Cuts Hurt Ohio Updated

May 29, 2014 by

Share This!

CHO image

Great public services strengthen our communities, and we need the revenues to pay for them.

One Ohio Now in collaboration with Policy Matters Ohio and Innovation Ohio release an updated CutsHurtOhio.com - a website that allows residents around Ohio to see the impact of continued state budget cuts on their local schools and local government.

Ohio is investing $1.8 billion less in our communities and schools than in 2010. For a strong economy and good jobs we need reliable infrastructure, a well educated community and a good quality of life for all Ohioans, continued budget cuts take Ohio in the wrong direction.

Filed Under: One Ohio Now

News & Notes May 23, 2014

May 23, 2014 by

Share This!

Screen Shot 2013-07-22 at 9.20.51 AM

News: Expert: Doubling Ohio’s EITC a good move but its still not enough, Public News Service
Notes: The Earned Income Tax Credit (EITC) is a tax credit that is targeted at low and middle income families. A refundable tax credit will provide people that qualify a refund. For example, if a working single mom for tax year 2014 has a tax liability for $100 but qualifies for a $200 EITC, they would have their tax liability reduced to $0 and then receive $100 back. Without a refundable credit, a person will only have a $0 tax liability and loses the remaining $100 of their credit. 

News: Local elected officials to hold tour to urge restoration of local government funding, Akron Beacon Journal
Notes: Local leaders continue to struggle to meet fulfill their duties to their local communities after billions of dollars of state budget cuts. Local leaders are touring the state because the cuts have hit every corner. 

News: Cities start to challenge Ohio Gov. Kasich on lost local government funds, WKSU News
Notes: There are multiple philosophies on what components we need for a strong economy. Presidents Eisenhower   and Truman understood the foundation of a strong economy was strong public services. Their administrations invested into building infrastructure across this nation that was the foundation for a half century’s worth of economic prosperity. It is up to the states to maintain and continue to enhance much of that investment now – but we are allowing it crumble beneath our feet. Continued cuts to local government is a step backward, not forward. 

Filed Under: One Ohio Now Tagged With:

News & Notes May 22, 2014

May 22, 2014 by

Share This!

Screen Shot 2013-07-23 at 9.22.50 AMNews: Latest ‘compromise’ on raising severance tax for Ohio oil and gas drillers is more like a giveaway: editorial, Cleveland Plain Dealer
 Notes: Ohio’s Senate is likely going to stall the severance tax bill and hopefully they will improve it over the summer. Otherwise, Our legislature has given a gift to the oil and gas lobby while failing to create economic security for Appalachia, create resources for those now and adequately address potential environmental concerns. 

News: Ohio Senate Approves bill to expand business, income tax cuts, Plain Dealer
Notes: This bill will now go to the House for an up or down vote or to conference committee. The different components interact with each other – making the total cost of the bill $402 million. With that money, we could have restored the cuts to our K-12 schools, fund a massive expansion of Pre-K, fund all the social service funding requests, or adequately fund the third grade reading guarantee. Instead, the money will mostly go to the wealthiest Ohioans. 

The estimates by the Legislative Services Commission are as follows
1. Business Tax Cut: Costs $290 million. This cut will primarily benefit sole proprietorships like wealthy attorneys or accountants who have a large amount of income from their business on their personal tax returns. Most business owners will not see much of this money.
2. Income Tax Cut: Costs $100 million. Income taxes are based on your ability to pay, and will primarily benefit the wealthiest Ohioans.
3. Personal Exemption: Costs $73 million. The expansion of the personal exemption will primarily go to middle income families.
4. EITC: Costs $17 million. Expanding the EITC, but not making it refundable is a wasted opportunity. Many low and middle income families will not be eligible for this because it is not a refundable credit. 

It is important to note that these amendments were introduced into an appropriations bill on Tuesday during committee, approved and passed by the full Senate on Wednesday – without any notice that these would be included. 

 

 

 

Filed Under: One Ohio Now Tagged With:

Severance tax moves to House Floor

May 13, 2014 by

Share This!

Screen Shot 2014-05-13 at 3.22.33 PMThe Ohio House Ways & Means Committee voted 11-10 to approve HB 375. The bill moves to a full House vote on Wednesday May 14th.  This is a complex bill, resulting from 9 hearings, months of debate, and numerous witnesses. The vast majority of witnesses called on the state to invest more in their communities for education, social services, infrastructure and providing opportunity for an impoverished region to have hope again.

Simply put, the committee referred a bill with a low rate (2.5% reduced further by tax credits) and a small amount of money for a handful of initiatives. Texas has a rate of 7.5%, West Virginia has a rate of 5%. Our 2.5% rate remains very small. Representative Hill (R-Zanesville) voted against the bill because it just didn’t invest enough into the communities impacted by fracking and struggling to get by. Amendments to dedicate revenue toward local government, pay off a federal loan, and to invest in workforce development were defeated. Instead the majority of this new money will benefit the wealthiest Ohioans with an income tax cut.

The bill does provide a starting place for the Senate and Conference Committee. The bill creates a legacy fund which – if properly capitalized – could provide long-term economic stability and be a ‘game changer’ for the region. Currently it will never fulfill its potential. The bill also allocates some revenue for local governments.  Rep. Cera (D- Bellaire) pointed out that this revenue will be divided between over 20 counties and not go that far as he introduced an amendment to allocate 50% of the revenue to impacted communities instead of 15%. The bill does make a good step forward for environmental activists by allocating resources to plug orphan wells.

Moving forward, the media, candidates and interests groups talk about this bill very differently. Some will call it a tax increase, others a tax cut. Yes it is a tax increase on drillers, but a tax cut for the wealthy. Most importantly it is a failure to strengthen our communities with great public services that are needed.

Filed Under: One Ohio Now

It’s Fracked

May 9, 2014 by

Share This!

fracking well

Fracking has impacted communities in Eastern and Southern Ohio. Drilling companies come in, take the oil and gas from underneath our feet, and sell it. Yes, jobs have been created, but many of those are filled by out of state workers. Rents have sky-rocketed, traffic accidents are up, and there is a high level of concern over environmental damage in the short and long-term. What can be done to help now and to plan for the future? 

Oil and gas drillers pay an extremely small tax for the right to have access to the resources of Ohio. Ohio is one of the lowest tax states for oil and gas drilling in the entire country. The Governor, environmentalists, local officials and many others have agreed that the industry needs to pay their fair share.

HB 375 was introduced last winter with the intent of raising the severance tax. The bill will receive its 9th hearing on Tuesday May 13th. However, this bill falls short on our moral obligation to be good stewards of limited resources and to adequately plan for the future.

Instead, this Bill (in its 3rd version):

  • Cuts the rate in half for some wells. The Cost Recovery Fee will be eliminated and vertical (traditional) wells will continue to pay $0.10 per barrel of oil and $0.015 per Mcf of natural gas.
  • Imposes a 2.5% rate on gross receipts of oil and natural gas from fracking wells (after exempting the first $10 million). This will leave Ohio well below other states in the region and across the country. For example, West Virginia has a rate of 5%, Texas a rate of 7%.
  • Regulatory initiatives The proposal will allocate $21 million toward ODNR regulation, geological mapping, and plugging orphan wells. Some of this work was funded under the old tax structure as well.
  • Creates new tax credits and loopholes for businesses and investors that could cost the states general operating budget $10 million in 2016.
  • Creates a legacy fund. The concept is simple – the oil and gas will run out at some point, but lets use the revenue now to plan for the future. Local communities could start accessing the funds in 2025, but if we do not put aside enough now, it will be under-capitalized and ineffective at long-term financial security. It will only receive $1.5 million in 2016. North Dakota – in 3 years has built up a principal amount of $1.3 billion. Since 1976 New Mexico has a principal amount of $4.1 billion, and Wyoming $6.3 billion. With a strong principal, communities can benefit for decades on the interest of those investments.
  • Local Government and Infrastructure will receive about $22 million in 2016. Local communities have to deal with massive infrastructure needs to handle the fracking industry – including bigger roads, sewage systems, more maintenance, more car accidents, more work for public safety, and social needs such as rise in drug and prostitution, increased rents and much more. $22 is well short of the need that exists.  These investments will probably not replace the cuts these communities have seen over the past 4 years.
  • Tax Cuts primarily for the wealthy. Estimated at $54 million in 2016. Most Ohioans will receive such a minuscule amount of this money that it will likely have no impact. This revenue should be used to strengthen the legacy fund, assist local governments. Others have proposed also using the revenue to invest in alternative energy, environmental stewardship, education and training (to make sure that Ohioans qualify for these drilling jobs, and other projects.

As a state, we have a moral obligation to the next generation to adequately plan and be good stewards of our limited resources. We need revenue to invest in Ohio’s future not for a $4 income tax cut today. 

Filed Under: One Ohio Now Tagged With:

News & Notes May 8, 2014

May 8, 2014 by

Share This!

Screen Shot 2013-07-23 at 9.22.50 AMNews: Ohio Lawmaker panel offers another frack-tax proposal, Youngstown Vindicator
Notes: Shortly after lawmakers enjoyed the Ohio State University Marching Band (TBDBITL) playing Hang on Sloopy, the House Ways and Means introduced a 3rd version of HB 375 – a bill to update taxes on oil and gas fracking. Witnesses from Eastern Ohio voiced their support for a much higher rate to fund their communities and help with some of the negative impacts that fracking has had on the region. 

News: Raise taxes or cut services in Chagrin Falls, Plain Dealer
Notes: Often, the Ohio budget looks like a collection of random letters and accounts. The PLF and LGF don’t really have much meaning to most of us – but our county, city and township leaders know what these letters mean. The elimination of the estate tax and a 50% cut to the Local Government Fund (LGF) have left communities across the state trying to fill major budget holes. Chagrin Falls needs to replace $1 million in state budget cuts or cut services like parks, police, and road maintenance. 

News: Ohio Voters approve majority of school issues, Channel 3 Cleveland
Notes: 27 of 65 requests for new money were approved while 75 of 84 renewal school levies passed. In Ohio, revenue for schools does not increase automatically as your house value increases.  New money eventually is needed otherwise districts cannot keep pace with rising fuel, food, and building costs. 

Filed Under: One Ohio Now Tagged With:

News & Notes May 7, 2014

May 7, 2014 by

Share This!

Screen Shot 2013-07-22 at 9.20.51 AMNews: Lawmakers slammed for shifting funds from mentally ill to addiction treatment, Columbus Dispatch
Notes: HB 369 originally proposed $189 million to assist individuals suffering from addiction. Prior to the legislative spring recess, the Ohio House passed a bill using allocating $42 million. Also, this money was shifted from one program to another. Instead of cutting Ohio’s income tax again, Ohio should answer our call to provide a hand up to our neighbors in need. 

News: Drivers will pay toll to cross the Ohio river under new bill, Dayton Daily News
Notes: We need a new bridge connecting Ohio to Kentucky. The question becomes should we allow a private corporation to reap profits from tolls, finance the bridge with tolls owned by the state, or invest as a state to allow a free bridge for business and commuters to use?  We have to pay for our infrastructure one way or another. 

The House Ways & Means Committee will resume hearings today – May 7th – to discuss the severance tax.  It appears the new proposal will have a rate of 2.5% on gross receipts, with $21 million continuing to go toward ODNR, regulatory expenses and projects (no change), and 15% going toward local communities impacted by drilling activity.

Visit the Secretary of State’s Webpage for an updated list of all primary election results from May 6.

Filed Under: One Ohio Now