB is to find ways to assist area business win more contracts. Another goal is assist the Pentagon with its plan to identify and hire defense contractor employees in order to expand its work force of contracting specialists for acquiring aircraft, weapons and services.

The completion of the commission’s study is expected to take about 5 months. Austria plans to share the final report with the community.

The news report failed to mention is goal of helping the business community take full advantage of the huge government stimulus under HR 1 American Recovery and Reinvestment Act of 2009 being used to fund new building programs at federal institutions like Wright Patterson AFB and the Veteran’s Administration Hospitals.

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