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Friday, May 2, 2014

Ohio voters: NO on Issue 1, May 6, 2014

  We are learning about Issue 1 on the ballot next Tuesday from the Ohio Liberty Coalition and the 1851 Center for Constitutional Law, we learn that the purpose of the bill will disrupt balanced budgets in Ohio and open the door to easily increase taxes, something this state does not need. I have excerpted a significant portion of the OLC's column and the 1851 Law Center's explanations here:
  • The proposed constitutional amendment explicitly authorizes its new spending to be paid for through taxation, and if enacted, would almost necessarily result in a tax increase.
  • The proposed amendment would mandate an additional $1.875 Billion in spending at a time when Ohio has just implemented a state budget that is the largest in its history, and growing significantly larger each year. (In 2013, Ohio’s state government spent a record $27.4 Billion. In 2014, state spending is set to rise by an astounding 10.3 percent, to $30.2 Billion).
  • The proposed amendment would undermine Ohio’s constitutional balanced budget requirement and debt ceiling by unbalancing the Budget and exceeding the current debt limits; and by circumventing the budget process, the passage of State Issue 1 would likely create perverse political incentives that could further escalate state spending in the future.
  • Passage of Issue 1 will not “create jobs” because there is no evidence that government spending projects like this create jobs, rather than simply rearranging their location in the economy: while government spends more, Ohioans will have less disposal income, and will spend less to facilitate job creation.
“Given recent spending increases at the state level, passage of State Issue 1 is likely if not certain to increase taxes, undermine Ohio’s balanced budget requirement, further expand already historically large state spending and indebtedness, create perverse political incentives and cronyism, legitimize the notion of state spending as a viable means of job creation, further clutter an already bloated-beyond-recognition section of the Ohio Constitution, and redistribute wealth from poor and middle-class Ohioans to wealthy out-of-state investors,” said Maurice Thompson, Executive Director of the 1851 Center.
  The Columbus Dispatch is pushing Issue 1, saying it will increase economic growth in Ohio and, since both Democrats, Republicans and the Governor agree that it is the right thing to do, we should all vote for it.
  The truth is that legislators need to be responsible in their budgets, unlike their federal counterparts; Issue 1 is a step toward becoming like the feds.
  While fracking has benefited Ohio's economy, moving it up to no. 23 in state economic outlooks, spending (including political spending) is high in Ohio; the Governor did an end-run around the system to increase Medicaid in the state, an incident that has distinct Obama overtones.

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