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00:00:00>> SUPPORT FOR THE STATEWIDE
BROADCAST OF "THE STATE OF
00:00:04OHIO" COMES FROM LAW OFFICES OF
PORTER, WRIGHT, MORRIS & ARTHUR
00:00:07LLP., HELPING BUSINESSES AND
INDIVIDUALS SOLVE COMPLEX LEGAL
00:00:08PROBLEMS THROUGHOUT OHIO,
ACROSS THE COUNTRY AND AROUND
00:00:10THE WORLD -- ON THE WEB AT
PORTERWRIGHT.COM.
00:00:18AND FROM THE OHIO EDUCATION
ASSOCIATION, REPRESENTING
00:00:19121,000 TEACHERS, SUPPORT
PROFESSIONALS AND HIGHER
00:00:20EDUCATION FACULTY, COMMITTED TO
THE SUCCESS OF EVERY CHILD,
00:00:22ONLINE AT OHEA.ORG.
>> THE BUDGET UPDATE IS OUT
00:00:31WITH LOTS OF PROPOSED CHANGES
BUT NO MAJOR BOMBSHELLS.
00:00:34BUT IF IDEAS INCLUDING TAX CUTS
AND TAX HIKES HAVE BOTH
00:00:38SUPPORTERS AND CRITICS.
ONE OF EACH IS HERE TO OFFER
00:00:41THEIR VERY DIFFERENT TAKES ON
IT.
00:00:44ALL THIS WEEK IN "THE STATE OF
OHIO."
00:00:54>> ANOTHER BIG MILESTONE IN
THIS ELECTION YEAR PASSED THIS
00:00:58WEEK, AS REPUBLICAN GOVERNOR
JOHN KASICH UNVEILED HIS BUDGET
00:01:02UPDATE BILL WITH LOTS OF ITEMS
THAT SEEM READY-MADE TO NOTE TO
00:01:06VOTERS THIS FALL.
THE REVIEW OR M.B.R., WAS
00:01:11DROPPED WITHOUT ANY BIG
ANNOUNCEMENT OR PRESS
00:01:14CONFERENCE.
IT WAS JUST POSTED TO ITS OWN
00:01:15WEBSITE ON TUESDAY AFTERNOON.
IT'S DIVIDED UP SWOO FOUR
00:01:19AREAS, EDUCATION, TAX CUTS,
WORK FORCE DEVELOPMENT AND
00:01:23POVERTY-RELATED PROGRAMS.
IF KASICH HAD HINTED IN ALL OF
00:01:29THE PROPOSAL NECESSARY HIS
STATE OF THE STATE SPEECH LAST
00:01:32MONTH.
THE MAIN HIGHLIGHT IS AN ACROSS
00:01:34THE BOARD INCOME TAX CUT OF 8
1/2% DESIGNED TO BRING THE TOP
00:01:38TAX RATE DOWN TO BELOW 5%.
KASICH SAYS IF IT PASSES, THE
00:01:42TAX CUTS HE'S SEEN THROUGH THE
LEGISLATURE WHILE IN OFFICE
00:01:44WILL ADD UP TO A TOTAL OF 17.6%
FROM 2011 TILL NOW.
00:01:50THIS TAX CUT COMES COURTESY OF
TWO INCREASES IN EXISTING
00:01:54TAXES.
NOTABLY THEY ARE TWO TAXES THAT
00:01:57MOST VOTERS HAVE SAID IN POLLS
THEY HAVE NO REAL PROBLEM WITH
00:02:00BEING INCREASED.
ONE IS A HIKE IN THE SEVERANCE
00:02:04TAX TO 2% OF GROSS RECEIPTS ON
BIG OIL AND GAS DRILLERS.
00:02:08THAT'S UP FROM THE EXISTING
SEVERANCE TAX OF LESS THAN 1%
00:02:12NOW AND A JUMP IN THE UP TO 2%
INCREASE THAT HOUSE REPUBLICANS
00:02:17ARE ALSO LOOKING AT.
THAT'S BEEN DESCRIBED BY KASICH
00:02:20AS PUNY, AND HE HAS THREATENED
TO VETO THAT IF IT PASSES.
00:02:25CONSERVATIVES HAVE LONG SAID
THEY'RE VERY CONCERNED THAT A
00:02:28SEVERANCE TAX INCREASE COULD
DRIVE THE GROWING OIL AND GAS
00:02:31INDUSTRY AWAY FROM OHIO.
BUT KASICH'S OFFICE SAYS EVEN
00:02:35RAISING IT TO 2 3/4% WILL STILL
MAKE OHIO'S SEVERANCE TAX ONE
00:02:40OF THE LOWEST IN THE COUNTRY.
THE M.B.R. WOULD ALSO DIRECT
00:02:4320% OF SEVERANCE TAX REVENUES
BACK TO LOCAL COMMUNITIES WHERE
00:02:46THE FRACKING IS HAPPENING.
THE OTHER PROPOSAL IS A 60-CENT
00:02:51JUMP IN THE PER PACK CIGARETTE
TAX FROM $1.25 TO $1.85.
00:02:57THAT'S A 48% INCREASE IN WHAT
IS ALREADY THE THIRD LARGEST
00:03:00SOURCE OF STATE INCOME.
AND IT'S A TAX INCREASE THAT
00:03:03ANTI-SMOKING AND PUBLIC HEALTH
ACTIVISTS HAVE BEEN CALLING FOR
00:03:06FOR YEARS, NOTING THAT ONE IN
FOUR OHIOANS OR ALMOST TWO
00:03:11MILLION PEOPLE SMOKE.
THAT INCLUDES ONE IN FIVE HIGH
00:03:13SCHOOL STUDENTS.
AND IT'S ESTIMATED THAT NEARLY
00:03:1612,000 TEENS WILL START SMOKING
THIS YEAR.
00:03:22AMONG THE ADVOCATES WHO HELD A
PRESS CONFERENCE AT THE
00:03:25STATEHOUSE THIS WEEK TO SHOW
SUPPORT FOR THE CIGARETTE TAX.
00:03:29>> I THINK IT WILL HAVE AN
IMPACT.
00:03:31RESEARCH SUPPORTS THAT.
IT ALSO SUPPORTS IT WILL HELP
00:03:34PEOPLE QUIT AND IT WILL HELP
PEOPLE NOT START.
00:03:37>> THE TAX WOULD ALSO BE
EXTENDED TO CIGARS, SMOKELESS
00:03:40TOBACCO AND ELECTRONIC
CIGARETTES.
00:03:42BUT THE REPUBLICAN-DOMINATED
LEGISLATURE HAS NOT BEEN VERY
00:03:46SUPPORTIVE OF TAX INCREASES,
EVEN THOSE THAT MIGHT BE OK
00:03:49WITH THE PUBLIC.
ADVOCATES FOR LOW-INCOME
00:03:53OHIOANS HAVE BEEN VERY CAUTIOUS
ABOUT THIS CIGARETTE TAX
00:03:56PROPOSAL.
THEY SAID THAT HEALTH RISKS FOR
00:03:58SMOKERS ARE SO COSTLY THAT NO
ONE SHOULD SMOKE, POOR OR
00:04:02WEALTHY.
BUT MOST OF OHIO SMOKERS ARE
00:04:05LOW INCOME, SO THIS TAX
INCREASE HITS THEM VERY HARD.
00:04:09PHIL COLE IS WITH THE OHIO
ASSOCIATION OF COMMUNITY ACTION
00:04:12AGENCIES.
>> PEOPLE WITH LOWER INCOMES
00:04:15HAVE THE ABILITY TO MAKE THE
DECISION TO STOP SMOKING, JUST
00:04:18LIKE PEOPLE WITH HIGHER INCOMES
CAN MAKE THAT DECISION.
00:04:21DO NOT SELL PEOPLE SHORT
BECAUSE THEY HAVE LESS MONEY
00:04:23THAN YOU.
IF THIS TAX IS AN INCENTIVE TO
00:04:27HELP SOME OF THEM QUIT, THEN
IT'S A GOOD THING FOR THEM,
00:04:30IT'S A GOOD THING FOR OHIO.
>> THE M.B.R. DOES INCLUDE
00:04:35$26.9 MILLION IN NEW TOBACCO
SETTLEMENT MONEY OVER FIVE
00:04:39YEARS FOR TOBACCO USE CESSATION
PROGRAMS.
00:04:42ACTIVISTS HAD HOPED FOR AS MUCH
AS $50 MILLION, SAYING THAT
00:04:45ZEROING OUT THE STATE OWE
TOBACCO CESSATION EFFORTS IN
00:04:502009 LED TO OHIO BECOMING ONE
OF THE FEW STATES THAT HAS SEEN
00:04:53INCREASED TOBACCO USE SINCE
THEN.
00:04:56ON THE SUBJECT OF LOW-INCOME
OHIOANS, THE M.B.R. ALSO
00:04:59INCLUDES SEVERAL TAX FORM ITEMS
THAT ARE TARGETED TOWARD THEM.
00:05:03IT TRIPLES THE NONREFUNDABLE
EARNED INCOME TAX CREDIT FROM
00:05:075% OF THE FEDERAL CREDIT TO
15%, WHICH IS AN AVERAGE
00:05:11BENEFIT OF $84 FOR 475,000
OHIOANS.
00:05:16AND IT INCLUDES AN INCREASE IN
THE PERSONAL DEDUCTION OF
00:05:20$1,700 THAT ALL TAXPAYERS GET,
THE $2,200 FOR FAMILIES WITH
00:05:25INCOMES OF LESS THAN $80,000 A
YEAR AND TO $2,700 FOR FAMILIES
00:05:29WITH INCOMES UNDER $40,000.
KASICH HAS TAKEN A LOT OF HEAT
00:05:34FOR TAX CUTS THAT SOME STUDIES
SHOW BENEFIT THE WEALTHY IN
00:05:37OHIO MORE THAN THE POOR.
AND BY SAYING THAT HE WANTED TO
00:05:40LOWER THE TOP TAX RATE TO BELOW
5%, HE SEEMED TO BE INVITING
00:05:45MORE CRITICISM.
BUT EVERYONE BENEFITS WITH THE
00:05:47M.B.R.'S TAX CHANGES, ACCORDING
TO THE GOVERNOR'S OFFICE.
00:05:50HE SAYS A SINGLE MOM MAKING
$30,000 A YEAR WOULD SEE A DROP
00:05:55OF NEARLY $359 OR MORE THAN 66%
IN HER TAXES.
00:06:00BUT DEMOCRATIC CRITICS SAY IN
THIS EXAMPLE WORKING FAMILIES
00:06:05ARE GETTING LESS OF A BENEFIT
FROM THE TAX CUTS THAN
00:06:08INDIVIDUALS WOULD.
AND THE PROGRESSIVE-LEANING
00:06:11POLICY SMATTERS OHIO SAID LAST
MONTH THAT GETTING THE INCOME
00:06:14TAX TO UNDER 5% WOULD MEAN AN
AVERAGE OF $2,500 FOR THE TOP
00:06:191% OF OHIO INCOME EARNERS,
PEOPLE MAKING OVER $360,000 A
00:06:24YEAR, BUT ONLY ABOUT $2 FOR THE
BOTTOM 20% WHO EARN LESS THAN
00:06:30$19,000 ANNUALLY.
THE M.B.R. ALSO SUGGESTS A NEW
00:06:34HUMAN SERVICES INNOVATION
OFFICE WITHIN THE JOB AND
00:06:37FAMILY SERVICES STATE AGENCY,
WHICH AT LEAST ONE ACTIVIST
00:06:41SAYS SHE HOPES CAN STREAMLINE
THE PROCESS OF LINKING PEOPLE
00:06:45WHO NEED FOOD, HOUSING AND
OTHER ASSISTANCE WITH WAYS TO
00:06:48GET IT.
TO WORK WITH SOME OF THE STATE
00:06:51OWE POOREST OHIOANS SAY ALL
THESE CHANGES DO NOT MAKE UP
00:06:55FOR THE HUNDREDS OF MILLIONS OF
DOLLARS IN CUTS IN FOOD STAMPS
00:06:57AND CASH ASSISTANCE DURING
KASICH'S TIME IN OFFICE.
00:07:00THE M.B.R. ALSO INCREASES BY A
TINY BIT A TAX THAT MANY PEOPLE
00:07:05NEVER NOTICE, THE COMMERCIAL
ACTIVITIES TAX, WHICH WAS
00:07:09CREATED IN 2005 TO REPLACE AN
INVENTORY TAX.
00:07:13IT WOULD GO FROM .26% TO .3%
WHICH THE GOVERNOR'S OFFICE
00:07:18DESCRIBES AS AN UPDATE.
BUT CRITICS SAY THIS COULD END
00:07:21UP BEING A BIG BONE OF
CONTENTION FOR BUSINESSES.
00:07:23OTHER HIGHLIGHTS AT THE M.B.R.
INCLUDE $10 MILLION FROM CASINO
00:07:29LICENSING FEES FOR COMMUNITY
CONNECTORS, AN AT-RISK HIGH
00:07:33SCHOOL MENTORING PROGRAM THE
GOVERNOR MENTIONED IN THE STATE
00:07:36OF THE STATE SPEECH, $6.5
MILLION FOR SUBSTANCE ABUSE
00:07:40PREVENTION PROGRAMS FOR KIDS,
BRINGING TOGETHER THE THREE
00:07:43MAIN FEDERAL WORK FORCE
DEVELOPMENT PROGRAMS INTO A
00:07:47SINGLE PROGRAM, FREE PROGRAM
FOR VOLUNTEERS WHO WANT TO WORK
00:07:49WITH PEOPLE WITH AUTISM, MAKING
VOCATIONAL EDUCATION AVAILABLE
00:07:53TO KIDS AS EARLY AS SEVENTH
GRADE, A LIAISON TO KEEP MORE
00:07:57INTERNATIONAL GRADUATES IN
OHIO, GUARANTEED TUITION RATES
00:08:01AT COMMUNITY COLLEGES, AND
GRANTING MILITARY VETERANS
00:08:05COLLEGE CREDIT FOR THEIR
TRAINING AND EXPERIENCE.
00:08:07AND A COUPLE OF OTHER NOTES OF
INTEREST AS HIGHLIGHTED BY THE
00:08:12INTREPID REPORTERS WHO WENT
THROUGH THE MORE THAN 1,600
00:08:16PAGES THAT COMPRISE THE M.B.R.
CHANGES TO MAKE SURE LOTTERY
00:08:20WINNERS DON'T SKIP OUT ON CHILD
SUPPORT, INCREASES IN AMUSEMENT
00:08:24RIDE SNPPINGS FEES, PERMISSION
FOR THE STATE TO SELL AND NOT
00:08:28JUST AUCTION EXCESS STOCKS, A
NONRESIDENT DEER HUNTING PERMIT
00:08:34THAT'S $76 MORE THAN A RESIDENT
PERMIT, AND THE REQUIREMENT
00:08:37THAT TATTOO PARLORS ENSURE
EQUIPMENT IS DISINVENTED AND
00:08:44STERILIZED.
THE M.B.R. WAS UNVEILED WITHOUT
00:08:46CEREMONY AND WITH NO OFFICIAL
ROLLOUT.
00:08:49THE KASICH ADMINISTRATION SAID
ANYONE WHO WANTED TO KNOW MORE
00:08:51ABOUT THE M.B.R. WOULD BE ABLE
TO HEAR ALL ABOUT IT ON
00:08:54WEDNESDAY AS THE BUDGE IT
DIRECTOR TESTIFIED BEFORE THE
00:08:58HOUSE WAYS AND MEANS COMMITTEE.
>> THE BILL INCLUDES NUMEROUS
00:09:01FUNDING CHANGES, REFORMS AND
IMPROVEMENTS THAT ARE INTENDED
00:09:04TO FURTHER ADVANCE GOVERNOR
KASICH'S AGENDA FOR RENEWAL FOR
00:09:08THE STATE OF OHIO.
IT RESTRAINS THE GROWTH OF
00:09:10STATE SPENDING, TO IMPROVE
SERVICES FOR TAXPAYERS, AND TO
00:09:14ENHANCE THE CLIMATE OF ECONOMIC
COMPETITIVENESS AND JOB GROWTH
00:09:17IN THIS STATE.
>> OTHERS WHO SPOKE BEFORE THE
00:09:20COMMITTEE INCLUDING THE TAX
COMMISSIONER, JOE TESTA, THE
00:09:24STATE SCHOOLS SPINNED AND THE
BOARD OF REGENTS CHANCELLOR.
00:09:27BUT THE GOVERNOR DID DO A FEW
INTERVIEWS THIS WEEK, ONE WITH
00:09:31FORMER OHIO PUBLIC TELEVISION
CORRESPONDENT WHO IS NOW AT
00:09:35WHIO IN DAYTON.
KASICH SAID HE USED TO BE A
00:09:38SMOKER AND THAT QUITTING WAS
ONE OF THE BEST THINGS HE EVER
00:09:41DID AND THAT HE FEELS VERY
STRONGLY THAT TAX REFORM NEEDS
00:09:45TO CONTINUE BECAUSE HE SAYS IT
BENEFITS EVERYONE.
00:09:47>> LOOK, OHIO HAS LOST OVER $12
BILLION OF PEOPLE LEAVING OUR
00:09:53STATE GOING TO STATES WITH
LOWER INCOME TAXES.
00:09:56THAT DOESN'T HELP ANY OF US.
WE LOSE MONEY.
00:09:58WE LOSE OUR BRAIN POWER IN SOME
CASES, WE'RE LOSING PEOPLE WE
00:10:02DON'T WANT TO LOSE.
SO, YOU KNOW, AS YOU GO TO
00:10:05REDUCE TAXES, TAX REFORM IS
PART OF WHAT YOU HAVE TO DO TO
00:10:08GET THIS DONE.
I MEAN, YOU'RE NOT GOING TO GO
00:10:11IN AND CHOP THE SCHOOLS AND
YOU'RE NOT GOING TO GO IN AND
00:10:13HURT THE PEOPLE WHO ARE
MENTALLY ILL.
00:10:15I DON'T THINK IT'S UNREASONABLE
TO ASK PEOPLE WHO SMOKE TO PAY
00:10:18A LITTLE BIT MORE.
>> KASICH'S FIRST M.B.R. IN
00:10:212012 DID NOT GO OVER TOO WELL
WITH LAWMAKERS, LARGELY BECAUSE
00:10:24OF HIS SEVERANCE TAX PROPOSAL.
IT WAS IMMEDIATELY STRIPPED
00:10:27OUT.
AND SOME REPUBLICAN LEGISLATORS
00:10:30EXPRESSED FRUSTRATION THAT THEY
HADN'T KNOWN IT WAS COMING.
00:10:33KASICH TOLD WHIO THAT HE
APPROACHED THE M.B.R. AND
00:10:37LAWMAKERS DIFFERENTLY THIS
TIME.
00:10:39>> BEFORE, THE LEGISLATURE
NEVER HAD A BUDGET THAT CAME
00:10:43SORT OF EVERY YEAR.
BUT MY SENSE IS WE GOT A LOT TO
00:10:46DO, SO LET'S JUST KEEP AT IT
YEAR AFTER YEAR AFTER YEAR AND
00:10:50I THINK THIS YEAR THE
LEGISLATURE, THEY'RE A LITTLE
00:10:53BIT MORE BRIEFED AND -- I MEAN,
THEY'VE BEEN TALKED TO A LITTLE
00:10:57BIT MORE AND THEY UNDERSTAND
MORE OF THE DETAILS AND THEY'VE
00:11:01COME TO EXAMINE THIS.
AND AS LONG AS THEY'RE NOT
00:11:03TAKEN BY SURPRISE, THEY'RE
WILLING TO DO WHAT THEY CAN DO.
00:11:06HOW MUCH OF IT GETS DONE THIS
YEAR, I DON'T KNOW BECAUSE IS
00:11:09IT A VERY SIGNIFICANT PACKAGE.
>> TO TALK ABOUT THE POLICY AND
00:11:12POLITICAL IMPLICATIONS OF THE
ITEMS IN THIS M.B.R., WE
00:11:15WELCOME TWO GUESTS WHO HAVE
BEEN WATCHING THIS ROLLOUT FROM
00:11:17THEIR VIEWPOINTS.
THE PRESIDENT OF OHIO RIGHT TO
00:11:24LIFE.
HE'S ALSO A REPUBLICAN ANALYST.
00:11:28KER THE CHIEF OF STAFF FOR THE
OHIO HOUSE DEMOCRATS.
00:11:31SO LET ME START WITH YOU, MIKE,
IN THIS M.B.R., $2.6 BILLION IN
00:11:37TAX CUTS, $2.4 BILLION IN TAX
INCREASES.
00:11:40THAT MAKES AN OVERALL TAX
REDUCTION OF $174 MILLION OVER
00:11:44THREE YEARS.
THAT DOESN'T SEEM LIKE MUCH.
00:11:46>> WELL, IT IS.
IT'S A LOT TO THE SINGLE MOM
00:11:49WHO'S MAKING $30,000 A YEAR.
SHE'S GOING SEE A 6 % DECREASE
00:11:52IN HER INCOME TAXES.
SO I THINK YOU TAKE IT ON A
00:11:56CASE-BY-CASE BASIS.
THE "CLEVELAND PLAIN DEALER"
00:12:00SAID KASICH PROPOSES INCOME TAX
FOR ALL OF US.
00:12:03IT'S NOT FOR THE RICH, BUT FOR
EVERYBODY.
00:12:06SO WHAT WE'RE SEEING HERE IS A
COMPASSIONATE WAY TO CONTINUE
00:12:08THIS ECONOMIC EDGE AND THAT THE
GOVERNOR HAS STARRED FOR YEARS
00:12:12AGO.
WE'RE GOING SEE A LOT OF GREAT
00:12:15CONTINUAL ADVANCEMENTS.
WE HAVE 238,000 NEW JOBS.
00:12:17AND THIS M.B.R. TAKES A LOOK
BACK.
00:12:20WHAT DID WE DO LAST YEAR?
IT'S AN ELECTION YEAR, HE COULD
00:12:23HAVE COASTED, BUT HE DIDN'T.
>> SO, LET ME ASK YOU ABOUT
00:12:26WHAT MIKE WAS JUST TALKING
ABOUT, THAT SINGLE MOTHER
00:12:29MAKING $30,000 A YEAR WOULD SEE
HER TAX LIABILITY GO DOWN BY
00:12:34$358.79.
THAT SOUNDS LIKE SOME PRETTY
00:12:37GOOD TO A LOT OF PEOPLE.
AN 8 1/2% INCOME TAX CUT.
00:12:41>> EXCEPT FOR THE FACT THAT THE
INCOME TAX DISPROPORTIONATELY
00:12:45ADVANTAGES THOSE AT THE TOP
INCOME BRACKETS AND WHAT WE'VE
00:12:48SEEN, WHAT WE'VE SEEN OVER THE
LAST FOUR YEARS IS A TAX SHIFT.
00:12:51ONE IN WHICH WE RAISE TAXES
THROUGH THE SALES TAX AND
00:12:56PROPERTY TAXES TO PAY FOR AND
UNDERWRITE AN INCOME TAX THAT
00:13:02DISPROPORTIONATELY BENEFITS THE
WEALTHY.
00:13:03I THINK OUR FOLKS ARE ADVANTAGE
TO DIG INTO THIS M.B.R.
00:13:06I THINK WE'RE GOING TO APPROACH
IT WITH AN OPEN MIND, BUT I
00:13:08THINK THERE'S SOME REAL
RESERVATIONS ABOUT A CONTINUOUS
00:13:13TAX SHIFT THAT BURDENS THE
MIDDLE CLASS AND BENEFITS THE
00:13:16WELTEDY.
THE OTHER THING I THINK OUR
00:13:19FOLKS ARE GOING TO BE CONCERNED
ABOUT AS WE GET INTO THIS
00:13:22DISCUSSION, OVER THE LAST SIX
YEARS IN OHIO -- EIGHT YEARS,
00:13:25EXCUSE ME, SIX CONSECUTIVE
INCOME TAX CUTS.
00:13:28AND WHAT HAS IT PRODUCED?
IT'S PRODUCED AN ECONOMIC
00:13:32SITUATION IN OHIO IN WHICH WE
ARE NOW OVER THE LAST 13 MONTHS
00:13:3645TH IN JOB CREATION IN THE
COUNTRY.
00:13:37OUR UNEMPLOYMENT IS NOW HIGHER
THAN THE NATIONAL AVERAGE.
00:13:40AND, IN FACT, LAST JANUARY,
JANUARY OF 2013, OUR
00:13:45UNEMPLOYMENT RATE WAS RIGHT
AROUND 7%.
00:13:47SO WE HAVEN'T GROWN.
IN FACT, WE'RE ONE OF FOUR
00:13:50STATES IN THE COUNTRY WHOSE
ECONOMY HAS NOT GROWN OVER THE
00:13:54LAST YEAR.
SO YOU KNOW, WE'VE HAD TAX CUTS
00:13:59MANY TIMES OVER THE LAST EIGHT
YEARS.
00:14:01THEY HAVEN'T PRODUCED, AND TO
ME, IT JUST SEEMS LIKE, AND I
00:14:03THINK SOME OF OUR MEMBERS ARE
SAYING TO THEMSELVES, WE'RE
00:14:06GOING IN THE WRONG DIRECTION.
BUT WE'RE DOING THE SAME THING.
00:14:08AND I THINK THERE'S GOING TO BE
REAL CONCERN ABOUT THAT.
00:14:11>> I WANT TO ASK BUT THAT,
MIKE.
00:14:12THE GOVERNOR HAS BEEN SAYING
THAT IT APPEARS WHAT WE'RE
00:14:15DOING IS WORKING, SO WHY NOT
CONTINUE DOING WHAT WE'RE
00:14:18DOING?
BUT WHAT KERRY JUST SAID AND
00:14:19WHAT OTHER GROUPS HAVE SAID, WE
STILL HAVE NEARLY 400,000
00:14:22PEOPLE OUT OF WORK.
THE UNEMPLOYMENT RATE LAST YEAR
00:14:25WAS ABOVE 7%.
IT'S DOWN TO 6.9%.
00:14:30>> SURE, IF YOU ASK THE AVERAGE
OHIOAN IF THEY'RE BETTER OFF,
00:14:36THEY'RE GOING TO TELL YOU
THEY'RE BETTER OFF.
00:14:39BUT THE SIMPLE FACT OF THE
MATTER IS THE FOOD BANKS CAME
00:14:44OUT WITH A PRESS RELEASE THIS
WEEK.
00:14:46I WANT TO APPLAUD THE GOVERNOR
FOR THE PROPOSALS THAT ARE
00:14:49GOING TO HELP VULNERABLE
PEOPLE.
00:14:52NO ONE IS SPIKING THE FOOTBALL
AND SAYING WE'RE PERFECT IN
00:14:54OHIO.
WE ARE BETTER OFF THAN MOST
00:14:56STATES.
WHEN WE CONTINUE TO WORK WITH
00:14:57DEMOCRATS AND REPUBLICANS
ACROSS THE AISLE AND BRING
00:14:59THESE PACKAGES TOGETHER THAT
WILL HELP, WHETHER IT BE AN
00:15:02ADDICTED PERSON TO DRUGS OR
MENTAL ILLNESS OR WHATEVER THE
00:15:04CASE MAY BE LOWER OUR TAX
BURDEN AND CONTINUE TO CREATE
00:15:07JOBS.
THIS DOOM AND GLOOM STORY LINE
00:15:10HERE ISN'T WORKING.
IT'S GOING TO TAKE A LOT OF
00:15:13WORK TO CONVINCE OHIOANS THAT A
BOOGYMAN EXIST WHEN IT DOESN'T.
00:15:19ARE WE PERFECT?
NO.
00:15:21BUT WE'RE MUCH BETTER OFF TODAY
THAN BEFORE.
00:15:23>> KERRY, I WANT TO ASK YOU
ABOUT THESE TWO TAXES IN
00:15:25PARTICULAR.
WHEN YOU TALK TO AVERAGE
00:15:27OHIOANS, MANY OF THEM WOULD
PROBABLY SAY, I'M OK WITH THE
00:15:30CIGARETTE TAX GOING UP.
I'M OK WITH BIG OIL AND GAS
00:15:34DRILLERS PAYING MORE SO THAT I
CAN GET AN INCOME TAX CUT.
00:15:37>> SURE, BUT I THINK THEY WON'T
SAY I'M NOT OK WITH A 5.% SALES
00:15:47INCREASE.
THAT HAPPENED IN THE LAST BUNL
00:15:49ET.
JUST OVER THE HOLIDAY SEASON
00:15:50ALONE, IT COST OHIOANS $62
MILLION MORE BECAUSE OF THAT
00:15:56SALES TAX INCREASE.
SO I AGREE WITH YOU.
00:15:57AND A DEGREE WITH THE AVERAGE
OHIOAN WHO MIGHT SAY THAT.
00:15:59BUT INSTEAD OF REPEALING A 4.5%
INCREASE IN THE SALES TAX,
00:16:04INSTEAD OF REVISITING SOME OF
THE PROVISIONS THAT WILL
00:16:07INCREASE PROPERTY TAXES FOR
HOMEOWNERS, WE'RE CONTINUING
00:16:10THIS TREND OF, YOU KNOW, THIS
TAX SHIFT.
00:16:12I MEAN, THE FACT OF THE MATTER
IS IF A CIGARETTE TAX GOES TO
00:16:16HELP CESSATION PROGRAMS, IF IT
GOES TO HELP SERVE AS A
00:16:20DETERRENT FOR SMOKING, I THINK
THAT'S A GOOD THING.
00:16:22I THINK OUR MEMBERS WOULD YOU
SUPPORTIVE OF THAT.
00:16:25BUT I THINK WHEN IT'S BEING
DONE TO PAY FOR AN INCOME TAX
00:16:28THAT DISPROPORTIONATELY
BENEFITS THE WEALTHY, THAT'S
00:16:32WHERE I THINK PEOPLE ARE
SCRATCHING THEIR HEADS A LITTLE
00:16:33BIT AND ARE SAYING WHY ARE WE
NOT VISITING SOME OF THESE TAX
00:16:37INCREASES FROM THE PREVIOUS
BUDGET INSTEAD OF SHIFTING THE
00:16:39BURDEN TO WORKING FAMILIES?
>> I WANT TO TALK ABOUT THAT,
00:16:42THAT WHOLE IDEA OF SHIFTING TO
A SALES TAX MORE AWAY FROM
00:16:46INCOME TAXES TOWARDS SALES
TAXES.
00:16:48GOVERNOR KASICH HAS SAID HE'S
WANTING TO DO THAT, HE FEELS
00:16:51IT'S MORE FAIR, WILL SPUR
ECONOMIC GROWTH.
00:16:53BUT A LOT OF PEOPLE WILL SAY I
DON'T FEEL THAT'S FAIR TO ME.
00:16:57AND YOU MENTIONED LOCAL
COMMUNITIES ARE DOING WELL.
00:16:58A LOT OF PEOPLE ARE SAYING
THEY'RE SEEING MORE LEVIES AND
00:17:01MORE LOCAL QUESTIONS FOR MONEY.
>> THAT'S A GREAT POINT.
00:17:06I'M GLAD YOU BROUGHT THAT UP.
HERE'S A 10-YEAR HISTORY OF
00:17:10LOCAL BALLOT INITIATIVES.
WE'RE LOWER TODAY IN THE LEVIES
00:17:13AS IT RELATES TO LOCAL PROPERTY
TAXES THAN IN 2010 WITH
00:17:18GOVERNOR STRICKLAND.
THERE WAS 1,500 IN 2013.
00:17:24THERE'S LESS LEVIES ON THE
BALLOT TODAY.
00:17:26THERE'S A NARRATIVE OUT THERE
BY THE OPPOSITION PARTY AND
00:17:28THAT'S WHAT THE OPPOSITION
PARTY IS TO DO IS TO OPPOSE, I
00:17:31APPRECIATE THAT.
BUT THE FACTS AND THE REALITY
00:17:33ARE THAT OHIO'S MUCH BETTER OFF
TODAY.
00:17:36LOCAL GOVERNMENTS ARE BETTER
OFF.
00:17:37THEY'RE FLUSH WITH FUNDS, SOME
MORE THAN OTHERS, OF COURSE,
00:17:40BUT KERRY, I APPRECIATE YOUR
SUPPORT FOR THE SMOKING TAX.
00:17:44I THINK THE DISPATCH
EDITORIALIZED THAT THE MORE YOU
00:17:52INCREASE TAXES ON CIGARETTES
THE LESS PEOPLE SMOKE.
00:17:55WE'RE GOING TO HAVE MORE
HEALTHY OHIOANS.
00:17:57WE'VE GOT TO FIND THESE WAYS TO
CUT OUR TAXES BUT THEN ALSO THE
00:18:01OIL AND GAS TAXES.
IT'S A RESPONSIBLE TAX TO ASK
00:18:03OUR BUSINESS COMMUNITY THAT'S
MAKING A TREMENDOUS AMOUNT OF
00:18:07MONEY OFF OF THIS FRACKING TO
HELP PITCH IN AND HELP THE
00:18:10GREAT STATE OF OHIO.
THESE ARE COMMON SENSE
00:18:12SOLUTIONS.
>> SO HOW ARE DEMOCRATS GOING
00:18:14TO CAMPAIGN AGAINST THE
GOVERNOR AND THE REPUBLICAN
00:18:17LAWMAKERS WHO ARE LIKELY TO GO
ALONG WITH I THINK AT LEAST
00:18:20SOME OF THIS?
THIS IS A GOVERNOR WHO CUT A
00:18:22LOT OF TAXES, WHO IS INCREASING
TAXES ON THINGS THEY DON'T HAVE
00:18:26A PROBLEM WITH TAXES BEING
INCREASED ON.
00:18:28>> WELL, I MEAN, I THINK YOU
CAN'T LOOK AT THESE AS
00:18:30INDIVIDUALS PIECES AND PARTS
BECAUSE THEY'RE NOT INDIVIDUAL
00:18:32PIECES AND PARTS.
THESE TAX INCREASES ARE GOING
00:18:35TO UNDERWRITE A TAX CUT THAT
FAVORS THE WEALTHY.
00:18:38I MEAN, PLAIN AND SIMPLE.
AND WE HAVE DONE THAT SIX OUT
00:18:42OF THE LAST EIGHT YEARS AND IT
HAS NOT CREATED THE ECONOMIC
00:18:46PANACEA THAT FOLKS LIKE TO
SUGGEST.
00:18:48I THINK THAT WHEN YOU LOOK AT
THE CIGARETTE TAX INCREASE
00:18:51COMBINED WITH THE SALES TAX
INCREASE FROM THE LAST BUDGET,
00:18:54COMBINED WITH THE 12 1/2%
PROPERTY TAX INCREASE ON NEW
00:18:59LEVIES AND THE HOMESTEAD
EXEMPTION CHANGES, YOU'RE
00:19:03TALKING ABOUT A RATEDS OF TAX
INCREASES THAT AFFECT WORKING
00:19:07OHIOANS.
ALL TO PAY FOR AN INCOME TAX
00:19:09CUTS THAT BENEFITS THE WEALTHY.
THERE'S GOING TO BE PLENTY TO
00:19:12TALK B THE SEVERANCE TAX IS
ANOTHER PIECE WE HAVEN'T GOTTEN
00:19:14TO YET AND I THINK THERE'S BEEN
SOME SUPPORT FOR THAT
00:19:18GENERALLY.
BUT I THINK WHAT OUR FOLKS ARE
00:19:20GOING TO BE CONCERNED ABOUT IS
80% OF THAT SEVERANCE TAX
00:19:23INCREASE INSTEAD OF GOING TO
THE COMMUNITIES THAT ARE GOING
00:19:26TO BE MOST HARD HIT BY THIS NEW
INFLUX OF INDUSTRY TO PROTECT
00:19:30THEIR ROADS, TO MAKE SURE THEIR
DRINKING WATER IS SAFE, TO MAKE
00:19:33SURE THERE'S NOT EARTHQUAKES AS
A RESULT OF SOME OF THESE
00:19:36THINGS, 80% OF THAT INCREASE IN
THE SEVERANCE TAX IS GOING TO
00:19:40PAY FOR THIS TAX -- THIS INCOME
TAX CUT THAT BENEFITS THE
00:19:45WEALTHY.
SO I THINK YOU CAN'T LOOK AT
00:19:47THE INDIVIDUAL PIECES AND PARTS
BECAUSE THAT'S NOT HOW IT'S
00:19:49PRESENTED, AND THAT'S NOT WHAT
IT'S GOING TO DO.
00:19:54THESE TAX CHANGES ARE GOING FOR
AN INCOME TAX THAT BENEFITS THE
00:19:57WEALTHY.
>> AND THAT GETS BACK TO A LOT
00:19:59OF CRITICISM ABOUT WHETHER TAX
CUTS DO CREATE JOBS.
00:20:02AND WE HEARD THIS IN THE LAST
BUDGET.
00:20:0550% INCOME TAX CUT FOR SMALL
BUSINESSES, FOR SOME BUSINESSES
00:20:08IT WASN'T ENOUGH TO EVEN CREATE
ONE JOB.
00:20:09POLICY MATTERS OHIO HAS DONE
SOME RESEARCH SAYING THE
00:20:13AVERAGE TOP 1% WHO MAKES ABOUT
$1 MILLION WOULD GET ABOUT
00:20:18$2,500 IN TAX BREAKS.
BUT THE AVERAGE BOTTOM 20% WHO
00:20:22MAKES LESS THAN $19,000 A YEAR
WOULD ONLY GET ABOUT $2.
00:20:25>> LET'S KEEP IN MIND, THE
LIBERAL GROUP POLICY MATTERS
00:20:30PRAISED THE JOBS REPORT THAT
CAME OUT.
00:20:33AND 238,000 NEW JOBS.
BUT LET'S PUT THE RHETORIC
00:20:38ASIDE OF CLASS WARFARE.
UNDER THIS M.B.R. A SINGLE
00:20:42MOTHER WITH ONE CHILD WHO MAKES
$30,000 WILL GET A 66.4% TAX
00:20:46CUT.
PERIOD.
00:20:47IT'S ALL VERIFIABLE IN THE
M.B.R.
00:20:49A MARRIED COUPLE WITH TWO OR
MORE CHILDREN, LET'S SAY THEY
00:20:52MAKE $250,000, THEY'RE ONLY
GOING TO GET AN 18% TAX CUT.
00:20:5666% VERSUS 18%.
IF YOU AND I WENT TO MAX AND
00:21:01YOU GOT A BOWL OF SOUP FOR $5
AND I TOOK MY WIFE AND MY KIDS
00:21:05AND WE SPENT $40.
AND THEY SAID EVERYONE GETS 10%
00:21:08OFF.
ON YOUR $5 BOWL OF SOUP, YOU'RE
00:21:11GOING TO GET 50 CENTS.
ON MY $40 BILL I'M GOING TO GET
00:21:16$4.
BUT I SPENT MORE.
00:21:18OF COURSE, THERE'S GOING TO BE
A DIFFERENCE.
00:21:19BUT THAT'S NOT A CLASS WARFARE
EXAMPLE.
00:21:23THAT'S ONE SIDE PAYS MORE
WHETHER IT BE A BILL OR YOUR
00:21:25TAXES.
IF YOU MAKE LESS THAN $10,000 A
00:21:27YEAR IN OHIO, YOU DON'T PAY
TAXES.
00:21:29SO THAT'S JUST A FACT.
SO TO SAY THAT THIS HURTS THE
00:21:32POOR IS JUST A MISNOMER.
>> YOU MENTIONED --
00:21:35>> I WOULD JUST SAY ONE THING.
JUST TO USE THAT EXAMPLE.
00:21:37IF YOU'RE A FAMILY MAKING
$50,000 A YEAR AND I HAVE TO
00:21:41BUY A WASHER FOR $800.
THAT HAS A DIFFERENT IMPACT.
00:21:46THE 4.5% SALES INCREASE, THAT
HAS A VERY DIFFERENT INCREASE
00:21:50IF YOU'RE MAKING $50,000 AND
HAVE TO BUY A WASHER AND DRYER
00:21:54AS OPPOSED TO IF YOU'RE MAKING
$250,000 AND YOU HAVE TO BUY
00:21:58THAT WASHER AND DRYER WITH THAT
4.5% SALES TAX INCREASE.
00:22:02I UNDERSTAND WHAT YOU'RE
SAYING, BUT I JUST THINK SOME
00:22:05OF THE PREVIOUS TAX CHANGES
THAT WE'VE SEEN OFFSET SOME OF
00:22:07THOSE THINGS THAT YOU'RE
TALKING ABOUT.
00:22:08AND I THINK OUR MEMBERS WOULD
LIKE TO SEE US REVISIT SOME OF
00:22:11THOSE THINGS AND TAKE A CLOSER
LOOK AT A REGRESSIVE SALES TAX
00:22:14THAT DISPROPORTIONATELY HURTS
WORKING FAMILIES.
00:22:18>> IT'S GOING TO TAKE DEMOCRATS
AND REPUBLICANS TO GET THIS
00:22:21ACROSS THE FINISH LINE.
I THINK WE'RE GOING TO HAVE A
00:22:24ROBUST DEBATE.
ALL SIDES WILL BE HEARD.
00:22:26AND I'M CONFIDENT THAT OUR
GOVERNOR WILL PUT FORTH THE
00:22:28BEST M.B.R. POSSIBLE.
>> AND IS THIS GOING TO BE A
00:22:32HARD BUDGET WITH YOU TO
CAMPAIGN AGAINST?
00:22:33THERE ARE A LOT OF THINGS THAT
SEEM MODERATE, THAT SEEM
00:22:36REASONABLE TO PEOPLE?
>> SURE.
00:22:39LET ME SAY FIRST, I THINK SOME
OF THE CHANGES AROUND EDUCATION
00:22:41ARE SOMETHING WE'RE GOING TO
TAKE A VERY CLOSE LOOK AT WITH
00:22:44AN OPEN MIND.
AND I THINK THAT IN SOME OF THE
00:22:46CHANGES THAT HAVE BEEN
PROPOSED, YOU KNOW, ARE
00:22:49SOMETHING THAT WE MAY EVEN GO
ALONG WITH.
00:22:51BUT I THINK YOU GET AT THE CORE
OF THE ISSUE, WHICH IS WHAT'S
00:22:55HAPPENED TO THE STATE OF PUBLIC
EDUCATION IN THE STATE OF OHIO?
00:22:59THE STATE, WHICH TYPICALLY HAD
A GOOD RELATIONSHIP WITH LOCAL
00:23:02COMMUNITIES, STARTED TO WALK
AWAY FROM ITS RESPONSIBILITIES
00:23:05THROUGH CUTTING FUNDS TO
SCHOOLS AND THEN THE
00:23:08PROLIFERATION OF PUBLIC MONEY
GOING TO PRIVATE FOR-PROFIT
00:23:12CHARTERS WHICH DRAINS MONEY
FROM PUBLIC EDUCATION IN OHIO.
00:23:15SO I THINK -- I THINK FOLKS --
VOTERS SHOULD BE -- SHOULD BE,
00:23:20YOU KNOW -- SHOULD ASK
THEMSELVES WHAT'S HAPPENING TO
00:23:22THE STATE OF PUBLIC EDUCATION
IN OHIO?
00:23:24THE STATE IS CUTTING FUNDS.
NOW WE'RE TALKING ABOUT
00:23:26VOCATIONAL TRAINING, WHICH IS
GOOD IN SOME RESPECTS, BUT I
00:23:29THINK SOME PEOPLE MIGHT BE
UNCOMFORTABLE WITH AN 11 OR
00:23:3212-YEAR-OLD START TO GET ON A
VOCATIONAL TRAINING PROGRAM
00:23:36THAT EARLY.
SO WE'LL SEE WHAT HAPPENS.
00:23:37I THINK THAT, YOU KNOW, I THINK
WE'VE GOT TO START PRIORITIZING
00:23:43SCHOOLS AND COMMUNITIES.
YOU TALK ABOUT JOB CREATION,
00:23:45ONE OF THE PATHWAYS TO ECONOMIC
SUCCESS IS A STRONG FOUNDATION
00:23:49IN PUBLIC EDUCATION.
WE'RE NOT THERE YET.
00:23:51WE'VE GOT GET THERE.
THERE'S A LOT MORE WORK TO BE
00:23:54DONE EVEN WITH SOME OF THE
CHANGES THAT ARE IN THE M.B.R.
00:23:56>> FINAL COMMENT?
>> I THINK AT THE END OF THE
00:23:58DAY, KAREN, WHAT WILL GET
ENACTED AND WILL GO TO THE DESK
00:24:01IS GOING TO BE A PACKAGE THAT
HELPS EVERY SINGLE OHIOAN,
00:24:05REGARDLESS OF SOCIOECONOMIC
STATUS, RACE, COLOR, CREED.
00:24:08THEY'RE GOING TO FIND AN
OPPORTUNITY TO ADVANCE
00:24:10THEMSELVES HERE IN OHIO,
WORKING WITH REPUBLICANS,
00:24:13WORKING WITH DEMOCRATS.
THE GOVERNOR IS GOING TO BRING
00:24:15EVERYONE TOGETHER AND WE'RE
GOING TO BE BETTER OFF.
00:24:17>> I WANT TO ASK YOU FOR A
FINAL COMMENT.
00:24:21HAS THE GOVERNOR BEEN WORKING
WITH YOUR CAUCUS?
00:24:23>> WELL, LET ME JUST SAY THIS,
I THINK THAT THE FACT LIKE WE
00:24:26WENT THROUGH AN M.B.R., I THINK
2/3 OF IT WAS SHELVED BY THE
00:24:31GENERAL ASSEMBLY.
AND THAT WAS A
00:24:33REPUBLICAN-CONTROLLED GENERAL
ASSEMBLY, AS YOU MENTIONED
00:24:35BEFORE.
I SUSPECT THE SAME THING IS
00:24:36GOING TO HAPPEN WITH THIS
M.B.R. AND, YOU KNOW, I THINK
00:24:39THAT'S A BIT OF A CONCERN.
YOU HAVE ALL THESE PROPOSALS
00:24:42AND THESE GRAND IDEAS, BUT IF
YOU CAN'T MOVE THEM INTO LAW
00:24:45BECAUSE YOU CAN'T WORK, EVEN
WITH YOUR OWN PARTY MUCH LESS
00:24:48THE OTHER PARTY, I THINK THAT'S
A PROBLEM.
00:24:50BUT IT REMAINS TO BE SEEN.
WE APPROACHED THIS M.B.R. WITH
00:24:55AN OPEN MIND.
I THINK THERE ARE SOME THINGS
00:24:57THAT, YOU KNOW, WE COULD BE
SUPPORTIVE OF, BUT I THINK WHEN
00:25:00IT COMES TO THE TAX SHIFT, WHEN
IT COMES TO CONTINUING
00:25:02SOMETHING THAT WE'VE DONE OVER
THE LAST SIX -- SIX OF THE LAST
00:25:05EIGHT YEARS, THERE'S GOING TO
BE SOME REAL PUSHBACK FROM OUR
00:25:09FOLKS.
>> ALL RIGHT, KERRY AND MIKE,
00:25:11THANK YOU VERY MUCH.
>> THANK YOU.
00:25:12PRERN IT
>> AND THAT'S IT FOR THIS WEEK.
00:25:15FOR MY COLLEAGUES AT OHIO
PUBLIC RADIO AND TELEVISION,
00:25:16THANKS FOR WATCHING.
IF YOU'D LIKE TO ASK QUESTIONS,
00:25:20MAKE COMMENTS, OR WATCH THIS
WEEK'S SHOW OR EARLIER
00:25:21EPISODES, PLEASE VISIT OUR
WEBSITE AT STATENEWS.ORG, OR
00:25:23WATCH ON THE OHIO CHANNEL'S
WEBSITE.
00:25:27AND YOU CAN FOLLOW JO INGLES,
ANDY CHOW AND ME ON TWITTER.
00:25:29AND PLEASE JOIN US AGAIN NEXT
TIME FOR "THE STATE OF OHIO."
00:26:19>> SUPPORT FOR THE STATEWIDE
BROADCAST OF "THE STATE OF
00:26:21OHIO" COMES FROM LAW OFFICES OF
PORTER, WRIGHT, MORRIS & ARTHUR
00:26:24LLP., HELPING BUSINESSES AND
INDIVIDUALS SOLVE COMPLEX LEGAL
00:26:26PROBLEMS THROUGHOUT OHIO,
ACROSS THE COUNTRY AND AROUND
00:26:27THE WORLD -- ON THE WEB AT
PORTERWRIGHT.COM.
00:26:35AND FROM THE OHIO EDUCATION
ASSOCIATION, REPRESENTING
00:26:37121,000 TEACHERS, SUPPORT
PROFESSIONALS AND HIGHER
00:26:38EDUCATION FACULTY, COMMITTED TO
THE SUCCESS OF EVERY CHILD,
Note : Transcripts are compiled from uncorrected captions