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The State of Ohio

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The controversial bill that would ban abortion after the first detectable fetal heartbeat passed the Ohio House, largely on a party line vote - and with a surprising revelation. The $7 billion transportation budget is a go - the House and Senate agreed to it this week, though there were some changes. After weeks of talks, Republicans who lead the Ohio House and Senate struck a deal on what they say will crack down potentially dangerous toxins that turned part of Lake Erie green and left nearly half a million people in Toledo unable to use the water last summer. Farmers groups are supporting it, as is the Ohio Environmental Council.

Gov. John Kasich has said the severance tax on oil and gas drillers is one of his priorities. Kasich's budget includes a 6.5% severance tax, much larger than the 2.5% severance tax that was passed by the Republican-led Ohio House last year. The increase is opposed by Shawn Bennett, the executive vice president of the Ohio Oil and Gas Association. But it has support among many other groups and activists, including Jack Shaner, the deputy director of the Ohio Environmental Council.

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00:00:00	>> SUPPORT FOR THE STATEWIDE BROADCAST OF "THE STATE OF OHIO"
00:00:05	COMES FROM THE LAW OFFICES OF PORTER, WRIGHT, MORRIS AND
00:00:07	ARTHUR, LLP, HELPING BUSINESS AND INDIVIDUALS SOLVE COMPLEX
00:00:15	LEGAL PROBLEMS IN OHIO, ACROSS THE COUNTRY AND AROUND THE
00:00:17	WORLD. ON THE WEB AT PORTERWRIGHT.COM.
00:00:24	AND FROM THE OHIO EDUCATION ASSOCIATION, REPRESENTING
00:00:27	120,000 MEMBERS WHO WORK TO INSPIRE THEIR STUDENTS TO THINK
00:00:29	CREATIVELY AND EXPERIENCE THE JOY OF LEARNING.
00:00:30	ONLINE AT OHEA.ORG. KAREN: EMOTIONALLY WRENCHING AND
00:00:33	RIVETING DEBATE IN THE HOUSE THIS WEEK ON THE HEARTBEAT BILL.
00:00:35	AND GOV. JOHN KASICH HAS TRIED SEVERAL TIMES TO HIKE THE TAX ON
00:00:38	OIL AND GAS DRILLERS WITHOUT SUCCESS.
00:00:40	WE'LL HEAR TWO PERSPECTIVES ON INCREASING THE STATE SEVERANCE
00:00:42	TAX. ALL THIS WEEK IN "THE STATE OF
00:00:44	OHIO." [CAPTIONING PERFORMED BY THE
00:00:50	NATIONAL CAPTIONING INSTITUTE, WHICH IS RESPONSIBLE FOR ITS
00:00:51	CAPTION CONTENT AND ACCURACY. VISIT NCICAP.ORG]
00:00:53	KAREN: THE CONTROVERSIAL BILL THAT WOULD BAN ABORTION AFTER
00:00:59	THE FIRST DETECTABLE FETAL HEARTBEAT PASSED THE OHIO HOUSE,
00:01:02	LARGELY ON A PARTY LINE VOTE. THE EMOTION IN THE DEBATE WAS NO
00:01:05	REAL SURPRISE, BUT ONE REVELATION WAS.
00:01:08	REPUBLICAN RON HOOD OF ASHVILLE IN SOUTH CENTRAL OHIO IS ONE OF
00:01:11	THE LEADING CO-SPONSORS OF THE SO-CALLED HEARTBEAT BILL.
00:01:14	AFTER TELLING AN EMOTIONAL STORY ABOUT LOSING A SON TO
00:01:18	STILLBIRTH, HOOD REPEATED ON THE HOUSE FLOOR WHAT'S BEEN SAID
00:01:21	ABOUT THE SO-CALLED HEARTBEAT BILL FOR YEARS.
00:01:23	REP HOOD: WE ARE ATTEMPTING TO GET THE COURTS TO RECOGNIZE LIFE
00:01:28	AT HEARTBEAT. KAREN: THERE ARE 50 SPONSORS OF
00:01:31	THE BILL, 49 REPUBLICANS AND ONE DEMOCRAT SO IT WAS PRETTY CLEAR
00:01:37	, IT WAS GOING TO PASS. THE DEBATE WAS PASSIONATE AND
00:01:39	EMOTIONAL, DRAWING ON RELIGION, LEGAL PRECEDENT AND STORIES OF
00:01:40	PERSONAL EXPERIENCES OF CONSTITUENTS.
00:01:42	REP. JOHNSON: IF PASSING A BILL WOULD MAKE IT GO AWAY, WE SHOULD
00:01:51	PASS BILLS OUTLAWING DOMESTIC VIOLENCE AND HEROINE.
00:01:53	FOLKS, PASSING IT DOESN'T MAKE IT GO AWAY.
00:01:57	CHALLENGING THE CONSTITUTION THROUGH THESE MEANS IS TURNING
00:02:01	YOUR BACK ON YOUR OATH, THE OATH YOU SWORE TO UNDER GOD TO
00:02:06	UPHOLD. REP. YOUNG: I SWORE TO UPHOLD
00:02:09	OUR CONSTITUTION. I DID NOT SWEAR TO UPHOLD ROE
00:02:12	VERSUS WADE. AT THE SAME TIME, WE HEAR
00:02:15	REFERENCES CONTINUALLY TO THE SUPREME COURT.
00:02:16	WE THINK OF IT IN THOSE TERMS, THE SUPREME COURT.
00:02:24	BUT YOU KNOW, THERE IS ANOTHER COURT SUPREME TO THAT, AND THERE
00:02:29	IS A JUDGE THAT IS TO BRING TO ANY JUDGE ON THE SUPREME COURT,
00:02:36	AND IF YOU READ THE OATH CAREFULLY, HE IS THE ONE THAT WE
00:02:39	SWORE ALLEGIANCE TO. HE IS THE ONE WE SWORE WE WILL
00:02:44	BE ANSWERABLE TO SOMEDAY FOR THE DECISIONS WE MAKE IN OUR VOTES
00:02:49	RIGHT HERE IN THIS HOUSE. REP. CURTIN: WE HAVE NO RIGHT TO
00:02:55	CLAIM TO BE MORE VIRTUOUS. WE ARE NOT MORALLY SUPERIOR.
00:03:01	WE HAVE NO RIGHT TO CLAIM THAT GOD FAVORS US OVER THEM.
00:03:08	GOD HELP ANYONE OF US WHO CLAIMS THAT EXALTED STATUS.
00:03:13	TO PASS THIS LEGISLATION, TO GIVE A POWERFUL GOVERNMENT THE
00:03:21	SUPREME POWER TO DICTATE TO THAT COUPLE WHAT THEY MUST DO IN
00:03:26	THEIR MOST SACRED SPACES IN THEIR TIME OF CRISIS IS A
00:03:31	PROFOUND ABUSE OF POWER. REP. HAGAN: THIS BILL IS VERY
00:03:38	MUCH ABOUT LOVING WOMEN. THIS BILL IS ABOUT LOVING WOMEN
00:03:44	AND LOVING CHILDREN AND PROVIDING THAT EXTENSION OF
00:03:46	RIGHTS TO THE UNBORN. REP. STRAHORN: WE TALK A LOT
00:03:49	ABOUT FREEDOM IN AMERICA COME IN OHIO.
00:03:52	THERE IS NO GREATER THREAT TO FREEDOM THAN THE INTRUSION OF
00:03:56	GOVERNMENT ON A WOMAN'S BODY. THERE IS NOT.
00:03:58	KAREN: BUT PERHAPS NO COMMENTS WERE MORE EMOTIONAL THAN THOSE
00:04:01	OF TERESA FEDOR OF TOLEDO, WHO SAID SHE RESPECTED THE VIEWS AND
00:04:04	PERSONAL STORIES OF THOSE SUPPORTING THE BILL.
00:04:07	REP. FEDOR: BUT YOU DON'T RESPECT MY REASON, MY RAPE, MY
00:04:14	ABORTION. KAREN: FEDOR HAD SAID SHE DIDN'T
00:04:19	WANT THAT TO MAKE THE NEWS, BECAUSE SHE SAID IN AN INTERVIEW
00:04:21	LATER SHE HADN'T EVEN TOLD HER MOTHER ABOUT IT.
00:04:23	THE HEARTBEAT BILL, WHICH INCLUDES NO EXCEPTIONS FOR RAPE
00:04:26	OR INCEST, PASSED THE HOUSE 55-40.
00:04:29	NOW IT HEADS TO THE SENATE, WHERE REPUBLICAN PRESIDENT KEITH
00:04:32	FABER SAID THAT WHILE HE AGREES WITH THE CONCEPT BEHIND THE
00:04:34	HEARTBEAT BILL, HE'S STILL WAITING FOR A LEGAL SCHOLAR TO
00:04:37	COME FORWARD AND SAY THE -- SAY IT IS CONSTITUTIONAL.
00:04:43	THE HEARTBEAT BILL PASSED THE HOUSE IN 2012, BUT THEN STALLED
00:04:45	IN THE SENATE. IT WAS REINTRODUCED IN THE LAST
00:04:46	GENERAL ASSEMBLY, AND DIED IN A FLOOR VOTE DURING THE LAME DUCK
00:04:50	SESSION IN DECEMBER. BUT BACKERS SAY THIS IS THE
00:04:52	LONGEST PERIOD THEY'VE EVER HAD TO CONVINCE SENATORS TO SUPPORT
00:04:57	IT, SO THEY FEEL CONFIDENT THEY CAN GET IT PASSED.
00:05:00	THE $7 BILLION TRANSPORTATION BUDGET IS A GO.
00:05:03	THE HOUSE AND SENATE AGREED TO IT THIS WEEK, THOUGH THERE WERE
00:05:05	SOME CHANGES. THE SENATE ADDED AND THEN
00:05:08	REMOVED A PROVISION HIKING THE SPEED LIMIT TO 75 MILES PER HOUR
00:05:12	ON THE TURNPIKE AND SOME RURAL ROADS.
00:05:14	THE SENATE ALSO SPARKED CONTROVERSY BY ADDING A
00:05:18	PROVISION REQUIRING OUT OF STATE CAR OWNERS TO REGISTER THEIR
00:05:22	CARS AND GET OHIO DRIVERS' LICENSES IF THEY WANT TO VOTE IN
00:05:24	OHIO. DEMOCRATS VOTED AGAINST THE
00:05:27	TRANSPORTATION BUDGET BECAUSE OF THAT ADDITION, WHICH THEY SAY
00:05:34	UNFAIRLY TARGETS MORE THAN 100,000 OUT OF STATE COLLEGE
00:05:40	STUDENTS, AND THAT POPULATION OFTEN VOTES DEMOCRATIC.
00:05:42	THEY'RE ASKING GOV. JOHN KASICH TO USE HIS LINE-ITEM VETO ON
00:05:43	THAT SECTION. BUT REPUBLICAN SECRETARY OF
00:05:45	STATE JON HUSTED SAYS THE PROVISION CREATES NO BARRIER FOR
00:05:47	VOTERS, AND REPUBLICAN LEADERS SAY THE PROVISION JUST SETS OUT
00:05:50	A TIMELINE FOR GETTING A DRIVER'S LICENSE AFTER
00:05:53	ESTABLISHING RESIDENCY, WHICH 44 OTHER STATES ALREADY HAVE.
00:05:58	AFTER WEEKS OF TALKS, REPUBLICANS WHO LEAD THE OHIO
00:06:00	HOUSE AND SENATE STRUCK A DEAL ON WHAT THEY SAY WILL CRACK DOWN
00:06:05	ON POTENTIALLY DANGEROUS TOXINS THAT TURNED PART OF LAKE ERIE
00:06:08	GREEN AND LEFT NEARLY HALF A MILLION PEOPLE IN TOLEDO UNABLE
00:06:11	TO USE THE WATER LAST SUMMER. THE DEAL CAME IN THE FORM OF
00:06:15	SENATE BILL 1, WHICH BANS THE APPLICATION OF MANURE ON FROZEN,
00:06:19	SNOW-COVERED, OR RAIN-SATURATED FARMLAND.
00:06:22	REPUBLICAN SENATE PRESIDENT KEITH FABER IS FROM CELINA,
00:06:35	REPRESENTING WHAT HE CALLS THE LARGEST AGRICULTURAL DISTRICT IN
00:06:37	THE STATE. HE SAID LAWMAKERS WANTED TO MAKE
00:06:38	SURE FARMING WAS STILL VIABLE. SEN. FABER: BUT IF I ABILITY
00:06:46	SHOULD NOT BE CONFUSED WITH A LACK OF STEWARDSHIP, AND
00:06:47	EXCESSIVE USE OF ORGANIC FERTILIZERS IS UNACCEPTABLE.
00:06:49	THIS BILL WILL MAKE MEANINGFUL CHANGES INTO THAT PROCESS.
00:06:52	KAREN: PART OF THE COMPLEXITIES OF THE BILL CAME IN THE FORM OF
00:06:57	EXEMPTIONS, INCLUDING A GRACE PERIOD GIVING FARMERS TIME TO
00:07:02	ADJUST TO THE NEW STANDARDS. STATEHOUSE LEADERS HAVE ALREADY
00:07:05	PASSED MEASURES TO REQUIRE NUTRIENT MANAGEMENT PLANS AND
00:07:06	BETTER FERTILIZER APPLICATION PRACTICES.
00:07:07	FARMERS GROUPS AND ENVIRONMENTALISTS LIKE THE DEAL
00:07:09	- BOTH THE OHIO FARM BUREAU AND THE OHIO FARMERS' UNION ARE
00:07:11	SUPPORTING IT, ALONG WITH THE OHIO ENVIRONMENTAL COUNCIL.
00:07:14	ADAM RISSIEN IS THE DIRECTOR OF AGRICULTURAL POLICY AT THE OEC,
00:07:18	AND SAYS WHILE THIS IS A START, THERE'S MORE WORK TO DO.
00:07:22	ADAM: SENATE BILL ONE IS A GOOD STEP IN THE RIGHT DIRECTION.
00:07:28	I THINK THE BOTTOM LINE IS WE NEED TO TAKE FURTHER STEPS,
00:07:34	UNTIL WE PREVENT ACCESS APPLICATION, NOT JUST IMPROPER
00:07:35	TIMING OF THE APPLICATIONS, WE ARE STILL GOING TO BE SEEING AT
00:07:38	THIS POLLUTION. KAREN: THERE ARE OTHER BILLS UP
00:07:41	FOR THE GENERAL ASSEMBLY'S CONSIDERATION, INCLUDING ONE
00:07:43	THAT WOULD ADDRESS CONCERNS WITH THE STANDARDS FOR WASTE WATER
00:07:45	TREATMENT PLANTS AND PUBLIC WATER SYSTEMS.
00:07:47	LAWMAKERS HAD IDENTIFIED THE TOXIC ALGAE BILL AS A PRIORITY
00:07:50	JUST AS REPUBLICAN GOV. JOHN KASICH HAS POINTED TO THE
00:07:53	SEVERANCE TAX ON OIL AND GAS DRILLERS AS A PRIORITY TO HIM.
00:07:58	KASICH'S BUDGET INCLUDES A 6.5% SEVERANCE TAX, MUCH LARGER THAN
00:08:00	THE 2.5% SEVERANCE TAX THAT WAS PASSED BY THE REPUBLICAN-LED
00:08:04	OHIO HOUSE LAST YEAR. I SAT DOWN RECENTLY WITH SHAWN
00:08:11	BENNETT, THE EXECUTIVE VICE PRESIDENT OF THE OHIO OIL AND
00:08:13	GAS ASSOCIATION TO TALK ABOUT KASICH'S SEVERANCE TAX PROPOSAL
00:08:15	AND WHAT THE INDUSTRY THINKS SHOULD BE DONE.
00:08:19	SO LET'S START -- GOVERNOR KASICH HAS TALKED ABOUT THE
00:08:22	CURRENT SEVERANCE TAX BY DISPLAYING TWO DIMES, AND SAID
00:08:27	THAT THAT IS THE TAX ON THE BARREL OF OIL IN OHIO.
00:08:31	THAT IS INSIGNIFICANT TO A LOT OF PEOPLE, ESPECIALLY WHEN WE
00:08:34	TALK ABOUT A LIMITED RESOURCE, AND ALSO BECAUSE OF POSSIBLE
00:08:38	INFRASTRUCTURE AND ENVIRONMENTAL DAMAGE HERE.
00:08:39	TELL ME, WHY IS TWO DIMES AND APPROPRIATE SEVERANCE TAX IN
00:08:43	OHIO? SHAWN: $.20 ON A BARREL OF OIL.
00:08:47	IT IS WHAT IT IS ACTUALLY USED FOR, AND THAT IS TO MAKE SURE WE
00:08:53	ARE PROPERLY REGULATED. THE SEVERANCE TAX IN OHIO FOR
00:08:57	ALL EXTRACTIVE INDUSTRIES ARE BASED UPON THE PURPOSE OF MAKING
00:09:02	SURE WE ARE WELL-REGULATED. KAREN: $.20 PER BARREL OF OIL IS
00:09:04	ENOUGH APPROPRIATE REGULATION ON THE INDUSTRY?
00:09:08	SHAWN: IF YOU LOOK AT PAST NUMBERS, WE RAISED OVER $60
00:09:13	MILLION TO HAVE ODNR REGULATE US AND THAT IS JUST FROM SHALE
00:09:17	OPERATORS. KAREN: OBVIOUSLY, GOVERNOR
00:09:24	KASICH HAS DISCUSSED SEVERAL TIMES TRYING TO RAISE THE
00:09:26	SEVERANCE TAX ON THE CURRENT BUDGET HAS HIS PROPOSAL AT 6.5%.
00:09:28	THE HOUSE PASSED 2.5% LAST YEAR AND KASICH CALL THAT A BIG FAT
00:09:34	JOKE. DO YOU FEEL IT IS AN INSULT?
00:09:38	HOW DO YOU FEEL ABOUT THAT WHEN YOU HEAR THE GOVERNOR SAYING
00:09:42	THAT? SHAWN: I DON'T COVER THE
00:09:47	GOVERNOR'S REMARKS. I RESPECTED TO THE MAN AND HIS
00:09:49	POSITION AS GOVERNOR. THE 2.5% CAME OUT OF HOUSE BILL
00:09:53	375. AGAIN, THAT WAS NOT NECESSARILY
00:09:55	THE FINAL VERSION WE CAME TO THE TABLE AND I THINK IT IS
00:10:01	IMPORTANT THAT YOU NEGOTIATE SOMEWHERE.
00:10:03	IF WE HAD CONTINUED ON DISCUSSIONS, WE HOPEFULLY WOULD
00:10:05	HAVE COME UP WITH A GOOD BILL THAT EVERYBODY WOULD HAVE BEEN
00:10:08	PROUD OF. KAREN: KASICH HAS SAID THAT THE
00:10:11	6.5% PROPOSAL -- HE SAID THE INDUSTRY LEADERS KNOW THAT THE
00:10:16	TAX IS LOW AND ARE AMENABLE TO CHANGING IT.
00:10:18	IS THAT TRUE? SHAWN: I HAVE NOT HEARD THAT FOR
00:10:23	MANY OF MY MEMBERS AND I TALKED TO API NFL HEARD IT FROM ANY OF
00:10:25	THEIRS AS WELL. IF WE ARE TRIED TO CHANGE THE
00:10:29	SCOPE AND PURPOSE WHATEVER THE RATES ARE.
00:10:32	KAREN: WE KEEP HEARING FROM PEOPLE OPPOSED TO SEVERANCE TAX
00:10:38	THAT IF INDEED THE SEVERANCE TAX IS RAISED IN OHIO, IT WILL KILL
00:10:41	JOBS. A LOT OF THE R&D HAS BEEN DONE.
00:10:42	HUNDREDS OF WELLS HAVE BEEN DRILLED.
00:10:46	THE INDUSTRY IS ALREADY HERE IN OHIO.
00:10:49	IF THE TAX IS RAISED, HOW WOULD YOU DRIVE THE INDUSTRY OUT IF WE
00:10:53	HAVE THE RESOURCES AND STARTED IN OHIO IN TERMS OF GETTING IT
00:10:55	OUT? SHAWN: WELL, I GUESS, GOOD
00:10:59	POINT. EACH WELL IS A DATA POINT.
00:11:01	THIS IS THE EXTENSIVE PLAY WE ORIGINALLY THOUGHT IT WAS.
00:11:05	THIS WASN'T THE 18-COUNTY PLAY WE THOUGHT IT WAS IN 2011.
00:11:09	YOU HAVE COPIES LIKE BP, SHELL, EQT, JUST TO NAME A FEW, WITH
00:11:19	ALL COMMON AND TEST OF THE RESOURCES AND FOUND THEY ARE NOT
00:11:22	THE RESOURCES THEY HOPED FOUR. THIS IS A SMALLER PLATE THAN ME
00:11:25	ANTICIPATED. IT IS A GEOLOGICAL GIFT BUT WE
00:11:29	HAVE TO RECOGNIZE THE REALITY OF WHAT THIS DISEASE AND IT IS NOT
00:11:32	AS BIG AS WE THOUGHT IT WAS. KAREN: BIG OIL STATES -- ALASKA,
00:11:37	TEXAS, NORTH DAKOTA, OKLAHOMA -- HAVE HIGHER SEVERANCE TAXES.
00:11:40	ALASKA IS THAT 25%. WHY COULDN'T OHIO EVEN RAISE IT
00:11:46	SLIGHTLY? SHAWN: ALL ROCK IS NOT CREATED
00:11:50	EQUAL. BY THE POWERS OF SUPERMAN, I
00:11:53	WOULD FLY INTO TEXAS AND OKLAHOMA AND TAKE THAT ROCK AND
00:11:57	REPLACE IT. YOU HAVE TO LOOK AT THE TOTAL
00:12:00	TAX PACKAGE. LOOK AT TEXAS.
00:12:06	THEIR EFFECTIVE TAX RATE IS 2.5% ON NATURAL GAS AND NATURAL GAS
00:12:07	LIQUIDS. 4.6% ON OIL.
00:12:08	KAREN: YOU ARE SAYING IT OFFSETS IN OTHER WAYS?
00:12:12	SHAWN: YES. KAREN: THE GOVERNOR HAS SAID
00:12:19	THAT IF THE HOUSE AND SENATE DON'T ACT AND THE SEVERANCE TAX
00:12:20	REMAINS THE SAME, HE IS NOT OPPOSED TO A BALLOT ISSUE.
00:12:21	HE EVEN IMPLY THAT A BALLOT ISSUE WOULD BE A GOOD THING AND
00:12:26	SAID THAT 6.5%, 2.5%, WHO KNOWS WHERE THE BALLOT ISSUE WOODLAND?
00:12:33	IT PROBABLY WOULD NOT BE IN THE LOW END.
00:12:35	DOES THAT CONCERN YOU AT ALL, THE POSSIBILITY OF THE BALLOT
00:12:38	ISSUE? SHAWN: I REALLY CAN'T FOCUS ON
00:12:43	HYPOTHETICALS. WE HAVEN'T BEEN PAYING ATTENTION
00:12:46	TO AND WORKING ON THE PROPOSAL AND -- WE HAVE BEEN PAYING
00:12:50	ATTENTION TO AND WORKING ON THE PROPOSAL AT HAND.
00:12:51	THAT IS WHAT WE ARE FOCUSED ON COULD WE CAN'T LOOK THAT FAR
00:12:54	INTO THE FUTURE. KAREN: ON THIS PARTICULAR BUDGET
00:12:58	QUESTION HERE, INDEPENDENT OIL AND GAS PRODUCER SAYS WE ARE NOT
00:13:00	HERE ASKING TO BE TREATED LIKE ANY OTHER MANUFACTURING
00:13:04	CORPORATION IN OHIO. WE ARE JUST ASKING TO BE LEFT
00:13:07	ALONE. WE BELIEVE THE TAX INCREASE IS
00:13:09	DISCRIMINATORY, TAKING FROM ONE INDUSTRY AND POPULATION.
00:13:13	LEFT ALONE, IT SOUNDS LIKE YOU EXPECT SPECIAL TREATMENT IN A
00:13:19	WAY. HOW DOES THAT WORK WHERE YOU
00:13:20	WOULD LIKE TO BE LEFT ALONE? SHAWN: I BELIEVE WHAT THE
00:13:25	GENTLEMAN WAS REFERRING TO IS BEING LEFT ALONE AT THE CURRENT
00:13:27	RATE. THOSE ARE FOLKS WHO LIVE AND
00:13:31	OPERATE IN EASTERN OHIO. I AM FROM EASTERN OHIO, AND WE
00:13:34	REALIZE THAT THIS UTICA SHALE DEVELOPMENT IS A GODSEND.
00:13:37	WE WANT TO MAKE SURE THAT IT FLOURISHES.
00:13:41	WHERE I AM FROM IN GUERNSEY COUNTY, WE HAVE SEEN A LOT OF
00:13:44	UPTICK IN BUSINESSES AND ECONOMIC INVESTMENT, AND WE
00:13:48	DON'T WANT TO SEE THAT WITH A ROADWAY OR EVEN SLOW DOWN.
00:13:50	YOU ONLY SEE AS -- YOU WANT TO SEE AS MUCH WORK AS POSSIBLE
00:13:53	BECAUSE WHAT IS IMPORTANT TO US IN EASTERN OHIO OUR JOBS.
00:13:55	KAREN: FIRST OF ALL, THAT ECONOMIC DEVELOPMENT THAT YOU
00:14:00	ARE TALKING ABOUT, IT DOES CERTAINLY HELP THE BUSINESS
00:14:01	OWNERS AND COMMUNITIES THERE. BUT IS IT REALLY ENOUGH TO
00:14:05	OFFSET THE KIND OF INFRASTRUCTURE DAMAGE?
00:14:06	THESE ARE BIG, HEAVY TRUCKS, BIGGER AND BEING CALLED IN AND
00:14:11	OUT OF THERE. IS THE ECONOMIC DEVELOPMENT
00:14:12	REALLY ENOUGH TO PAY FOR THE INFRASTRUCTURE DAMAGE, NOT TO
00:14:17	MENTION THE POSSIBLE ENVIRONMENTAL DAMAGE?
00:14:18	SHAWN: WELL, IN OHIO, WE HAVE WHAT ARE CALLED ROADIES
00:14:23	MAINTENANCE AGREEMENTS. OVER THE PAST FOUR YEARS WE HAVE
00:14:27	SPENT MILLIONS OF DOLLARS FOR PAIRING THOSE ROADS.
00:14:28	IF YOU ARE TALKING ABOUT IN FOR STRUCTURE FOR ROADS, WE ARE
00:14:32	MEETING THOSE EXPECTATIONS. A LOT OF THE MONEY COMES IN ON
00:14:35	THE BACKEND AND A 2014 RECEIVING MONEY FOR 2012, SO IT
00:14:44	IS JUST STARTING. IT WILL PROVIDE REVENUE FOR
00:14:45	LOCAL GOVERNMENTS. KAREN: ON THE JOB QUESTION,
00:14:51	THERE ARE CONCERNS ABOUT THE CAPS ON BEING OHIOANS'-- THE
00:14:56	JOBS NOT BEING OHIOANS'. AREN'T MOST OF THE PEOPLE
00:15:02	WORKING ON THESE OUT-OF-STATE AND NOT FROM OHIO?
00:15:04	SHAWN: IT IS HIGHLY TECHNOLOGICAL AND ADVANCED AND
00:15:08	YOU WANT SOMEBODY HERE WHO KNOWS WHAT THEY ARE DOING.
00:15:12	I DON'T WANT SOMEBODY WHO IS AN OBVIOUS DRILLING A WELL.
00:15:13	AS WE HAVE SEEN THROUGHOUT THE GESTATION PERIOD TO TODAY, A LOT
00:15:23	OF FOLKS AND MY FRIENDS AND FAMILY ARE WORKING IN THIS
00:15:24	INDUSTRY AND TAKING ADVANTAGE OF THE OPPORTUNITIES COULD OUT OF
00:15:27	THE STATE FOLKS COMING IN ARE BEING REPLACED BY FOLKS FROM
00:15:30	EASTERN OHIO, NOT ONLY EASTERN OHIO, BUT ACROSS OHIO.
00:15:32	WE HAVE SURVEYORS AND ENGINEERING COMPANIES FROM
00:15:35	CINCINNATI AND DAYTON AND ALL THE WAY THROUGH CLEVELAND.
00:15:40	IT COVERS THE WHOLE STATE. KAREN: YOU SUPPORT THE SEVERANCE
00:15:44	TAX AS IT IS BEING USED FOR THE REVELATORY STEAM.
00:15:46	WHEREAS IF INDEED HE SEVERANCE TAX IS RAISED, IT WOULD GO TO
00:15:51	SOME COMMUNITIES AS WELL AS IT WOULD GO TO INCOME TAX CUTS.
00:15:53	THERE ARE QUESTIONS ABOUT SEVERANCE TAXES BEING NOT
00:15:57	EXACTLY THE MOST STABLE SOURCE TO SUPPORT INCOME TAX CUTS.
00:15:59	DO YOU AGREE WITH THAT? SHAWN: OH, I AGREE WITH THAT.
00:16:03	WHAT EVERYBODY IN THE OIL AND GAS BUSINESS KNOWS IS THAT
00:16:09	PRICES ARE IN CONSTANT -- PRICES ARE NOT CONSTANT.
00:16:12	A LOT OF OPERATORS UNDER THIS $100 A BARREL OIL THIS YEAR --
00:16:19	OR LAST YEAR -- OR HAVING TO CUT BACK AND DEAL WITH $50 OIL, AND
00:16:24	ADJUST THEIR BUDGETS. THEY ARE MAKING THOSE ARE
00:16:26	DECISIONS. IF YOU ARE PUTTING INTO AN
00:16:27	INCOME TAX REDUCTION, WHAT HAPPENS WHEN THE MONEY DOESN'T
00:16:32	SHOW UP BECAUSE OF COMMODITY PRICES?
00:16:33	KAREN: ISN'T THAT WHAT WOULD REALLY DRIVE THE INDUSTRY IN AND
00:16:38	OUT OF OHIO, THE COMMODITY PRICES, NOT THE SEVERANCE TAX?
00:16:39	SHAWN: COST AND PRICES MATTER. THESE ARE ALL PARTICULAR INPUTS
00:16:49	THAT GO INTO WHEN A COMPANY DECIDES THEY'RE GOING TO INVEST
00:16:51	OR DEVELOPED IN A NEW PLAY. THERE ARE SOME THINGS YOU CAN
00:16:53	CHANGE. YOU CAN'T CHANGE THE QUALITY OF
00:16:56	THE ROCK, YOU CAN'T CHANGE THE COST TOO MUCH.
00:16:59	BUT THE TAX IS ONE INPUT THAT IS VERY IMPORTANT TO THE OPERATORS.
00:17:03	KAREN: AMONG THOSE ON THE OTHER SIDE OF THE SEVERANCE TAX ISSUE
00:17:07	IS THE OHIO ENVIRONMENTAL COUNCIL.
00:17:08	I TALKED THIS WEEK WITH JACK SHANER, THE DEPUTY DIRECTOR OF
00:17:10	THE OEC. SO LET'S TALK ABOUT THIS TWO
00:17:14	DIMES THINK THAT THE GOVERNOR TALKED ABOUT WITH REGARD TO THE
00:17:16	SEVERANCE TAX, SAYING THAT THAT IS A TAX ON A BARREL OF OIL AND
00:17:21	THAT SEEMS INSIGNIFICANT WHEN PEOPLE HEAR THAT, ESPECIALLY
00:17:26	WHEN YOU START TALKING ABOUT THE ENVIRONMENTAL AND INFRASTRUCTURE
00:17:27	DAMAGE THAT CAN BE DONE THROUGH FRACKING.
00:17:30	WHERE DO YOU STAND ON THE GOVERNOR'S PROPOSAL?
00:17:31	JACK: GOVERNOR KASICH IS RIGHT. THIS IS RIDICULOUS.
00:17:34	THE TWO DIMES -- ERNST & YOUNG HAS LOOKED AT OHIO'S TAX LAW AND
00:17:42	SEVERAL OTHER OIL AND GAS PRODUCING STATES.
00:17:44	WE ARE AT ROCK BOTTOM. HE IS ABSOLUTELY RIGHT, THIS
00:17:47	INDUSTRY SHOULD BE TAXED MORE. WE NEED TO DO A COUPLE THINGS
00:17:49	WITH THAT. COSTS AT THE DEPARTMENT OF
00:17:55	NATURAL RESOURCES. WE NEED TO KNOW WHERE ARE THE
00:17:58	AQUIFERS UNDERNEATH THE SERVICE OF THE HEIRS, WHERE ALL THE
00:18:04	FAULTS THAT ARE UNKNOWN SO THAT THE DRILLING CAN BE MORE SAFE.
00:18:05	AND FINALLY, WE NEED TO CAP THE OLD PATHWAYS TO POLLUTION.
00:18:09	THOUSANDS OF OLD ORPHAN WELL SCATTERED ALL ACROSS THE STATE
00:18:13	COME EVEN FOUND UNDER CHURCHES AND SCHOOLS GYMNASIUMS, DOWNTOWN
00:18:16	CITIES. THEY ARE ALL AROUND.
00:18:20	THERE ARE A LOT OF WAYS THAT THE MONEY COULD BE PUT TO GOOD USE
00:18:22	ON THE OIL AND GAS INDUSTRY, KEEPING THAT RESOURCE CHECK.
00:18:27	ALSO, FUNDING FOR LOCAL COMMITTEES COULD EASTERN OHIO,
00:18:35	THEY ARE ENJOYING THE GRAVY, THE UPSIDE OF THE BOOM, BUT THEY'VE
00:18:37	ALSO BE ON THE HOOK FOR THE DOWNSIDE WHEN THE BEST
00:18:39	INEVITABLY COMES, INCLUDING LONG-TERM IMPACTS ON WATER
00:18:45	QUALITY AND WATER RESOURCES. WE WILL LIKE TO SEE A WATERFRONT
00:18:48	SET UP. GOVERNOR KASICH IS RIGHT, OHIO
00:18:53	SHOULD BE INCREASING TAXES SIGNIFICANTLY ON THIS INDUSTRY.
00:18:54	KAREN: THE GOVERNOR HAS TALKED ABOUT MONEY GOING TO INCOME TAX
00:18:58	AND OFFSET INCOME TAX CUTS. YOU ARE TALKING WITH OTHER
00:19:01	PURPOSES. JACK: OUR INTEREST IS THE DIRECT
00:19:03	NEXUS TO THE DRILLING AND THE IMPACT THE DRILLING COULD HAVE.
00:19:07	WE HAVE NO POSITION ON THE IMPACT OF THE GOVERNOR'S
00:19:10	PROPOSAL TO USE THE EIGHT REVENUE FOR THE INCOME TAX
00:19:13	HIKE. TAX CUT, EXCUSE ME.
00:19:15	THE INDUSTRY LIKE TO ARGUE THAT WE WILL SHUTTER AND LEAVE THE
00:19:20	STATE. MALARKEY, MALARKEY.
00:19:24	THIS IS AN INDUSTRY THAT HAS INVESTED BILLIONS OF DOLLARS IN
00:19:26	OHIO. KAREN: LET ME ASK YOU ABOUT THAT
00:19:28	COULD WEAR TOLD THEY INVESTED BILLIONS OF DOLLARS IN OHIO, BUT
00:19:32	THE SHALE WAS NOT AS MUCH AS THEY THOUGHT IT WOULD BE, THE
00:19:36	RESOURCES HERE ARE NOT AS GOOD AS THEY WERE HOPING.
00:19:40	RAISING THE SEVERANCE TAX AND DRIVING INDUSTRY OUT, THERE
00:19:42	ISN'T AS MUCH HERE TO KEEP THEM. JACK: 25 COMPANIES LIKE DITCHES
00:19:49	-- WHEN YOU HAVE COPIES LIKE CHESAPEAKE AND EXXON MOBIL AND
00:19:51	SHELL OIL, THAT WAS YOU THERE IS POTENTIAL AT LEAST FOR
00:19:55	SIGNIFICANT OIL AND GAS RESERVES IN OHIO.
00:19:56	THEY WOULD IT BE BORING AND THE MONEY IF THEY DIDN'T THINK THERE
00:20:00	WAS GOOD MONEY TO BE HAD ON THAT DRILLING.
00:20:01	THIS IS A TEXAS-SIZED BLUFF THAT THEY ARE GOING TO PULL OFF STATE
00:20:05	THAT THEY ARE GOING TO PULL OUT AND MOVE TOMORROW.
00:20:09	GOVERNOR KASICH IS RIGHT TO STICK TO HIS GUNS.
00:20:11	PEOPLE SHOULDN'T UNDERESTIMATE HIM.
00:20:14	HE IS AN ABLE, ABLE POLITICIAN. I DON'T THINK ANYBODY SHOULD
00:20:20	UNDERESTIMATE THE RESOURCEFULNESS OF GOVERNOR
00:20:24	KASICH TO GET HIS WAY ON THIS ISSUE.
00:20:25	KAREN: THE WHOLE IDEA OF ECONOMIC ACTIVITY -- YOU
00:20:30	MENTIONED THAT EASTERN OHIO IS GETTING THE GRAVY, SO DOES IT,
00:20:31	OF ALL THIS. BUT ISN'T THAT WHAT THEY ARE
00:20:34	GETTING IN TERMS OF A PAYOFF -- IS NOT GOING TO BE ENOUGH WHEN
00:20:38	THE DOWNTIMES, TO FIX THE PROBLEMS HAPPENING HERE?
00:20:42	ARE THERE FUNDS THAT CAN DEAL WITH THE ENVIRONMENTAL IMPACTS?
00:20:47	JACK: YES, THERE IS A SURGE IN RETAIL, RESTAURANTS, MOTELS,
00:20:53	SUPPLIES TO THE CONSTRUCTION. BUT NOT SO MUCH THE LABOR.
00:20:58	IT IS ITINERANT WORKERS HERE, MODERN-DAY SERVANTS, WORKERS
00:21:04	COMING IN. YOU SEE A LOT FROM OKLAHOMA,
00:21:08	LOUISIANA, TEXAS. THESE ARE THE FELLOWS WHO HAVE
00:21:12	YEARS AND YEARS OF EXPERIENCE IN THE OIL PATCH.
00:21:13	IT IS NOT LIKE THEY GO DOWN TO A1 MANPOWER & AT THE FIRST JOE
00:21:19	THAT COMES IN OFF THE STREET. KAREN: A LOT OF THESE JOBS ARE
00:21:22	TECHNICAL. JACK: THAT'S RIGHT.
00:21:24	WHILE TODAY IT IS A BOOM, WE THINK INEVITABLY IT IS GOING TO
00:21:31	BE A BUST LONG-TERM UNLESS THERE ARE RESOURCES SET ASIDE, AND
00:21:32	THAT MEANS GETTING A CHUNK OF THIS FROM TAX DOLLARS SET ASIDE
00:21:37	TO INVEST IN EASTERN OHIO. EASTERN OHIO HAS LONG BEEN THE
00:21:39	FORGOTTEN PART OF OHIO AND IT SHOULD TAKE CARE OF ITSELF.
00:21:43	EASTERN OHIO LAWMAKERS WOULD BE SMART TO HELP THEMSELVES BAND
00:21:46	TOGETHER AND INSIST ON A SIZABLE TAX INCREASE ON THIS INDUSTRY.
00:21:49	KAREN: TALKING ABOUT THE SIZABLE TAX INCREASE, GOVERNOR KASICH'S
00:21:56	PROPOSAL. LAST YEAR THE HOUSE PASSED A
00:21:58	2.5% TAX, WHICH THE GOVERNOR CALLED AN INSULT THAT THEY CAN'T
00:22:01	JOKE. HE HAS ALSO SUGGEST -- AND A BIG
00:22:06	FAT JOKE. HE HAS ALSO SUGGESTED THAT IF
00:22:07	LAWMAKERS DON'T GO TO A CERTAIN LEVEL, PERHAPS VOTERS WILL BE
00:22:11	ASKED TO RAISE THE SEVERANCE TAX THROUGH A BALLOT ISSUE.
00:22:13	HAVE YOU COME THROUGH YOUR INTERACTIONS WITH GROUPS, HEARD
00:22:17	ANY THOUGHTS ABOUT BRINGING THIS IS A BALLOT ISSUE TO VOTERS?
00:22:21	JACK: THAT WOULD BE A REAL HAIL MARY.
00:22:24	NO ONE HAS APPROACHED US ABOUT THAT IDEA.
00:22:28	WE WOULD BE OPEN TO THAT CONVERSATION.
00:22:31	I HAVE TALKED ABOUT GOVERNOR KASICH BEING RIGHT TO PUSH FOR A
00:22:33	HIGHER TAX. OUR INTEREST IS TO HOLD THIS
00:22:37	INDUSTRY IN CHECK IN TERMS OF ENFORCEMENT OF THE LAWS AND
00:22:42	ADEQUATE INSPECTION AND PROTECTIONS OF THE ENVIRONMENT.
00:22:44	WE NEED TO DO MORE. WITH REGARD TO HIS INCOME TAX,
00:22:49	WE HAVE TAKEN NO OFFICIAL POSITION ON THAT.
00:22:51	HE IS TRYING TO USE THE INDUSTRY FOR REVENUE GENERATOR TO FUND AN
00:22:57	INCOME TAX CUT. IF THERE IS TO BE AN EFFORT TO
00:23:00	GO TO THE BALLOT, YOU NEED TO CONVINCE THOSE GROUPS TO SIGN ON
00:23:06	FIRST AND FOREMOST WITH THE INCOME TAX CUT.
00:23:08	WE WILL SEE IF SOMEBODY MAKES THE CASE AND IT REALLY DOES.
00:23:11	KAREN: I ASKED SHAWN BENNETT ABOUT THIS LINE IN THE TESTIMONY
00:23:17	-- TESTIMONY ON THE SEVERANCE TAX -- "WE ARE NOT HERE ASKING
00:23:22	TO BE TREATED LIKE ANY OTHER MANUFACTURING CORPORATION IN
00:23:24	OHIO. WE ARE JUST ASKING TO BE LEFT
00:23:27	ALONE. WE BELIEVE THIS TAX INCREASE IS
00:23:30	DISCRIMINATORY, TAKING FROM ONE INDUSTRY AND POPULATION."
00:23:35	DO YOU FEEL THAT THIS INDUSTRY HAS BEEN LEFT ALONE TOO LONG?
00:23:37	DO THOSE WORDS "LEFT ALONE" JUMP OUT AT YOU THERE?
00:23:42	JACK: IT WAS HISTORICALLY SMALLER PRODUCERS OF VERTICAL
00:23:48	WELLS. MANY OF THE FAMILY-OH COMPANIES.
00:23:50	-- FAMILY-OWNED COMPANIES. THE MARCELLA'S PLAYS HAVE
00:23:58	CHANGED THE INDUSTRY. THERE IS THE SMALL VERTICAL
00:24:01	DRILLING WHICH HAS WANED AND WAXED.
00:24:04	IT IS A DIFFERENT BREED OF ANIMAL WHEN YOU HAVE A MAJOR,
00:24:08	MAJOR CORPORATION COMING IN TO TOWN.
00:24:11	I THINK THIS IS A BLUFF, BUT I SORT OF SEE IT TWO WAYS.
00:24:17	IT IS A BLUFF THAT THE INDUSTRY WILL PULL UP STAKES AND LEAVE.
00:24:21	THEY DO HAVE A POINT -- THEY ARE BEING UTILIZED AS ATM MACHINES
00:24:27	TO FUND THE INCOME TAX HIKE. I GET THE POINT.
00:24:31	ALL TAXES TO SOME EXTENT OR REDISTRIBUTED.
00:24:33	OUR INTEREST IS IN TAXING THE INDUSTRY.
00:24:37	THE OIL AND GAS INDUSTRY DOES A LOT MORE TO HAVE ITS TAXES FUND
00:24:47	THE OHIO DEPARTMENT OF NATURAL RESOURCES AND ENFORCEMENT.
00:24:49	YOU CANNOT SAY THE SAME FOR THE COAL INDUSTRY OR FOR THE
00:24:52	INDUSTRIAL MINERALS INDUSTRY. THEY ARE STILL A GENERAL REVENUE
00:24:55	FUND, TAXPAYER DOLLARS PAYING FOR THE OVERSIGHT.
00:24:58	WE WOULD LIKE TO SEE THE COAL INDUSTRY AND THE INDUSTRIAL
00:25:02	MINERALS INDUSTRY BELLY UP TO THE BAR AS THE OIL AND GAS
00:25:06	INDUSTRY HAS DONE TO PAY ITS FAIR SHARE.
00:25:10	KAREN: SO FAR, THE SEVERANCE TAX PROPOSAL IN THE BUDGET HASN'T
00:25:13	MOVED FORWARD IN THE HOUSE FINANCE COMMITTEE, WHICH HAS
00:25:14	ALSO NOT TAKEN ACTION ON THE PROPOSED HIKES IN THE STATE
00:25:16	SALES TAX AND THE TAX ON CIGARETTE AND TOBACCO PRODUCTS,
00:25:17	NOR ON THE INCREASE IN THE COMMERCIAL ACTIVITY TAX OR CAT.
00:25:22	ALL OF THOSE ARE PART OF GOVERNOR JOHN KASICH BUDGET.
00:25:26	AND THAT'S IT FOR THIS WEEK. FOR MY COLLEAGUES AT OHIO PUBLIC
00:25:28	RADIO AND TELEVISION, THANKS FOR WATCHING.
00:25:29	IF YOU'D LIKE TO ASK QUESTIONS, MAKE COMMENTS, OR WATCH THIS
00:25:31	WEEK'S SHOW OR EARLIER EPISODES, PLEASE WATCH ON THE OHIO
00:25:36	CHANNEL'S WEBSITE OR IDEASTREAM.ORG/OHIO.
00:25:37	AND YOU CAN FOLLOW JO INGLES, ANDY CHOW AND ME ON TWITTER.
00:25:40	AND PLEASE JOIN US AGAIN NEXT TIME FOR "THE STATE OF OHIO."
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00:26:27	ARTHUR, LLP, HELPING BUSINESS AND INDIVIDUALS SOLVE COMPLEX
00:26:29	LEGAL PROBLEMS IN OHIO, ACROSS THE COUNTRY AND AROUND THE
00:26:31	WORLD. ON THE WEB AT PORTERWRIGHT.COM.
00:26:34	AND FROM THE OHIO EDUCATION ASSOCIATION, REPRESENTING
00:26:37	120,000 MEMBERS WHO WORK TO INSPIRE THEIR STUDENTS TO THINK
00:26:40	CREATIVELY AND EXPERIENCE THE JOY OF LEARNING.

Note : Transcripts are compiled from uncorrected captions