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00:00:00>> SUPPORT FOR THE STATEWIDE
00:00:13BROADCAST OF "THE STATE OF OHIO"
COMES FROM THE LAW FIRM OF
00:00:17PORTER, WRIGHT, MORRIS AND
ARTHUR, LLP, HELPING BUSINESSES
00:00:22AND INDIVIDUALS SOLVE COMPLEX
LEGAL PROBLEMS THROUGHOUT OHIO,
00:00:25ACROSS THE COUNTRY, AND AROUND
THE WORLD.
00:00:26ON THE WEB AT PORTERWRIGHT.COM.
AND FROM THE OHIO EDUCATION
00:00:30ASSOCIATION, REPRESENTING
120,000 MEMBERS WHO WORK TO
00:00:34INSPIRER THEIR STUDENTS TO THINK
CREATIVELY AND EXPERIENCE THE
00:00:36JOY OF LEARNING.
ON LINE AT OHEA.ORG.
00:00:38>> GOVERNOR KASICH UNVEILS HIS
BUDGET, WHICH PROMINENTLY
00:00:43FEATURES BOTH TAX CUTS AND TAX
INCREASES.
00:00:47REACTION TO THE BUDGET IS
VARIED.
00:00:48WE'LL HEAR TWO PERSPECTIVES ON
WHO THE BUDGET WILL HELP AND WHO
00:00:53IT WELL, THIS WEEK ON "THE STATE
OF OHIO."
00:00:54[CAPTIONING PERFORMED BY THE
NATIONAL CAPTIONING INSTITUTE,
00:00:56WHICH IS RESPONSIBLE FOR ITS
CAPTION CONTENT AND ACCURACY.
00:00:58VISIT NCICAP.ORG]
GOVERNOR JOHN KASICH INTRODUCED
00:01:03HIS THIRD TWO-YEAR BUDGET ON
GROUNDHOG DAY.
00:01:06AND THAT SPENDING PLAN HAD SOME
ELEMENTS OF THE MOVIE "GROUNDHOG
00:01:10DAY" IN IT.
IT BROUGHT BACK SOME PROPOSALS
00:01:16THAT BUDGET WATCHERS AND STATE
LAWMAKERS HAVE SEEN BEFORE.
00:01:18THE TWO-YEAR, NEARLY $70 BILLION
BUDGET WEIGHS IN AT 719 PAGES.
00:01:23AND AN ASSIST -- AND HAS BEEN
THE CASE WITH THE LAST TWO
00:01:28BUDGETS, GOVERNOR KASICH IS
AGAIN SUGGESTING A TOTAL OF $5.7
00:01:32BILLION IN INCOME TAX CUTS AND
BENEFITS.
00:01:33THESE PROPOSED A 23% ACROSS THE
BOARD INCOME TAX CUT AND THE
00:01:39ELIMINATION OF TAXES ON A
MILLION SMALL BUSINESSES WITH
00:01:43LESS THAN $2 MILLION IN ANNUAL
SALES.
00:01:44HE'S ALSO PROPOSING A DOUBLING
OF THE INCOME TAX EXEMPTION FOR
00:01:49LOW-INCOME OHIOANS AND AN
INCREASE IN SUBSIDIZED CHILD
00:01:51CARE FOR PEOPLE MAKING UP TO
300% OF THE FEDERAL POVERTY
00:01:54LEVEL.
$59,370 FOR A TYPICAL FAMILY OF
00:01:57THREE.
AGAIN KASICH IS SUGGESTING
00:02:03PAYING FOR HIS TAX CUTS WITH A
PACKAGE OF TAX INCREASES, THIS
00:02:04TIME TOTALING $5.2 BILLION.
AND THAT PACKAGE FEATURES
00:02:07SEVERAL INCREASES THAT KASICH
HAS PROPOSED BEFORE -- A DOLLAR
00:02:12HIKE IN THE TOBACCO TAX, RAISING
IT TO $2.25, A 6.5 PERCENT
00:02:18INCREASE IN THE SEVERANCE TAX ON
OIL AND GAS DRILLERS, A 5%
00:02:21INCREASE IN THE COMMERCIAL
ACTIVITY TAX, OR CAT, AND HALF
00:02:26PERCENT HIKE IN THE SALES TAX TO
6.25% AND A BROADENING OF TAX TO
00:02:29SERVICES THAT ARE NOT PAYING IT
NOW.
00:02:31TAKING OUT THE TAX INCREASES
THAT'S A $523 MILLION TAX CUT.
00:02:35TAX COMMISSIONER JOE TESTA SAYS
IT'S THE NEXT CHAPTER IN
00:02:42KASICH'S OVERALL TAX REFORM
PLAN.
00:02:43>> WE'RE CONTINUING OUR FOCUS ON
SHIFTING FROM A DEPENDENCY ON
00:02:47INCOME FOR STATE REVENUE TO
SHIFTING MORE TOWARD CONSUMPTION
00:02:54.
AWAY FROM INCOME-BASED TO MORE
00:02:55CONSUMPTION-BASED.
WE STILL BELIEVE THAT IS THE
00:02:57RIGHT THING TO DO, WE WANT TO
CONTINUE TO MOVE IN THAT
00:03:00DIRECTION.
>> KASICH ALSO SAYS HE'S MAKING
00:03:04CHANGES IN THE SCHOOL FUNDING
FORMULA.
00:03:05HE SAYS HIS BUDGET UPS SPENDING
ON K-12 EDUCATION BY $700
00:03:08MILLION, AND IS AT THE HIGHEST
LEVEL IT'S EVER BEEN.
00:03:14BUT THE GOVERNOR ALSO SAYS HE'S
CHANGING THE FUNDING FORMULA SO
00:03:16DISTRICTS WITH LOWER PROPERTY
WEALTH AND LOWER INCOMES WILL
00:03:19GET MORE STATE HELP.
IF YOU HAVE A GREATER CAPACITY
00:03:23IN YOUR SCHOOL DISTRICT BASED ON
THAT MEASUREMENT OF INCOME AND
00:03:27PROPERTY TAXES, THEN WE THINK OF
THE STATE SHOULD BE DOING LESS
00:03:33FOR YOU THAN IF YOU ARE A
DISTRICT THAT HAS A LOW NUMBER,
00:03:38A SMALLER NUMBER OF PROPERTY
VALUE AND INCOME.
00:03:46THERE'S WHERE THE STATE HAS TO
DO MORE BECAUSE OF CAPACITY.
00:03:47>> THE SCHOOL DISTRICT BY
DISTRICT BREAKDOWN SHOWS MORE
00:03:52THAN HALF OF THE STATE PUBLIC
SCHOOL DISTRICTS WILL GET LESS
00:03:54MONEY BECAUSE OF THE FORMULA
CHANGES.
00:03:55OF THE DISTRICTS LISTED IN
SPREADSHEETS RELEASED ON
00:03:58WEDNESDAY, 332 GET FUNDING
INCREASES, 278 SEE FUNDING
00:04:03REDUCTIONS.
HIGHER EDUCATION, KASICH WANTS
00:04:08TUITION CAPP AT 2% IN THE FIRST
YEARED AND A TUITION FREEZE IN
00:04:13THE SECOND.
HE IS ALSO PROPOSING A 120 TO --
00:04:21$120 MILLION FUND TO HELP
STUDENTS WITH A LOANS.
00:04:23THE BUDGET ALSO INCLUDES
KASICH'S MEDICAID EXPANSION FROM
00:04:26LAST YEAR.
HE KNOWS IT MAY BE DIFFICULT TO
00:04:31GET SOME OF THESE IDEAS BY
SKEPTICAL LAWMAKERS, ESPECIALLY
00:04:34THOSE THAT HAVE REJECTED IT
BEFORE.
00:04:35HE SAYS HE HOPES THEY WILL GET
WITH THE SPIRIT OF IT.
00:04:37>> IN SOME WAY THIS IS A SPECIAL
INTEREST FULL IMPLEMENT BILL AS
00:04:43WELL BECAUSE THEY'LL ALL BE
TRYING TO PROTECT THEIR STUFF.
00:04:44IT'S OK, I UNDERSTAND THAT.
BUT WHAT I'VE ASKED THE
00:04:48LEGISLATURE TO DO IS, IF YOU
DON'T LIKE WHAT WE'VE PROPOSED,
00:04:50TELL US WHAT YOU DO PROPOSE.
DON'T JUST TELL US SOMETHING
00:04:52LIKE CUT THE GOVERNMENT 10%.
THAT DOESN'T WORK.
00:04:56IF YOU DON'T LIKE SOME OF OUR
PROPOSALS, COME IN.
00:04:59BUT WHAT WOULD YOU WANT TO
JETTISON?
00:05:02YOU WANT TO GET RID OF THE SMALL
BUSINESS TAX CUT?
00:05:06YOU WANT TO HAVE BACK ON THE
BENEFITS TO THE WORKING POOR SO
00:05:13THEY WILL WORK HARDER TO GET OUT
OF BEING POOR?
00:05:14SO YOU'VE GOT A CHOICE.
AND I'M ACTUALLY PRETTY
00:05:22OPTIMISTIC ABOUT OUR PACKAGE.
>> KASICH'S FELLOW REPUBLICANS,
00:05:26SENATE PRESIDENT KEITH FABER AND
HOUSE SPEAKER CLIFF ROSENBERGER,
00:05:31SAID THEY AREN'T THRILLED WITH
TAX SHIFTING.
00:05:32SOME REPUBLICANS HAVE ALSO SAID
THEY'RE CONCERNED ABOUT THE SIZE
00:05:36OF RECENT BUDGETS.
THE FIRST YEAR OF THIS PROPOSED
00:05:38BUDGET HAS A 12.5% INCREASE OVER
THE CURRENT BUDGET AND A 4.8%
00:05:43INCREASE OVER THE FIRST YEAR OF
SPENDING IN THE SECOND YEAR.
00:05:44BUT KASICH SAYS THE COSTS OF THE
TAX CUTS AND MORE MONEY FOR
00:05:47EDUCATION WILL PAY OFF WITH
CREATING MORE BUSINESSES AND
00:05:49JOBS AND KEEPING YOUNGER OHIOANS
IN THE STATE.
00:05:52REACTION TO THE BUDGET WAS
VARIED BUT MOSTLY SUPPORTIVE.
00:05:57THE CENTER FOR COMMUNITY
SOLUTIONS SAID IN A STATEMENT
00:06:03THAT READS IN PART, "THE
INVESTMENTS MADE IN THIS BUDGET
00:06:06WILL IMPROVE THE QUALITY OF LIFE
OF THE AT-RISK YOUTH, THE
00:06:09DISABLED, AND THE ELDERLY IN A
STATE, AND I URGE THE GENERAL
00:06:11ASSEMBLY TO CONTINUE IN THE
DIRECTION PROPOSED BY THE
00:06:15GOVERNOR.
THE MORE PROGRESSIVE LEANING
00:06:19POLICY MATTERS OHIO PRAISED
MEDICAID EXPANSION FUNDING IN
00:06:22THE BUDGET BUT ALSO SAID "IT
CONTAINS MORE ILL-ADVISED TAX
00:06:24POLICIES AND REVENUE CUTS FOR
OUR SCHOOLS AND COMMUNITIES.
00:06:31THE PACKAGE WILL FURTHER TILT
THE TAX SYSTEM IN FAVOR OF THE
00:06:34WEALTHIEST OHIOANS AND BEDFORD
$500 MILLION IN TAX CUTS THAT
00:06:37WOULD BE BETTER SPENT ON NEEDED
SERVICES.
00:06:38AS EXPECTED, THE INDUSTRIES THAT
WOULD BE HIT WITH TAX INCREASES
00:06:45PROTESTED.
THE OHIO OIL AND GAS ASSOCIATION
00:06:47SAID IN A STATEMENT THAT THE
RECENT DECLINE IN OIL AND GAS
00:06:50PRICES IS HURTING THE INDUSTRY,
AND THAT "WE HAVE SERIOUS
00:06:54CONCERNS ABOUT HOW THESE TAX
POLICIES COULD IMPACT OPERATORS
00:06:55-- OHIO WORKERS AND BUSINESSES.
WE CANNOT AFFORD A TAX POLICY
00:07:01THAT WOULD DISCOURAGE OPERATORS
FROM INVESTING OUR STATE AND
00:07:04INSTEAD MOVE THEIR CAPITAL TO A
MORE PROFITABLE SHALE PLAYS."
00:07:06THE OHIO GROCERS ASSOCIATION
RAISED CONCERNS ABOUT THE
00:07:13INCREASE IN THE COMMERCIAL
ACTIVITY TAX AND THE CIGARETTE
00:07:15TAX.
"THESE PROPOSED TAX HIKES
00:07:17RETROSPECTIVELY -- RESPECTIVELY
TIP THE SCALES TO HIGHER FOOD
00:07:21COSTS AND INCREASED BORDER-BLACK
MARKET SALES TO TOBACCO
00:07:26PRODUCTS.
WE CANNOT AFFORD TAX REFORM THAT
00:07:33PICKS WINNERS AND LOSERS WITH
THE RETAIL INDUSTRY BEING THE
00:07:34BIGGEST LOSER."
HEALTH PROFESSIONALS PRAISED THE
00:07:37TOBACCO TAX INCREASE.
A GROUP REPRESENTING ELECTRONIC
00:07:42CIGARETTES MAKERS AND SELLERS
SAID THAT FREE MARKET SOLUTION
00:07:43TO SMOKING ISN'T GOOD TAX POLICY
OR HEALTH POLICY.
00:07:46TO TALK ABOUT ALL THESE THINGS,
I'M JOINED BY TWO STATEHOUSE
00:07:52VETERANS WITH VERY DIFFERENT
VIEWS.
00:07:53MIKE GONIDAKIS IS THE PRESIDENT
OF OHIO RIGHT TO LIFE AND A
00:07:57FORMER DEPUTY ATTORNEY GENERAL,
BUT HE IS HERE TODAY AS A
00:08:00REPUBLICAN ANALYST.
KEARY MCCARTHY IS THE PRESIDENT
00:08:03OF THE PROGRESSIVE THINK TANK
INNOVATION OHIO.
00:08:05BEFORE THAT, YOU WAS THE CHIEF
OF STAFF FOR THE OHIO HOUSE
00:08:08MINORITY CAUCUS. WELCOME.
>> GOOD TO BE HERE.
00:08:09>> LET'S START WITH THE BENEFITS
AND INCREASES THAT PAY FOR
00:08:16THOSE.
INNOVATION OHIO PUT OUT A
00:08:18STATEMENT IN WHICH YOU SAID THAT
THE BUDGET ONCE AGAIN FAVORS
00:08:23THOSE AT THE TOP AND LEAVES MORE
AND MORE OHIOANS BEHIND.
00:08:24IT'S WHAT WE HAVE HEARD BEFORE
FROM GROUPS SUCH AS POLICY
00:08:29MATTERS OHIO.
WHERE DO YOU COME UP WITH THAT
00:08:31WHEN REPUBLICANS SAY THAT THIS
DRIVE THE ECONOMY FORWARD?
00:08:32>> SURE THERE IS A COUPLE OF
THINGS.
00:08:36.FOR THE BUDGET CAME OUT WE SAW
A REPORT THAT SAID THAT IF YOU
00:08:40MAKE $350,000 MORE, YOU PAY
LESSER OF A SHARE IN STATE AND
00:08:45LOCAL TAXES AS A PERCENTAGE OF
YOUR INCOME.
00:08:46IF YOU ARE WORKING OR FOR U.K. A
GREATER SHARE OF YOUR INCOME --
00:08:53WORKING OR REPORT YOU PAY A
GREATER SHARE OF YOUR INCOME IN
00:08:56STATE OR LOCAL TAXES.
THIS TAX SHIFT CONTINUES TO
00:08:59PERPETUATE A CYCLE IN WHICH
THOSE WHO ARE AT THE TOP OUR
00:09:04FAVOR BY THE TAX SHIFT AND MORE
AND MORE OHIOANS ARE BEING LEFT
00:09:06BEHIND.
IT IS PRETTY CLEAR FROM $350,000
00:09:10BEFORE THE TAX OF.
IF YOU MAKE HUNDRED $50,000 OR
00:09:16MORE, YOU PAY 7% OF YOUR SHARE
IN INCOME IN STATE LOCAL TAXES.
00:09:20IT IS UNFAIR.
"THE PLAIN DEALER" CAME OUT WITH
00:09:31AN EDITORIAL THAT SAID GOOD
THINGS ABOUT THE BUDGET AND BAD
00:09:32THINGS BUT WHAT THEY SAID AT THE
END IS THAT IT IS NOT FAIR FOR
00:09:35WORKING AND MIDDLE-CLASS
FAMILIES.
00:09:36>> MIKE, I WANT YOU TO WEIGH IN
ON THAT .ET >>
00:09:40>> I DISAGREE WITH KEARY'S
ANALYSIS.
00:09:45>> REALLY?
>> 200,000 HOUSEHOLDS IN OHIO
00:09:52WILL NOT PAY TAXES ONCE THIS
BUDGET IS ENACTED BY THE
00:09:54LEGISLATURE AND SIGNED BY THE
GOVERNOR.
00:09:56200,000.
IT IS NOT FOR RICH PEOPLE BUT
00:09:58FOR THE POOR.
GOVERNOR KASICH IS A CHAMPION OF
00:10:02THE POOR, WHETHER IT BE MEDICAID
EXPANSION TEST FIRST GOVERNOR,
00:10:04DEMOCRAT OR REPUBLICAN, TO PUT
THE ITC IN IN 2013.
00:10:08IT 2014 HE DOUBLED THE THE ITC.
IN THIS BUDGET HE IS DOUBLING
00:10:14THE DIFFERENT TYPES OF
EXEMPTIONS FOR THE POOR.
00:10:17IF YOU LOOK AT THIS BUDGET IT
WAS THE POOR ON TOP, WHETHER YOU
00:10:21ARE TALKING ABOUT EDUCATION OR
MONEY IN A POCKET.
00:10:22HE GOES TO EVERYONE ELSE.
WHEN WE TALK ABOUT EDUCATION IN
00:10:25THIS DEBATE, THE FOCUS IS ON
POOR SCHOOLS AND HELPING THEM
00:10:29THE MOST.
IT HELPS THOSE IN THE SHADOWS
00:10:34BECAUSE WE DO THAT WE ARE BETTER
OFF WITH A BETTER WORKFORCE.
00:10:35DOWN WE WILL
>> WE WILL GET BACK-TO-SCHOOL
00:10:43FUNDING IN A BIT BUT I WANT TO
TALK ABOUT THIS TAX SHIFT.
00:10:45SHIFTING THE RELIANCE ON THE
STATE -- ON INCOME TAXES TO
00:10:51CONSUMPTION TAXES, SALES TAXES,
THERE ARE SEVERAL REPUBLICAN
00:10:55LAWMAKERS WHO SAY THEY ARE VERY
CONCERNED ABOUT THIS.
00:10:56SENATE PRESIDENT KEITH FABER
SAID THAT AS GOVERNOR KASICH WAS
00:10:59DROPPING HINTS ABOUT THIS, THE
SENATE WOULD NOT CONSIDER A TAX
00:11:04REFORM PLAN THAT IS NOT TAKE A
SIGNIFICANT AMOUNT OF REVENUE --
00:11:08THAT IS NOT A TAX CUT, TAX
REFORM, TAX SHIFTING.
00:11:09SPEAKER CLIFF ROSENBERGER SAYS
THAT THIS CAUCUS WILL NOT ACCEPT
00:11:13THE TAX SHIFT.
HOW ARE YOU GOING TO GET THIS BY
00:11:19THE LEGISLATURE WHEN THEY FEEL
THE TAX SHIFTING IS UNFAIR?
00:11:20>> AT THE END OF THE DAY THERE
WILL BE A HALF BILLION DOLLAR
00:11:24TAX CUT FOR ALL OHIOANS UP AND
DOWN THE LADDER WHATEVER YOUR
00:11:27INCOME MAY BE.
I WOULD REMIND MY FRIENDS FROM
00:11:29THE GENERAL'S SUDDENLY, DEMOCRAT
AND REPUBLICAN, THAT THE GREAT
00:11:35STATE OF TEXAS IS GENERALLY
REFERRED TO AS THE STATE TO
00:11:36PRODUCES THE MOST JOBS.
IF YOU LOOK AT THEIR CAP
00:11:43STRUCTURE -- I HAVEN'T WRITTEN
DOWN, DON'T HAVE IT MEMORIZED --
00:11:449% ALL OF THEIR REVENUE COMES
FROM SEVERANCE TAX TO 0% COMES
00:11:49FROM INCOME TAX.
AND THEIR SALES AND GROSS
00:11:52RECEIPTS TAXES 75%.
WHY WOULDN'T WE WANT TO EMULATE
00:11:54THAT HERE?
37% COMES FROM INCOME TAX.
00:12:02WHY WOULD WE WANT TO EMILY THE
NUMBER ONE STATE THAT CREATES
00:12:03JOBS, WHICH IS TEXAS --
ELIMINATE THE NUMBER ONE STATE
00:12:07INCREASE JOBS, WHICH IS TEXAS?
YOU KNOW, IT IS THE APPROPRIATE
00:12:15THING TO DO BECAUSE IT GIVES
PEOPLE CHOICE, AS OPPOSED TO
00:12:17SAYING THAT WE ARE MANDATING YOU
PAY AN INCOME TAX.
00:12:18WE WILL SAY THAT IT IS A FAIR
TAX.
00:12:20IF YOU CHOOSE TO BUY THE TV OR
APPLE IPOD, YOU'LL PLAY A LITTLE
00:12:26MORE.
>> THERE ARE THOSE WHO SAY THESE
00:12:29ARE REGRESSIVE TAXES THAT HIT
THE POOR AND THE LOW INCOME
00:12:34PEOPLE HARDER THAN WEALTHY
PEOPLE BECAUSE POOR INCOME
00:12:35PEOPLE ARE SPENDING MORE INCOME
IN THESE AREAS.
00:12:36>> THE GREATEST THING THAT POOR
AND LOW-INCOME PEOPLE PAY FOR
00:12:41HIS FOOD.
THE TWO MOST ESSENTIAL ITEMS FOR
00:12:44THEM, FOOD AND GAS, THERE IS NOT
GOING TO BE ANY TAXES.
00:12:47>> THE BIGGEST CHALLENGE WITH
THE TAX SHIFT FOR POOR AND
00:12:51WORKING FAMILIES IS JUST A
MATTER OF DOLLARS AND CENTS.
00:12:58THE LAST TIME WE WERE ON THE
SHOW, I THINK WE TALKED ABOUT
00:13:00THIS.
IT MIGHT MAKE 350 IF MIKE MR.
00:13:03HUNDRED $50,000 -- IF MY MAKES
$350,000 --
00:13:06>> JUST FOR THE SAKE OF
DISCUSSION, GOES TO BUY A
00:13:10REFRIGERATOR, AND INCREASE IN
THE SALES TAX IS GOING TO
00:13:15SQUEEZE ME MORE BECAUSE I HAVE
FEWER RESOURCES, FEWER -- IT IS
00:13:18GOING TO PINCH A LARGER SHARE OF
MY DISPOSABLE INCOME THEN IT IS
00:13:24WAS A MONEY MAKING $350,000.
THAT IS EXACTLY WHAT WE'RE
00:13:26TALKING ABOUT.
THE LAST 10 YEARS WE HAVE CUT
00:13:32INCOME TAXES, WHICH IS
PROPORTIONALLY BENEFIT THOSE AT
00:13:34THE TOP.
EIGHT OF THE LAST 10 YEARS WE
00:13:37ARE CONTINUING THAT TREND AND WE
ARE SHIFTING FROM A
00:13:39CONCEPTION-BASED TAX STRUCTURE,
WHICH IS SQUEEZE IS POOR AND
00:13:44WORKING FAMILIES.
AND WHEN YOU COMBINE THAT WITH
00:13:47THE DOWNWARD PRESSURE BEING PUT
ON SCHOOLS AND COMMUNITIES BY
00:13:49INCREASED PROPERTY TAXES, THAT
IMPACT IS GOING TO BE GREATER
00:13:52AND MORE ACUTE, AND IT IS GOING
TO DRIVE OUR ECONOMY IN THE
00:13:57WRONG DIRECTION.
>> LET ME ASK YOU ABOUT WHAT
00:13:58MIKE WAS SAYING, TEXAS, STATE
WHERE THE INCOME TAXES LOWER
00:14:02GONE.
YOU HAD THE GOVERNOR THINK THAT
00:14:04ONCE OHIO GETS INTO THE FREEZE
RANGE, THE STATE WILL BECOME
00:14:11VERY ATTRACTIVE TO BUSINESSES
AND PEOPLE WILL LOOK TO MOVE AND
00:14:13THAT WILL BRING EVERYBODY UP.
>> TEXAS IS AN OIL-RICH STATE.
00:14:16THEY HAVE THE ABILITY TO
GENERATE REVENUE FROM ANOTHER
00:14:20SOURCE.
OTHER STATES THAT DON'T HAVE AN
00:14:23INCOME TAX -- FLORIDA HAS A
BOOMING TRAVEL INDUSTRY.
00:14:28IN THE NORTHWEST YOU HAVE HIGH
PROPERTY TAX RATES WITH THE
00:14:30STATES THAT HAVE NO INCOME TAX.
THE SIMPLE FACT OF THE MATTER IS
00:14:34THAT WHEN WE SWITCH FROM A TAXES
THAN THAT IS BASED ON THE
00:14:38ABILITY TO PAY TO TAXES AND THAT
IS REST OF -- A TAX SYSTEM THAT
00:14:41IS REGRESSIVE, FOR AN WORKING
FAMILIES -- FOUR AND WORKING
00:14:46FAMILIES WILL STRUGGLE MORE.
YOU LOOK AT THE COVERAGE
00:14:50THROUGHOUT THE BUDGET NEC TIME
AFTER TIME AFTER TIME THOSE WHO
00:14:53TALK ABOUT THE TAX SHIFT TALK
ABOUT IT IN A WAY THAT MAKES IT
00:14:55VERY CLEAR -- POOR AND WORKING
FAMILIES WILL FEEL A LARGER
00:15:02SHARE OF THEIR INCOME BEING
SPENT ON THESE TAXES.
00:15:04>> KEARY TALKED ABOUT BUYING
THAT WASHING MACHINE --
00:15:09>> OR REFRIGERATOR.
>> IF YOU BUY IN FRANKLIN COUNTY
00:15:14YOU ARE PAYING A DIFFERENT TAX
RATE THAN IN FAIRFIELD COUNTY.
00:15:16EVERY COUNTY HAS THEIR OWN SALES
TAX.
00:15:19IF I BUY SOMETHING IN THE
DUBLIN, COLUMBUS AREA, I WILL
00:15:24PAY A DIFFERENT PRICE THEN IF I
PAY FOR IT AT POLARIS MALL.
00:15:27TO SAY THAT IT IS REGRESSIVE, WE
ALREADY HAVE THAT IN OUR ECONOMY
00:15:33IN OHIO.
WE ARE NOT CREATING ANYTHING
00:15:37NEW.
FOR THE PAST FOUR YEARS GOVERNOR
00:15:38KASICH -- THIS IS NOT HIS
THIRD BUDGET, IT IS HIS FIFTH.
00:15:43IT IS WORKING.
OUR ON IMPLEMENT RATE WENT FROM
00:15:489% IN THE PREVIOUS INDUSTRY TO
BELOW 5%.
00:15:49200,000 MORE JOBS.
IT IS WORKING IN OHIO.
00:15:54WHY WOULD WE CHANGE WHAT WE ARE
DOING WHEN IT IS ACTUALLY
00:15:58WORKING?BACK
IS MAKING SURE THEY HAVE A
00:16:04DAUGHTER OR -- DR. OR AXIS --
>> IT SOUNDS LIKE YOU FOLKS
00:16:12AGREED THAT THE SEVERANCE TAX IS
A GOOD IDEA.
00:16:14>> ABSOLUTELY.
>> WE OBVIOUSLY HAVE A LOW
00:16:18SEVERANCE TAX WITH THE INFLUX OF
THE OIL AND GAS INDUSTRY COMING
00:16:23INTO OHIO.
I THINK THE GOVERNOR IS RIGHT
00:16:24ON.
WE HAVE TO CONTINUE TO PURSUE AN
00:16:27APPROPRIATE TAX RATE THAT MAKES
SURE OHIOANS BENEFIT FROM THE
00:16:32RESOURCES THAT ARE UNDER THE
GROUND.
00:16:33THE PROBLEM IS THAT 20% OF THE
REVENUE, ONLY 20% OF THE REVENUE
00:16:38GENERATED FROM THE PROPOSED
SEVERANCE TAX IS GOING TO THE
00:16:43LOCAL COMMUNITIES WHO ARE
HEAVILY IMPACTED BY THIS.
00:16:4480% WILL PAY FOR THE INCOME TAX
CUT.
00:16:45THE COMMUNITIES THAT MORE
HARD-HIT -- THAT ARE HARD HIT BY
00:16:49THE HEAVY INDUSTRY THAT ARE
COMING INTO EXTRACT OIL OUT OF
00:16:55THE GROUND, THEY WILL HAVE
IMPACT ON THE ROAD, WATER
00:16:56QUALITY PROTECTION, AND ONLY 20%
OF THE REVENUE -- IT IS
00:17:02SOMETHING WE DISAGREE ON.
WE WOULD LIKE TO SEE MORE
00:17:06REVENUE BEING DRIVEN BACK INTO
THE COMMUNITY TO PROTECT THE
00:17:08WATER QUALITY AND MAKING SURE
THAT THE INFRASTRUCTURE IS WELL
00:17:09PROTECTED.
>> WE WILL FIGURE OUT WHAT THE
00:17:14BEST NUMBER IS, BUT IN NORTH
DAKOTA, 2.5 BILLION DOLLARS THEY
00:17:17GENERATE OFF THEIR SEVERANCE TAX
, AND THE OIL AND GAS INDUSTRY
00:17:20IS NOT LEAVING NORTH DAKOTA.
$4.5 BILLION IN TAXES.
00:17:25IT OHIO, SIMPLY $5 MILLION.
WHAT ARE WE DOING HERE?
00:17:31THIS IS INSANE, IT IS ASININE
THAT WE ARE CHARGING 0.35
00:17:39PERCENT WHILE OTHER STATES ARE
CHARGING 9%, 10% AND GETTING
00:17:42BILLIONS.
IF WE JUST RAISED OUR SEVERANCE
00:17:46TAX -- THE OIL AND GAS INDUSTRY
IS LAUGHING AT US RIGHT NOW.
00:17:48>> I KNOW YOU DIFFER STRONGLY ON
THE SALES TAX.
00:17:51WHAT ABOUT THE CIGARETTE TAX?
ARE YOU AN AGREEMENT THAT A
00:17:54DOLLAR PER PACK IS A GOOD THING?
>> I AM NOT A SMOKER SO IT
00:17:57DOESN'T IMPACT ME SPECIFICALLY
ALTHOUGH THERE ARE PEOPLE IN MY
00:18:02FAMILY WHO DO'S NOTE.
THERE ARE A COUPLE DIFFERENT
00:18:04SCHOOLS OF THOUGHT.
WE ARE OBVIOUSLY GOING TO
00:18:07GENERATE MORE REVENUE, AND OF
THIS SITE WE WILL GET MORE
00:18:09PEOPLE TO QUIT.
WHEN MORE PEOPLE QUIT THERE WILL
00:18:12BE LESS SALES TAX GENERATED.
THE GOVERNOR SEES THIS AS AN
00:18:18OPPORTUNITY TO GET PEOPLE TO
QUIT SMOKING AND IF WE GET FOR
00:18:20PEOPLE THAT QUIT SMOKING THEY
WANT MORE MONEY IN THEIR POCKET.
00:18:22>> THE ONLY THING I DISAGREE ON
IS -- IT IS SUPPORTED THINK WHAT
00:18:31THE RIGHT TAX STRUCTURE IS FOR
TOBACCO.
00:18:32I THINK THAT WHEN YOU ARE
DRIVING THAT INCREASED REVENUE
00:18:34BACK IN THE FORM OF A TAX CUT
THAT LARGELY BENEFITS THOSE AT
00:18:39THE TOP, YOU ARE TAKING MONEY
OUT OF THE POCKET OF ONE
00:18:45HOUSEHOLD AND PUTTING IT INTO
ANOTHER.
00:18:48THAT IS A PROBLEM FOR ME.
IF WE ARE INVESTING IN PROGRAMS
00:18:52TO HELP STOP USE OF TOBACCO,
THERE WOULD BE GREAT A LAUDABLE,
00:18:58BUT WE ARE USING IT LARGELY TO
PAY FOR TAX THAT BENEFITS THE
00:19:01RICH.
>> LET'S TALK ABOUT SCHOOLS FOR
00:19:11A SECOND.
I WANT TO ASK YOU ABOUT GOVERNOR
00:19:12KASICH'S STATEMENT FOR K-12
FUNDING AND PUTTING IT WOULD
00:19:17RESTRICT WITH LOWER PROPERTY
WEALTH AND LOWER INCOME, BECAUSE
00:19:23THESE DISTRICTS NEED MORE HELP
FROM THE STATE AND DISTRICTS
00:19:24WITH HIGHER INCOME HAVE THE
ABILITY TO DO MORE.
00:19:28MIKE, WHAT IS WRONG WITH THAT?
>> I DON'T THINK THERE'S
00:19:33ANYTHING ROCK. >>
>> SOME WILL BE VERY UPSET ABOUT
00:19:38THAT.
>> LET ME ADDRESS THAT BECAUSE
00:19:42WE HAVE MISINFORMATION FROM SOME
OF THESE DISTRICT.
00:19:44WE NEED TO HELP EACH OTHER, NOT
JUST ADULTS, BUT THE MOST
00:19:50IMPORTANT COMMODITY WE HAVE,
CHILDREN.
00:19:51WHAT THE GOVERNOR SAYS IS HERE'S
A POT OF MONEY.
00:19:54HE GAVE $1 BILLION LAST BUDGET
AND IS OFFERING OVER HALF A
00:20:00BILLION DOLLARS THIS BUDGET.
NO OTHER ENTITY IN OHIO PUBLIC
00:20:01OR PRIVATE IS GETTING THE KIND
OF MONEY THAT GOVERNOR KASICH
00:20:03HAS GIVEN TO EDUCATION.
WHAT WE ARE SAYING IS THAT THIS
00:20:05FORMULA THAT WE CURRENTLY HAVE,
IT DOESN'T WORK.
00:20:10WE HAVE KNOWN THAT FOR MANY,
MANY CYCLES.
00:20:11THE LEADERSHIP IN OHIO KICKS THE
CAN DOWN THE ROAD, BUT THIS
00:20:15GOVERNOR STEPPING UP AND SAYING,
LOOK, IF YOUR SCHOOL DISTRICT'S
00:20:17SHIP -- SHRINKING AND YOU ARE
BLESSED WITH GREAT WEALTH, WE
00:20:21WILL GIVE YOU A LITTLE LESS AND
WE WILL GIVE MORE TO THE
00:20:23INNER-CITY COLUMBUS, EVEN WITH
THEIR PROBLEMS, OR CINCINNATI OR
00:20:26CLEVELAND.
IT IS THE RIGHT THING TO DO.
00:20:28NUMBER TWO, YOU WANT YOUR SCHOOL
DISTRICTS -- THIS IS GOING TO BE
00:20:32THE NUMBER ONE TEAM.
WE ARE LOSING ALL HIS MONEY.
00:20:35IT IS CAP AT 1%.
THE MOST ANY DISTRICT AND LOSES
00:20:411%.
IF YOU CANNOT MANAGE 1% -- IF
00:20:45YOU CAN'T MANAGE A 1% CHANGE IN
YOUR BUDGET, YOU NEED A NEW
00:20:47SCHOOL.
THE MONEY HAS TO GO TO
00:20:51INNER-CITY SCHOOLS AND POOR
SCHOOLS THAT NEED TO HELP.
00:20:53>> WHAT'S WRONG WITH THAT LACK
?
00:21:01>> THE GOVERNOR IS A RACING A
TANGIBLE PERSONAL PROPERTY TAX.
00:21:07EVEN IF THEY COME DOWN OFF THE
GUARANTEE, IF THEY GET
00:21:08REIMBURSEMENTS THROUGH THIS TAX,
THEY WILL GET DOUBLE HIT.
00:21:13THEY WILL PROBABLY FACE SOME
PRETTY TOUGH DILEMMAS BEYOND
00:21:15JUST THE 1% REDUCTION.
NUMBER TWO, IT IS NOT JUST ABOUT
00:21:22WHERE MONEY GOES.
IT IS ABOUT THE OVERALL POT.
00:21:31WHAT IS FASCINATING TO ME THAT
THIS YEAR, 2015, IS THE FIRST
00:21:33TIME IN 1997 EDUCATION SPENDING
AS A TOTAL SHARE OF THE BUDGET
00:21:42IS AT ITS LOWEST POINT SINCE
1997.
00:21:43THAT IS THE YEAR OF -- YOU HAVE
TO ALSO LOOK AT WHAT WE ARE
00:21:49DOING AS A STATE AND HOW WE
PRIORITIZING EDUCATION OVERALL.
00:21:54THE FUNDING INCREASES YOU TALKED
ABOUT OVERALL, THOSE FROM THE
00:21:57NEW BASELINE.
2010 AND 2011, THOSE FUNDING
00:21:59LEVELS IN THE 2016-2017
BUDGET ARE EQUIVALENT.
00:22:06/I THINK WE WILL SEE.
THE DISTRICT BY DISTRICT RUNS
00:22:13CAME OUT ABOUT AN HOUR AGO.
WE WILL HAVE TO SEE HOW IT
00:22:16SHAKES OUT.
WE CONTINUE THIS TREND OF
00:22:21DIVESTMENT IN PUBLIC EDUCATION
IN OHIO AND IF YOU WANT TO GROW
00:22:23THE ECONOMY -- I AGREE WITH MIKE
, OUR STUDENTS ARE THE MOST
00:22:27VALUABLE ASSETS.
IF WE MEAN THAT, WE SHOULD
00:22:30INVEST IN THEM.
INSTEAD OF AIMING FOR TAX CUTS
00:22:34THAT THIS PROPORTIONALLY BENEFIT
THOSE OF THE TOP, WE SHOULD
00:22:37REINVEST INVEST IN OUR SCHOOLS
AND OUR COMMUNITIES.
00:22:38>> "THE COLUMBUS DISPATCH" THIS
PAST WEEK -- ALL THE SCHOOL
00:22:43DISTRICT IN OHIO, $4.6 BILLION
IN THE BANK THEY ARE SITTING ON,
00:22:49AND GOOD FOR THEM, GOOD
MANAGEMENT.
00:22:52WHEN YOU HEAR THAT THE SCHOOL
DISTRICTS CRY POVERTY, "THE
00:22:57DISPATCH" DID THEIR OWN
ANALYSIS, $4.6 BILLION THEY ARE
00:22:58SITTING ON.
OHIO IS ONLY $1.5 BILLION IN THE
00:23:01ENTIRE STATE AND ALL BC EXCITED
SCHOOL DISTRICTS, $4.6 MILLION.
00:23:06THEY ARE NOT UNDERFUNDED.
THEY HAVE MONEY IN THE BANK.
00:23:09THAT IS A GOOD THING.
THEY CAN'T SAY THEY CAN'T TURN
00:23:15THE LIGHTS ON BECAUSE OF
GOVERNOR KASICH AND THE
00:23:16REPUBLICANS.
IT IS BALONEY GOOD EXCUSE MY
00:23:19LANGUAGE, BUT IT IS BALONEY.
THE THEME OF WE ARE JUST HELPING
00:23:21THE RICH, THAT IS AN ARGUMENT
THAT DOESN'T WORK BECAUSE WHEN
00:23:26YOU SEE WHAT THE GOVERNOR HAS
DONE FOR THE POOR IN OHIO AND
00:23:27WHEN HE TRIES TO DO WITH
SCHOOLS, YOU SHOULD STAND UP AND
00:23:30APPLAUD HIM.
>> US QUESTION TO YOU -- WE ARE
00:23:34RUNNING OUT OF TIME -- THIS
BUDGET IS A LOT BIGGER THAN
00:23:36PREVIOUS BUDGETS.
YOU HAVE THE PROPOSED SPENDING
00:23:40IN THE FIRST YEAR OF THE BUDGET
GOING UP 12.5% OVER THE PREVIOUS
00:23:42YEAR.
IN THE SECOND YEAR OF THE BUDGET
00:23:46IT IS 4.8% ABOVE SPENDING IN THE
FIRST YEAR OF THE BUDGET.
00:23:49FISCAL CONSERVATIVES SAY THAT IS
TOO MUCH GOVERNMENT SPENDING,
00:23:54AND KASICH IS NOT A FISCAL
CONSERVATIVE.
00:23:55>> DON'T THINK THE GOVERNOR
CARES WHAT POLITICAL LABELS ARE
00:23:59PUT ON HIM.
THAT IS DEMONSTRATED BY HIS BODY
00:24:00OF WORK.
WHAT HIS FRIENDS AT THE
00:24:02LEGISLATURE NEED TO REMEMBER IS
THAT IT IS NOT WE ARE INCREASING
00:24:05STATE FUNDING -- MEDICAID
EXPANSION.
00:24:11IT USED TO BE 9% INCREASE PER
YEAR OF MEDICAID EXPANSION.
00:24:13UNDER JOHN KASICH IT IS THE
PERCENT INCREASE.
00:24:14-- 3% INCREASE.
STILL AN INCREASE, BUT A LOT
00:24:19LESS.
WHATEVER YOU WANT TO CALL HIM,
00:24:22HE IS A LEADER AND DOING IT ON
GOOD JOB.
00:24:23>> THERE IS A LOT OF THINGS IN
THIS BUDGET THE PEOPLE ON YOUR
00:24:26SIDE OF THE AISLE HAVE TO BE
PRETTY HAPPY ABOUT.
00:24:28MEDICAID EXPANSION, SUPPORT FOR
PROGRAMS THAT HELP THEM IN ITALY
00:24:33L AND DRUG ADDICTED -- HELP THE
MENTALLY ILL AND DRUG ADDICTED,
00:24:37INCREASE IN THE PERSONAL TAX
EXEMPTION.
00:24:39SUBSIDIZED CHILD CARE FOR PEOPLE
AFTER THE HUNDRED PERCENT OF THE
00:24:45POVERTY LEVEL.
WHAT IS WRONG WITH SOME OF THESE
00:24:46IDEAS?
>> THOSE ARE PROGRAMMATIC THINGS
00:24:50THAT ARE GOOD.
THEY WILL LIKELY SEE BIPARTISAN
00:24:51SUPPORT.
THE MAIN ISSUE IN THE BUDGET,
00:24:54WHETHER IT IS THE TAX SHIFT OR
FUNDING OF EDUCATION, THOSE ARE
00:24:57THE REAL ISSUES THAT WILL HAPPEN
IMPACT ON POOR AND WORKING
00:24:59FAMILIES.
WHAT WE WILL SEE OVER THE COURSE
00:25:03OF THIS IS A LOT OF CHANGES.
ONE OF THE THINGS WE WILL BE
00:25:06LOOKING AT ALSO IS THE CHARTER
SCHOOL ACCOUNTABILITY PIECE THAT
00:25:09THE GOVERNOR -- WE THINK IT IS A
GOOD FIRST STEP.
00:25:13WHEN WE TALK ABOUT EDUCATION,
THE CHARTER SCHOOL COMMUNITY,
00:25:17THERE ARE SOME GREAT CHARTER
SCHOOLS, NO DOUBT ABOUT IT.
00:25:19BUT WE SPENT ABOUT 913 MILLION
DOLLARS, $915 MILLION TO CHARTER
00:25:23SCHOOLS.
ABOUT 53% OF THAT TOTAL SPENDING
00:25:26GOING TO CHARTER SCHOOLS WHO ARE
PERFORMING WORSE THAN THE PUBLIC
00:25:30SCHOOL DISTRICT.
THERE IS A LOT OF WORK TO BE
00:25:34DONE THERE TO MAKE SURE WE ARE
OPTIMIZING OUR EDUCATION SYSTEM.
00:25:36I AM GLAD THE GOVERNMENT TOOK A
FIRST STEP TO REIN IN SOME POOR
00:25:41PERFORMING CHARTER SCHOOLS AND I
LOOK FOR TO SEEING HOW THE
00:25:44DEBATE PLAYS OUT.
>> INTERESTING TO WATCH THE
00:25:45WHOLE BUDGET AS IT GOES TO THE
LEGISLATURE.
00:25:49THAT IS IT FOR THIS WEEK.
FOR MY COLLEAGUES AT OHIO PUBLIC
00:25:54RADIO AND TELEVISION, THANKS FOR
WATCHING.
00:25:55IF YOU WOULD LIKE TO ASK
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00:26:12ON "THE STATE OF OHIO."
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Note : Transcripts are compiled from uncorrected captions