News: Think Tank says Ohio tax plan favors the wealthy, WCBE News
News: Tax Shift and Shaft, Toledo Blade
Notes: We need to rethink the 2005 tax changes and evaluate what is working and what is not. Income tax cuts have not created the promised jobs or increased resources for low and middle income Ohioans. Ohio has fewer resources to invest in our communities and many Ohioans are actually paying more in taxes. It is time to get Ohio back on track.
News: As Ohio Expands Tax Cuts, the Poor get Poorer, Cleveland Plain Dealer
Notes: “So, today’s Statehouse irony: The tax cuts that give General Assembly Republicans a platform leave middle-class Ohioans treading water – and unfilled potholes in front of country clubs.” READ MORE
News: Tilt of the Governor, Akron Beacon Journal
Notes: The Governor signed another tax cut last week costing the state over $400 million. 50% of the cut will go to the wealthiest 5% of Ohioans.
News: Ohio’s Economic Recovery, Not a Simple Tale, Columbus Dispatch
Notes: The national recession and recovery have more to do with Ohio’s economy than state level decisions. Tax cuts simply have not worked in improving Ohio’s economy. In fact, Ohio is lagging much of the nation. The simple reality is that governor’s have the most impact in creating great public services that will be the foundation of a strong economy into the future. Investments into reliable infrastructure, schools, and public safety are prudent ways to grow an economy over the long term.
News: Wages flat in Ohio, decline locally, state job growth below national average, Cleveland Plain Dealer
Notes: The unemployment rate does not reflect Ohio’s unemployment picture for Ohioans. Ohio’s unemployment rate is dropping because too many people have been unemployed for so long that we stop counting them. Job growth is slow and far too many new jobs are part-time and low wage. This will continue to drag the rest of Ohio’s economy downward.
News: Bad Budget Business, Toledo Blade
Notes: The typical middle class household will pay $24 less next year in taxes as a result of an 11th hour budget deal. For this $2 a month, we will not invest over $400 million into our schools, public safety, or our community parks. A few more teachers in classrooms, or an extra police officer on our street are just some of the sacrifices we make to finance a tax cut for the wealthiest 1% of Ohioans who will receive over $1,800 a year.
News: More Millions, Akron Beacon Journal
Notes: A summary of continuing a failed tax cut strategy. Simply put, tax cuts just haven’t worked in Ohio. Government investments are investments in our priorities as the people of the state.
News: To Help Poor Neighbors, Ohio needs to rebuild the Safety Net, Toledo Blade
Notes: The federal government cuts programs, the state cuts programs. Fiscal responsibility does not mean forcing the ones with the fewest resources to suffer in difficult times. Fiscal responsibility means that Ohio policymakers identify ways to meet the needs of the community in a responsible manner, and not forcing the poorest Ohioans to bear the brunt of a bad economy. Asking the wealthiest Ohioans to pay their fair share to support our community is a good first step toward fiscal responsibility.
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.
News: 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.
News: 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.
News: Cuts Coming To Mansfield City Schools, NorthcentralOhio.com
Notes: Mansfield schools will likely cut 148 positions as a result of needed budget cuts. the Shrinking economy continues to hurt local government and schools.
News: Opinion- Ohio Needs a pre-school guarantee, Cincinnati Enquirer
News: A growing chorus around Ohio is echoing a similar tune – pre-school is needed for our students, families, and the health of our economy. If we want every third grader to read at grade level – Ohio needs to engage kids in reading at a younger age.
News: Ohio’s State Parks Getting Upgrades, Columbus Dispatch
Notes: Budget cuts prevent the state from keeping up-to-date with regular maintenance projects. The American Society of Civil Engineers estimates close to a $1 billion backlog in maintenance and upgrades needed. a $100 million investment is a great first step, but hopefully we will continue to invest over the next few years to make our parks great! Then we need to regularly invest in staff, maintenance, and improvements to prevent a backlog like this from occurring in the future.
Notes: Local Government officials testified on Tuesday asking the state legislator to restore drastic cuts made during the recession. Governor Kasich continues to think the choice is between funding police, fire, and community services or cutting state mental health services. The reality is the choice is not between which services, because Ohio has plenty of resources. The choice remains between investing in public services or cutting income tax rates – primarily benefiting the wealthiest Ohioans.
Some committee members appear to support a bare bones budget, that lacks the resources to invest in great public services that lead to stronger communities. They fail to recognize that this strategy will not serve Ohio’s communities, inspire innovation, or attract new investment opportunities.
News: Local government officials seeking reversal of state cuts, Columbus Dispatch
News: Local Government Funding, Corrections, Unemployment Filing Draw MBR Testimony, Hannah News
News: Local Officials Decry state cuts: Bipartisan group rallies at statehouse, Toledo Blade
HAPPY FRIDAY!News: How Ohio fails community college students, Akron Beacon Journal
Notes: The Governor’s top priority continues to focus on the income tax rates for the richest .4% of Ohioans. Maybe it is time that we focus our attention on the thousands of college students that need an affordable education.
News: Aliens or Tolls are Necessary to fund new Brent Spence Bridge, Channel 9 WCPO Cincinnati
Notes: The Governor unveiled a $2.4 capital budget earlier this week, however he did not allocate funding for the new Brent Spence bridge that will improve infrastructure and traffic into Ohio from Kentucky. This is another step to make Ohio’s tax system more regressive – and shifting the cost of public services away from the wealthy.
News: Kasich’s proposed budget would provide more for prison staffing, repairs, Columbus Dispatch
Notes: A small increase is better than none at all, Ohio needs an additional 400 prison guards not just 87 – which is provided in this budget bill. Ohio has the resources to invest in creating secure prisons and promoting rehabilitation, but every time we cut the income tax we take a step back.
News: Expanded Medicaid won’t save Ohio promised $400 million, Columbus Dispatch
Notes: Fiscal responsibility requires legislators to be responsible and not count their chickens before they hatch. SB 210 wanted to push through an income tax cut based on this additional funding that is not going to materialize. Ohio policymakers need to be cautious and not rush to tax cuts without considering the long-term fiscal detriment they will have on our communities.
  
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