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The State of Ohio

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Ohio's newest US Senator is introduced. The state gets a boost in jobs from a maker of military drones. Greg Lawson of the Buckeye Inst. and Bailey Williams of Policy Matters Ohio are studio guests. There are big questions going into budget season about school funding and state backing for the Browns stadium project.

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00:00:39	Ohio's newest U.S.
00:00:40	senator is introduced.
00:00:42	The state gets a boost in jobs
00:00:42	from a maker of
00:00:45	military drones.
00:00:46	And there are big questions
00:00:47	going into budget season
00:00:47	about school funding and state
00:00:50	backing for the Brown
00:00:50	Stadium project.
00:00:53	That's this
00:00:53	weekend. The state of Ohio
00:01:12	Just.
00:01:14	Welcome to the state of Ohio.
00:01:15	I'm Karen Kasler.
00:01:17	Ohio has a new U.S. senator.
00:01:19	Two months after Donald Trump
00:01:19	and JD Vance were elected.
00:01:22	And a week
00:01:23	after Vance resigned his seat
00:01:23	in the Senate,
00:01:25	Lieutenant Governor
00:01:25	John Houston
00:01:27	will head to Capitol Hill
00:01:27	to join
00:01:28	fellow Republican
00:01:28	Bernie Marino,
00:01:30	where they will be freshmen
00:01:30	senators.
00:01:33	Governor Mike DeWine said
00:01:33	he interviewed many people
00:01:35	for the appointment
00:01:35	and considered
00:01:36	many of them qualified.
00:01:38	But Husted stood out.
00:02:44	You still would have to run
00:02:44	for the seat
00:02:45	in the special election
00:02:45	next year, and that winner
00:02:48	will have to run again in 2028
00:02:48	for the full six year term.
00:02:52	Houston has filed to run
00:02:52	for governor in 2026,
00:02:55	and had raised twice
00:02:55	as much as his
00:02:56	likely GOP primary opponent,
00:02:56	Attorney General Dave Yost.
00:03:00	But billionaire tech
00:03:00	entrepreneur Vivek Ramaswamy
00:03:03	may join the race
00:03:03	for governor soon.
00:03:05	He had taken himself out
00:03:07	of consideration
00:03:07	for the Senate seat.
00:03:08	But late in the process, he
00:03:08	met with DeWine about the job.
00:03:12	Another big story
00:03:12	that broke on Friday.
00:03:14	Federal prosecutors
00:03:14	have indicted
00:03:15	two former
00:03:15	First Energy executives,
00:03:18	who were already facing
00:03:19	state charges
00:03:19	connected to the largest
00:03:21	corruption scandal in Ohio
00:03:21	history.
00:03:23	Former First Energy executives
00:03:23	Chuck Jones
00:03:25	and Michael Dowling
00:03:25	were each indicted
00:03:27	on a single count
00:03:27	of racketeering
00:03:29	in connection
00:03:29	with the billion dollar
00:03:31	nuclear power plant
00:03:31	bailout scheme.
00:03:33	In the indictment,
00:03:33	federal prosecutors outlined
00:03:33	how they say Jones and Dowling
00:03:37	bribed state officials
00:03:37	to pass House Bill 6 in 2019.
00:03:41	Chief among them Republican
00:03:41	former House Speaker Larry
00:03:43	Householder and former
00:03:43	public Utilities
00:03:45	Commission of Ohio Chair
00:03:45	Sam Randazzo.
00:03:47	Householder is serving
00:03:47	20 years in federal prison
00:03:50	after his conviction in 2023
00:03:50	on a racketeering charge
00:03:53	related to the $60 million
00:03:53	bribery scheme.
00:03:56	Randazzo was also charged
00:03:56	in the federal and state court
00:03:59	for his role.
00:04:00	He died by suicide last year.
00:04:02	Jones and Dowling
00:04:02	are awaiting a trial date
00:04:05	on state charges
00:04:05	in Summit County
00:04:06	and have pleaded not guilty.
00:04:09	Ohio scored a victory
00:04:09	with a defense contractor
00:04:11	this week, securing a deal
00:04:11	that's forecast
00:04:14	to bring in thousands of jobs
00:04:14	and $1 billion in payroll.
00:04:18	State House correspondent
00:04:18	Sara Donaldson
00:04:20	was at the announcement
00:04:20	and has the details.
00:04:22	I'm here in Pickaway County,
00:04:22	where the state just announced
00:04:25	that a defense contractor
00:04:25	plans
00:04:27	to build a massive
00:04:27	manufacturing facility,
00:04:29	and it's set to benefit
00:04:29	from state grants and tax
00:04:32	incentives to do so.
00:04:35	All right.
00:04:35	This is really cool, isn't it?
00:04:41	I am so excited.
00:04:43	Dubbed Arsenal won,
00:04:43	the 5,000,000 square foot
00:04:45	facility will manufacture
00:04:47	advanced military technology
00:04:47	like military drones,
00:04:50	which are driven by androids,
00:04:50	centralized
00:04:52	artificial intelligence
00:04:52	software.
00:04:54	We have built a strategy
00:04:56	that makes Ohio
00:04:56	the most attractive place
00:04:59	for these kinds
00:04:59	of investments,
00:05:01	and will build on 500
00:05:01	acres of land about 20 minutes
00:05:05	south of downtown Columbus,
00:05:05	near Rickenbacker.
00:05:08	Governor Mike
00:05:08	DeWine says the figures mean
00:05:09	Thursday's announcement
00:05:09	marks Ohio history
00:05:12	with at least 4000 jobs.
00:05:14	Android takes the title
00:05:15	for the largest single direct
00:05:15	job creation project
00:05:19	held before by Intel,
00:05:19	and its payroll
00:05:21	is expected to exceed
00:05:21	$1 billion.
00:05:24	We have an obligation
00:05:24	to protect our men and women
00:05:28	who we send as a country
00:05:28	in harm's way,
00:05:31	and what android is doing
00:05:31	is giving those men and women
00:05:36	to who protect us
00:05:36	the tools that they need.
00:05:39	Jobs Ohio, a powerful private
00:05:39	firm that pursues projects
00:05:43	on the state's behalf, courted
00:05:43	both Intel and Anduril. J.P.
00:05:47	Nassif is CEO.
00:05:49	We are consistently a low cost
00:05:49	state to do business
00:05:52	and a low
00:05:52	cost of living state.
00:05:54	So and we have a diverse
00:05:54	economy
00:05:56	where the eighth most diverse
00:05:56	economy
00:05:58	and any Android project
00:05:59	could create 4500 indirect
00:05:59	and induced jobs by 2035.
00:06:03	There's some deja vu, though.
00:06:05	Intel made similar promises
00:06:05	when announcing
00:06:07	its fabrication plans
00:06:07	in January 2022.
00:06:11	More recently, it's
00:06:12	been mired in its own economic
00:06:14	downswing and a federal
00:06:14	funding disbursement
00:06:16	that dragged that
00:06:16	industry is very cyclical.
00:06:19	We've been ahead
00:06:19	on every one of our timelines,
00:06:22	and I believe there will be
00:06:22	semiconductors produced there,
00:06:25	and that's a cyclical industry
00:06:25	and that's playing out.
00:06:27	We're all watching it
00:06:27	play out.
00:06:29	DeWine in Houston
00:06:30	say they believe Ohio
00:06:30	should pursue investments
00:06:32	like these aggressively,
00:06:32	nonetheless.
00:06:34	Any time we do
00:06:34	a deal is contingent
00:06:36	upon the company
00:06:36	delivering what they promise,
00:06:39	and we have not been afraid
00:06:39	in any circumstance, including
00:06:42	with General Motors,
00:06:42	to go clawback any incentives
00:06:46	that they don't deliver on
00:06:46	for its investment.
00:06:48	Andrew is seeking $70 million
00:06:50	in funding from the state
00:06:50	and a job creation tax break.
00:06:53	That's much less than
00:06:53	what was offered to Intel.
00:06:55	But it's in addition
00:06:55	to assistance
00:06:57	it will get from Jobs Ohio,
00:06:57	which is not yet public.
00:07:00	Sara Donaldson, Statehouse
00:07:00	News Bureau.
00:07:03	It is budget time.
00:07:04	Governor
00:07:04	Mike DeWine will lay out
00:07:06	his proposed
00:07:06	two year state operating
00:07:06	budget by February 3rd.
00:07:10	And state
00:07:10	lawmakers will take that
00:07:10	blueprint
00:07:12	and work on budgets
00:07:12	of their own.
00:07:14	But a conflict may be coming
00:07:14	over.
00:07:15	How much K through 12
00:07:17	public schools
00:07:17	should get this time around?
00:07:19	Statehouse correspondent
00:07:19	Joe Ingles reports.
00:07:22	Office of Budget Management
00:07:22	Director Kimberly Miller
00:07:25	told the Ohio
00:07:25	Chamber of Commerce.
00:07:27	The state is
00:07:28	going into the budget season
00:07:28	with a strong bottom line,
00:07:32	and the state savings
00:07:32	account is in good shape, too.
00:07:36	Ohio continues
00:07:36	to have a very strong,
00:07:39	reserve in our rainy day
00:07:39	fund.
00:07:42	It is the at the highest level
00:07:42	that it has been.
00:07:46	And, it will
00:07:46	it would support any,
00:07:49	uncertainty that might arise.
00:07:53	But Muir said the upcoming
00:07:53	budget process will not have
00:07:56	so much in onetime federal
00:07:56	funds, such as Covid money.
00:08:01	Those provided
00:08:01	one time resources that Ohio
00:08:06	very manfully used
00:08:06	for one time investments.
00:08:10	And so we are now back
00:08:10	to a normal budget situation
00:08:14	where we have to balance
00:08:14	our revenues, our tax
00:08:18	revenues,
00:08:18	mostly sales and income taxes
00:08:20	with the ongoing
00:08:20	programs of state government.
00:08:24	Meyer said
00:08:24	legislative leaders
00:08:24	took into account
00:08:26	that the funding
00:08:26	would not be ongoing,
00:08:29	but there have been questions
00:08:29	about the ongoing
00:08:32	funding for the fair school
00:08:32	funding plan, the formula
00:08:36	that takes both property taxes
00:08:36	and income into account
00:08:40	when funding K through
00:08:40	12 public schools,
00:08:43	it was estimated to cost
00:08:43	about $2 billion
00:08:46	to fully implement
00:08:46	over six years,
00:08:49	and the last two budgets
00:08:49	have included that funding.
00:08:52	But Ohio House Speaker Matt
00:08:52	Huffman said the upcoming one
00:08:56	might not.
00:08:57	The implementing of
00:08:57	the Cut Patterson payment plan
00:09:01	that many believe is a fait
00:09:01	accompli,
00:09:03	that we decided four years ago
00:09:03	that in this budget,
00:09:06	we're going to do that, in
00:09:06	my estimation, as a fantasy.
00:09:09	There was never
00:09:11	can't be constitutionally
00:09:11	a requirement that this
00:09:15	General Assembly do something
00:09:15	because another General
00:09:17	Assembly did something
00:09:17	four years ago.
00:09:20	Probably the General Assembly
00:09:20	is about one third
00:09:22	of the people who were here
00:09:22	four years ago.
00:09:25	So you can't bind a previous
00:09:25	General Assembly for,
00:09:29	what, the current one,
00:09:29	the current one wants to do.
00:09:34	Governor Mike
00:09:34	DeWine hasn't made a firm
00:09:34	commitment on school funding.
00:09:39	And the discussions
00:09:39	that are going on,
00:09:41	you know, between us
00:09:41	and the leadership
00:09:43	and among members
00:09:43	of the legislature
00:09:45	and among the public,
00:09:46	this is the appropriate time
00:09:46	to have it.
00:09:47	And that's what's that's
00:09:47	what's taking place.
00:09:49	I'm you know,
00:09:49	I think it would be unfair
00:09:51	of me at this point
00:09:51	to come out here and say,
00:09:53	we need to do this, this,
00:09:53	this, and this.
00:09:55	I think we have to continue
00:09:55	to look at the budget,
00:09:57	continuing to look
00:09:57	at the revenues and and work
00:09:59	with the General Assembly
00:09:59	to come up with something
00:10:01	that is,
00:10:01	you know, positive for Ohio.
00:10:03	We've been able to do that
00:10:03	for the first
00:10:05	my first three budgets.
00:10:06	So I intend to have that kind
00:10:07	of working relationship
00:10:07	with the fourth one year
00:10:10	next, said the working age
00:10:10	population in Ohio,
00:10:13	that 25 to 44 year old age
00:10:13	group
00:10:16	has not grown and kept pace
00:10:16	with other states.
00:10:20	But she said that's improved
00:10:20	in the last five years.
00:10:23	And she said some things are
00:10:24	helping, like the $5,000
00:10:24	merit scholarship for the top
00:10:28	5% of high school seniors
00:10:28	going to college in Ohio,
00:10:32	and programs
00:10:32	that allow Ohioans to earn
00:10:35	professional credentials
00:10:35	in technology.
00:10:38	Those are,
00:10:38	successful programs
00:10:41	that are specifically focused
00:10:41	on, you know, this issue
00:10:45	at retain
00:10:45	and bringing people to Ohio.
00:10:48	And, and so those are things
00:10:48	that you see,
00:10:52	we will keep focused on here
00:10:52	next cautioned
00:10:55	that consumer sentiment,
00:10:56	how people feel about
00:10:56	the economy has not recovered
00:11:00	to pre-pandemic levels
00:11:00	because of inflation.
00:11:02	And sales
00:11:02	taxes are the biggest revenue
00:11:05	toward the state budget.
00:11:07	So, she said
00:11:08	her office will be watching
00:11:08	how Ohioans spend money
00:11:11	in the coming months.
00:11:13	Joe Ingles,
00:11:13	Statehouse news bureau.
00:11:16	As budget season begins,
00:11:16	the Browns season is over.
00:11:20	As has always been
00:11:20	the case for the team
00:11:21	by the third week of January.
00:11:23	But the pressure
00:11:23	has been on lawmakers
00:11:25	to think about
00:11:26	whether the state
00:11:26	should get involved
00:11:27	in the project
00:11:28	to build a new dome stadium
00:11:30	in Brook Park
00:11:30	for the Cleveland Browns.
00:11:33	The team has been talking
00:11:33	to some legislators
00:11:35	about how much
00:11:35	the state can offer,
00:11:37	but there's been
00:11:37	nothing proposed so far.
00:11:39	The idea has two research
00:11:39	groups that normally don't
00:11:42	share the same view
00:11:42	on anything in agreement.
00:11:45	First, the conservative
00:11:45	Buckeye Institute.
00:11:48	Well, the bottom line is
00:11:48	we've taken a look
00:11:50	at a lot of stadium,
00:11:50	proposals over the years,
00:11:52	and we've never been
00:11:52	supportive of any of them.
00:11:53	And, you know, SC what it was
00:11:53	asks Cincinnati what it was.
00:11:56	The Columbus Crew,
00:11:56	we've raised questions
00:11:58	about
00:11:58	even when the Bengals stadium.
00:12:00	So we're not big fans
00:12:01	of subsidies,
00:12:01	for professional sports teams.
00:12:04	When you look
00:12:04	at a lot of the literature
00:12:06	that's out there,
00:12:07	the academic literature
00:12:07	from a lot of economists,
00:12:09	what they and almost
00:12:10	invariably say
00:12:10	is these don't really end up
00:12:13	with the true benefits.
00:12:14	It's kind of complicated
00:12:14	why that is.
00:12:16	But, you know, a lot of times
00:12:17	it has to do with the shifts
00:12:17	where people buy stuff
00:12:19	and some of the economic
00:12:19	activity
00:12:21	from one area to another.
00:12:22	So we're always going to have
00:12:24	a good degree of skepticism
00:12:25	whenever
00:12:25	something like this comes up.
00:12:27	That puts taxpayers
00:12:27	on the hook.
00:12:28	One of the ideas
00:12:28	that we've heard
00:12:30	even on this show
00:12:30	from former state
00:12:31	senator Matt Dolan, is state
00:12:31	backed.
00:12:33	Bonds Speaker
00:12:33	Matt Hoffman said last week
00:12:35	that the team is guaranteeing
00:12:35	that the taxes recoup
00:12:38	will pay the public's cost
00:12:38	for the bonds.
00:12:40	So what's wrong with that?
00:12:41	Well, there's ways that you
00:12:41	can make this less bad, right?
00:12:44	And and if you could
00:12:44	actually pay things back
00:12:46	so that the state taxpayers
00:12:46	overall are not on the hook,
00:12:48	that's
00:12:48	certainly a better situation.
00:12:50	But I think one of the things
00:12:50	that we would urge,
00:12:52	policymakers to keep in
00:12:52	mind is
00:12:54	what is the overall,
00:12:54	benefit here?
00:12:57	What are the things
00:12:57	that you can do
00:12:58	over time
00:12:58	with some of that funding
00:12:59	that might get diverted
00:12:59	temporarily?
00:13:01	But look, you know,
00:13:03	we have to see what
00:13:03	the devil's in the details.
00:13:04	Obviously,
00:13:05	the details
00:13:05	haven't been released yet.
00:13:06	There's a lot of ways
00:13:07	that they could go about doing
00:13:07	this.
00:13:09	Some are truly, truly,
00:13:09	just really, really bad
00:13:12	and some make more sense than
00:13:12	others and could be better.
00:13:14	The bottom line is taxpayers
00:13:14	need to be protected.
00:13:17	We don't need a situation,
00:13:17	especially in a city,
00:13:20	where we're expecting
00:13:20	a tighter budget
00:13:22	than we've had in the last
00:13:22	several budget cycles.
00:13:24	We need to be very careful
00:13:24	about that.
00:13:25	And so I'm sure that,
00:13:28	some of the legislative
00:13:28	leadership
00:13:29	is already thinking about
00:13:29	how to make sure
00:13:30	that this is done.
00:13:32	If it is going to get done,
00:13:32	that it's done in a way that's
00:13:34	not going to be overwhelmed,
00:13:34	bad for the taxpayers.
00:13:37	And then we can get
00:13:37	some of that funding back.
00:13:40	So I'm hopeful that we will at
00:13:40	least see that if it's done.
00:13:43	But again, I urge folks,
00:13:45	you know, it's simple to say,
00:13:45	look at the
00:13:46	look at the evidence,
00:13:46	but there's a lot out there.
00:13:48	This isn't 1 or 2 studies.
00:13:49	This is studies
00:13:49	that have been done
00:13:51	over the course of decades.
00:13:52	So the studies
00:13:52	that you've looked at,
00:13:54	is there any evidence
00:13:54	that there is significant
00:13:58	development,
00:13:58	significant revenue,
00:14:00	significant direct
00:14:00	spending that comes from state
00:14:03	or federal or government
00:14:03	investment in these projects,
00:14:07	in the stadiums?
00:14:07	What usually happens is
00:14:07	there is some
00:14:09	and there are
00:14:09	some spillover effects.
00:14:10	You know,
00:14:10	you've got community pride
00:14:12	and there's some things there
00:14:12	that actually do matter.
00:14:14	But what a lot of times
00:14:14	will happen
00:14:16	is these are dollars
00:14:16	that would have been
00:14:18	maybe invested
00:14:18	in other locations, other
00:14:19	things would have happened,
00:14:19	maybe not
00:14:21	in that particular place,
00:14:21	wherever the stadium might be,
00:14:23	but in other places
00:14:23	that you're really kind
00:14:25	of pulling in from there,
00:14:25	and then you're using the
00:14:28	front end taxpayer dollars.
00:14:29	That's
00:14:29	where the challenge is, is
00:14:31	does it actually create
00:14:31	the overall bigger pie,
00:14:33	or does it create
00:14:33	essentially the same
00:14:35	kind of pie, but just shift
00:14:35	what a pie is?
00:14:37	That's one of the things
00:14:37	I think you'll find
00:14:38	in a lot of the studies,
00:14:38	is that it doesn't
00:14:40	necessarily increase
00:14:41	overall, the aggregate pie
00:14:41	for everybody,
00:14:44	which is really what you want,
00:14:44	is to make sure it's bigger.
00:14:47	So that's
00:14:47	one of the challenges
00:14:47	that you see with this
00:14:49	every project is a little bit
00:14:49	different.
00:14:51	You know, so
00:14:52	so you have to look at it
00:14:53	a little bit
00:14:53	with a fine tooth comb
00:14:55	when you look at the specifics
00:14:55	of it.
00:14:57	But, again,
00:14:58	I think, we've seen this done
00:14:58	across the country.
00:15:01	We've seen it done
00:15:01	previously in Ohio.
00:15:03	And I know there's
00:15:03	always a lot of positive
00:15:05	spin out there.
00:15:05	And I know there's a lot of
00:15:05	great fans that are out there.
00:15:08	There's ways that we can do
00:15:08	this without putting taxpayers
00:15:11	at risk.
00:15:12	And whatever happens
00:15:12	at the end of the day,
00:15:14	that needs to be
00:15:14	the thing that is kept,
00:15:16	front and center
00:15:16	in the mind of leaders.
00:15:18	The Haslam,
00:15:18	who own the team, has spent
00:15:20	a lot of money on politics
00:15:20	in the last two years cycle.
00:15:22	They spent about $6.5 million.
00:15:24	More than half a million went
00:15:24	to Ohio candidates in Ohio.
00:15:26	Constitutional issues.
00:15:28	Does this suggest to you
00:15:30	that the money that's in
00:15:30	politics is an issue here,
00:15:33	and maybe campaign
00:15:33	finance reform?
00:15:34	Have you taken
00:15:34	a position on that?
00:15:36	We haven't really not on that.
00:15:38	And I'll tell you this, this
00:15:38	issue comes up everywhere.
00:15:40	This is not just in Ohio
00:15:40	thing.
00:15:41	So this isn't surprising.
00:15:41	I mean, they did it in Vegas.
00:15:43	They've done it in Florida.
00:15:45	I mean, obviously, you know,
00:15:45	Cincinnati has had a sales
00:15:47	tax down there
00:15:47	in Hamilton County.
00:15:49	And that's another thing
00:15:49	that I think we have a little
00:15:50	bit of a concern with is
00:15:50	you do something in Cleveland.
00:15:53	What's the next thing
00:15:53	to happen?
00:15:54	Because I'm assuming
00:15:55	that at some point
00:15:56	Cincinnati
00:15:56	is going to want to add
00:15:57	something,
00:15:57	and you got the baseball teams
00:15:58	that are going to ask
00:15:58	for things.
00:16:00	And so you, you know,
00:16:00	the cascading effect,
00:16:02	especially when you set
00:16:02	this precedent,
00:16:04	is also something that I think
00:16:04	people need to keep in mind
00:16:06	in terms
00:16:06	of keeping it protected.
00:16:08	But this is a
00:16:09	I don't think this is specific
00:16:09	about any of that.
00:16:10	I think this is something
00:16:10	that happens everywhere.
00:16:12	That's why
00:16:12	there's so many studies
00:16:14	that have been done
00:16:14	for so many years.
00:16:15	Decades really
00:16:16	is because this is
00:16:16	a very common thing to happen.
00:16:18	I think there's
00:16:18	a lot of intuitive
00:16:20	people saying,
00:16:20	hey, this is a great thing.
00:16:22	This is going to really help.
00:16:23	And there's that sense that,
00:16:24	oh, of course
00:16:24	it's going to have this.
00:16:26	But you got to
00:16:26	look at the bigger picture.
00:16:27	And the bigger picture
00:16:28	sometimes is more complicated
00:16:28	and harder to to,
00:16:31	I think, get normal folks
00:16:31	to pay attention to
00:16:33	because
00:16:34	economics is not always a,
00:16:34	a simplified picture, but,
00:16:38	I think it's just a matter of
00:16:38	this is this is common.
00:16:41	Everybody is trying
00:16:41	to do some of this,
00:16:43	and we just think, let's tap
00:16:43	the break.
00:16:45	Let's be careful
00:16:45	and let's keep taxpayers mind.
00:16:48	And he thought about
00:16:48	whether taxpayers
00:16:49	should have a vote on this.
00:16:51	Should any of this stuff
00:16:51	be brought to taxpayers
00:16:53	so they can decide, you know,
00:16:53	I mean,
00:16:54	I certainly don't think
00:16:54	that would be a bad idea,
00:16:57	you know, to take a look
00:16:57	at that
00:16:58	and have a voice at the table,
00:17:00	because there are
00:17:00	probably folks out there
00:17:02	that might be
00:17:02	willing to do that.
00:17:03	I mean,
00:17:03	we know that there are,
00:17:04	I don't know how many there
00:17:04	that there would be.
00:17:06	I don't know that I've heard
00:17:08	that that's
00:17:08	necessarily on the table.
00:17:10	I don't think.
00:17:11	I don't think we would be
00:17:11	against that at all if, if,
00:17:13	if that was something
00:17:13	that was put out there,
00:17:15	because this is a big deal.
00:17:16	It's a lot of money,
00:17:16	and there are a lot of other,
00:17:19	things that we need to be
00:17:19	careful of in the budget.
00:17:22	Lots of other things that are
00:17:22	going to be priorities.
00:17:24	Now, this can probably be done
00:17:24	if you do it,
00:17:26	depending on how you work with
00:17:26	bonds and stuff, it may not.
00:17:29	It's obviously
00:17:29	not as much money in one shot.
00:17:31	And so that makes it easier to
00:17:31	to sort of navigate.
00:17:34	But again, we've got
00:17:34	so many things in this budget.
00:17:38	And we've got tax reform,
00:17:38	you know,
00:17:40	and not just state tax
00:17:40	where we got property
00:17:42	tax reform and issues
00:17:42	like that,
00:17:43	that we absolutely
00:17:43	have to talk about things
00:17:45	that that families are
00:17:45	suffering through right now
00:17:48	with the property tax savings.
00:17:49	We know that's a hot topic.
00:17:51	How are we going to deal
00:17:51	with that too?
00:17:52	You can't look at this
00:17:52	in isolation.
00:17:54	It's going to have to be
00:17:54	looked at,
00:17:55	with all those other issues
00:17:55	as well.
00:17:57	Speaking of a budget,
00:17:58	let's talk
00:17:58	about some of these things.
00:17:59	For instance,
00:18:00	Speaker
00:18:00	Matt Hoffman has said
00:18:00	that he's uncertain
00:18:02	about the final two years
00:18:02	of the six year
00:18:04	phasing for the fair school
00:18:04	funding plan,
00:18:06	saying that spending increases
00:18:06	are unsustainable.
00:18:08	But state is spending nearly
00:18:08	$1 billion a year on vouchers,
00:18:11	and public education
00:18:11	is in the Ohio Constitution.
00:18:14	You've got 1.1 million
00:18:14	kids in Ohio's public schools.
00:18:18	Do you think the fair school
00:18:18	funding plan is sustainable?
00:18:22	Should that be what the state
00:18:22	should be aiming at?
00:18:24	Well, first of all,
00:18:24	with the Buckeyes, who's
00:18:25	always been,
00:18:25	favorable to school choice,
00:18:27	we've been an advocate
00:18:27	for that for years.
00:18:29	We've done stuff going back
00:18:30	literally again,
00:18:30	decades on this.
00:18:32	We believe that every student
00:18:32	should be put first.
00:18:34	You know, that
00:18:34	there should be an opportunity
00:18:34	for families
00:18:36	to get the right fit
00:18:36	for their student.
00:18:38	So we certainly are
00:18:38	a fan of the things that
00:18:40	have happened in that space.
00:18:42	And at the end of the day,
00:18:43	we believe
00:18:43	that students need to go
00:18:45	where it's the best
00:18:45	fit and are agnostic,
00:18:46	frankly, on the provider.
00:18:47	And so if it's a private
00:18:47	provider, that's fine.
00:18:50	If we're getting if that's
00:18:50	what the families want,
00:18:52	if it's a charter public
00:18:52	charter school, that's fine.
00:18:54	If it's a public
00:18:54	district school,
00:18:55	if it's a different district,
00:18:56	I mean, we have open
00:18:56	enrollment questions do and
00:18:58	some districts don't do that
00:18:58	and we think they should.
00:19:00	So there's a lot of things
00:19:00	in that space.
00:19:02	But at the end of the day,
00:19:02	we have to realize
00:19:05	we have a demographic issue
00:19:05	here.
00:19:06	Yeah,
00:19:07	we have a lot of students
00:19:08	are taking advantage
00:19:08	of school choice,
00:19:09	but people are just having
00:19:09	less kids.
00:19:11	And at the end of the day,
00:19:12	we're going to have
00:19:12	to make sure that whatever
00:19:14	our school funding system is,
00:19:15	whatever money is there
00:19:15	for each individual student,
00:19:18	whatever the provider is
00:19:18	needs to be calibrated.
00:19:22	And we need to make sure we're
00:19:22	looking at the overall pot
00:19:24	with what our actual
00:19:24	enrollment numbers really are.
00:19:26	holding a similar view
00:19:26	against the idea of state
00:19:29	money
00:19:29	going to private projects
00:19:30	like the new Cleveland
00:19:30	Browns Stadium,
00:19:32	but for different reasons,
00:19:34	is the progressive
00:19:34	think tank policy matters.
00:19:36	Ohio.
00:19:37	We haven't officially
00:19:37	taken a position on it,
00:19:38	but we're much in line
00:19:38	with the local government,
00:19:41	on this position
00:19:43	so far,
00:19:43	which no taxpayer dollars
00:19:45	should be going to fund
00:19:45	this project here,
00:19:47	whether that be
00:19:47	from the locals
00:19:49	or coming in from the state,
00:19:50	the Brown Stadium
00:19:50	that they currently have.
00:19:53	It's part of
00:19:53	the downtown is a vital part
00:19:56	of their redevelopment
00:19:56	down there.
00:19:58	So, moving this outside of
00:20:01	downtown for a project
00:20:01	just to really align the,
00:20:05	pockets of the Haslam
00:20:06	is not really a great idea
00:20:06	for the taxpayers to fund,
00:20:08	but it does open up it,
00:20:10	but it
00:20:10	does open up the possibility
00:20:11	of development
00:20:11	on the lakefront.
00:20:13	But that also could involve
00:20:13	some taxpayer money as well.
00:20:16	Right? It very well could.
00:20:18	But I mean, just to, you know,
00:20:18	get a shiny new stadium
00:20:22	for the Browns or,
00:20:22	or this alternative of,
00:20:26	something different
00:20:27	that could come in from
00:20:27	the Browns
00:20:28	is not really something
00:20:30	that's in the best interest
00:20:30	of the taxpayer
00:20:31	so far in terms of an unknown.
00:20:33	But the really the trade off
00:20:33	for the dollars is really not
00:20:36	it's not there.
00:20:38	It's currently fine as it is
00:20:38	if they want improvements.
00:20:40	That's something
00:20:40	that should be negotiated
00:20:42	very similar to what
00:20:42	the Cavaliers did.
00:20:44	So but a brand new stadium is
00:20:44	just not in the best interest
00:20:48	for the taxpayers.
00:20:49	But if it's state
00:20:49	backed bonds,
00:20:51	because Speaker Matt
00:20:51	Hoffman has talked about,
00:20:53	the team is guaranteeing
00:20:53	that the tax is recouped,
00:20:56	will pay the public's cost
00:20:56	for the bonds.
00:20:59	What's wrong with that?
00:21:00	If that indeed does happen,
00:21:02	that's putting a lot of hope
00:21:02	and ifs and buts.
00:21:05	But I mean,
00:21:07	you're trying to hope
00:21:07	for a lot of economic
00:21:09	gains on the back
00:21:09	or down the road.
00:21:11	That's really
00:21:11	just an IOU to the taxpayers.
00:21:14	I don't really trust that.
00:21:15	And especially
00:21:15	when it's not really,
00:21:17	you know,
00:21:17	we have other needs
00:21:18	and, issues that the state
00:21:18	could be addressing,
00:21:21	whether it's just the bonds.
00:21:24	Just because we have a vehicle
00:21:24	for funding doesn't
00:21:26	mean it's
00:21:26	what we should be spending
00:21:28	our resources in times
00:21:28	going forward.
00:21:30	What about if you put it up
00:21:31	to the taxpayers
00:21:32	for a vote of taxpayers
00:21:32	went along with it?
00:21:34	Do you think it would be okay,
00:21:35	or are they still issues
00:21:35	that have you concerned?
00:21:37	I mean,
00:21:39	the taxpayers can can voice
00:21:39	their displeasure with it.
00:21:43	Ultimately,
00:21:43	it's the citizens who,
00:21:45	especially those in Cleveland
00:21:46	who would be voting on it,
00:21:46	but I would trust the
00:21:49	that they would probably vote
00:21:49	this down as well.
00:21:51	Just for, for,
00:21:51	a brand new stadium
00:21:54	for a poor team performing
00:21:54	is not really again,
00:21:56	in their best interest
00:21:56	going forward.
00:21:58	But the argument has been that
00:21:59	the team moving out to Brook
00:21:59	Park would spur all this
00:22:02	development and really create
00:22:02	kind of an economic engine.
00:22:06	Is is there any evidence
00:22:08	that that's actually
00:22:08	what would happen?
00:22:10	And I haven't really seen
00:22:10	that.
00:22:11	It's again,
00:22:11	a lot of, promises that
00:22:15	really I'm not sure are
00:22:17	really going to be backed up
00:22:17	base of what's there.
00:22:19	I'm really concerned that
00:22:20	any type of new development
00:22:20	or new attractions or events
00:22:24	that are going on in
00:22:24	this Brook
00:22:25	Park are really just events
00:22:25	that would have occurred
00:22:28	in Columbus
00:22:28	or in nearby areas in Akron.
00:22:32	So I'm not sure it's really
00:22:32	generating new
00:22:35	economic activity
00:22:35	as much as it is
00:22:36	just siphoning it away
00:22:36	from nearby areas.
00:22:39	And obviously
00:22:39	we've got more than just
00:22:41	the Browns in terms
00:22:42	of professional sports
00:22:42	teams in Ohio.
00:22:44	So I imagine
00:22:45	that there is some concern
00:22:47	that whatever
00:22:47	we give the Browns,
00:22:48	we would have to potentially
00:22:48	give other teams. Exactly.
00:22:51	So I mean,
00:22:52	when are the
00:22:53	I mean,
00:22:54	anything that Cleveland gets,
00:22:55	Cincinnati is going to come in
00:22:55	asking for with
00:22:57	whether it's
00:22:57	the Reds of the Bengals.
00:22:58	So it's a very good, great
00:23:00	or very great point
00:23:00	that, you know,
00:23:02	we're opening our wallets
00:23:02	for billionaire owners.
00:23:05	Why aren't we opening
00:23:05	our wallets,
00:23:06	collectively
00:23:06	for Everyday Island.
00:23:09	So let's talk a little bit
00:23:09	about everyday
00:23:10	Ohioans
00:23:10	in the upcoming budget.
00:23:12	For instance, Speaker
00:23:14	Matt Hoffman has said he's
00:23:14	concerned
00:23:15	and uncertain
00:23:16	about the final two years
00:23:16	of the six year
00:23:18	phasing for the fair school
00:23:18	funding plan,
00:23:20	saying that the spending
00:23:20	increases are unsustainable.
00:23:23	The state is spending about
00:23:23	$1 billion a year on vouchers,
00:23:26	and public education
00:23:26	is in the Ohio Constitution.
00:23:30	There's 1.1 million kids
00:23:30	in public schools in Ohio,
00:23:33	but vouchers, that program
00:23:33	is become very, very popular.
00:23:37	What are your
00:23:37	thoughts on the fair
00:23:37	school funding plan
00:23:40	and whether that should
00:23:40	continue?
00:23:41	Well, one, I disagree
00:23:41	with Speaker Hoffman on that.
00:23:44	It is unsustainable
00:23:45	for the voucher program, quite
00:23:45	frankly, is unsustainable.
00:23:48	And the fact that
00:23:48	we are really just financing,
00:23:50	upper class, kids
00:23:50	who go to private schools that
00:23:54	they are already attending,
00:23:55	we really need to be
00:23:55	reinvesting these dollars
00:23:58	back into this public school
00:23:58	system, back
00:24:00	into this fair school
00:24:00	funding plan, and ensure
00:24:02	that when the state is meeting
00:24:02	its constitutional mandate
00:24:05	to ensure that we
00:24:05	there's adequate state
00:24:08	funding towards
00:24:08	public education.
00:24:10	We do this through this fair
00:24:10	school funding plan,
00:24:12	and this also will help us
00:24:12	on the property tax front
00:24:15	by making sure that localities
00:24:15	are overreliant
00:24:18	on property taxes
00:24:18	and give, residents a break.
00:24:21	They're Another group
00:24:21	that's influential in state
00:24:24	politics is the conservative
00:24:24	Americans for prosperity,
00:24:28	which said in September
00:24:28	that stadiums
00:24:30	subsidies are a bad deal
00:24:30	for taxpayers.
00:24:32	Calling the idea
00:24:33	that Cleveland could,
00:24:33	in its words, give away
00:24:36	hundreds of millions of
00:24:36	dollars to the Browns Stadium,
00:24:38	one of the most outrageous
00:24:38	proposals
00:24:40	subsidies
00:24:40	over the last few years.
00:24:42	AFP says teams valued in
00:24:42	the billions
00:24:45	are more than equipped
00:24:45	to pay for their own stadiums.
00:24:47	While governments
00:24:47	don't have unlimited money
00:24:49	and plenty of problems
00:24:49	to attend to
00:24:51	beyond what it called white
00:24:51	elephant projects, AFP added.
00:24:55	Quote
00:24:56	politicians should not use
00:24:56	American's passion for sports
00:24:59	as an excuse to spend hundreds
00:25:00	of millions of dollars
00:25:00	on projects
00:25:02	that bring no benefit
00:25:02	to the public.
00:25:05	And that is it for this week
00:25:05	for my colleagues
00:25:07	at the Statehouse News
00:25:07	Bureau of Ohio Public Media.
00:25:09	Thanks for watching.
00:25:10	Please check out our website
00:25:10	at State News.
00:25:12	Org or find us online by
00:25:12	searching State of Ohio Show.
00:25:15	You can also hear more
00:25:15	from the Bureau
00:25:17	on our podcast,
00:25:17	The Ohio State House scoop.
00:25:19	Look for it
00:25:19	every Monday morning
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00:25:22	Thanks for watching and please
00:25:22	join us again
00:25:24	next time
00:25:24	for the state of Ohio.
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Note : Transcripts are compiled from uncorrected captions