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The State of Ohio

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House Republicans unveil their changes to Gov. Mike DeWine's budget. We'll go over many of them, this week in "The State of Ohio". House Finance Committee chair Brian Stewart (R-Ashville) is in the studio this week.

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00:00:39	House Republicans
00:00:39	unveil their changes
00:00:41	to governor Mike
00:00:41	DeWine budget. We'll go over
00:00:43	many of them this week
00:00:43	in the state of Ohio.
00:01:03	Just.
00:01:04	Welcome to the state of Ohio.
00:01:06	I'm Karen Kasler.
00:01:08	As was widely expected.
00:01:09	House Republicans
00:01:10	threw out tax hikes
00:01:10	introduced by governor
00:01:12	Mike DeWine
00:01:12	and his executive budget,
00:01:14	and also added in other big
00:01:14	changes.
00:01:17	the budget.
00:01:17	I think there's been greater
00:01:19	degree of participation
00:01:19	from members
00:01:21	in putting this budget
00:01:22	together than than at any time
00:01:22	that I've seen.
00:01:25	We started
00:01:25	with roughly 3000 amendments
00:01:27	submitted by members about
00:01:27	1200 of those were unique.
00:01:31	The House budget,
00:01:31	which includes $62 billion
00:01:34	in state only general revenue
00:01:34	funds and $202 billion
00:01:38	when all funds are added
00:01:38	in cuts.
00:01:40	DeWine's proposed
00:01:40	tax increases on cigarets,
00:01:43	sports gambling
00:01:43	operators and marijuana.
00:01:45	Republicans said their budget
00:01:45	boosts funding to K through
00:01:48	12 schools by $226
00:01:48	million over
00:01:51	DeWine's budget and ensures
00:01:51	no district is caught,
00:01:54	but it does not fully fund
00:01:55	the implementation
00:01:55	of the final
00:01:57	two years of the bipartisan
00:01:57	Fair School Funding plan,
00:02:00	approved in 2021 with a six
00:02:00	year phase in the budget,
00:02:04	also includes a provision
00:02:04	that caps the funds
00:02:06	that school districts
00:02:06	can carry over
00:02:08	in their operating budgets,
00:02:08	if that goes over 25%.
00:02:12	That money is refunded
00:02:12	to taxpayers.
00:02:14	It's being billed as immediate
00:02:14	property tax relief.
00:02:17	but there's no income tax cut.
00:02:20	we wanted to make sure
00:02:20	that there was in this General
00:02:23	Assembly enough money to fund
00:02:23	the things that we have.
00:02:25	There are folks who think
00:02:25	we should have funded
00:02:29	things that we didn't.
00:02:32	So, you know, we've done a
00:02:33	tremendous amount
00:02:33	of income tax
00:02:35	and best
00:02:38	in the last 20 years,
00:02:39	getting it down
00:02:39	to two brackets.
00:02:41	So the fundamental question
00:02:41	that needs to be studied
00:02:43	for those who want to
00:02:43	eliminate income tax is
00:02:47	either we're going to
00:02:49	cut public services
00:02:49	or increase other taxes,
00:02:53	and those are larger people.
00:02:55	Professional business
00:02:55	introduction
00:02:58	make under $300,000.
00:02:59	You don't pay income tax now.
00:03:01	And so if you make
00:03:01	less than 26,000
00:03:05	and so that that's
00:03:05	going to adversely
00:03:08	affect that group of people,
00:03:08	you know,
00:03:09	with fewer services
00:03:09	and higher taxes.
00:03:12	And also Republicans
00:03:12	also put into the budget
00:03:15	a $600 million package
00:03:15	of state backed bonds
00:03:18	for a $3.4 billion stadium
00:03:18	and development
00:03:21	for the Cleveland
00:03:21	Browns in Brook Park.
00:03:23	The team's owners say
00:03:24	it will generate $1.3 billion
00:03:24	more than will be needed
00:03:28	for the state to pay back
00:03:28	those bonds over 30 years,
00:03:31	which will total almost
00:03:31	$1 billion.
00:03:34	They also cut DeWine's sports
00:03:34	facilities fund
00:03:37	that was backed
00:03:37	by a doubling of the sports
00:03:38	gambling operators tax,
00:03:40	as well as the cigaret tax
00:03:40	for a $1,000 child tax credit,
00:03:44	and the marijuana tax
00:03:44	for a bunch of things
00:03:47	such as the 988 suicide
00:03:47	hotline
00:03:49	and grants to bring driver's
00:03:49	ed back to high schools.
00:03:52	this is not a process
00:03:54	where the governor shows up
00:03:54	and says, here's what I want.
00:03:57	You know, we tried to do
00:03:57	a couple of things.
00:03:58	There's
00:03:58	obviously a lot of people with
00:04:00	with a lot of different,
00:04:00	opinions about what they want.
00:04:04	I had a great meeting
00:04:04	with governor DeWine today.
00:04:06	He didn't
00:04:06	grab me by the throat
00:04:07	and, you know,
00:04:08	shoved me up against the wall
00:04:08	or anything like that.
00:04:10	DeWine has not shared
00:04:10	his thoughts on the budget
00:04:12	so far, but House Democrats
00:04:12	say they will not support it.
00:04:16	exists as it currently exists?
00:04:16	Absolutely not.
00:04:19	This budget is saying
00:04:19	if you are a billionaire,
00:04:21	get to the front of the line.
00:04:22	If you are a rich family
00:04:22	that wants vouchers
00:04:25	for your kids,
00:04:25	get to the front of the line.
00:04:27	If you are a pregnant woman,
00:04:27	if you are a senior,
00:04:30	if you are a hungry child,
00:04:30	if you are a public,
00:04:32	school,
00:04:32	get to the back of the line
00:04:34	because we're going to fund
00:04:34	those people first.
00:04:36	What do you
00:04:36	we are looking at a budget
00:04:38	that is doing things
00:04:38	like taking away led abatement
00:04:41	programs, to prevent lead
00:04:41	poisoning and children
00:04:44	taking way home visits,
00:04:44	to reduce infant mortality
00:04:48	in our communities,
00:04:48	taking away
00:04:50	Medicaid services,
00:04:50	for moms and babies.
00:04:54	And the fact
00:04:54	that we're even talking about
00:04:56	or even it's
00:04:56	in the realm of consideration
00:04:58	that we're going to get
00:04:58	a $600 million
00:05:00	giveaway to billionaires
00:05:00	is absolutely absurd.
00:05:03	I sat down this week
00:05:03	to discuss
00:05:05	some of the biggest pieces
00:05:05	of the budget
00:05:07	with House Finance
00:05:07	Committee Chair Brian Stewart,
00:05:10	who is the sponsor
00:05:10	of the two year spending plan.
00:05:12	Let's start
00:05:12	with the tax increases
00:05:14	that were removed on cigarets
00:05:14	to find $1,000 child tax
00:05:17	credit on sports
00:05:18	gambling operators
00:05:18	for sports facilities,
00:05:20	find on marijuana
00:05:20	for a bunch of things,
00:05:22	including the 988
00:05:22	suicide hotline
00:05:24	grants to bring driver's
00:05:24	ed to high schools.
00:05:26	You said
00:05:26	there was a widespread belief
00:05:28	among members
00:05:29	of the Republican caucus
00:05:29	that you don't want
00:05:31	to raise taxes on Ohioans.
00:05:33	Why not allow these use taxes
00:05:35	or syntaxes
00:05:35	for people who want to engage
00:05:38	in these kind of things?
00:05:39	Why not let the state
00:05:39	make money on that?
00:05:41	Well, state
00:05:41	is making money on that.
00:05:42	We passed sports betting not
00:05:42	that long ago at a 10% rate.
00:05:45	We already doubled it to 20%.
00:05:47	Going to 40%
00:05:47	would have put us, you know,
00:05:49	one of the highest tax rates
00:05:49	in the entire country.
00:05:51	That's not where we want to
00:05:51	be. That's a tax.
00:05:53	It will ultimately get
00:05:53	passed on to, to Ohioans.
00:05:56	You know, Ohioans voted for
00:05:56	a 10% tax rate on marijuana.
00:05:59	They didn't vote for a 20%
00:05:59	tax rate on marijuana.
00:06:02	And just generally, look,
00:06:03	we have a philosophical
00:06:03	difference with,
00:06:04	you know, some of our friends
00:06:04	in the other party
00:06:06	that we don't want to raise
00:06:06	taxes.
00:06:07	We're not going to kind of
00:06:08	pick and choose
00:06:08	which taxes we like.
00:06:10	These are ultimately borne
00:06:10	by our citizens.
00:06:12	We didn't think
00:06:12	they're warranted.
00:06:13	And so we're glad there's no
00:06:13	tax increases in this budget.
00:06:16	You said differences with
00:06:16	people in the other party,
00:06:18	but these were from
00:06:18	governor Mike DeWine. Well,
00:06:22	fair enough.
00:06:22	And, the governor
00:06:24	has his view, and we've,
00:06:24	agreed on many things
00:06:27	and disagreed on others.
00:06:28	And when it comes to taxes,
00:06:29	this is an area
00:06:30	where we're
00:06:30	just going to disagree
00:06:32	on one of those complicated
00:06:32	areas in the budget.
00:06:33	K through 12 funding
00:06:35	under the House
00:06:36	budget, districts
00:06:36	will get $266 million
00:06:39	more than in DeWine's budget.
00:06:39	Is that correct?
00:06:41	266, 200, I believe
00:06:41	226 million more than they got
00:06:46	in the current 2025 and per
00:06:46	pupil funding as increase.
00:06:51	The fair school funding plan
00:06:51	is not going to go forward.
00:06:53	And you described
00:06:54	what you're doing
00:06:54	as a bridge formula
00:06:56	to take you to the next
00:06:56	General Assembly.
00:06:58	Are you moving to another
00:07:00	formula in two years, or House
00:07:00	Minority Leader
00:07:04	Allison Russo
00:07:04	said, you're just shifting
00:07:06	the burden
00:07:06	onto local communities.
00:07:08	What's happening
00:07:08	with that formula?
00:07:10	Well,
00:07:10	first of all, we're spending
00:07:11	$16.5 billion
00:07:11	on traditional public schools
00:07:15	in the new biennium.
00:07:16	That is 226 million
00:07:16	more than they got in 2025.
00:07:20	And we're not getting rid
00:07:20	of the fair
00:07:21	school funding formula
00:07:21	in its entirety,
00:07:23	but it is in their higher
00:07:23	revised code
00:07:25	that is often revised and new
00:07:26	when it comes to school
00:07:26	funding
00:07:27	that is typically revised
00:07:27	every two years.
00:07:29	So cut
00:07:30	Patterson is still kind of the
00:07:32	bedrock that we started with.
00:07:34	But what we've seen over
00:07:34	the last few years
00:07:35	is it's not really working
00:07:35	in the manner it was intended.
00:07:38	It's not accounting for these
00:07:38	high growth districts.
00:07:41	It's not accounting for,
00:07:41	you know, fairly
00:07:43	historic rates of property
00:07:43	tax increase.
00:07:45	And so under the old formula,
00:07:47	as property values increase,
00:07:47	the state share decreases.
00:07:50	And so what you saw,
00:07:50	and I think you saw this
00:07:52	in the governor's
00:07:53	budget, is a proposal
00:07:53	where an awful lot of school
00:07:56	districts
00:07:56	were going to get a cut.
00:07:57	You had some districts
00:07:57	that were going to get
00:07:59	an unusual amount of increase.
00:08:01	And all we've really done in
00:08:01	this budget
00:08:02	is kind of take the, the,
00:08:02	the losers and the winners
00:08:05	and kind of collapse
00:08:05	everybody towards the mean.
00:08:07	Every single school district
00:08:07	in Ohio
00:08:09	is going to get a budget
00:08:10	increase under this version
00:08:10	of the budget,
00:08:12	and we think
00:08:12	that's a good place to be.
00:08:14	Does that carry forward into
00:08:14	the next General Assembly?
00:08:17	I mean, I know that Speaker
00:08:17	Matt Huffman has said
00:08:19	you can't promise things
00:08:19	for future lawmakers
00:08:22	to take up, but
00:08:23	like tax cuts stay in budgets
00:08:23	beyond the current GA.
00:08:27	What's going to happen
00:08:27	going forward on this?
00:08:29	Well, tax cuts
00:08:29	are just like school funding.
00:08:31	They are subject to revision
00:08:32	any time
00:08:32	it is a high revised code.
00:08:34	So we are putting ourselves
00:08:34	on a path
00:08:37	towards a more sustainable way
00:08:37	of funding public schools.
00:08:41	I expect we'll have a similar
00:08:41	conversation in two years.
00:08:44	I expect that we will.
00:08:45	You know, every year,
00:08:46	generally, we give more money
00:08:46	to our public schools,
00:08:48	but we can't do it
00:08:48	at these unsustainable levels
00:08:51	as and folks have asked for,
00:08:51	you know, the
00:08:53	additional $1.8 billion,
00:08:53	that's not sustainable.
00:08:56	We don't have it.
00:08:57	Ohioans are not going to
00:08:58	support us
00:08:58	raising taxes to cover that.
00:09:01	And so,
00:09:01	you know, giving more money
00:09:03	to every public school
00:09:03	district,
00:09:04	is a good place to be.
00:09:06	We understand
00:09:06	it's budget season.
00:09:07	And, you know,
00:09:07	folks are not getting 100%
00:09:09	of what they asked for.
00:09:10	Almost nobody is, but we need
00:09:10	to live within our means.
00:09:13	That includes
00:09:13	our public schools.
00:09:15	One of the ways that,
00:09:16	this becomes complicated
00:09:16	is when you start
00:09:18	talking about property
00:09:19	tax changes,
00:09:19	which there are several bills
00:09:21	that would deal with property
00:09:21	tax changes.
00:09:23	And you've got a provision
00:09:25	in this budget
00:09:25	that would allow
00:09:25	school districts to carry
00:09:27	over 25% of their budgets,
00:09:27	but if they go over that,
00:09:30	then each county tax office
00:09:32	would refund the overage
00:09:32	to property taxpayers.
00:09:35	You said that folks
00:09:36	who pay a higher
00:09:37	share of property tax
00:09:37	get a higher share of benefit,
00:09:40	but school districts say
00:09:41	many of them
00:09:42	that would take them
00:09:43	into the red within their
00:09:43	five year forecast.
00:09:45	And it would force them
00:09:45	to go to voters
00:09:47	who don't want to pass levies.
00:09:48	And Russo has said
00:09:48	it's not real property
00:09:51	tax reform or tax relief
00:09:51	because there are
00:09:54	bipartisan bill
00:09:54	that would do that.
00:09:55	So explain this 25% cap
00:09:55	and what's it going to do
00:09:59	to public school districts
00:10:00	or right now, public school
00:10:00	districts
00:10:02	cumulatively
00:10:02	in the state of Ohio
00:10:03	are sitting on $10.5 billion
00:10:06	in their operating accounts
00:10:06	as an excess.
00:10:08	We heard from a public school
00:10:08	district today that had a 55%
00:10:11	carryover balance.
00:10:12	We think there should be
00:10:12	a carryover balance.
00:10:15	State has one,
00:10:15	local governments have one.
00:10:17	But 25% or less
00:10:17	is is more than norm.
00:10:20	And so when you have school
00:10:22	districts
00:10:22	collecting more property tax
00:10:24	than they actually need
00:10:24	to operate,
00:10:26	that's money
00:10:26	coming out of the pockets
00:10:27	of our residents
00:10:27	and into the bank account
00:10:29	of the government school
00:10:29	district.
00:10:31	So, you know,
00:10:32	we think that money
00:10:32	is better off
00:10:33	in the pockets
00:10:33	of the residents.
00:10:35	They're still going
00:10:35	be able to have a carryover.
00:10:37	They're still going to be able
00:10:37	to have their levies.
00:10:39	This is not include federal
00:10:39	money that they receive.
00:10:41	It does not include,
00:10:42	you know, bond revenues
00:10:42	that they may be receiving.
00:10:45	This is just
00:10:45	your operating account
00:10:47	for the school district.
00:10:47	How much can you carryover
00:10:49	and when a, you know, 25% is
00:10:49	to get a triple A bond rating.
00:10:52	So we're letting folks
00:10:54	carry over 25%
00:10:54	maintain their bond rating.
00:10:57	You know, we've not heard
00:10:57	that kind of pushback yet.
00:10:59	I mean, I understand
00:10:59	you're quoting the minority
00:11:01	leader, but,
00:11:01	you know, that's our job.
00:11:03	And, we believe that 25%
00:11:03	very reasonable.
00:11:07	And this is the quickest,
00:11:07	most significant way
00:11:09	to get real property
00:11:09	tax relief
00:11:11	to Ohioans in a timely manner
00:11:11	without just simply shifting
00:11:15	the burden
00:11:15	from local taxpayers to every
00:11:15	taxpayer in the state.
00:11:19	So you have not heard pushback
00:11:19	from county school districts
00:11:22	or anybody at the school
00:11:22	district level on this?
00:11:25	Well, we just had our first,
00:11:27	hearing on the budget
00:11:27	this morning.
00:11:28	I mean, there were, you know,
00:11:28	two to 2 or 3 districts that,
00:11:33	were complaining.
00:11:34	But, you know,
00:11:34	we looked up their balances
00:11:34	in real time, 55%, 42%,
00:11:38	schools should be able
00:11:38	to take property tax
00:11:41	to cover what they need,
00:11:41	but not afford an
00:11:44	an unusual amount
00:11:44	beyond what is, necessary.
00:11:49	The school districts,
00:11:49	in your understanding, hoard
00:11:51	some of that money,
00:11:51	hold back some of that money.
00:11:53	Because of the uncertainty
00:11:53	of school funding in general.
00:11:56	Well,
00:11:57	they are subject to the same
00:11:57	tier process that we are,
00:12:00	you know, to say, well,
00:12:01	we just have to continue
00:12:01	to take more money
00:12:03	from our taxpayers
00:12:03	than we need.
00:12:05	Planning for a rainy day six,
00:12:05	seven, eight years from now.
00:12:08	It's just not realistic.
00:12:09	Let's talk
00:12:09	a little bit about the $600
00:12:11	million bond package
00:12:11	for the new Brown
00:12:12	Stadium and development
00:12:12	that what's around it.
00:12:15	It's a huge deal.
00:12:15	It will be Ohio's
00:12:15	first dome stadium.
00:12:17	It will be half funded
00:12:17	by the team's owners,
00:12:20	the Haslam,
00:12:20	who are billionaires.
00:12:21	The expectation is
00:12:22	it would generate
00:12:22	a lot of events
00:12:24	and a lot of activity,
00:12:24	a lot of economic activity.
00:12:26	You said the Browns have given
00:12:26	what you call
00:12:28	very reasonable metrics
00:12:29	on what type of increased
00:12:29	economic activity
00:12:31	will essentially pay back
00:12:31	the state
00:12:34	for the cost of those 30 year
00:12:36	bonds,
00:12:36	which is about $1 billion.
00:12:38	Over that 30 year period,
00:12:39	the team has estimated $1.3
00:12:39	billion
00:12:42	more in revenue
00:12:42	than it would cost
00:12:44	the state to pay back
00:12:44	those bonds.
00:12:46	There was a 12 page
00:12:46	presentation that was made
00:12:48	to the House Arts, Athletics
00:12:48	and Tourism Committee
00:12:52	about that.
00:12:53	It gave their total numbers,
00:12:53	but there's no real breakdown
00:12:57	on how much income tax,
00:12:57	sales tax, whatever.
00:13:00	Have you seen a breakdown
00:13:01	on how much individual
00:13:01	tax revenue from each
00:13:04	pot will create
00:13:04	that economic impact?
00:13:07	I, I probably have
00:13:09	I mean, I have seen
00:13:09	all of their metrics and math
00:13:11	and I've seen the 30 year
00:13:11	chart.
00:13:13	I mean, I think that
00:13:13	what they're proposing
00:13:15	is reasonable.
00:13:15	I mean it
00:13:16	you don't have to be
00:13:16	an economic
00:13:18	genius to understand that
00:13:18	if you put the premier,
00:13:21	entertainment venue
00:13:21	in all of America
00:13:23	in a great big open space
00:13:23	just outside our,
00:13:25	you know, one of our,
00:13:25	our largest region,
00:13:27	and you add retail, shopping,
00:13:27	office space and a premier
00:13:31	entertainment venue,
00:13:32	you're going to have more
00:13:32	economic activity.
00:13:33	You're going to have
00:13:33	more income tax,
00:13:35	you're
00:13:35	going to have more sales tax.
00:13:36	And so,
00:13:37	we do this
00:13:37	all the time in deals across
00:13:39	Ohio with, with tax increment
00:13:39	financing tips, where we,
00:13:42	we say that we're going
00:13:42	to, keep the income generated
00:13:46	from this project
00:13:46	at the project site.
00:13:48	We do that
00:13:48	in every community in Ohio.
00:13:50	And so we think this is
00:13:50	just kind of a
00:13:51	obviously
00:13:51	a larger version of that,
00:13:53	but it is consistent
00:13:54	with how we have done things
00:13:54	in the past.
00:13:56	Ohio voters
00:13:56	have authorized us for 30, 40,
00:13:59	50 years to sell, revenue
00:13:59	bonds to do capital projects.
00:14:04	Now, typically
00:14:04	every two years,
00:14:04	we do a capital budget
00:14:06	where we, you know, get that
00:14:06	money back into the community.
00:14:09	We do, you know, amphitheaters
00:14:09	and Circleville and a splash
00:14:12	pad and Wapa Canada
00:14:12	and everything in between.
00:14:15	This is just a bigger version
00:14:15	of that.
00:14:17	It's a selling bonds, doing
00:14:17	a large community project.
00:14:20	And I think that
00:14:20	when the ribbon is cut
00:14:23	and folks
00:14:23	walk through the door
00:14:25	and we see the activity
00:14:25	activity that this drives,
00:14:27	I think people are going to be
00:14:27	happy that this is in Ohio.
00:14:29	You're confident that it won't
00:14:30	just take economic activity
00:14:30	from downtown Cleveland
00:14:33	or some other parts
00:14:33	of the state
00:14:34	and just rob them of that?
00:14:36	I don't think so.
00:14:37	I think when you look at what
00:14:37	Indianapolis has been doing,
00:14:40	they've been eating our lunch
00:14:40	in terms of,
00:14:42	entertainment venues
00:14:43	and national events
00:14:43	for almost 20 years.
00:14:46	When you look at other venues
00:14:47	that of this size
00:14:47	that have occurred elsewhere.
00:14:50	I, we think this is a rising
00:14:51	tide is going to kind of lift
00:14:51	a lot of boats.
00:14:52	I think you're going
00:14:52	to get events to Ohio
00:14:55	that we're not
00:14:55	getting currently.
00:14:56	I think you're going
00:14:56	to have an event space
00:14:56	with a dome that, unlike the,
00:15:00	you know, stadium on the lake,
00:15:00	can be used year round.
00:15:03	I think that is going
00:15:03	to attract more events
00:15:05	and be a driver of economic
00:15:05	activity in that area.
00:15:08	Has there been an analysis
00:15:08	from the Office
00:15:10	of Budget and Management
00:15:10	or the Legislative Service
00:15:12	Commission about those numbers
00:15:12	that came from the Browns?
00:15:14	Our staff is looking at all
00:15:14	the numbers.
00:15:15	I mean,
00:15:15	I think we are digging in and,
00:15:17	you know, doing our homework
00:15:17	and double checking.
00:15:19	But, you know, again,
00:15:19	it's not,
00:15:23	it's not much of a stretch
00:15:23	to understand that when you go
00:15:25	and now you add the premier,
00:15:25	to a great big open site
00:15:28	entertainment venue,
00:15:30	that there is going to be an
00:15:30	increased economic activity.
00:15:32	But when all of the hassles
00:15:32	pay for it all by themselves,
00:15:35	well, they're paying for 1.2
00:15:35	billion.
00:15:37	That's the largest
00:15:37	private investment,
00:15:38	in the state's history.
00:15:40	That is one
00:15:41	that is a bigger
00:15:41	private investment
00:15:42	than most deals of this kind.
00:15:44	I, you know, I don't know
00:15:44	all their finances,
00:15:47	but I assume even billionaires
00:15:47	at some point
00:15:49	have a bit of a limit of what,
00:15:50	what you can do in a project.
00:15:52	And so, this is the norm
00:15:52	across the country.
00:15:55	If I was king for a day, maybe
00:15:56	there would be no stadium
00:15:56	deals in any state.
00:15:58	But if we don't do this
00:15:58	in Ohio,
00:16:00	our competitors
00:16:00	certainly would.
00:16:01	If you look at other states
00:16:01	of our size, our type,
00:16:05	this is the norm.
00:16:06	Las Vegas
00:16:06	is the most recent stadium.
00:16:08	Public involvement
00:16:08	in that stadium was vastly
00:16:10	higher than what
00:16:10	is being proposed for Ohio.
00:16:12	Tennessee is a,
00:16:13	you know, a red state
00:16:14	that a lot of our members
00:16:14	of our caucus,
00:16:16	like to take a look at and,
00:16:16	you know, kind of
00:16:19	comparing ideas.
00:16:20	I believe
00:16:20	they've got a proposed,
00:16:22	stadium
00:16:22	that would be, you know, in
00:16:24	excess of $1.2 billion
00:16:24	in taxpayer participation.
00:16:28	So we're talking
00:16:28	about roughly half
00:16:29	of that investment
00:16:29	for a site here in Ohio.
00:16:32	This is this is kind of the
00:16:32	price of having one of these,
00:16:36	Premier sites that,
00:16:36	you know, I've lived in Ohio
00:16:38	my entire life,
00:16:40	and I've heard
00:16:40	from some people, not myself.
00:16:42	You know, there's
00:16:42	nothing to do in Ohio.
00:16:44	What are we doing to keep kids
00:16:44	here?
00:16:45	What are we doing
00:16:45	for young people?
00:16:47	What do we do?
00:16:48	Like why do other states have
00:16:48	things that we don't have?
00:16:51	Well, now, here we are.
00:16:52	We have a billionaire
00:16:52	who's saying,
00:16:53	I want to put in, you know,
00:16:53	$1.2 billion of my own money.
00:16:56	I'm asking for essentially
00:16:56	a $600
00:16:58	million loan from the state.
00:17:00	And we have folks
00:17:00	who are saying, well, no,
00:17:01	I don't want those.
00:17:01	I don't want that anymore.
00:17:04	I think we're going to win.
00:17:05	This is done.
00:17:07	People are going to be happy
00:17:07	it's here.
00:17:08	And I think it's going to be
00:17:08	a good thing for the state.
00:17:09	You have Cog County Executive
00:17:11	Chris Ronayne and Cleveland
00:17:11	Mayor Justin Bibb,
00:17:12	who both oppose the project,
00:17:12	and Brook Park.
00:17:15	They've said
00:17:15	that the team's estimates
00:17:16	hinge on prices
00:17:16	per ticket for games
00:17:19	going to $800 a ticket
00:17:19	over 30 years,
00:17:22	and for every game
00:17:22	to be sold out
00:17:23	for every parking place
00:17:23	to be sold out.
00:17:25	Are those reasonable
00:17:25	estimates in your view?
00:17:28	That's not my understanding
00:17:28	of how they're
00:17:29	calculating their math,
00:17:29	and I'm not surprised
00:17:31	that opponents of the project
00:17:31	may have,
00:17:33	some,
00:17:33	some different arguments
00:17:34	and metrics
00:17:34	that they're trying to use.
00:17:36	The locals will decide
00:17:36	what they want to do.
00:17:39	I think the state has made
00:17:39	a determination
00:17:40	that this is a project worth
00:17:40	doing in this budget.
00:17:42	Does the state bond package
00:17:42	go through no matter
00:17:45	whether the locals do it
00:17:45	or not? It does.
00:17:47	What happens if the locals
00:17:47	don't come forward?
00:17:49	What happens to those bonds?
00:17:51	Well, the well, I would say
00:17:54	the the legislation
00:17:54	would authorize us
00:17:57	to sell bonds regardless
00:17:57	of whether the locals
00:17:59	participate,
00:17:59	whether we actually would
00:18:01	I mean, would be a question
00:18:01	for, for down the road.
00:18:04	I mean,
00:18:04	I think it would determine on
00:18:05	whether obviously
00:18:05	the project's going to happen.
00:18:07	I think if the if the
00:18:07	if the Browns say,
00:18:11	we can make this project work
00:18:12	without local participation,
00:18:13	then I think the state would
00:18:13	still be involved.
00:18:16	If for some reason that the
00:18:16	lack of local participation
00:18:19	is a problem
00:18:20	for the project,
00:18:20	I mean, we're not going to
00:18:21	sell bonds or a project
00:18:21	that doesn't exist.
00:18:24	The two leading Republican
00:18:24	candidates for governor, Vivek
00:18:26	Ramaswamy
00:18:26	and Dave Yost, have both said
00:18:27	they want Ohio
00:18:27	to go to zero income tax.
00:18:29	Many Republicans
00:18:29	feel that way.
00:18:31	You had a tweet last year
00:18:31	when you talked
00:18:32	about an aggressive move
00:18:32	toward eliminating the tax,
00:18:36	which you said should be done
00:18:36	by reining in state spending.
00:18:39	If there are income taxes
00:18:39	in this revenue mix, though,
00:18:42	wouldn't going to zero
00:18:42	or cutting the income tax,
00:18:45	wouldn't
00:18:45	that dramatically affect
00:18:47	the revenues that the state
00:18:47	would reap from this project?
00:18:51	Well,
00:18:51	any any elimination
00:18:51	of the income tax
00:18:53	unless there is a significant
00:18:53	adjustment to spending
00:18:56	is going to work, would
00:18:56	require adjustments elsewhere.
00:18:59	I mean, other states that
00:18:59	have gone to a 0% income tax,
00:19:03	they didn't find a cheaper way
00:19:03	to pay for roads.
00:19:06	They just collect the same
00:19:07	amount of revenue
00:19:07	through different pots.
00:19:09	And I expect that if we
00:19:10	if we got to that point,
00:19:10	eventually
00:19:11	it would be
00:19:11	a similar thing in Ohio.
00:19:13	So you would have to go back
00:19:14	to the stadium project
00:19:14	and redo the numbers.
00:19:18	No, I'm saying
00:19:19	I think that
00:19:19	if you were actually
00:19:20	going
00:19:20	to eliminate the income tax,
00:19:22	it's entirely likely that
00:19:23	there would be adjustments
00:19:23	either to,
00:19:25	you know, property tax,
00:19:26	sales tax,
00:19:26	you know, some other,
00:19:28	you know, ticket tax
00:19:28	or there would be
00:19:29	some other offsetting,
00:19:29	adjustment made that would
00:19:32	that would raise revenue
00:19:32	from the project is the same.
00:19:35	That brings me
00:19:35	the question of
00:19:35	what is the mechanism
00:19:37	to make sure that the state
00:19:37	is made
00:19:38	whole with the revenue
00:19:38	doesn't come in?
00:19:40	Well, first of all, the
00:19:40	the team is depositing
00:19:44	a $38 million bond
00:19:44	at the beginning
00:19:47	that will be invested
00:19:47	and grow over time.
00:19:49	The projections are
00:19:49	that invest that
00:19:51	that that compounding
00:19:52	of interest would be about 150
00:19:52	to $200 million,
00:19:55	by the end of the 30 years.
00:19:57	So, we feel good
00:19:57	about the projections
00:20:00	on what the increased tax
00:20:00	revenue to the state would be.
00:20:03	That bond is there
00:20:03	as a backstop, though,
00:20:04	if we're off by, you know, 50,
00:20:04	100 hundred and $50 million,
00:20:08	the team is putting up
00:20:08	a collateral security
00:20:11	to make sure that we could
00:20:11	make the taxpayers hole.
00:20:13	In any event,
00:20:14	there are some other things
00:20:14	in the House budget
00:20:16	that Democrats disagree with,
00:20:16	which is to be expected
00:20:18	so much
00:20:19	that Alice
00:20:20	LaRusso said that there's
00:20:21	no one
00:20:21	in the Democratic caucus
00:20:22	who would vote for this budget
00:20:22	right now.
00:20:23	Is that okay with you?
00:20:24	Is there room for compromise
00:20:24	as far as you're concerned?
00:20:27	Well, look, we would always
00:20:28	you know, anybody
00:20:28	who votes against this budget
00:20:30	is voting against more money
00:20:30	for public schools
00:20:32	or voting against property
00:20:32	tax relief.
00:20:34	They're voting against
00:20:34	an increase
00:20:35	of funding
00:20:35	for higher education.
00:20:37	They're voting against a lot
00:20:37	of good government reforms.
00:20:40	People have to make their own
00:20:40	decision on the floor about,
00:20:43	how they want to proceed.
00:20:44	But, you know, we have a 65,
00:20:44	member Republican caucus,
00:20:48	and we could pass a bill,
00:20:49	as we're constitutionally
00:20:50	required to do,
00:20:50	probably without,
00:20:53	the support
00:20:53	of the other party.
00:20:55	I'd like to
00:20:55	have their support,
00:20:56	but I think we've, you know,
00:20:57	there's
00:20:57	been an appetite in our caucus
00:20:59	to have a more
00:20:59	Republican budget.
00:21:00	I think for quite a while.
00:21:02	I think the, the,
00:21:02	you know, the
00:21:03	the strength
00:21:03	of the last two years,
00:21:05	I think there was a lot
00:21:06	of dissatisfaction
00:21:06	in our caucus about,
00:21:08	you know, what we what we did
00:21:08	and didn't get in that budget
00:21:11	based on the kind of, power
00:21:13	sharing arrangement
00:21:13	that there was.
00:21:14	And so,
00:21:15	we would love to have
00:21:15	all the votes
00:21:17	that we possibly can,
00:21:18	but this is going to be
00:21:18	a fiscally conservative,
00:21:22	Republican budget.
00:21:23	But this is the first budget
00:21:23	in, I think, seven years,
00:21:25	seven cycles. That doesn't
00:21:25	include an income tax cut.
00:21:29	Yeah.
00:21:29	I think this is, Santa Claus
00:21:29	has gone home.
00:21:32	I mean, there is no more
00:21:32	federal money.
00:21:34	There is no more CARES
00:21:34	act. Arpa.
00:21:36	You know, whatever
00:21:37	other acronym
00:21:37	the federal government
00:21:38	put on it,
00:21:39	we've had for several budget
00:21:39	cycles,
00:21:41	frankly, a lot of money
00:21:41	from the federal government
00:21:43	that,
00:21:43	you know, went out the door
00:21:46	and created programs
00:21:46	and is now gone.
00:21:48	And so we're back to
00:21:48	we're back to normal.
00:21:50	We're back to a regular order
00:21:50	here.
00:21:52	And we have to live
00:21:52	within our means,
00:21:53	unlike our friends
00:21:53	in Washington, DC.
00:21:55	And so, there is, you know,
00:21:55	necessarily going to be cuts
00:21:59	which we are making
00:21:59	in this budget and,
00:22:01	we're going to be realistic
00:22:01	about the fact
00:22:04	that we probably,
00:22:04	in this budget environment,
00:22:06	probably can't do an income
00:22:06	tax cut. We have cut.
00:22:08	So we have cut it to the point
00:22:10	that we are competitive with
00:22:10	all of our neighboring states.
00:22:13	We are not hearing
00:22:13	the same kind of concerns
00:22:14	from our residents
00:22:14	or businesses,
00:22:16	that our income tax
00:22:17	is a hindrance
00:22:17	to economic development or,
00:22:20	you know, people's
00:22:20	desire to live here.
00:22:21	I think people are much
00:22:21	more concerned
00:22:23	about property tax relief.
00:22:24	this budget is emphasizing,
00:22:24	That's why
00:22:26	you know, immediate,
00:22:26	swift property tax relief
00:22:28	through the county Budget
00:22:28	Commission process.
00:22:31	And I think if we provide
00:22:31	residents property tax relief,
00:22:33	I think that's what
00:22:33	they're more interested in
00:22:34	right now than the income tax.
00:22:36	And one final question.
00:22:36	You said we're back to normal.
00:22:38	One of the things
00:22:38	that's not back to normal
00:22:40	is that a ban on food
00:22:40	banks, food banks
00:22:41	got a cut in governor
00:22:41	Mike DeWine budget.
00:22:44	I don't believe that's been
00:22:44	restored in the House budget.
00:22:46	There are folks
00:22:46	who are going to say,
00:22:48	why not help food banks?
00:22:50	Why not help people who are in
00:22:50	need instead of, say,
00:22:53	doing the $600 million
00:22:53	in bonds for the Brown state?
00:22:56	Well, first of all,
00:22:57	the bonding issue
00:22:57	is entirely separate
00:22:59	from our general revenue
00:22:59	fund spending. Okay?
00:23:02	Our capital budget does
00:23:03	not affect what we spend on
00:23:03	any other state obligations.
00:23:06	So those are
00:23:06	those are apples and oranges.
00:23:08	The with regard to the food
00:23:08	banks, they are getting
00:23:11	$22.5 million in each year
00:23:11	from the state budget.
00:23:14	They're not getting
00:23:16	the full amount
00:23:16	they asked for.
00:23:17	Again, nobody really is
00:23:17	in this budget.
00:23:19	We have 4% unemployment
00:23:19	in the state.
00:23:22	We have a huge list of open
00:23:23	jobs available
00:23:23	for people to go fill.
00:23:25	I hope people do.
00:23:26	We think that should drive
00:23:28	the demand for the food banks
00:23:28	down.
00:23:29	And, we are funding food
00:23:29	banks like we are everyone
00:23:33	to the capacity that we can.
00:23:35	But we're not going to,
00:23:35	live outside our means.
00:23:38	A note in response
00:23:39	from the Ohio Association
00:23:39	of Food Banks.
00:23:41	They surveyed their customers
00:23:41	last year
00:23:44	and found just over half
00:23:44	had a member of the household
00:23:47	who was working.
00:23:48	Those who weren't.
00:23:49	58% reported
00:23:49	they were too disabled
00:23:51	or sick, and nearly
00:23:51	44% said they were retired.
00:23:55	The food banks have modified
00:23:55	their request in the budget,
00:23:58	now asking for around
00:23:59	$10 million more, or nearly
00:23:59	$29.5 million a year.
00:24:04	Executive Director
00:24:04	Jory Novotny said
00:24:06	it won't provide an adequate
00:24:06	emergency response,
00:24:09	but it will be meaningful
00:24:09	and is vitally necessary
00:24:12	to stop hunger and support
00:24:12	Ohio agriculture.
00:24:15	Speaker Matt Hoffman says
00:24:15	the plan is for a full floor
00:24:18	vote on the House
00:24:18	budget on Wednesday.
00:24:21	By the way, DeWine signed the
00:24:21	$11.5 billion transportation
00:24:24	budget right on the March 31st
00:24:24	deadline, with no vetoes.
00:24:28	It had passed
00:24:28	both chambers unanimously.
00:24:31	But he had been urged
00:24:31	to veto provisions
00:24:33	requiring proof of citizenship
00:24:35	to register to vote and Bureau
00:24:35	of Motor Vehicles offices
00:24:38	and a new leadership position
00:24:40	and pay raise for Assistant
00:24:40	Speaker Pro Tem Phil Plummer.
00:24:44	And that is it for this week
00:24:44	for my colleagues
00:24:46	at the statehouse News
00:24:46	Bureau of Ohio Public Media.
00:24:48	Thanks for watching.
00:24:49	Please check out our website
00:24:49	at State News Corp
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00:26:21	The law offices of Porter,
00:26:21	right, Morris and Arthur LLP.
00:26:24	Porter Wright is dedicated
00:26:24	to bringing inspired legal
00:26:27	outcomes to the Ohio business
00:26:27	community.
00:26:30	More at porterwright.com.
00:26:31	Porter Wright
00:26:31	inspired Every day
00:26:34	in Ohio Education Association,
00:26:34	representing 120,000
00:26:37	educators who are united
00:26:37	in their mission
00:26:39	to create the excellent
00:26:39	public schools.
00:26:41	Every child
00:26:41	deserves more at OHEA.org.

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