Ohio’s HB 318

Late Wednesday, Ohio Senate Democrats rejected the latest Republican amendments to HB 318. The bill will attempt to fill the $851 million gap in the FY10-11 budget. The Senate Finance Committee has adjourned indefinitely--for time to enjoy a Thanksgiving Holiday while thinking this through. Too bad our federal Senators didn’t do the same--they could have used the T-holiday to read through 2074 pages commiting us to trillions of debt and the takeover of private businesses, all for the extremely small percentage of Americans who don't have health insurance (and that won't even change!). Then they could have enjoyed a turkey tryptophan stupor instead of gorging on this other turkey stuffed with pork and shredded taxpayers‘ investments.

Following are the provisions rolled into the substitute bill that were highlighted by Senate Finance Chairman Sen. John Carey (R-Wellston) during Wednesday evening's hearing. This information was provided by AIA Ohio which has a horse in this race, the Ohio Construction Reform Panel's recommendations which could determine how architects will do business with Ohio for the next decade. Notice the money hoped for from casino fees.

- Allows one-third of the scheduled income tax reduction to go into effect rather than freezing the full reduction. This nets the state $278.7 million in FY10 and $284.0 million in FY11.

- Creates a trigger mechanism by which an increased portion of or the full scheduled income tax rate reduction would occur if the governor moves forward on VLTs, or if excess casino revenues are generated within the biennium and could be used to offset GRF.

- Restores $25 million in FY10 and $35 million in FY11 for chartered, nonpublic schools that were disproportionately cut in the budget process.

- Transfers the casino licensure fees, approved by voters as 'State Issue 3,' into the GRF to offset current regional job program expenditures. This provides $200 million in FY11.

- Grants waivers for school districts regarding unfunded mandates for all-day kindergarten and class size reductions.

- Allows school districts to privatize transportation services if they choose to do so.

- Provides flexibility in state report cards for school districts that failed to meet adequate yearly progress (AYP) in certain sub groups.

- Allows broader use of joint purchasing by education service centers and school purchasing consortia.

- Includes SB190 ROTC high school credit provisions.

- Requires DAS implement paperwork reduction/cost savings strategies. This is estimated to save $10 million/year.

- Includes comprehensive sentencing reforms. This is estimated to save $20 million in FY10 and $30 million in FY11.

- Establishes an oil and gas drilling pilot program on state-owned land at Salt Fork. This is estimated to bring in $10 million in FY11.

- Removes pay cut language as it is now contained in SB209.

- Creates a privatization commission to study state functions that could be privatized.

- Specifies that future collective bargaining contracts let by the state will coincide with the state's biennial budget time frame.

- Requires that three state agencies (natural resources, education, and transportation) undergo performance audits.

- Studies a state government restructuring plan similar to those proposed in SB52 and HB25.

- Studies potential cost savings and economic benefits to Ohio employers and injured workers by allowing private insurance companies to compete with the Bureau of Workers' Compensation (BWC).

- Requires the auditor of state's office to determine if BWC has adequate reserves compared to industry standards and to recommend rebates if an over-reserve is determined to exist.

- Studies cost savings that may be achieved if the state were to go to a four-day workweek.

- Transfers functions of the School Employee Health Care Board to DAS and deletes GRF appropriation in the Department of Education. This saves $800,000/year.

- Transfers $15 million per fiscal year from the liquor profits fund into the GRF.

- Transfers $15 million per fiscal year from the Housing Trust Fund into the GRF.

- Transfers $1 million per fiscal year in total from three public safety education funds (83G0, 83N0, and 8440).

- Specifies that the insurance settlement funds for the Lake Hope State Park lodge be used for the purpose of fixing that site.

- Uses half of the current scrap tire fee to provide funding to the state's soil and water districts.

- Ensures correct appropriation authority for the Department of Mental Health's 408 line item.

There are many things in here that deserve a closer look--and it's happening in all states, not just Ohio. Like that Housing Trust Fund--that's created from real estate transfer fees, but is used in conjunction with federal funds for housing programs. 20 years ago no state had this--now about 40 do. The high unemployment rate is squeezing the flood of tax money to a dribble. During the boom years, did anyone at the state or federal or local level think they should have paid down their debt instead of adding more programs?

Four little words

If you want to know why programs to end social ills or create social benefits never die, they only expand, just Google these four words, "dedicated revenue streams to" and then browse municipal, county, state and federal ways to keep a lot of people employed solving society's problems. Here's a few I found

• "The General Assembly has to think out of the box to come up with new and sustainable revenue streams." Democratic candidate addresses the Virginia state budget. The Republican suggested sacrifice and discipline.
  
  
• "Miami-Dade County Food and Beverage Tax: A Dedicated Revenue Source Invested for Results" [to end homelessness]
  
  
• . . . the General Fund would be placed under increasing stress in the next four years, making it hard to produce sufficient revenues to make up for the diversion of the two new dedicated revenue streams to transportation uses [New Jersey transportation proposals]
  
  
• Western Wyoming Community College Distict's Series 2007 Lease Revenue Bond SPUR Raised To 'A+' On Dedicated Revenue Streams
  
  
• The federal government could follow the example of enlightened states and municipalities that use dedicated revenue streams to fund arts and cultural programs. Some 40 communities nationwide dedicate a portion of hotel/motel taxes to arts and cultural programs, acknowledging that cultural activity attracts tourism.
  
  
• The VSO [Vermont Symphony Orchestra] must find new, permanent, and dedicated revenue streams to perpetuate this annual musical offering to the state’s most underserved regions.
  
  
• “As Colorado’s open spaces and agricultural lands continue to rapidly vanish, counties are searching for dedicated revenue streams to protect and preserve their valuable resources,” said Environment Colorado Land Use Associate Pam Kiely. “This legislation [sales tax increase] will provide an essential tool to tackle this problem.”
  
  
• "Americans purchase more than 30 billion single serving bottles a year—was used to create $3 billion-a-year revenue stream dedicated to a federal entity investing in the creation of clean water sources. A dedicated funding stream with a sound policy rationale to support investment ininfrastructure is not a new notion, just an underused one."
  
  
• [Robert] Moses leveraged tolls and other dedicated revenue streams to borrow money, and put shovels in the ground immediately even if all financing was not complete. He knew that once a project started it would be difficult to stop.
  
  
• As councilmember, I will establish one or more dedicated revenue streams to fund metro expansion. I will also seek funding from the federal government as well as our metro partners in Maryland and Virginia. [DC for Democracy, no party given, but he was pro-choice and pro-gay marriage]
  
  
• These proposals [tax on beverage and containers] could both increase dedicated revenue streams to preserve and promote City recycling and decrease the amount of waste to be transported through MTS sites.
  
  
• Rep. Earl Blumenauer (D-OR) introduced legislation this week (HR 3032) that would create a new trust fund, supported by dedicated revenue streams, to fund an expanded federal water infrastructure effort. [$10 billion from taxes on soft drinks, pharmaceuticals, and other consumer products, as well as a 0.15 percent corporate tax on profits over $4 million.]
  
  
• Some states also create dedicated revenue sources to support out-of-school time initiatives. Dedicated revenue sources raise and/or direct public funds for a specifi c purpose. Mechanisms for generating dedicated revenue include special taxes, guaranteed expenditure minimums, fees and narrowly based taxes, income tax checkoffs, and children’s trust funds. Creating dedicated revenue sources can be diffi cult, but this funding can provide resources for out-of-school time programs throughout a state, including rural communities.

And so it goes. I don't know what they'll do if people actually stop drinking soft drinks or using throw away containers. Find a new tax I guess. One important "dedicated stream" is that which funds the various housing trusts which now exist in at least 40 states. The one in Ohio went from almost nothing to $56 million (FY 2008) in just 20 years. I think ours is based on transfer of real estate fees, but your state may be different. Transfer of wealth is not just for the federal government.

A tax increase on the vain and poor alike

In Ohio, vanity tags will go from $15 to $50, and 30 day tags from $8 to $18.50. Pity the poor working man--first the federal government decreases the supply of lesser value, inexpensive used cars by promoting a "cash for clunkers" program in which they are destroyed, thus raising the prices on used cars still in the market pipeline, then the state raises the price on everything concerning tags and licenses. I just renewed my driver's license two days ago, and noticed I was charged $1.00 for a "vision" test--that consisted of reading one line of numbers and waving my hand if I saw a flashing light. That 10 second test will now go up to $2.75, and the only reason it didn't go up in July with the other fees is they couldn't get the computers reprogrammed fast enough. Before he was elected, our Governor Strickland, a former Methodist pastor, insisted that raised fees were hidden taxes, and that he was against state sponsored gambling. Well, those morals went out the window. These d.l. and tag fees are supposed to raise an additional $55 million dollars. This is not supposed to overburden the BMV "customers," but will make up the funding gap in safety services.

Mandatory Fees aggravate conservative students

The fees that are tacked on to your child's college tuition may be going to support causes and policies you'd prefer not to underwrite--like women's studies programs, or bisexual social events. Here's a story in a Campus Magazine Online by CJ Ciaramella, Blog Editor for CAMPUS Magazine Online.

"The publication I write for at the University of Oregon, the Oregon Commentator, has been fighting the mandatory fee (known at UO as the Incidental Fee) for the better part of 20 years. In 1995, before Southworth and viewpoint neutrality, one of the members of the Oregon Commentator sued the State Board of Higher Education on the "freedom of conscience" grounds.His main objection was the previously mentioned OSPIRG, a political group that sends student money off campus for lobbying purposes. He lost, and OSPIRG still filches thousands of dollars from students. Coincidentally, the case was cited in Southworth.

Furthermore, the mandatory fee creates bad incentives in student government. For years now at the UO (and I'm sure other universities) student unions have maintained a stranglehold on the student government. With low voter turnout, student unions are able to swing elections to candidates that promise to keep the gravy train running. I won't even get into the instances of student government using I-fee money to send themselves to fancy conferences, throw parties (excuse me, "retreats"), etc."

Time to ask the university/college to explain the fees, don't you think? It's your money. Think ACORN with training wheels.