The Tiberi Tragedy

Bill Yarbrough

Bill Yarbrough is a nice guy. If you met him in person, you would think he was too nice a guy to run for public office. But he has a problem. People hate Congress but adore their Congressman. Bill is running against incumbent Congressman Pat Tiberi (R-Westerville). How to run a hard-hitting campaign while sticking to the issues? Bill answers that question brilliantly, even with a touch of humor, in The Tiberi Tragedy.

After you look at it, you will see that Congressman Tiberi is barely Republican (a certain large African beast with a single horn in front comes to mind), no conservative, and certainly no libertarian.

Bill certainly is a libertarian Republican. I know him personally. He has the right values and will know how to replace the Tiberi Tragedy with a strong and consistent defense of freedom in Congress.

State Sovereignty News from Arizona and Ohio

Two items of interest:

The Washington Times reports that the Arizona House is launching an investigation to determine whether the Bureau of Alcohol, Tobacco, and Firearms violated state law by running Operation Fast and Furious. As you may recall that operation consisted of smuggling firearms out of the United States for the purpose of tracing drug dealers. However, the firearms were lost. Some of them were found in the investigation into the killing of border guard Brian Terry at a crossing in Arizona. This is a courageous example of a state exercising its sovereign right to prevent the federal government from harming its people. The investigative committee is scheduled to produce a report by March 30.

Here in Ohio, two State Senators, Larry Obhof (R-Medina) and Keith Faber (R-Celina) have introduced a State Sovereignty Resolution (SCR 24), similar to HCR 11 and SCR 13 in the previous session. These were introduced in early 2010 as part of a widespread movement to let Washington know that the states are sovereign, and to demand that the Constitutional limitations on federal power be observed. HCR 11 died in committee, largely because Democratic Speaker Armond Budish did not want to allow any resolution to challenge the federal government. Its Senate companion, SCR 13, passed the Senate, but also died in House Committee. As longtime readers of this blog know, I strongly supported such resolutions two years ago. I agree with the spirit of the resolution, and have no objections to it passing to add Ohio to the states standing up for itself; but I suggest that the legislature's time would be better spent passing an Honest Money bill and resisting specific federal encroachments on our state's rights.

What Ohio stands for

I was in the Ohio Statehouse yesterday, when I encountered the following quotation, which to me represents the high political ideals that Ohioans have represented through the ages. We would all do well to remember them as we work to rebuild our state and our society:

Let Ohio speak for human rights, for universal manhood suffrage, for fair and honest elections, for economy and purity in public affairs, for honest money and stable government.

-- George Washington Williams (1849-1891)

Mr. Williams was the first African-American to serve in the Ohio House of Representatives, representing Cincinnati 1880-1881. In his brief life (he died at 41), he was a veteran of the War between the States (having enlisted at 14!), and was a minister, historian, and diplomat. He wrote the first history of African-Americans, and at the end of his life, launched an investigation of the mistreatment of the people of the Congo at the hands of agents of King Leopold II of Belgium. He contracted tuberculosis and pleurisy, and died in England returning from Africa. He is buried in England.

He spoke for human rights, which are enshrined in our Ohio Constitution, adopted in 1851. The Bill of Rights has expanded since then, most recently last year with the adoption of Issue 3, nullifying mandatory health care.

He spoke for universal manhood suffrage, which Ohio, unfortunately, was slow to embrace -- but finally did so with our ratification of the Fifteenth Amendment in 1870. However, Ohio redeemed itself in 1919 by becoming the sixth state to ratify the Nineteenth Amendment, extending suffrage to women.

He spoke for fair and honest elections. For most of Ohio's history, particularly during the service of Secretary of State Ted W. Brown (in office 1950-1978) and his successor Anthony J. Celebrezze, Jr (1979-1983), Ohio has had an exemplary elections process. More recently, it has been tainted by scandals involving a Secretary of State (Ken Blackwell) who actively participated in the 2004 Presidential campaign while in office, and with problems involving voting machines made by Diebold.  However, his successors Jennifer Brunner and Jon Husted have gradually restored credibility to the office.

He spoke for economy and purity in public affairs. For most of Ohio's history, the state was run economically. As recently as 1991, Ohio ranked very near the bottom of the 50 states in state tax burden. While the continuing recession has resulted in much higher taxes (to maintain steady revenues), efforts of Gov. Kasich and the Ohio General Assembly are managing the budget without further tax increases. When their efforts bear fruit, Ohio will again be working toward economy in public office. Purity in public affairs, however, is one of those ideals that can never be attained, but must always be striven for.

He spoke for honest money. In our history, Ohio has been a leader for a currency that represents value. In 1819, State Auditor Ralph Osborn attempted to enforce a tax on the Bank of the United States, in part because that bank issued currency without backing. "Sound money" is the issue that propelled Ohio's William McKinley to the Presidency. Today, many in the Ohio freedom movement are pressing for a way to protect Ohioans from a future hyperinflation by facilitating the use of gold and silver in payment of taxes and as a currency.

Finally, he spoke for stable government. To me, stable government should be boring. It consistently, day after day, enforces a small number of easily-understood laws to protect the lives, liberties, and property of Ohioans. All things considered, and particularly in comparison to other industrialized states, Ohio has done this reasonably well; but like purity in public affairs, it is a continuing struggle to maintain.

George Washington Williams's ideals are a statement of the fundamental principles of political life in Ohio, principles which we have generally applied well; but of which we must continually remind ourselves as we move forward.

The state issues summarized

I plan to vote Yes on all three issues:

Issue 1. I have come to oppose any laws that restrict the choices of voters (subject to one qualification, coming up), whether it be age limits for judges or term limits. Raising the maximum age to 75 is a step in the right direction, but age limits should be abolished entirely. Even better is merit selection. Most non-lawyers vote on name recognition alone. Those who go to a bit more trouble will check what the Bar Association thinks. Merit selection allows us to vote a judge in, then decide every six years whether the judge is worth keeping. (Here is a concurring opinion favoring Issue 1 from Ohio Supreme Court Chief Justice Maureen O'Connor).

Issue 2. If you have read this blog more than a day or two, you know that I passionately support Issue 2,  limiting (but not abolishing) the collective bargaining rights of public employees. There are flaws that need to be addressed, but the financial situation in our state and local governments calls for an immediate response.

Issue 3. This is a Constitutional amendment to prohibit the feds from forcing Ohioans to buy health care. No one should be forced by government to buy anything.* Obamacare is blatantly unconstitutional, will interfere with patient-doctor relationships, and sets a dangerous precedent for future legislation. Vote Yes on Issue 3.

* Contrary to a popular belief, Ohio's financial responsibility law does not require Ohioans to purchase auto insurance, as long as the driver can prove that he can pay $25,000 in damages as the result of an accident. (Ohio Revised Code §4509.01(K)).

Message of the day

Happy Halloween from Ohioans for Healthcare Freedom (the folks who are supporting Issue 3). Their email message certainly is appropriate to the day:

Government involvement in your healthcare is creepy        

A video we have produced pokes fun at the idea of government involvement in your day to day healthcare decisions, and yes, its funny.  

It's meant to be funny (and a little creepy), but still make you think about the absurdity of good old Uncle Sam being involved in your day to day healthcare decisions. 

See Video of Uncle Sam involved in your healthcare here.  

If we couldn't laugh, we'd cry, so let's not lose our sense of humor in the face of the government takeover of healthcare.

   

Unfortunately, the truly scary part is that in federal or state based mandated healthcare - the government really can define your insurance for you. Bureaucrats start deciding what will and what won't be included in your newly government defined healthcare insurance.

And where previously, you had the option to switch insurers and get away from a plan you don't like, or even skip insurance altogether - now, you will participate in a government defined health plan whether you like it or not.

What does government defined insurance look like?

Well, that's the fun part - no one really knows the answer to that question. It's a moving target. What we do know is that - you don't have a say in the matter. 

And that's a huge problem. When government mandates are implemented - your freedom to choose goes out the door.

It's a slippery slope. Let's remind the government, when it comes to healthcare - three's a crowd.

Vote YES on ISSUE 3!

I support Issue 3, and urge you to share your support with others.

Who's behind the campaign against Issue 2?

As the Ohio Liberty Council has observed, We Are Ohio (the anti-Issue 2 movement) clearly is not "a bipartisan, grassroots movement speaking for Ohio’s middle class." The truth is reflected in the campaign finance figures submitted to Secretary of State Jon Husted in July, displayed on a graph at the Ohio Liberty Council site that I was unable to reproduce here. Note how the contributions are grouped: $3.7 million from international unions, $2 million from Ohio unions, and less than $40,000 from individual donors. As an objector in a union shop myself, I know that much of that money was forced in union dues from employees who disagree with the leadership's politics. Follow the links at the bottom of the post, then decide for yourself whether We are Ohio is looking out for the public interest.

Outsider take on Ohio's "Heartbeat bill"

Russell Longcore, of DumpDC, who is often quoted in this space, gave an interesting take on Ohio's HB125, a bill to outlaw abortion once a heartbeat is detected in the fetus:

Politics meet religion in Ohio – The Ohio legislature [House] recently passed the so-called “Heartbeat Bill,” named because it outlaws abortion at the first detectable heartbeat of a human fetus. Now the bill must be passed by the Ohio Senate before it can be signed into law. It will be the most restrictive abortion law in the nation if passed. Remember folks…this is not about reproductive rights. You have all the reproductive rights you deserve…right up to the instant you get pregnant. Then your rights properly morph into responsibility…which is what REAL rights always do anyway. This is about whether or not it’s OK to kill another human being because its existence is inconvenient. Natural law bestows the right to life and NONE of us get here without some help. Good luck, Ohio. Godspeed. About 50 million lives have been snuffed out since Roe v. Wade in 1973. The oldest of them would be nearly 40 years old now…paying into Social Security and Medicare. OOOPS. Unintended consequences suck, don’t they?

The Constitution leaves decisions on these matters up to the states. They are not federal responsibilities. If Ohio wants to outlaw abortion entirely, and another state wants to allow it up to birth; that is up to the people and legislatures of the respective states; and is no one else's business.

School choice bill passes Ohio House

From Weapons of Mass Discussion, via Brian Duffy:

The Ohio House Education Committee has passed (Thursday) legislation that reforms and expands school choice within the state of Ohio. When enacted, House Bill 136 will add private schools as an option for some families, along with open enrollment, charter/community schools, special education scholarships and joint-vocational schools.

The bill creates the Parental Choice and Taxpayer Savings (PACT) scholarships, which gives scholarships to middle-income families based on need, similar to the federal Pell grant...

State Representative Matt Huffman (R-Lima), sponsored the bill...

The PACT scholarship is $4,600 at its maximum and will be paid from state funding, not local tax dollars. This amount represents at least 20 percent less than the amount paid for charter schools, open enrollment and other school choice programs. Recipients will be counted in the local district’s average daily count, which will bring additional state dollars to the district.

“This program will result in substantial savings to the taxpayer, while giving parents another option for their child,” said Huffman.

House Bill 136 received eight hearings in the House Education Committee and now awaits a vote by the full House.

This will be a giant step toward allowing parents to provide children with the kind of education they (not the state) find appropriate.

Memo to the General Assembly: Get it right this time

For the third time in five years, the Libertarian Party of Ohio has won a lawsuit to gain ballot access.

Judge Algernon Marbley granted the Libertarian Party of Ohio’s request for a preliminary injunction in Libertarian Party of Ohio v. Husted that protects ballot access for the party through 2012, including for Libertarian candidates already on the November 2011 ballot in Akron and Troy. (The previous cases are Libertarian Party of Ohio v. Blackwell [2006] and Libertarian Party of Ohio v. Brunner [2008, case merged with Moore v. Brunner]).

The opinion states that Ohio's ballot access laws (Ohio Revised Code sections 3501.01 and 3517.01) cannot be justified on constitutional grounds, but rather operate to protect the Democrats and Republicans from competing ideas and candidates. In particular, Judge Marbley states that requiring a minor party filing deadline 90 days before the primary, coupled with a signature requirement of 1% of the voters in the last gubernatorial or presidential election forces minor parties to recruit candidates and circulate petitions at a time when people are not interested in politics. The opinion is 12 pages long and very easy to read. It gives an interesting history of ballot access in Ohio, with a few references to the same struggle in other states. In Judge Marbley's view, Ohio has a long history of suppressing minor party ballot access, and among the larger states, has the least diversity in political party options.

The injunction was specifically addressed to the Libertarian Party of Ohio. It is not clear how much it will help the Constitution, Green, and Socialist Parties. (Click on the Alternative Parties tab under the masthead for additional information on all four parties).

To her credit, former Secretary of State Jennifer Brunner got the message, and granted ballot access to six parties in 2010; but the Republicans in the General Assembly tried earlier this year to trim it back with HB 194. (Applicable text is incorporated in the Ohio Revised Code references above).

The Libertarian Party is 40 years old and appears on the ballot in 31 states. While it currently has only 7,000 voters in Ohio, that number is growing. There are several local officials elected as Libertarians, and voters will elect more this year. We are not going away. Get over it, and get it right.

Virtual buckeye to Bill Yarbrough

Warning to freedom-minded legislators

Be extra careful to mind your Ps and Qs. The media are quick to snatch on every personal misstep one of "our" legislators makes. Cases in point:

Domestic complaint against Sen. Kris Jordan (R-Powell) last week (Columbus Dispatch).

Operating a Vehicle while Intoxicated arrest of Rep. Jarrod Martin (R-Beavercreek) yesterday (Dayton Daily News).

I certainly hope this is just an unfortunate coincidence -- but things like this provide sound bites for the opposition. Please be careful.

"As goes jobs, so goes Ohio"

That is what Selena Zito writes in Townhall, as she reports from Powhatan Point (Belmont County, on the Ohio River). Traditionally Democratic areas voted Republican in 2010, and are poised to do so again if our jobs situation doesn't improve.

Let me add my own warning. If President Obama is re-elected, the job situation will get worse, not better. He is owned by the New York bankers (further evidence). Our only recourse then will be independence.

Don't waste your time, Ken

Roll Call (via Hannah News Service) reports that Ken Blackwell is considering a run for the U.S. Senate next year. He is supposedly leading the polls right now, but that is probably because he is the only Republican who has run a statewide campaign who has announced so far.

Do us all a favor, Ken. Don't waste your time or our money. We've had enough of you.

SB 5 passes House, awaits Gov. Kasich's signature

Here is the Associated Press's take, from the Washington Post website. The bill's passage was prominent in the national news last night.

The bill passed by a vote of 53-44. Two Republican State Senators who objected to the bill, Timothy Grendell (R-Chesterland) and Bill Seitz (R-Cincinnati) questioned its legality. I have extensively discussed the ramifications of the bill with a teacher in the Support SB5 Facebook page. News reports indicate that, for teachers, the bill will base merit heavily on test scores. This basically is forcing teachers to teach by rote, which only forces facts down children. It does not teach them to think or reason. I am not familiar enough with education to suggest a better way to reward merit in education; but I cannot believe that one does not exist. The teaching profession will be hard-hit by this bill; and I would urge the members of the House-Senate conference committee to weigh these concerns heavily when finalizing the bill for Gov. Kasich's signature.

I have supported SB5, and continue to do so; but I am not satisfied with the result. The purpose of the bill should be to help the State of Ohio contain payroll costs, not to punish certain groups of workers or impose burdens unevenly across state employees. With this in mind, I quote with approval a statement by State Rep. Matt Szollosi (D-Oregon, reported in the Columbus Dispatch): 

These are not numbers on a page or lines on a graph, they are people with families ... and they do not deserve to be slapped in the face and put further into harm's way because liberty groups or tea party groups or whoever is pulling the Republican strings right now have demonized public workers.

From being involved with the Support SB5 Facebook discussion, I can tell you that far too many supporters have demonized public workers. This is just as wrong as the selfishness shown by many of its opponents. Far too few of us (on either side) are even trying to look at this issue rationally.

The unions are expected to call for a referendum in November to repeal this bill. The campaign will be bitter and will divide the state politically in a way that we have not experienced since the Right to Work debate in 1958. Unions may be smaller and less powerful than they were 53 years ago, but they still command a great deal of support.

We can only hope that Gov. Kasich and the Republican leadership in the General Assembly have soberly weighed the advantages of SB5 against what could become a very long, hot summer.

Some additional thoughts about SB 5

Joe Guillen, a writer for the Cleveland Plain Dealer provides concise and objective answers in cleveland.com to rumors that have been floating about on the collective bargaining bill SB 5.

I have been a frequent commenter in the Facebook page called "Support Ohio Senate Bill 5," but which in fact has become a discussion forum both for supporters and opponents. I consider my role in that page to be one of educating the supporters about the realities of being a state employee (which I am), and to exhort those who oppose SB 5 to accept the fact that employees will have to contribute to the solution.

Those who have observed the actions of people like Andy Stern and Richard Trumka should disabuse themselves of the notion that unions are about protecting their members. They do that to some extent, but their principal purpose is to acquire and wield power. This is evident from the fact that payment of union dues is compulsory for employees of corporations and governments whose employees are part of their bargaining units. No one other than management can completely escape paying the dues, though a reduction to a "fair share fee" is available for those who follow a convoluted process to file an objection letter, as I do every year. The absence of a right to work is really a violation of the Ohio Constitution, Article I, Section 19, because it is a seizure (through the "fair share fee") of the private property of objectors for purposes unconnected to governmental protection of the public welfare.

American organized labor historically has downplayed its association with the international socialist movement; but anyone who reads any political communication by a union knows that they support a large paternalistic government that provides entitlements to everyone, paid for through confiscatory taxes on the "rich". In other words, they make productivity difficult by making it unrewarding. I am sure many union leaders would be happy to offer exceptions to this assertion -- as I am aware that AFSCME and SEIU have on several occasions cooperated with the State of Ohio on such efforts as the governmental flavor of Total Quality Management (known as "Quality Services through Partnership," or QStP) and on a fairer reclassification of positions in information technology; but the overall thrust of their politics has always favored more government and more entitlements.

Attitudes supporting the entitlement mentality were responsible for the failure of the steel and most of the automotive industry in the United States, as pensions and health benefits both for the currently employed and retirees drove their employers to (or close to) bankruptcy. Now the field of conflict is in state and local government. Forced to balance the budget every year, and having run out of accounting tricks to balance the budget, the time has come to make some hard decisions.

SB 5 and the pension reform bill HB 69 will not impoverish public employees, and it really is not intended to punish teachers. It will not reduce our pensions, but it will make some local employees pay the full employee share, as state employees do now. Even with the takeaways, most public employees will have decent salaries, and all will have vacation and other benefits that will continue to be the envy of the private sector. One benefit to employees who care about their professionalism is that a mechanism will put into place to reward those who do outstanding work -- something that has always been missing from public employment.

All of us, regardless of our position on SB 5, should tone down our rhetoric and consider both the public welfare and that which public employees have legitimately earned through their work. Only through reason can the Ohio House write a law that approaches fairness for all.

Original post: "SB 5: A qualified endorsement" from Feb. 22

Tea Parties need to learn how to mobilize

SB 5, Ohio's now-famous collective bargaining bill, passed the Senate by one vote (17-16) on Wednesday, and has been sent to the Ohio House of Representatives. The discussion leading up to its adoption has been as ugly as anything I can recall, because the unions are determined to kill the bill, rather than suggesting reasonable amendments to it.

The bill obviously isn't perfect. My fellow Libertarian Bill Yarbrough and I had reservations about SB 5. One of the good things about having a bicameral legislature is that now, the other House has the opportunity to study the bill carefully and debate it thoroughly. At least, that's what they should do.

On the other hand, I have a problem with the comment from Ohio AFL-CIO President Tim Burga that "Middle class Ohioans were locked out, literally, from having their voices heard." Taken literally, yes, the Highway Patrol did lock the Statehouse doors when it was getting too crowded to control. But the will of middle class Ohio was not thwarted. Ohioans voted for a Republican legislature because they are frustrated with our inability to work our way out of a thirty-year recession. We gave the Democrats their chance with Gov. Strickland and a Democratic House, and they were unable to get us off the ground.

The unions mustered 8,000 demonstrators on Tuesday giving a unified message, which left the Tea Parties somewhat flat-footed, by their own admission. It is hard to say to what extent the six Republican Senators who voted "No" on the bill were affected by the demonstrations. I know at least one of them, Sen. Scott Oelslager (R-North Canton) represents a heavily-unionized district, and that two or three of them had serious reservations that were not addressed.

On the other hand, it is a constructive lesson for the Ohio Liberty Council, which needs to develop ways to effectively mobilize people on short notice. There is some indication it is learning: The Columbus Dispatch reported that "thousands" of union demonstrators were countered by "hundreds" of Tea Partiers on Tuesday.

This will not be the last time we face mass demonstrations on major issues at the Statehouse. We who support liberty need to make sure our voice remains heard when it's time to vote.

SB 5: A qualified endorsement

Let me begin by stating that I am a twenty-year state employee in Ohio. The State has been very good to me over the years, and I am grateful for the salary and benefits I have received. Some of those benefits do not exist in the private sector; including four extra paid holidays, longer vacation leave, and one of the last defined benefit pension plans out there. On the other hand, there is currently no opportunity for a state employee to be recognized for merit. In private enterprise, effective employees can easily be promoted or given bonuses. Neither is possible within state government. The only way a classified (non-managerial) state employee can receive a promotion is to take a competitive examination for an open position. In some job classifications, an employee may have to wait several years before such an opportunity arises. Since I was not a state employee prior to 1982, I cannot say to what extent these benefits have been due to collective bargaining.

Reaction to state efforts to abolish public employee collective bargaining has been strong and swift. On Thursday, some 13,000 state employees demonstrated at the Wisconsin state capitol in protest against their bill, and they occupied the state capitol overnight. Here in Columbus, about 2,000 state employees demonstrated during last Thursday and 5,000 today against Senate Bill 5 (SB 5), introduced by Sen. Shannon Jones (R-Springboro).

State employees have some justification for feeling that the General Assembly has laid recent budget crises on their backs. Salaries were cut by 3% in the current union contract (2009-2012). The State compensated through "cost saving days," which effectively give each employee two extra weeks of vacation. On the other hand, we need money to live, just like everyone else.

State employees are not responsible for the $8-$10 billion deficit, and eliminating all of our jobs would not resolve it. However, the problem is so serious that the Governor and the General Assembly have to look at all possible opportunities to cut. Raising taxes is not an option in Ohio. Our taxes are already very high by national standards, and clearly raise a barrier to economic growth. The 800-pound gorilla in the State budget is matching funds to the federal Medicaid program; but the only way the State can cut significantly in this area is to radically redesign, or even abolish, Medicaid – a sudden move that on the short term would be cruel to those who depend on it. Ohio state legislators might look into the proposal made by Florida State Senator Joe Negron to replace the federal Medicaid program with one that is much smaller and, if a waiver is not granted by the federal Department of Health and Human Services, unsupported by federal funds. While holding the promise of substantial efficiencies, such a proposal is likely to be politically dicey, even for Republicans.

I do not like unions. They are expensive (1½% of gross salary for dues or "fair share fee" doesn't sound like much, but experienced or highly-paid employees can easily fork over more than $1,000 a year). I disagree with most of the political positions taken by the union, and I find that relatively few employees actually use the grievance process. Unions also tend to create unnecessary tensions between employees and their managers. There are two union benefits extended to all employees that have worked well (and efficiently) for us: the benefits trust, which manages our dental and vision coverage (and some other optional insurance), and the Education Trust, which provides money for college education and training. However, the Education Trust has proven easy to abuse for non-job related training.

I have two problems with the bill: First, the bill calls for the Department of Administrative Services to define "merit based pay." While the Department of Administrative Services is clearly experienced on State personnel matters, it potentially opens a gap between the legislators' understanding of "merit based" and the Department's understanding of the same term. Merit based needs to be defined within the act, so everyone is on the same page, and so employees and the public can comment on that definition before it is imposed. Secondly, the State needs to think through the issue of employee training.

If the State uses this occasion to neglect training altogether – a common temptation in hard times – it will do itself, as well as its employees, a great disservice.  Particularly in information technology, when state employees are inadequately trained in current technologies, the State will be tempted to hire contractors at $150 per hour, when it could have had State employees doing the same work for less than half that, including all benefits. In recent years, the State has tended to under-budget by leaning on the Education Trust to finance any needed job-related training. The State should learn from the experience of large private corporations to develop a usable just-in-time training model.

I should note here that the bill does provide for a grievance procedure using a State Personnel Board of Review, so workers will not be completely thrown to the wolves when problems arise. In addition, classified state and local employees will continue to enjoy civil service protection from political pressure. This should allay concerns for those with bad workplace situations. While I have been blessed with good supervisors, there is plenty of anecdotal evidence that petty tyrants are all too common in state government.

SB 5 does not address pension reform, but it is true that some public employees (principally in law enforcement) have had the State furnish up to 24% of their salaries for pensions in addition to the percentage withdrawn from employee salary. (Private enterprise typically handles pensions by offering a matching contribution up to about 3% of an employee's salary for deferred compensation. For employees under the Ohio Public Employees Retirement System, the State pays 14% of employee salary, with the employee contributing another 10%.  Under HB 69, the State's contribution would decrease to the same amount as the employee contribution (10% for most employees). The pension includes a partial payment for medical insurance in retirement, the remainder to be covered by the retiree out of pocket).

Bottom line: the State employment system under collective bargaining is not fiscally sustainable, just as the automobile and steel industries were unable to maintain their union contracts. State employees are not giving up any "rights" that the great majority of workers in the State of Ohio would recognize. We are giving up a few privileges – privileges that the taxpayers of this state can no longer afford to support.  I favor SB 5 because it is necessary, even though it will work against my short-term personal interest. However, I would like to see the General Assembly add the safeguards mentioned here to provide employee growth opportunities and to offer a minimal level of protection from managerial favoritism.  

How independence could help Ohio's budget crisis

I have thought this for some time, but Russell Longcore at Dump DC says it better. It is short, so I am quoting it in full:

The Bankruptcy of American Colony/States

We all know that Washington’s government is broke. But nearly every colony/state of the Union is also in desperate financial trouble. They have nearly all spent profligately. But their underfunded pension obligations are going to sink them aside from too much spending. And Federal law doesn’t permit colony/states to declare bankruptcy.

I just want to point out that if a colony/state seceded from the Union to become a nation once again, it would likely shed enough Federal debt and Federally-mandated spending that it could balance its budget once again. And now the new nation would not be subject to Federal bankruptcy laws. That doesn’t mean it should stiff its creditors, but it could facilitate restructuring and payment of its obligations.

Also remember the old saying…”The thinking that got us here will not get us where we want to go.” There will need to be an entirely new group of leaders who move away from the republic to secession and new nationhood.

Mr. Longcore also has a link to The Daily Beast has an article about colony/state bankruptcy that he strongly recommends, to show how bad your state is doing. It measures relative bankruptcy by the ratio between state debt and state Gross Domestic Product. By that measure, Ohio is doing relatively well. Despite our $8 billion budget deficit, which The Daily Beast understates as $3 billion, our $27 billion of state debt against $471.3 billion of Gross Domestic Product (both 2009 figures) gives us a debt/GDP ratio of 5.93%, ranking us 44th of the 50 states in debt burden.* Our unfunded pension and retirement health care liabilities total $46.5 billion.

Some people ask why we would want independence and lose all those federal funds. They are not thinking clearly. All of those federal funds would be available to Ohio government. Well, then, how about the fact Ohio is getting $1.05 from Washington for every dollar it sends there? **  Vermont secessionist Frank Bryan has a good answer for that: "Would you rather have $10,000 to spend any way you want, or $10,500 that you have to spend as I say?" ***

* Rhode Island, with a ratio of 19.19% was first, Nebraska (2.91%) was 50th.
** Tax Foundation "Federal Spending Received per Dollar of Taxes, FY 2005,"  Federal Fiscal Year 2005 (ending Sept. 30, 2005) is the latest year available.
*** Quoted in Bill Kauffman, Bye Bye Miss American Empire (White River Junction, VT: Chelsea Green Publishing, 2010), p.233, adapted to Ohio's ratio.

Gov. Kasich: "I don't need your people."

So said State Rep. Sandra Williams from the legislative Black Caucus in the video linked here (from WCMH NBC4 in Columbus), who insists that Gov. Kasich told the caucus "quote, I don't need help from you people, unquote." (at 1:31). The Governor's office then insisted that what he meant was that he did not need the help of partisan Democrats. Such a disclaimer is lame following such an impolitic outburst.

We know by now that Gov. Kasich is (1) passionate and (2) sometimes very intemperate in his remarks. Ohio, with its $8-$10 billion budget crisis needs all the help he can get. Some Democrats could be persuaded to support the Governor's plans if he approaches them with a collaborative attitude; but he probably did lasting damage with this gaffe.

I do not agree with Rep. Williams that Gov. Kasich was trying to be racist, and the Governor's Office has shown that he has tried to recruit minorities for Administration positions. I also think that trying to fix quotas by race, sex, etc., is not the way to ensure that your Administration will have all the best people.

However, I do feel very strongly that everyone should be treated with respect, and that the Governor should try to listen more carefully to other opinions. If he cannot learn to do these two things, he will end up in the same fix as George W. Bush -- even his own friends will start abandoning him. And that would be a tragedy for Ohio.

Governor John R. Kasich

John Kasich is a passionate man. He is anxious to roll up his sleeves and solve the problems that have plagued Ohio for over a generation. Because he is passionate, he is vulnerable to being portrayed as the bull in a china shop and prone to the occasional gaffe (such as an opinion he expressed last month about state employees). He left a bad taste in many mouths for the rabid negativism of his campaign against Gov. Ted Strickland. It seems, however, that political campaigning brings out the worst in otherwise worthy and virtuous people. On the other hand, I remember him as an energetic Congressman who wanted to show the American people what fiscal responsibility looked like; and partly as a result of his prodding, the federal budget was balanced from 1998 to 2000.

The purpose of an inaugural address* is to set the tone for an administration, to help the citizens understand where the new Governor is coming from, and to provide a general direction. Policy matters are deferred to the State of the State address, usually given in March.

The inaugural address, which Gov. Kasich says he wrote on Christmas Day, did not convey the arrogance that sometimes came across during the campaign. Rather, it was a statement of his fundamental values: faith, family, friends, and teamwork.

On teamwork:

I want to thank Ohioans, all Ohioans, for giving me the chance to form a team. To form a team. And to transform our great state. You know, years ago, I used the word “I” an awful lot. I don’t know whether it is age or whether it’s prayer or it’s the constant beating that my friends give me, but it’s not “I” any longer. It’s “we.” I learned long ago working with my great pal [U.S. House Speaker] John Boehner, only teams, only teams can accomplish great things. And you know, ’ole Woody was right, there is no “I” in team. And together, we, as Ohioans, can get this job done.

You know, my inauguration, the conductor of a great orchestra, with all of you playing an instrument in that orchestra, my inauguration is your inauguration. I want everyone to understand that I hope you can realize we accept this responsibility together. I have a sense that across Ohio, people know we have a challenge. So today, we’re all inaugurated into a better day. You know, I’m only a servant, I am only a servant, a public servant . I report to the people. I report to you, the people.

And, later, he said with refreshing humility, “I am a servant of the Lord.”

He shares an observation I have made in this space many times:

You see, Ohio has wide horizons, we have unlimited opportunity. Ohio is an exciting place. And I have come to understand as a grown man what Ohio is all about. We are about common sense. [Emphasis added]

Common sense. Reforming state government so it provides better services at less cost. With respect to doing more with less, this has been a mantra in state government since Gov. George Voinovich used those words in his first inaugural address twenty years ago. If anyone can bring innovation to Ohio government, it would seem to be John Kasich. It helps that he is supported in both houses of the Ohio General Assembly by Republican majorities.

Not that innovation will be easy:

It’s our mountain to climb. Can you see it? Can you see that mountain? I know you can. We can climb it. One step at a time. Helping each other to be strong. Together, that mountain, we will reach the summit.

When the going gets tough, when the legislature balks, when the newspapers are nipping at your heels, remember you said this, Gov. Kasich, and keep those words in your heart. In so doing, you will find success.

Best wishes for a successful Administration, Gov. Kasich.

* Text of Gov. Kasich’s inaugural address, from the Columbus Dispatch.

Why I will never be elected Governor...

The Columbus Dispatch has a budget simulator, which can help you decide where you would find the $8 billion Ohio needs to balance its fiscal 2012-13 budget. It consists of 34 multiple-choice questions. The selections you make generate the "headlines" shown. 

My values were:

• Do not increase tax rates, but make existing taxes more consistent in their application.
• Make cuts across the board to spread the pain as evenly as possible. (Note that I just proposed cutting my own salary by 3%) ...
• Pay for everything now, not delaying it until later by infusion of one-time funds.

Of course, a budget simulator has its limitations -- in reality, I could have fine-tuned the surplus to a smaller amount by reducing tax increases or spending cuts by lesser amounts. The value of the simulator is to show just how politically and morally difficult it is to make these kinds of decisions. I particularly hated the "drug tax," but thought its economic impact would be less harmful than directly increasing the income or sales tax.

On the long run, I favor abolition of the income tax, a simpler property tax that taxes only the unimproved value of property, and working out a gradual program of reducing and redirecting state services and entitlements to minimize (but of course, not eliminate) the pain to individuals.

Tomorrow's "news," from The Columbus Dispatch budget simulator -- if I were Governor:

Governor's budget plan more than erases deficit

Thomas surplus called 'painful, needless burden'

The governor today gave the General Assembly a proposed state budget with a surplus of $43 million.

The plan brought immediate objections from lawmakers and a host of interest groups, especially those representing taxpayers, who excoriated the governor for seeking to raise a surplus 'during the worst recession in two generations.'

Tomorrow's headlines if Harold Thomas were governor:

• Poor and sick decry 'drug tax' at huge Columbus rally
• Lawmakers heed loud tax protests from Ohio families
• Thomas ripped for 'robbing' local governments

  'Staggering' new local taxes predicted

• Medicaid cuts called 'brutal' to Ohio's poor
• Business tax hike will 'strangle' growth, critics claim
• Homeowners vow to defeat Thomas
• Disabled veterans brandish crutches, canes at Governor's Residence

Your choices

Taxes

• Property tax subsidy: Reduce subsidy by 5% (raises $170 million)
• Commercial activities tax: End exemption for first $1 million in sales (raises $250 million)
• Exemptions: End sales-tax break for packaging and packaging equipment (raises $460 million)
• Exemptions: Apply sales tax to prescription drugs (raises $1.3 billion)
• Exemptions: Cut income-tax deductions for spouse and children by half (raises $500 million)

Spending

• Aid to K-12 education: Halve aid that makes up for elimination of tangible personal property tax (saves $1.1 billion)
• Aid to colleges & universities: Cut aid by 10% (saves $340 million)
• Aid to cities & towns: Halve aid that makes up for elimination of tangible personal property tax (saves $380 million)
• Aid to libraries: Cut aid by 25% (saves $190 million)
• Spending on adult and youth prisons: Cut spending by 25% (saves $900 million)
• Medicaid: End optional coverage for dental, vision, podiatry and hospice (saves $1 billion)
• Medicaid: Cut spending for nursing-home care by 5% (saves $260 million)
• Medicaid: Cut spending for hospital care by 5% (saves $110 million)
• State employees: Cut pay by 3% (saves $200 million)
• Department of Mental Health: Cut by 20% (saves $180 million)
• Close other state departments: Developmental Disabilities (saves $634 million)
• Close other state departments: Veterans Services (saves $64 million)

Sell or lease state assets

• Allow oil and gas drilling on state land (raises $25 million)

To which can be added:

• State employee unions excoriate governor for salary cuts
• House Democrats call for impeachment proceedings against Libertarian Governor.