News & Notes February 26, 2014

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Notes: Editorial boards and reporters across Ohio call into question the wisdom of another income tax cut. The Columbus Dispatch points out that 99.6% of Ohioans already pay an effective income tax rate less than 5%. It continues to highlight that people move to North Carolina and South Carolina from Ohio – two states with higher income tax rates than Ohio. The Governor highlighted many areas that need additional public investment and we cannot allow a desire for more tax cuts to crowd out these other issues.  

News: State of the State, Gov. Kasich says it’s his duty ‘to serve everyone,’ so why is he proposing another unneeded, unequal tax cut,? Toledo Blade
News: Most Ohioans already taxed less than 5%, Columbus Dispatch
News: Kasich’s State of the State pitch for tax cuts misses by a mile: editorial Cleveland Plain Dealer
News: Campaign Mode, Akron Beacon Journal

 

 

State of the State

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Seal of OhioThe Governor delivered his fourth State of the State speech in Medina on Monday evening. The Governor discussed broad themes on many different issues. He also stated that he wants to get the top marginal income tax rate below 5%.
Depending how the tax cut is phased in, it will likely cost Ohio between $600 million and $1 billion in revenue. This revenue could be better used in expanding Pre-K to all Ohioans, reducing college tuition, strengthening the social safety net, and treating addiction. We give up on investing in our communities for tax cuts that have not paid off.
Speaker Batchelder acknowledges that Ohio isn’t doing better with continuous tax cuts and that is “a serious question.”  We need to have a reasonable conversation about how we want to invest as a state and develop sustainable revenues to fund those priorities.
One Ohio Now’s State Director, Gavin DeVore Leonard says, “The Governor knows great public services like Medicaid make our communities stronger, and that we need revenue to pay for those services.  But, his biggest policy proposal announcement – lowering the top income rate to below 5% – will cost the state billions at the expense of vital investments like public education and public safety that all Ohioans count on.”

“Since 2005, when major income tax cuts began, Ohio has fallen to 48th in the country in job creation.  The wealthy are getting wealthier, but prosperity is not trickling down.  We should change course now and invest in lowering the cost of college education, addressing addiction at meaningful levels, restoring cuts to the Local Government Fund, and more.”

“It’s time to take an honest look at who is benefiting from income tax cuts.  They cost too much and benefit too few.”

 

News & Notes

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Screen Shot 2013-07-23 at 9.22.50 AMNews: Drug treatment must be funding priority for Kasich, Plain Dealer
Notes: A bill currently sits in the Ohio House that calls on an investment of $189 million to help provide drug treatment. Ohio needs to identify what public investments we want and then set a tax structure to fund those. If the Governor believes that treatment is needed – he will fully fund drug treatment proposals prior to further income tax cuts. 

News: Cutting Words, Akron Beacon Journal 
Notes: Ohio’s income tax represent 32% of Ohio’s General Revenue Funds. Nine years of tax cuts have not generated the promised jobs.  Ohio needs to invest in public services like education, drug treatment, public safety, and our community parks to build stronger communities for all of us. 

News: Guarantee on the Fly, Akron Beacon Journal
Notes: Are you “For” or “Against” third graders reading? I think everyone is ‘for’.  However, the question is how will we achieve this goal. The state has adopted a “read or else” strategy where third graders will be retained if they do not pass a test – and extreme pressures will be placed on teachers to make sure those kids pass the test. Another approach could be to invest in more resources for schools and teachers to help kids read in preschool through third grade and provide assistance when kids fall behind. However, that will require the state to spend money – which might get in the way of tax cuts. 

News: Income Gap less in Ohio, but growing everywhere, Columbus Dispatch
Notes: Imagine a family where both parents work at low wage jobs. The nine years of tax cuts have not placed enough money in their pockets to make much of an impact as they struggle to keep up with bills. During this time, programs in their children’s schools have been slashed and pay-to-play policies have been implemented to make up for state budget cuts. They cannot afford to rent or purchase their 6th grader an instrument to be in the school band. She has been denied an opportunity to play, her parents have been denied an opportunity to watch that child grow and learn to appreciate music making.

This is a part of the growing story of income inequality in the United States. We prevent upward mobility by limiting opportunities – even small things like playing in the band – in the name of tax cuts. Tax cuts have not delivered on their promises in the US or in Ohio. Let’s invest in great public services that lead to stronger communities and make sure every kid can choose follow their passion. 

News & Notes, February 17, 2014

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Screen Shot 2013-07-22 at 9.20.51 AMNews: Barrier of Poverty, Akron Beacon Journal
Notes: Poverty is a barrier to success in education. When children are worried about evictions, food stability, and bill collectors – it creates a difficult environment to focus on fractions and history. Ohio makes it worse by investing less per student in our low-income urban districts than our wealthier suburban communities. Investing in education equity is a better investment than more income tax cuts. 

News: Local Colleges seek $50million for major projects, Dayton Daily News
Notes: The Governor will likely release the Capital Budget in the next week or two. This bill will primarily use debt finance bonds to fund infrastructure and building projects. Ohio’s colleges have decided how they will divide $400 million over the next two years. While the capital budget offers some needed investments, it is a fairly small budget compared to the overall general operation budget. 

News: Tax plan rankles oil and gas industry, Youngstown Vindicator
Notes: If Ohio intends to drill for oil and gas, Ohio needs oil and gas drillers to pay their fair share for the right to profit from our resources. HB 375 – drafted with heavy input from the oil and gas industry has been modified slightly based on overwhelming input from the local communities impacted by drilling activity. However, even the modest changes do little to address the need for Ohio to invest in local communities and long-term economic stability for the region. 

News & Notes February 13, 2014

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Severance Tax ProposalNews: Revised Fracking-Tax has few fans, Columbus Dispatch
Notes: The bill is not good. Simply put – HB 375 attempts to raise taxes and cut taxes at the same time and creates confusion for everyone. The substitute bill was adopted by the committee on Wednesday, and may receive a vote as early as next week. If we are going to have drilling in Ohio, we need corporations to pay their fair share and invest the money into our communities. 

This is our (light-hearted) take on the new severance tax proposal that may receive a vote next week.

News & Notes February 12, 2014

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Screen Shot 2013-07-22 at 9.20.51 AMNews: Severance Options, Akron Beacon Journal
Notes: The ABJ states, “The governor wants the revenue to cover an additional reduction in income tax rates. Ohio has more pressing needs, starting with early education and easing the cost of college tuition.” We need to identify a fair rate for oil and gas drillers to pay and then utilize the revenue to invest in needed services. 

News: Listen and Learn, Akron Beacon Journal
Notes: We should set a goal that kids will be able to read by the third grade. However, punitive actions are not the right approach when we are underfunding school districts that teach the kids. We need to increase the availability of tutors, reading specialists, and reading enrichment programs in the early years to help kids gain the foundational skills for education. Ohioans have a choice – invest in Ohio’s children or another income tax cut. 

News: Why Ohio must tackle infant mortality, Cleveland Plain Dealer
Notes: We can reduce infant mortality in Ohio by increasing awareness, developing parenting classes and providing resources to new parents who are struggling financially. Ohio can invest in targeted public awareness campaigns, classes for new parents, and much more to reduce infant mortality rates. These investments will save lives.  

News: Earnings gap between college and high-school grads widest in 48 years. Youngstown Vindicator
Notes: You will earn more money with a college degree. However, the student loan debt crisis continues to place a burden on upward mobility and economic growth. Therefore, if we reduce tuition costs, and help more students access a college degree, Ohio can increase wages and rebuild a middle class. The State of Ohio can invest in actually reducing college tuition throughout the state or provide yet another income tax cut – primarily going to the wealthiest Ohioans. 

News & Notes February 11, 2014

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Screen Shot 2013-07-22 at 9.20.51 AMNews: Revised fracking-tax bill expands income-tax cut, Columbus Dispatch
Notes: A weak severance tax bill may have just got worse. Although we cannot be certain until we see the specifics of the legislation. We need drillers to pay their fair share so that we can invest in building up the local economies of the region impacted by drilling. It appears that this amended bill (to be introduced Tuesday afternoon) will direct more money towards an income tax cut. The original bill allocated 50% of the new revenue towards an income tax cut, the new version allocates 80% of a slightly higher rate. 

News: Cleveland-area administrators voice opinions, concerns about Third Grade Reading Guarantee, Plain Dealer
Notes: Should most third graders be able to read at a 3rd grade level? Yes. The Annie E. Casey Foundation’s research shows this is a key component to long-term academic success. The question is how do we get there? The Governor and legislature utilize a stick and carrot approach – pass or be retained. Instead, we should adopt policies that invest in reading specialists, early intervention, and enrichment programs that will help kids catch up, and help kids recover if they fall behind. 

News & Notes, February 10, 2014

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Screen Shot 2013-07-23 at 9.22.50 AMNews: Reading and (Budget) Math, Toledo Blade
Notes:  Toledo Schools have gone from 6 reading specialists down to 2 as a result of budget cuts. If the State of Ohio were serious about making sure that every child was a proficient reader in 3rd grade, they would invest money to hire more reading specialists and other professionals to serve our children. Ohio will be debating a budget bill later this month. We have a choice – more tax cuts that primarily benefit the wealthy or invest in educational programs that will lift up Ohio’s communities. 

News: E.J. Dionne commentary: Discredited economic theory is at root of gridlock, Columbus Dispatch
Notes: Many theories exist on how the government should be involved with the economy. In Ohio, we continue to hear a mantra for more income tax cuts to improve the economy – even though these strategies have not created jobs. We need to invest in a high quality of life, a social safety net and economic stability during recessions. As Dionne highlights, some economic theories are not supported by history and the research. We need to base economic policy on facts not theories. 

Week in Review

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statehouseCancelled Hearing:
The Ohio House Ways & Means committee was scheduled to hold their 6th hearing on the Ohio severance tax changes proposed in HB 375, but it was cancelled due to snow. However, many officials – including the Governor – expressed concerns this week about the bill and hope for a stronger piece of legislation that requires oil and gas companies to pay their fair share. Local officials from the region continue to express their frustration about a severance tax bill that does not invest into their communities and plan for the long-term.

Campaign Time:
The campaign season officially began this week as candidates for office had to file their paperwork with the Ohio Secretary of State to run. While the politics will continue to heat up, we remain committed to advocating for great public services that lead to stronger communities – and the revenues to pay for them. When you meet a candidate, ask them if they support public services that will help improve our communities or tax cut strategies that have failed Ohio over the past nine years.

 

News & Notes February 5, 2014

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Screen Shot 2013-07-22 at 9.20.51 AMNews: Bytegrid Drives Pro-Business Change in Ohio Data Center Tax Exemption, Digital Journal
Notes: Tax loopholes are everywhere. Some make sense others don’t.  Ohio has no official process to review them. A data center in Cleveland may receive a taxpayer investment of up to $3.2 million in its first year of operation – and more over the next five years as a result of a 100% sales tax exemption. The important thing to remember is that the state has spent $3.2 million on this company instead of preschools, parks, or public safety. Will this expense create new jobs or will it subsidize jobs that were already going to occur. Sometimes, these are smart investments – other times they are political favors. We need more transparency and accountability of tax credits and loopholes to make sure they are the best investment for Ohioans. 

News: Life without a hub, Akron Beacon Journal
Notes: Many of us have used the United hub at Cleveland Hopkins, and its closure will impact the options for air travel in the region. The Akron Beacon Journal points out what the region should do moving forward: “The smart response focuses on enhancing local strengths, and securing the foundation of any regional economy, a well-equipped work force, responsive government and sound public works. An airline hub has value. It isn’t essential for Northeast Ohio to prosper”