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00:00:01ANNOUNCER: SUPPORT FOR THE
STATEWIDE BROADCAST OF THE STATE
00:00:03OF OHIO COMES FROM THE LAW
OFFICES OF PORTER, WRIGHT,
00:00:05MORRIS AND ARTHUR, LLP.
HELPING BUSINESS AND INDIVIDUAL
00:00:09WITH COMPLEX LEGAL PROBLEMS IN
OHIO, ACROSS THE COUNTRY AND
00:00:10AROUND THE WORLD.
ON LINE AT PORTERWRIGHT.COM.
00:00:15AND FROM THE OHIO EDUCATION
ASSOCIATION, REPRESENTING
00:00:19120,000 MEMBERS, WHO WORK TO
INSPIRE THEIR STUDENTS TO THINK
00:00:22CREATIVELY AND EXPERIENCE THE
JOY OF LEARNING.
00:00:25ON LINE AT OHEA.COM.
KAREN: THE BUDGET RUSHES TOWARD
00:00:32THE GOVERNOR'S DESK FOLLOWING A
MARATHON CONFERENCE COMMITTEE
00:00:33SESSION.
A BALLOT SHOWDOWN IS SPARKING UP
00:00:36BETWEEN A MARIJUANA LEGALIZATION
AMENDMENT AND AN AMENDMENT THAT
00:00:38COULD BLUNT ITS OUTCOME.
AND CITIES AND TOWNSHIPS HAVE
00:00:42BEEN GETTING LESS MONEY FROM THE
STATE THAN THEY DID A DECADE
00:00:45AGO, AND YET HAVE MORE MANDATES
ON THEM.
00:00:48WE WILL HEAR ABOUT THAT AND MORE
ALL THIS WEEK IN "THE STATE OF
00:00:49OHIO."
?
00:00:53JUST IN TIME, THE FINAL VERSION
OF THE STATE'S BIENNIUM BUDGET
00:01:05IS HEADED TO THE GOVERNOR'S DESK
AFTER A CONFERENCE COMMITTEE
00:01:07VOTE VERY EARLY THURSDAY,
FOLLOWING HOURS OF DELAYS AND
00:01:10DEBATE.
IN THE FINAL BUDGET, THERE
00:01:12REMAINS A 6.3% INCOME TAX CUT
ACROSS THE BOARD, WHICH WAS IN
00:01:17BOTH THE HOUSE AND SENATE
VERSIONS, ALONG WITH FAIRLY BIG
00:01:21CUTS FOR SMALL BUSINESSES.
THE BUDGET PLAN INCREASES SCHOOL
00:01:24FUNDING BY MORE THAN $900
MILLION WHILE INCREASING THE
00:01:27CIGARETTE TAX BY 35 CENTS, TO A
TOTAL OF $1.60 A PACK -- WHICH
00:01:33IS DOWN FROM THE SENATE PROPOSAL
OF 40 CENTS BUT MORE THAN THE
00:01:36HOUSE PROPOSAL OF NO INCREASE.
AND THE COMMITTEE BROUGHT BACK A
00:01:40CONTROVERSIAL MEASURE THAT WOULD
REQUIRE AN ABORTION CLINIC TO GO
00:01:43INTO A TRANSPORTATION AGREEMENT
WITH A HOSPITAL NO MORE THAN 30
00:01:46MILES AWAY.
THAT ANGERED DEMOCRATS, WHO
00:01:50OFFERED MANY AMENDMENTS BUT ALL
WERE TABLED.
00:01:53THE CONFERENCE COMMITTEE
APPROVED THE BUDGET ON A PARTY
00:01:55LINE VOTE, AND 12 HOURS LATER,
THE SENATE VOTED.
00:01:59ON FRIDAY, THE HOUSE DID.
WE'LL HAVE MORE ON THE BUDGET
00:02:04NEXT WEEK, IN CELEBRATION OF THE
NEW FISCAL YEAR.
00:02:08THERE WAS ALSO SOME ACTION IN
THIS HOUSE THIS WEEK AIMED AT
00:02:10THIS FALL'S BALLOT -- LAWMAKERS
HAVE TAKEN THE FIRST STEP TO PUT
00:02:14ONTO BEFORE VOTERS A
CONSTITUTIONAL AMENDMENT BANNING
00:02:16ECONOMIC INTERESTS FROM WRITING
AMENDMENTS THAT BENEFIT THEM
00:02:18EXCLUSIVELY.
LEGISLATORS SAY THIS SO-CALLED
00:02:22ANTI-MONOPOLY AMENDMENT HAS BEEN
QUIETLY DISCUSSED FOR YEARS, BUT
00:02:28HAS BEEN PUSHED TO THE FOREFRONT
OVER CONCERNS ABOUT AN AMENDMENT
00:02:31THAT ALSO MAY BE ON THE FALL
BALLOT, LEGALIZING MARIJUANA AND
00:02:33SETTING UP 10 OFFICIAL GROWING
SITES THAT WOULD BE SPECIFIED IN
00:02:35THE CONSTITUTION.
THE MEASURE TO PREVENT ECONOMIC
00:02:38INTERESTS FROM PUTTING
AMENDMENTS THAT OFFER THEM
00:02:41EXCLUSIVE BENEFITS BEFORE VOTERS
HAS MOVED QUICKLY FROM THE
00:02:44CONSTITUTIONAL MODERNIZATION
COMMISSION TO LEGISLATIVE
00:02:47ACTION, GOING FROM HOUSE
COMMITTEE TO THE FLOOR THIS
00:02:50WEEK.
LEADERSHIP FROM THE GROUP
00:02:52RESPONSIBLEOHIO, WHICH IS BEHIND
THE MARIJUANA AMENDMENT, HAS
00:02:55BEEN SPEAKING OUT AGAINST THE
ANTI-MONOPOLY MEASURE.
00:02:59AND THIS WEEK, JUST HOURS BEFORE
THE HOUSE VOTE, RESPONSIBLEOHIO
00:03:03ANNOUNCED AN AGREEMENT TO ALLOW
WORKERS TO UNIONIZE AT ALL 10
00:03:05GROWING SITES.
AT THAT EVENT, THE GROUP'S IAN
00:03:10JAMES BLASTED LAWMAKERS FOR THIS
ACTION.
00:03:12>> INSTEAD OF SAYING 'LET'S PASS
A MEDICAL MARIJUANA BILL THAT
00:03:17WOULD BLUNT THIS FORCE,' THEY'VE
DECIDED WE'RE GOING TO TRY TO
00:03:19TAKE AWAY ALL THE VOTERS'
ABILITY TO PUT AN ISSUE BEFORE
00:03:21THE VOTERS AND HAVE THEIR VOTE
COUNTED AND HAVE THEIR VOICES
00:03:24HEARD.
KAREN: BUT ON THE HOUSE FLOOR,
00:03:32DEMOCRATIC REP. MIKE CURTIN OF
COLUMBUS SAID GROUPS WHO AREN'T
00:03:34TRYING TO PUT THEIR ECONOMIC
INTERESTS INTO THE CONSTITUTION
00:03:36CAN STILL LAUNCH AMENDMENT
CAMPAIGNS.
00:03:44QUICKSILVER RESOURCES WILL
DETERMINE WHETHER WE CAN HONOR
00:03:45THE INTENT AND SPIRIT OF THE
INITIATIVE OR WHETHER WE STAND
00:03:48ASIDE AND ALLOW IT LIKE SO MANY
PARTS OF OUR POLITICAL
00:03:54INFRASTRUCTURE TO BE PLACED ON
THE AUCTION BLOCK IN SEARCH OF
00:03:57THE HIGHEST IT.
KAREN: A DOZEN HOUSE DEMOCRATS
00:04:06VOTED AGAINST THE PROPOSAL.
IF BOTH AMENDMENTS MAKE THE
00:04:08BALLOT, THE ONE WITH MORE VOTES
PREVAILS.
00:04:17IT IS EXPECTED TO HAVE LITTLE
TROUBLE IN DOING SO.
00:04:18A CONSERVATIVE GROUP WANTS THE
OHIO SUPREME COURT TO DECIDE
00:04:20WHETHER GOV.
JOHN KASICH AND THE LEGISLATURE
00:04:22ILLEGALLY EXPANDED GAMBLING IN
OHIO BY ALLOWING OHIO'S SEVEN
00:04:26HORSERACING TRACKS TO BECOME
"RACINOS" WITH THE INSTALLATION
00:04:28OF ELECTRONIC SLOT MACHINES.
BUT THE JUSTICES WILL HAVE TO
00:04:32ANSWER ANOTHER QUESTION FIRST -
WHETHER THE GROUP HAS THE LEGAL
00:04:35AUTHORITY TO FILE THE LAWSUIT IN
THE FIRST PLACE.
00:04:39THE GROUP'S LAWYER TOM CONNORS
SAYS IT DOES.
00:04:41TOM CONNORS: WE DO QUALIFY UNDER
TOM CONNORS: WE DO QUALIFY UNDER
00:04:50THAT THEORY BY REASON OF THE
NEGATIVE EFFECTS OF GAMBLING,
00:04:51BOTH PERSONAL AND SOCIAL.
KAREN ERIC MURPHY ARGUED FOR THE
00:04:53: STATE, SAYING THAT STANDING
CAN ONLY BE AWARDED IF THE GROUP
00:04:56CAN PROVE REAL HARM WAS DONE BY
THE VIDEO SLOTS.
00:04:58ERIC MURPHY: IF THEY ARE SAYING
THAT THE ADDITION OF THE VLT'S
00:05:01AT THE HORSE TRACKS IS GOING TO
CAUSE ME SOME INJURY, THEN THEY
00:05:03HAVE TO SHOW WHAT THAT INJURY IS
AND THEY'D HAVE TO SHOW HOW THE
00:05:06INJURY COULD BE REDRESSED.
KAREN: IF THE RACINO OPPONENTS
00:05:12WIN, THE WHOLE CASE WOULD GO
BACK TO THE TRIAL COURT, AND IT
00:05:14COULD BE YEARS BEFORE THE CASE
WOULD GET BACK TO THE OHIO
00:05:18SUPREME COURT.
IF THIS ISSUE SOUNDS FAMILIAR,
00:05:20IT IS BECAUSE IT IS.
COURTS HAVE HEARD SEVERAL CASES
00:05:24INVOLVING WHO HAS LEGAL STANDING
TO SUE, PERHAPS MOST NOTABLY THE
00:05:30JOBSOHIO VERSUS PROGRESSOHIO
CASE BEFORE THE OHIO SUPREME
00:05:32COURT, WHICH INVOLVED ONE OF THE
PLAINTIFFS IN THIS RACINO CASE,
00:05:35ROB WALGATE, WHO'S A FREQUENT
GUEST ON THIS SHOW AS THE VICE
00:05:40PRESIDENT OF THE OHIO
ROUNDTABLE.
00:05:45THERE WERE A FEW REFERENCES IN
THE ARGUMENTS THIS WEEK TO THAT
00:05:47CASE, IN WHICH LIBERAL AND
CONSERVATIVE ACTIVISTS CLAIMED
00:05:49THE PUBLIC-PRIVATE ENTITY WAS
ILLEGALLY CREATED, BUT THE OHIO
00:05:52SUPREME COURT RULED THEY DIDN'T
HAVE STANDING TO FILE THAT CLAIM
00:05:55BECAUSE THEY HAD NO PERSONAL
STAKE IN THE OUTCOME.
00:05:59STATE BUDGET YEARS ARE ALWAYS
TENSE TIMES FOR LOCAL
00:06:03GOVERNMENTS, BUT NEVER MORE SO
THAN SINCE 2011, WHEN GOV.
00:06:06JOHN KASICH HACKED MORE THAN A
HALF A BILLION DOLLARS IN STATE
00:06:09FUNDING FOR THE LOCAL GOVERNMENT
FUND IN HIS FIRST BUDGET.
00:06:11HIS SECOND BUDGET DID PUT MORE
MONEY INTO THE LOCAL GOVERNMENT
00:06:14FUND, BUT NOT NEARLY ENOUGH TO
MAKE UP FOR THE CUTS FROM HIS
00:06:18FIRST BUDGET.
AND STATE LAWMAKERS HAVE LARGELY
00:06:20GONE ALONG WITH KASICH ON LOCAL
GOVERNMENT FUNDING.
00:06:23IN THE BUDGET THAT WILL,
PRESUMABLY, START NEXT WEEK, THE
00:06:26HOUSE AND SENATE HAVE PROPOSED
$383.5 MILLION FOR THE FIRST
00:06:31YEAR AND A LITTLE OVER $399
MILLION IN THE SECOND, WHICH
00:06:34REPRESENT ONLY A SLIGHT INCREASE
IN THE FUNDING FOR THIS FISCAL
00:06:38YEAR.
AND THERE'S MORE BAD NEWS FOR
00:06:43LOCAL GOVERNMENTS -- THERE'S NO
SEVERANCE OR FRACKING TAX
00:06:46INCREASE IN THE BUDGET, CASINO
REVENUE IS DOWN, THE ESTATE TAX
00:06:49IS GONE.
AND IN THIS BUDGET, THERE ARE
00:06:52ALSO PROPOSALS TO SHIFT SOME
FUNDING TO LAW ENFORCEMENT
00:06:56TRAINING AND TAKE BACK MONEY
THAT COMMUNITIES WERE GETTING
00:07:01FROM RED LIGHT AND TRAFFIC
CAMERAS.
00:07:05AND THERE ARE OTHER PROPOSALS
THAT COULD END UP TAKING MONEY
00:07:07FROM THE BIG CITIES AS WELL AS
THE TOWNSHIPS.
00:07:11TO TALK ABOUT ALL THIS, I'M
PLEASED TO BE JOINED TODAY BY
00:07:14KENT SCARRETT, DIRECTOR OF
COMMUNICATIONS FOR THE OHIO
00:07:16MUNICIPAL LEAGUE, WHICH
REPRESENTS NEARLY A THOUSAND
00:07:18OHIO CITIES AND VILLAGES.
AND I'M ALSO HAPPY TO WELCOME
00:07:20MATT DETEMPLE WITH THE OHIO
TOWNSHIP ASSOCIATION,
00:07:22REPRESENTING OHIO'S MORE THAN
1300 TOWNSHIPS.
00:07:29LET'S TALK ABOUT THE FUNDING
THAT HAS COME UP IN THIS BUDGET
00:07:33FOR LAW ENFORCEMENT TRAINING.
THIS HAS BEEN A HOT BUTTON
00:07:35ESPECIALLY SINCE TRAINING HAS
BEEN SUCH A BIG IDEA AND
00:07:38PROPOSAL AND DISCUSS SUBJECT.
THIS IS MONEY THE STATE IS
00:07:43GIVING YOU FOR THAT PURPOSE BUT
IT IS NOT ADDITIONAL FUNDING.
00:07:46IT IS COMING OUT OF THE LOCAL
GOVERNMENT FUND AIR MARKED FOR
00:07:50LAW ENFORCEMENT TRAINING.
LET ME START WITH YOU, CAN'T.
00:07:52THERE IS -- NO ONE IS DISPUTING
THE TRAINING IS NECESSARY BUT
00:07:58WHERE IS THE FUNDING COMING FOR
-- FROM FOR IT?
00:08:01KENT: NO ONE DISPUTES THERE ARE
NEEDS FOR INCREASED TRAINING AND
00:08:08WE SUPPORT THE GOVERNOR'S
RECOMMENDATIONS FOR PUTTING MORE
00:08:12ATTENTION INTO THE
QUALIFICATIONS AND REQUIREMENTS
00:08:13BUT THE MONEY IS COMING THE WAY
IT HAS BEEN HANDED DOWN THROUGH
00:08:17THE BUDGET.
IT IS COMING THROUGH THE
00:08:20MUNICIPAL DISTRIBUTION OF THE
LOCAL GOVERNMENT FUND.
00:08:22THE MUNICIPAL DISTRIBUTION IS
10% OFF THE TOP OF THE LOCAL
00:08:26GOVERNMENT FUND.
IT GOES DIRECTLY TO
00:08:28MUNICIPALITIES THAT HAVE AN
INCOME TAX.
00:08:29THIS AGREEMENT OFF THE TOP OF
THE LGF GOING TO TAXING
00:08:38MUNICIPALITIES HAS BEEN IN PLACE
FOR 43 YEARS.
00:08:40MUNICIPALITIES GOT INTO THE
INCOME -- INCOME TAX BUSINESS.
00:08:43THE STATE ENTERED THE INCOME TAX
ARENA IN 1972.
00:08:48THAT ROT DIRECT COMPETITION TO
MINISTER PAHLAVI'S' ABILITY TO
00:08:56GENERATE REVENUE THROUGH THE
LOCAL INCOME TAX WHICH IS THE
00:08:58STABLE AND DEDICATED LINE OF
REVENUE GENERATION.
00:09:00MUCH LIKE THE COUNTIES HAVE
SALES AND THE TOWNSHIP HAS
00:09:05PROPERTY TAX.
THAT SUPPLEMENT IS MORE
00:09:12IMPORTANT TO OUR REVENUES AND
THE ABILITY TO DELIVER SERVICES
00:09:14THAT IT IS BEING TARGETED NOW
BECAUSE IT IS PART OF AN INCOME
00:09:18TAX AND WE ARE MOVING AWAY, THE
STATE IS MOVING AWAY FROM AN --
00:09:21INCOME TAX AND MORE TOWARD USAGE
AND SALES TAX REVENUE.
00:09:25THERE SEEMS TO BE SOME
OPPOSITION WITHIN THE
00:09:28LEGISLATURE TO MORE INCOME
TAXES.
00:09:32KAREN: YOUR THOUGHTS HERE.
MATT: WE ARE SUPPORTIVE OF
00:09:40FUNDING FOR POLICE TRAINING.
THERE ARE 100 TOWNSHIPS THAT
00:09:44HAVE POLICE TRAINING AND A LOT
OF THIS IS MANDATED. WE ARE
00:09:48GRATEFUL FOR THE FUNDING FOR THE
POLICE TRAINING, ESPECIALLY FOR
00:10:02SMALLER DEPARTMENTS.
WE DID NOT PICK THE SOURCE OF
00:10:03THE FUNDING.
KAREN: THIS WEBSITE THE SLIGHT
00:10:04FOR
SMALLERGAINS YOU ARE GETTING IFS
00:10:07EARMARKED FOR LONG -- LAW
ENFORCEMENT AND.
00:10:12YOU'RE PRETTY MUCH FLAT FUNDED
MRU?
00:10:13MATT: THERE IS A LOT OF IMPACT
AND I WAS UP LATE LAST NIGHT
00:10:20TRYING TO FIGURE OUT EVERYTHING
THEY WERE DOING.
00:10:21SO HOW IT SHAKES OUT I AM NOT
SURE.
00:10:24AS KENT MENTIONED, THE FUNDING
SOURCE FOR THE POLICE TRAINING
00:10:30WAS THE MENACE OF ALL ASPECT OF
THE LGF THAT DOES NOT TRACK THE
00:10:36IMPACT TOWNSHIPS.
KENT: WE FULLY SUPPORT OUR
00:10:40REQUIREMENT TO ENHANCE TRAINING
AND FUND THE TRAINING OF
00:10:46MUNICIPAL LAW ENFORCEMENT BUT
THIS PROVISION IS INCLUDING ALL
00:10:51LAW ENFORCEMENT.
EVERY OFFICER WITH A GUN AND
00:10:54BADGE INCLUDING TROOPERS,
SHERIFFS, CONSTABLES, IN A CIVIL
00:10:59OFFICIALS, PARK RANGERS, ANYONE
WITH A BADGE AND GUN IS REQUIRED
00:11:02TO HAVE THESE -- THIS ENHANCED
TRAINING AND IT WILL BE FUNDED
00:11:05THROUGH THE MUNICIPAL LOCAL
GOVERNMENT FUND.
00:11:08KAREN: THAT LEAVES YOU FLAT
FUNDED?
00:11:11KENT: THAT IN ADDITION TO
SERVICES DEDICATED THROUGH THE
00:11:20LOCAL GOVERNMENT FUND, IT WILL
REDUCE THE FUND DISTRIBUTIONS.
00:11:23KAREN: LET ME ASK ABOUT
SOMETHING THAT PITS YOU AGAINST
00:11:28EACH OTHER.
MONEY WILL BE DIVERTED FROM
00:11:33CITIES TO TOWNSHIPS.
DO YOU READ IT THAT WAY?
00:11:34KENT: THAT IS WHERE THE
LEGISLATIVE LANGUAGE LEAVES --
00:11:40READS AND THAT IS WHAT WILL
HAPPEN.
00:11:41$10 MILLION WILL GO TO THE
TOWNSHIP, THE 1300 TOWNSHIPS
00:11:53THROUGHOUT OHIO.
THIS IS A CONTINUUM -- A
00:11:56CONTINUATION THAT WAS
APPROPRIATED FROM STATE FUNDS
00:11:59LAST YEAR AND THERE IS 20 MALIK
-- 20 MILLION MORE.
00:12:00THE THING WE HAVE PROBLEMS WITH
IS 80% OF THE STATE GROSS
00:12:07REVENUE COMES FROM 17 OF OHIO'S
LARGEST METROPOLITAN AREAS.
00:12:13MUNICIPALITIES ARE RAISING THE
REVENUE AND GENERATING THE TAX
00:12:15DOLLARS THAT GOES TO FUND STATE
PROGRAM'S AND STATE COFFERS THAT
00:12:20WE EXPECT SHOULD BE RETURNED
BACK TO US TO SUPPORT OUR
00:12:21SERVICES THAT BUSINESSES AND
CITIZENS RELY ON AND THAT IS
00:12:27BEING DIVERTED.
I KNOW THAT THE TOWNSHIP
00:12:28ASSOCIATION DID NOT GO TO THE
LEGISLATURE AND SAY THIS MONEY
00:12:31IS SITTING THERE FOR THE M
UNIS, TAKE THAT.
00:12:36THIS IS HOW THE LEGISLATION IS
REACTING TO HOW WE ARE ABLE TO
00:12:41GENERATE REVENUE.
KAREN: YOUR COMMUNITIES DO MEET
00:12:46-- DO NEED THE MONEY BUT YOU DID
NOT COME AND PETITION FOR IT TO
00:12:50COME FROM THE BIG CITIES.
MATT: YOU MENTIONED THE CUTS AT
00:12:53THE BEGINNING OF THE SHOW,
CUTTING THE LOCAL GOVERNMENT
00:12:57FUND IN HALF AND THE STATE TAXES
GONE.
00:12:59TOWNSHIPS DO NOT GET CASINO
REVENUE.
00:13:04WE DO NOT HAVE AN INCOME TAX SO
WE ARE RELIANT ON THE PROPERTY
00:13:07TAX.
WE HAVE BEEN MAKING THE CASE
00:13:09SINCE THE CUTS WERE IMPLEMENTED
THAT THEY WENT TOO FAR AND THEY
00:13:15ARE INTO THE BONE AND THROUGH
THE MEAT.
00:13:16WE HAVE BEEN LOBBYING FOR MORE
FUNDING FOR TOWNSHIPS AND WE
00:13:20HAVE BEEN LOBBYING THAT THEY
SHOULD INCREASE THE SIZE OF THE
00:13:23FUND GENERALLY.
WE WERE THRILLED, FRANKLY, THAT
00:13:29THERE WAS FUNDING FOR TOWNSHIPS
IN THE BILL BUT AGAIN AS KENT
00:13:32SAID, WE DID NOT SAY YOU SHOULD
TAKE THIS FROM ONE OF OUR OTHER
00:13:36GOVERNMENT PARTNERS.
WE SAID ALL ALONG THAT WE WOULD
00:13:40LIKE TO SEE MORE FUNDING FOR
TOWNSHIPS BUT NOT AT THE EXPENSE
00:13:42OF OTHER LOCAL GOVERNMENTS.
KAREN: THE IDEA OF CUTTING TO
00:13:47THE PHONES, THE -- THE BONE, THE
GOVERNOR IS CLEAR THAT MORE
00:13:53MONEY WILL NOT BE GOING TO BUILD
IT AT CAP TO WHERE IT WAS
00:13:58BEFORE.
HE HAS NOT HEARD OF
00:14:04MUNICIPALITIES THAT HAVE NOT
BEEN ABLE TO PUT OUT A FIRE.
00:14:06ARE LOCAL GOVERNMENTS RETHINKING
THEIR RELIANCE ON THE LOCAL
00:14:13GOVERNMENT FUND, ARE YOU
STRUGGLING AND SUFFERING AS MUCH
00:14:15AS YOU SAID YOU ARE?
MATT: ABSOLUTELY.
00:14:21A LOT OF TOWNSHIPS DO NOT HAVE
EMPLOYEES AND THOSE HAVE LAID
00:14:27PEOPLE OFF INCLUDING
FIREFIGHTERS IN SOME
00:14:28COMMUNITIES.
ONE OF THE BIGGEST IS WE DO IS
00:14:30MAINTAIN ROADS AND OVER 41,000
MILES STATEWIDE.
00:14:32SOME ROADS THAT USED TO BE PAVED
ARE CHIPPED IN SEALED AND SOME
00:14:38THAT WERE CHIPPED IN SEALED OUR
GRAVEL.
00:14:39SOME HAVE TURNED OFF THEIR
STREETLIGHTS BECAUSE THEY HAVE
00:14:47CUT EVERYTHING ELSE.
IT IS DEFINITELY HAVING AN
00:14:48IMPACT.
AS I MENTIONED, OUR PRINCIPAL
00:14:54LOCAL RESOURCE IS THE PROPERTY
TAX SO WHAT IS HAPPENING IS OUR
00:14:56MEMBERS ARE TRYING TO RAISE THAT
REVENUE LOCALLY THROUGH THE
00:15:02PROPERTY TAX AND TO RAISE NEW
REVENUE ON A PROPERTY TAX IS A
00:15:05HARD DEAL.
KAREN: THAT CAN BE DIFFICULT IN
00:15:09CITIES WHERE YOU ARE COMPETING
WITH PEOPLE NOT BEING -- MOVING
00:15:11OUT OF THE CITIES, YOU HAVE
SCHOOLS AND ALL KINDS OF OTHER
00:15:17THINGS GOING ON.
KENT: THERE IS A LARGE
00:15:19DISCONNECT IN PEOPLE PAYING AND
UNDERSTANDING WITH HIS TAX
00:15:24DOLLARS GO.
THEY SEE SERVICES IN FRONT OF
00:15:28THEM LIKE THE ROADS AND DRINKING
WATER AND POLICE AND FIRE BUT
00:15:32THERE IS OTHER SERVICES,
EDUCATION.
00:15:33THE BUDGET DEALS WITH EDUCATION
FUNDING AND THE -- THEY ARE
00:15:38SERIOUS ABOUT DEALING WITH
EDUCATION ISSUES.
00:15:42THE LOCAL REVENUE GOES TOWARD
SUPPORTING WRAPAROUND PROGRAMS
00:15:46AND FAMILY AND WELLNESS PROGRAMS
AND THINGS THAT RESIDENTS RELY
00:15:51ON.
THAT MONEY IS BEING TAKEN AWAY
00:15:53FROM US IN DIFFERENT AREAS.
WHAT WE CONTINUE TO TRY AND
00:15:58RE-GAUGE AND RECALIBRATE OUR
SPENDING LEVELS AND GOING BACK
00:16:03TO THE TAXPAYERS IS DIFFICULT.
WITH OVER A THREE BILLION
00:16:06DOLLARS FUND RAINY DAY THAT IS
PROJECTED TO BE PART OF THE
00:16:11BUDGET THAT THE STATE COULD STEP
UP AND RELIEVE THE PRESSURE ON
00:16:15THE LOCAL LEVEL FOR LOCAL
TAXPAYERS WHO ARE SEEING
00:16:19SERVICES TAKEN AWAY WHILE THE
STATE CONTINUES TO GROW THE SIZE
00:16:20OF GOVERNMENT AND INFLUENCE.
KAREN: LET ME ASK YOU ABOUT THE
00:16:24SEVERANCE TAX AND FRACKING TEXT
THAT THE GOVERNOR HAD PROPOSED.
00:16:27YOU FOLKS ALONG WITH THE -- HAVE
COME UP WITH A PROPOSAL THAT
00:16:31WOULD DEDICATE 20% OF THE
SEVERANCE TO COUNTIES AND 75%
00:16:37TO THE SHALE AND GAS
INFRASTRUCTURE FUND.
00:16:42NO SEVERANCE TAX WAS IN THE
BUDGET.
00:16:45THERE IS GOING TO BE A TASK
FORCE WITH A HARD DEADLINE OF
00:16:50OCTOBER WHEN BUT WITH NO BUDGET
DEADLINE PRESSURE, A TASK FORCE
00:16:55NOW TO CONTINUE TALKING ABOUT
WHAT HAS BEEN TALKED ABOUT FOR
00:16:56THREE YEARS NOW, WITH THE
GOVERNOR POSSIBLY DOING
00:17:02SOMETHING ELSE, SAY RUNNING FOR
PRESIDENT AND NOT ADVOCATING FOR
00:17:04A TAX INCREASE, DO YOU HOLD OUT
HOPE THAT THERE WOULD BE A
00:17:08SEVERANCE TAX INCREASE AND IT
WOULD BENEFIT YOU ANYWAY?
00:17:10MATT: I DO NOT KNOW HOW MUCH WE
HOLD OUT HOPE.
00:17:16WE DID A LOT TO PUT TOGETHER
THAT PROPOSAL.
00:17:21THE SEVERANCE TAX WE HAVE NOW IS
AS THE GOVERNOR CALLS IT A PUNY
00:17:29AND WE AGREE.
THE INDUSTRY IS NOT GOING
00:17:30ANYWHERE.
THEY HAVE ALIENS OF DOLLARS
00:17:33INVESTED IN THE GROUND IN OHIO
AND THE PRODUCT IS HERE.
00:17:34NATURAL GAS ESPECIALLY.
THE OTHER OIL PRODUCTS ARE IN
00:17:39THE GROUND HERE IN OHIO.
OBVIOUSLY IT IS TOUGH SLEDDING.
00:17:45WHEN YOU GO UP AGAINST THE GAS
LOBBY, THAT IS POWERFUL.
00:17:49THEY LIKE TO SEE THINGS STATUS
QUO.
00:17:54WE WILL CERTAINLY BE WATCHING
THE WORK OF THAT COMMITTEE
00:17:55CLOSELY AND IT ERRORS AN
OPPORTUNITY TO LOBBY THEM TO
00:18:00MAKE THE CASE WHY SEVERANCE TAX
SHOULD BE RAISED, WE WILL DO IT.
00:18:03IF IT GETS RAISED WE THINK IT
NEEDS TO HELP THE LOCAL
00:18:07COMMUNITIES THAT ARE DEALING
WITH ALL THE IMPACTS FROM ALL
00:18:10THE ACTIVITY.
KENT: THE PLAY IS NOT GOING
00:18:15ANYWHERE.
THAT RESERVE IS GOING TO BE
00:18:17THERE AND THERE IS GOING TO BE A
LARGE INTEREST TO EXTRACT THOSE
00:18:21RESOURCES OUT.
IT IS ONE OF THE LARGEST
00:18:22RESOURCES IN THE WORLD, I
UNDERSTAND THAT WE ARE SITTING
00:18:23ON.
THE DEMAND WILL BE THERE TO
00:18:30HARVEST THOSE RESOURCES BUT THE
REAL IMPACT ARE ON THE LOCAL
00:18:33COMMUNITIES AND TOWNSHIPS AND
SMALLER VILLAGES WHERE A LOT OF
00:18:35THESE ACTIVITIES ARE TAKING
PLACE.
00:18:39THEY DO TREMENDOUS DAMAGE TO
INFRASTRUCTURE AND THEY NEED TO
00:18:43BE REPAIRED FROM THE BIG RIGS
AND THE SUPPORT PRODUCT THAT
00:18:47COMES IN.
I THINK THE ADMINISTRATION
00:18:49UNDERSTANDS THE NEED FOR MONEYS
TO BE DIRECTED BACK TOWARD LOCAL
00:18:55IMPACT ISSUES.
IT IS HOW MUCH OF THAT AND LIKE
00:18:56MATT SAID, THE OIL AND GAS
INDUSTRY IS VERY INFLUENTIAL.
00:19:03THEY HAVE CONCERNS WITH THE
DIRECTION OF THE CURRENT
00:19:05CONVERSATION AND SOMETIMES THOSE
CONCERNS CAN STALL SOME THINGS
00:19:09THAT SHOULD BE DONE IN THE
INTEREST OF THE STATE AND WE
00:19:11HOPE THAT THE CONVERSATION
CONTINUES.
00:19:13KAREN: I MODERATED A PANEL AT A
SUMMIT FEATURING FOUR MAYORS AND
00:19:20WE TALKED A LOT OF ISSUES ONE OF
THEM BEING HOME WORLD.
00:19:27THERE IS A STRUGGLE ON HOME
RULE.
00:19:30THE LANGUAGE WOULD TAKE AWAY
THIS -- THE REVENUE THAT THE
00:19:38OPERATING CAMERAS ARE GETTING
FROM THE LOCAL GOVERNMENT FUND.
00:19:44PENALIZING THE CITIES AS A LOT
OF PEOPLE VIEW IT.
00:19:45KENT: THE RED LIGHT CAMERA,
WHETHER YOU LIKE IT OR NOT,
00:19:51THERE ARE POLICING POWERS THAT
GIVE THE MUNICIPALITY AUTHORITY
00:19:55TO DO THESE THINGS AND SOME
PEOPLE DO NOT LIKE THAT.
00:19:58THERE HAVE BEEN SOME PUNITIVE
ACTIONS TO TAKE AWAY ALREADY
00:20:01LOST, ALREADY DEPLETED LOCAL
GOVERNMENT FUND REVENUE AND
00:20:06PENALIZE THEM FOR EXERCISING
THEIR CONSTITUTIONAL RIGHTS.
00:20:08KAREN: THERE ARE THOSE WHO
SUPPORT IT AND SAY IT IS ABOUT
00:20:12SAFETY AND YOU SHOULD NOT MINE
LOSING THAT MONEY.
00:20:14KENT: THERE ARE COMMUNITIES THAT
HAVE THE RED LIGHT CAMERA
00:20:21ENFORCEMENT NOT COLLECTING
FINES.
00:20:22SOME ARE CHALLENGING THE
CONSTITUTIONALITY.
00:20:27THE LAW THAT WAS PASSED TO
CONFORM TO THE NEW STATE
00:20:34REQUIREMENTS, WE HAVE
COMMUNITIES THAT ARE DOING THAT.
00:20:37THEY WILL BE PENALIZED FOR
CONFORMING BY THIS LANGUAGE,
00:20:41TAKING AWAY THEIR LOCAL
GOVERNMENT FUND.
00:20:43WE THINK THAT IS AN OVERREACH
AND THERE IS A LONG LIST OF
00:20:46AREAS THAT LEGISLATIVE CHANGES
HAVE BEEN MADE TO COMPROMISE
00:20:49HOME RULE.
WE FEEL THAT IS A DANGEROUS
00:20:52PRECEDENT THAT CONTINUES TO GAIN
MOMENTUM AND THERE IS BILLS
00:20:57RIGHT NOW THAT WILL TAKE AWAY
HOME WORLD ON POLICE POWERS THAT
00:20:59ARE BASIC.
IT TAKES A LOT FOR US TO
00:21:02CHALLENGE THOSE, FOR
MUNICIPALITIES TO GO TO COURT
00:21:06AND SAY WE HAVE THE RIGHT TO DO
THIS.
00:21:10AND THE STATE HAS A LARGER
BANKROLL TO DEFEND THOSE MOVES.
00:21:13KAREN: THAT IS SOMETHING YOU ARE
CONCERNED ABOUT AT THE TOWNSHIP?
00:21:20MATT: I DO NOT KNOW IF IT IS A
HUGE CONCERN OF OURS, FRANKLY.
00:21:29ONE OF THE OTHER THINGS THE BILL
DID IS IT RAISED THE FORCE
00:21:32ACCOUNT LIMITS FOR TOWNSHIPS
WHICH MEANS WE WILL BE ABLE TO
00:21:35DO ROAD CONSTRUCTION AND REPAIR
IN THAT KIND OF THING WITH MORE
00:21:38OF OUR OWN PEOPLE RATHER THAN
HAVING TO CONTRACT IT OUT.
00:21:40THAT OUGHT TO SAVE MONEY.
THE RESIDENCY ISSUE HAS NOT BEEN
00:21:44A MAJOR FOCUS FOR US.
KAREN: BUT IT HAS BEEN FOR YOU.
00:21:47KENT: ABSOLUTELY.
THERE ARE COMMUNITIES THAT HAVE
00:21:54REQUIREMENTS IN LOCAL
CONSTRUCTION OPERATIONS IN THEIR
00:21:56COMMUNITY, THERE ARE FORCES THAT
SHOULD BE UTILIZED SO THERE IS A
00:22:01SMALL PERCENTAGE IN SOME OF
THESE CONTRACTS THAT SAY YOU
00:22:07HAVE TO USE LOCAL LABORERS.
THERE ARE AREAS THAT ARE THE
00:22:09HOME RULE PROVISIONS, SEPARATING
RESIDENT FROM THEIR POLICY
00:22:17MAKERS AND PUTTING THAT
RESPONSIBILITY TO THE STATE
00:22:21WHICH WE FEEL IS NOT A GOOD
POLICY FOR GOVERNMENT.
00:22:22KAREN: THERE IS ONE THING THAT
DOES AFFECT TOWNSHIPS PRETTY
00:22:26HEAVILY.
THE PHASING OUT OF THE PERSONAL
00:22:28PROPERTY TAX AREA -- PROPERTY
TAX.
00:22:33IT LOOKS LIKE THE SUN MIGHT BE
SETTING ON THOSE PERMANENTLY
00:22:37WHICH DOES AFFECT TOWNSHIPS
PRETTY HEAVILY.
00:22:40LET ME ASK YOU ON THAT NOTE AND
WITH EVERYTHING ELSE WE HAVE
00:22:45BEEN TALKING ABOUT.
DO YOU FEEL LIKE THE STATE IS
00:22:46TRYING TO WIN YOU OFF STATE
FUNDING AND MAKING YOU FIND
00:22:51YOURSELF ON YOUR OWN?
MATT: I DO NOT KNOW WHAT THEY
00:22:54HAVE IN MIND.
THAT IS A VERY SIGNIFICANT
00:22:56CHANGE, PHASING OUT THE PERSONAL
PROPERTY TAX AND THE UTILITY
00:23:03PROPERTY REIMBURSEMENTS.
WE ARE VERY HEAVILY POVERTY
00:23:06TAX-RELIANT AND IT FALLS
ESPECIALLY HEAVY ON US.
00:23:08WE TRIED TO EXPLAIN AS THE BILL
WAS GOING THROUGH THE PROCESS
00:23:15THAT IT IS ABOUT $27 MILLION A
YEAR.
00:23:19THE TOWNSHIP IS GETTING FUNDING
THROUGH THOSE REIMBURSEMENTS AND
00:23:22THE DEAL WAS STRUCK WHEN TAX
REFORM WAS DONE BACK IN 2005,
00:23:25AND WHAT THEY DID WAS THEY TOOK
A LOCAL TAX AND TURNED IT INTO A
00:23:31FOCUSING MECHANISM FOR THE GRF
AND DID NOT REPLACE THAT FUNDING
00:23:39FOR LOCAL GOVERNMENTS.
WE ARE DISAPPOINTED TO SEE THAT
00:23:41GOING AWAY BECAUSE IT WILL WORK
A HONE -- A HARDSHIP ON
00:23:44TOWNSHIPS THAT ARE RELIANT.
THEY HAVE FIRE DEPARTMENTS AND
00:23:48OTHER KEY FIRST RESPONDING
SERVICES LIKE THAT AND THEY HAVE
00:23:52A DIFFICULT TIME TRYING TO
FIGURE OUT HOW WE ARE TRYING TO
00:23:54FIND THAT.
-- FUND THAT.
00:23:55KAREN: THE STATE TRYING TO CUT
TAXES AT THAT LEVEL, DOES LESS
00:24:03MONEY WHEN YOU OFF WHAT THE
STATE IS GIVING YOU?
00:24:05KENT: IF I WERE NOT IN FRONT OF
THE CAMERAS I PROBABLY WOULD SAY
00:24:12SOME OTHER THINGS.
I DO NOT THINK THE LOCAL
00:24:13GOVERNMENT FUNDING WOULD GO AWAY
BECAUSE THEY ARE USING THAT AS A
00:24:15CARROT AND STICK APPROACH TO
COURSE LOCAL GOVERNMENTS TO DO
00:24:20THINGS THEY WANT TO DO WITHOUT
TAKING AWAY AUTHORITY.
00:24:22THAT LEVERAGE WILL ALWAYS HE
THEREFORE THE LEGISLATURE TO TRY
00:24:25AND HAVE SOME SWAY OVER -- MORE
SWAY OVER LOCAL DECISIONS.
00:24:31IF THE MONEY IS GOING TO COME
BACK AND IT SHOULD COME BACK TO
00:24:34US BECAUSE THIS IS WHERE IT
KEEPS THE TAXES LOW ON THE LOCAL
00:24:37LEVEL, IT WILL COME BACK THROUGH
GRANT PROGRAMS AND THAT WILL
00:24:40INCREASE COMPETITION BETWEEN
POLITICAL SUBDIVISIONS THAT ARE
00:24:46COMPETING FOR SCARCE DOLLARS.
THAT DOES NOT BRING A SPIRIT OF
00:24:51UNITY.
THAT BRINGS A SPIRIT OF DIVISION
00:24:54AND COMPETITION.
COMPETITION IS GOOD.
00:24:55THAT IS WHAT AMERICA IS BUILT
ON.
00:24:57WE ARE TRYING TO COLLABORATE
TOGETHER WITH OUR LOCAL
00:25:01PARTNERS.
WE ARE TRYING TO GET REGIONAL
00:25:02WORKING RELATIONSHIPS SO WE CAN
MAXIMIZE TAXPAYER DOLLARS.
00:25:06THE MORE THE LEGISLATION --
LEGISLATURE TRIES TO DIVIDE US
00:25:11AND THAT IS WHAT WE ARE NOT
SUPPORTIVE OF.
00:25:17KAREN: DO THINK THAT CITIES HAVE
BEEN FAVORED TO LONG AND THIS IS
00:25:22THE TOWNSHIPS TIME?
MATT: WE HAVE A COMPELLING CASE
00:25:29TO MAKE FOR FUNDING.
APPARENTLY, WE CAUGHT THE EAR OF
00:25:34THE LEGISLATURE THIS GO AROUND.
KAREN: THANK YOU FOR BEING HERE.
00:25:39APPRECIATE IT.
THAT IS IT FOR THIS WEEK FOR MY
00:25:45COLLEAGUES AT OHIO PUBLIC RADIO
AND TELEVISION, THANKS FOR
00:25:47WATCHING.
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00:25:48QUESTIONS, MAKE COMMENTS, OR
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00:25:56ANDY CHOW AND ME ON TWITTER.
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00:25:59TIME FOR "THE STATE OF OHIO."
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