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00:00:01>> SUPPORT FOR THE STATEWIDE
BROADCAST OF "THE STATE OF OHIO
00:00:07," COMES FROM THE LAW OFFICES OF
PORTER, WRIGHT, CARTER LLP
00:00:12HELPING INDIVIDUALS AND
BUSINESSES SOLVE LEGAL PROBLEMS
00:00:14THROUGHOUT OHIO, THE COUNTRY,
AND THE WORLD.
00:00:17AND FROM THE OHIO EDUCATION
ASSOCIATION REPRESENTING 121,000
00:00:20TEACHERS AND HIGHER EDUCATION
FACULTY COMMITTED TO THE SUCCESS
00:00:23OF EVERY CHILD.
>> THE LIBERTARIANS LOSE ANOTHER
00:00:30BATTLE TO GET BACK ON THE BALLOT
.
00:00:33IT'S CHRISTMAS FOR LOCAL
COMMUNITIES IN THE CAPITAL
00:00:34BUILT, AND TWO VETERAN BUDGET
GURUS TEAR INTO THE GOVERNOR'S
00:00:38BUDGET UPDATE.
ALL THIS WEEK ON "THE STATE OF
00:00:39OHIO PEER CUP -- "THE STATE OF
OHIO."
00:00:44?
A FEDERAL JUDGE HAS RULED
00:00:50AGAINST THE LIBERTARIAN PARTY OF
OHIO, HANDING ANOTHER SETBACK TO
00:00:52THE LIBERTARIAN CANDIDATES FOR
GOVERNOR AND ATTORNEY GENERAL.
00:00:55THE LPO HAD ASKED THE JUDGE TO
OVERTURN AN ORDER FROM SECRETARY
00:00:59OF STATE JON HUSTED THROWING
CHARLIE EARL AND STEVEN
00:01:02LINNABARY OUT OF THE MAY PRIMARY
CONTESTS FOR GOVERNOR AND AG.
00:01:06HUSTED HAD RULED THE SIGNATURES
THEY'D GATHERED WERE INVALID
00:01:10BECAUSE THE PAID SIGNATURE
GATHERERS DID NOT IDENTIFY THEIR
00:01:13EMPLOYERS.
THE LPO HAS FILED AN APPEAL IN
00:01:16THE SIXTH CIRCUIT, AND WHILE
EARL SAYS HE'S ON BOARD WITH
00:01:21THAT, HE'S NOT OPTIMISTIC.
>> "I'M A REALIST.
00:01:27I REALIZE MY CHANCE OF BEING
GOVERNOR ARE SLIM.
00:01:30I REALIZE THERE ARE A LOT OF
THINGS IN MY LIFE THAT I ENJOY
00:01:32DOING.
BUT I BELIEVE CONSTITUTIONAL
00:01:34LIBERTY IS WORTH FIGHTING FOR.
AND I BELIEVE MY KIDS AND
00:01:39GRANDKIDS DESERVE MY VERY LAST
EFFORT AS LONG AS I CAN.
00:01:47>> LPO SPOKESMAN AARON KEITH
HARRIS EVEN IF THE LPO LOSES
00:01:50AGAIN, THEY HAVE TWO WRITE-IN
CANDIDATES ON THE PRIMARY BALLOT
00:01:52AND SOME RUNNING IN STATE HOUSE
RACES, SO THEY'RE NOT GETTING
00:01:55OUT OF THIS YEAR'S ELECTIONS.
>> OUR PEOPLE ARE VERY ENGAGED,
00:02:05HIGHLY INFORMED, MORE SO THAN
THE AVERAGE VOTER, I THINK.
00:02:06WE WILL BE HEARD IN THE ELECTION
ONE WAY OR THE OTHER.
00:02:10>> WHERE IS YOUR FUTURE?
CHARLIE EARL IS CERTAINLY A
00:02:14CANDIDATE WHO HAS GOTTEN A LOT
OF ATTENTION.
00:02:16WHERE DO YOUR NEXT CANDIDATES
COME FROM?
00:02:18X THEY ARE COMING -- >> THEY'RE
COMING FROM ALL OVER.
00:02:23IT'S AMAZING HOW SINCE 2012 WE
HAD A STEADY STREAM OF PEOPLE
00:02:30WANTING TO GET INVOLVED.
THE FOLK OF THOSE PEOPLE ARE
00:02:33UNDER 40 AND A BIG CHUNK OF THEM
ARE WOMEN.
00:02:35>> THE FEDERAL JUDGE SAID IT WAS
OBVIOUS THAT REPUBLICANS WERE
00:02:38INVOLVED BECAUSE OF CONCERNS
THAT THEY'D POTENTIALLY SIPHON
00:02:40VOTES FROM GOV.
JOHN KASICH.
00:02:42REPUBLICANS HAVE DENIED THAT.
THERE WAS TESTIMONY OFFERED IN
00:02:45THE CHALLENGE THAT OPERATIVES
ALIGNED WITH DEMOCRATS HAD
00:02:49HELPED EARL AND LINNABARY GATHER
THE SIGNATURES THEY NEEDED TO
00:02:51GET ON THE BALLOT.
THE CAPITAL BUDGET IS OUT, AND
00:02:56IT'S $541 MILLION DOLLARS BIGGER
THAN TWO YEARS AGO.
00:02:59THE $2.4 BILLION DOLLAR BILL
DIRECTS $675 MILLION TOWARD
00:03:03PRIMARY AND SECONDARY SCHOOLS
AND $450 MILLION TOWARD PUBLIC
00:03:08COLLEGES AND UNIVERSITIES FOR
REPAIRS, RENOVATIONS AND NEW
00:03:12BUILDINGS, PLUS $160 MILLION IN
LOCAL PROJECTS.
00:03:18THEY INCLUDE MONEY FOR MANY
LANDMARKS AND WELL-KNOWN SITES
00:03:20ALL ACROSS OHIO.
IN CINCINNATI, THERE'S $5
00:03:23MILLION EACH FOR UNION TERMINAL
AND MUSIC HALL, AND $3 MILLION
00:03:26FOR THE ZOO.
IN COLUMBUS, THERE'S $15 MILLION
00:03:30FOR VETERANS MEMORIAL, A MILLION
EACH FOR THE FRANKLIN PARK
00:03:33CONSERVATORY AND THE COLUMBUS
MUSEUM OF ART, AND THE STATE
00:03:36FAIRGROUNDS WILL GET $38
MILLION.
00:03:42IN CLEVELAND, $5 MILLION GOES TO
THE LAKEFRONT ACCESS PROJECT,
00:03:45$5.3 MILLION TO EDGEWATER
MARINA, $2 MILLION TO THE
00:03:50CLEVELAND MUSEUM OF ART, $1.5 TO
SEVERANCE HALL, $1 MILLION TO
00:03:53THE ROCK AND ROLL HALL OF FAME
AND MUSEUM AND HALF A MILLION
00:03:56EACH TO THE GREAT LAKES SCIENCE
CENTER AND THE CLEVELAND
00:04:00METROPARKS ZOO.
THERE'S 1.5 MILLION TO THE
00:04:03TOLEDO WAREHOUSE DISTRICT
PROJECT AND $750,000 TO THE
00:04:06TOLEDO ZOO.
$10 MILLION GOES TO THE PRO
00:04:11FOOTBALL HALL OF FAME, $1.5
MILLION GOES TO STAN HYWET HALL
00:04:16IN AKRON, WITH $1.75 MILLION TO
BLOSSOM MUSIC CENTER.
00:04:19THE YOUNGSTOWN DOWNTOWN
REVITALIZATION PROJECT GETS $1.5
00:04:23MILLION.
AND THERE ARE ALSO A FEW OTHER
00:04:26SITES THAT GET MONEY - AMONG
THEM THE BUCKEYE LAKE DAM
00:04:28RENOVATION GETTING $4 MILLION,
ZOAR VILLAGE IN TUSCARAWAS
00:04:32COUNTY AND THE WILDS IN EASTERN
OHIO GETTING A HALF A MILLION
00:04:38DOLLARS EACH AND SERPENT MOUND
IN ADAMS COUNTY GETTING
00:04:40$400,000.
LOCAL ROAD, BRIDGE, SEWER AND
00:04:45OTHER INFRASTRUCTURE PROJECTS
WOULD RECEIVE $369 MILLION, WITH
00:04:47AN ADDITIONAL $100 MILLION GOING
TO THE CLEAN OHIO GREEN SPACE
00:04:52PRESERVATION PROGRAM.
THE ADMINISTRATION ESTIMATES
00:04:56PROJECTS FUNDED UNDER THE BILL
WOULD CREATE 31,000 JOBS OVER
00:05:01SEVERAL YEARS.
THE GOVERNOR'S BUDGET UPDATE
00:05:04CALLED THE MID-BIENNIUM REVIEW
OR MBR HAS BEEN SPLIT UP INTO 14
00:05:08DIFFERENT BILLS, AND IS BEING
LOOKED OVER BY STATE LAWMAKERS
00:05:12IN 11 DIFFERENT HOUSE COMMITTEES
NOW.
00:05:15BUT RESEARCHERS, LOBBYISTS,
PUNDITS AND STRATEGISTS HAVE
00:05:18BEEN TEARING INTO IT SINCE IT
APPEARED ON ITS OWN WEBSITE TWO
00:05:22WEEKS AGO.
BUT ONE OF THE BEST WAYS TO
00:05:25EXAMINE THE BUDGET IS TO LOOK AT
THE NUMBERS IN IT, AND THE LONG
00:05:30HISTORY BEHIND STATE BUDGETS,
AND THESE SORTS OF BUDGET
00:05:32CORRECTION BILLS, IN GENERAL.
TO DO THAT, I'VE INVITED TWO
00:05:35LONGTIME BUDGET VETERANS WHO
ALSO HAPPEN TO BE TWO OF THIS
00:05:39SHOW'S FAVORITE GUESTS.
NEIL CLARK IS THE FORMER CHIEF
00:05:42FINANCIAL OFFICER OF THE OHIO
SENATE REPUBLICAN CAUCUS.
00:05:45AND BILL SHKURTI WAS THE STATE
BUDGET DIRECTOR UNDER DEMOCRATIC
00:05:54GOV. RICHARD CELESTE.
LET'S START WITH THE IDEA OF
00:06:01THIS BEING WHAT SOME PEOPLE
MIGHT FEEL IS A CAMPAIGN
00:06:03STRATEGY.
THE ENTIRE HOUSE, HALF THE
00:06:06SENATE, AND THE GOVERNOR ARE UP
FOR -- REELECTION.
00:06:08IS THIS A CAMPAIGN DOCUMENT?
IF IT IS, WHAT HAPPENS IF IT
00:06:13DOES NOT GO THROUGH?
SURE SOUNDS LIKE HOUSE
00:06:16REPUBLICANS ARE IN NO HURRY TO
PASS IT.
00:06:17>> I THINK IT IS A CAMPAIGN
DOCUMENT.
00:06:20AS WE TALKED ABOUT WHEN WE GOT
TOGETHER LAST YEAR, THE BUDGET
00:06:23THE GOVERNOR PUSHED IN WAS A
CAMPAIGN DOCUMENT.
00:06:27THIS IS AS WELL.
I THINK IN THIS CASE,
00:06:32POLITICALLY, THEY HAVE DONE A
PRETTY GOOD JOB.
00:06:34WE TALKED LAST YEAR ABOUT
WHETHER WE WOULD SEE THE JOHN
00:06:39KASICH SENATE BILL FIVE COME TO
A NASTY EDGE OR A MORE MODERATE
00:06:43PRAGMATIC ONE, AND THE BUDGET
CAME OUT MORE MODERATE AND
00:06:46PRAGMATIC.
THERE ARE THINGS HERE THAT A LOT
00:06:54OF PEOPLE CAN SUPPORT REGARDLESS
OF THEIR POLITICAL BACKGROUND,
00:06:56AND HE IS ABLE TO MAKE A RECORD
AS A REFORMER.
00:07:00THERE ARE SOME LEGITIMATE THINGS
IN HERE THAT REALLY ARE
00:07:03LONG-TERM REFORMS.
MENTAL HEALTH, TRYING TO CHANGE
00:07:07JOB TRAINING, THAT TYPE OF
THING.
00:07:09IT IS A POLITICAL DOCUMENT, AND
IN THAT SENSE, IT IS SUCCESSFUL.
00:07:14THERE ARE SOME THINGS LATER THAT
I WILL PICK ON.
00:07:15ONE OF THE THINGS THAT WILL BE
INTERESTING IS WHAT IS NOT IN
00:07:18THERE, AND I WANT TO TALK ABOUT
THAT.
00:07:20NEIL MAY PICK UP ON THIS AS
WELL, BUT GOVERNORS HAVE ALWAYS
00:07:29DONE BUDGET CORRECTED THOSE.
THERE ARE LEGITIMATE REFORMS IN
00:07:33HERE, AND I WILL NOT DISPUTE
THAT, BUT PREVIOUS GOVERNMENTS
00:07:36PROBABLY WOULD HAVE DONE THEM IN
PIECES.
00:07:39THIS GOVERNOR HAS PUT THEM ALL
TOGETHER IN ONE BILL, AND THE
00:07:42LEGISLATURE SPITS THEM OUT.
IS IT THAT MUCH OF A RADICAL
00:07:44CHANGE?
NO.
00:07:47ARE THERE LEGITIMATE REFORMS IN
HERE?
00:07:49>> YES.
ONE OF THESE DAYS, WE WILL GET
00:07:54THE ISSUE OF THE SINGLE SUBJECT,
AND ONE OF THESE DAYS, THE
00:07:56GOVERNMENT WILL OVERREACH, AND
WE WILL BLOW UP.
00:07:59THAT IS NOT WHERE WE ARE NOW, SO
ON BALANCE ON POLITICS, I THINK
00:08:03THEY HAVE DONE A GOOD JOB.
ON SUBSTANCE, I THINK THERE ARE
00:08:08A LOT OF LEGITIMATE REFORMS IN
HERE THAT CAN BE SUPPORTED.
00:08:10WHETHER THE REPUBLICAN
LEGISLATURE SUPPORTS THIS FULLY
00:08:14OR NOT, AND WILL THAT BOUNCE
BACK AND HURT THE GOVERNOR?
00:08:17PROBABLY NOT.
HE HAS MADE ENOUGH OF A CASE
00:08:20THAT HE IS ON THE SIDE OF REFORM
.
00:08:23AS LONG AS HE GETS SOMETHING
THROUGH, AND THAT IS WHAT THEY
00:08:26HAVE DONE -- THEY HAVE GIVEN HIM
A LOT.
00:08:28THEY HAVE NOT GIVEN HIM
EVERYTHING.
00:08:29HE HAS POSITIONED HIMSELF WELL.
>> HOUSE LEADERSHIP IS IN NO
00:08:34HURRY TO GET THIS FORWARD.
THEY CERTAINLY HAVE CONCERNS
00:08:36ABOUT SEVERANCE PACKAGES.
HOW IS IT A CAMPAIGN DOCUMENT IF
00:08:39IT DOES NOT GO THROUGH?
>> ALL DOCUMENTS PAID FOR BY
00:08:46GOVERNOR OUR POLITICAL
DOCUMENTS, AND ALL THINGS THAT
00:08:48PASSED THE HOUSE AND SENATE ARE
POLITICAL DOCUMENT AND ARE USED
00:08:51FOR THAT PARTICULAR PURPOSE.
THERE'S NOTHING DIFFERENT HERE.
00:08:53WHAT I SEE INTERESTING IS THIS
NEW CONCEPT OF MID-BUDGET REVIEW
00:08:59HAS TURNED INTO A CONCEPT OF
TRYING TO DO AN ANNUAL BUDGET.
00:09:02OHIO REALLY DOES NOT NEED TO
HAVE AN ANNUAL BUDGET.
00:09:04THESE BILLS WERE BROKEN UP INTO
14 BASES AND WE'LL ALL GO
00:09:10THROUGH SOME TYPE OF VETTING
PROCESS AND THE GENERAL ASSEMBLY
00:09:14-- WILL ALL GO THROUGH SOME TYPE
OF VETTING PROCESS.
00:09:19WE HAVE ALREADY ADDED 225,000
NEW JOBS.
00:09:22WE ARE RECOVERING FROM THE GREAT
RECESSION AND STILL HAVE A LOT
00:09:25MORE TO GO TO MAKE UP OR THE 300
73.
00:09:30WE HAVE A SURPLUS IN REVENUE AND
ARE UNDER SPENDING BY $30
00:09:33MILLION.
WE ARE OR HUNDRED MILLION
00:09:35DOLLARS UNDER AND MEDICAID --
$400 MILLION UNDER HIM MEDICAID.
00:09:42I DO NOT KNOW THAT HE NEEDED TO
DO THIS PR MOVE.
00:09:45I AM CONCERNED THAT IT WAS DONE
DURING A PRIMARY.
00:09:49I'M CONCERNED TO PUT A LOT OF
PRESSURE ON PEOPLE.
00:09:52I THINK THERE'S A LOT OF THINGS
YOU HAVE TO LOOK AT, BUT ALL IN
00:09:55ALL, IT REALLY DOES NOT HURT.
WHEN AN ECONOMY IS DOING WELL
00:09:59AND WHEN THINGS ARE GOING WELL,
PEOPLE OAK IS ON THE -- FOCUS ON
00:10:05THE THINGS THAT ARE IN FRONT OF
THEM, AND THEY ARE CONTENT ABOUT
00:10:07THE ECONOMY.
WHEN WE WERE HERE A YEAR AGO, WE
00:10:13TALKED ABOUT HAVING THE RIGHT
MESSAGE AND SOMETIMES HAVE
00:10:15DIFFICULTY AS THE MESSENGER, AND
THAT IS STARTING TO IMPROVE NOW.
00:10:17IN THE SAME BREATH, HIS OPPONENT
IS NOT CATCHING FIRE, AND HE
00:10:22NEEDS TO CATCH FIRE.
>> THE OVERALL PACKAGE -- IS
00:10:39THAT A LOT FOR WHAT IS ACTUALLY
GOING TO BE COMING OUT OF THIS?
00:10:42AND 8.5% INCOME TAX CUT THAT
REALLY HITS TOP RATEPAYERS THE
00:10:46MOST?
>> WHEN I CAME HERE IN 1980,
00:10:53BILL CAME TWO YEARS BEFORE, THE
TOP RATE WAS 3.5%.
00:10:58TO GET BELOW FIVE PERCENT ONLY
TOOK US 35 YEARS.
00:11:03THE HIGHEST RATE WAS 9.5%.
DURING THE TIME IN WHICH WE HAD
00:11:08A TERRIBLE ECONOMY, THINGS WERE
GOING POORLY, AND SENATE
00:11:11REPUBLICANS PUT IN 50% OF THAT
TAX.
00:11:15FOR ME, IT IS GETTING THE RATE,
BECAUSE EVEN BELOW 5%, WE ARE
00:11:21STILL NOT AT THE RATE OF
MICHIGAN, INDIANA, OTHER
00:11:26SURROUNDING STATES.
IF YOU WANT TO BE A JOB CREATOR
00:11:28AND ATTRACT PEOPLE, YOU HAVE TO
HAVE THE RIGHT EDUCATION SYSTEM
00:11:30AND TAX POLICY.
I HAVE SAID THIS 100 TIMES
00:11:34BEFORE.
THE TAX SHOULD BE APPLIED TO ALL
00:11:39BUSINESSES AND SHOULD BE AT A
LOW RATE.
00:11:40THERE SHOULD BE NO EXCEPTIONS
AND EXCLUSIONS, AND PEOPLE
00:11:44SAYING, "I DON'T HAVE TO PAY
IT," I THINK IT SHOULD BE
00:11:47BROAD-BASED, AND WE SHOULD APPLY
IT TO EVERYONE.
00:11:49WE WERE CONSCIOUS ABOUT THE
THINGS WE DID.
00:12:01I WOULD CHALLENGE ANYONE TO
PROVE THAT BUSINESSES ARE PAYING
00:12:04THEIR FAIR SHARE IN THIS STATE.
>> THE 3.5% WHERE TALKING ABOUT,
00:12:10THE 4.88% OPERATORS WOULD PAY --
TOP RATEPAYERS WOULD PAY UNDER
00:12:16THIS, DO YOU FEEL THAT WILL SPUR
THE ECONOMY AND ALL THIS TAX
00:12:22INCREASING, TAX CUTTING, GETTING
TO THAT POINT -- IS IT WORTH IT?
00:12:25>> THERE ARE SOME THINGS WE
WOULD AGREE WITH AND SOME WE
00:12:28WOULD DISAGREE WITH.
I THINK THERE'S TOO MUCH FOCUS
00:12:31ON THE INCOME TAX.
YOU CAN BE TOO HIGH.
00:12:33I DON'T THINK WE ARE THERE.
ONE OF THE THINGS I WOULD TAKE
00:12:36ISSUE WITH IN THIS PROPOSAL IS
YET ANOTHER INCOME TAX CUT.
00:12:41THAT HAS BEEN SOMETHING
REPUBLICANS HAVE BEEN SELLING
00:12:43FOR THE LAST 20 YEARS.
EVERY TIME WE CUT THE INCOME
00:12:47TAX, IT'S SUPPOSED TO CREATE ALL
THIS JOB GROWTH AND NEVER DOES.
00:12:50YES, THE ECONOMY IS BETTER NOW,
BUT OHIO IS STILL KIND OF
00:12:53MUDDLING ALONG.
I DON'T THINK INCOME TAX CUTS
00:12:56ARE THE WAY TO TURN THE STATE
POSSE ECONOMY AROUND.
00:12:59YOU NEED A MUCH BROADER THING --
I DO AGREE THAT THE CAP TAX --
00:13:04LOWER RATES MORE BROADLY APPLIED
ON A BUSINESS SIDE WOULD BE
00:13:08HELPFUL.
SOME OF THE THINGS THE GOVERNOR
00:13:10IS DOING IN JOB TRAINING -- WHY
SHOULD NOT OHIO BE THE BEST
00:13:15PLACE WITH THE BEST JOB TRAINING
OF GETTING THE SKILLS NEEDED TO
00:13:20WHERE THE JOBS ARE NEEDED THE
MOST QUICKLY WITH THE LEAST
00:13:22HASSLE FOR BUSINESS?
THAT WOULD BE SOMETHING WE COULD
00:13:25ASPIRE TO, AND REALLY WILL -- WE
COULD REALLY MAKE A DIFFERENCE
00:13:29FOR OURSELVES.
MARGINAL CHANGES OR BIG CHANGES
00:13:31IN THE INCOME TAX RATE HAVE NOT
REDUCED WHAT THE PEOPLE WHO
00:13:35ADVOCATED THEM PROMISED.
>> THAT DOES BRING A POINT TO ME
00:13:40THAT DISTURBS ME FROM THE TIME
THAT WE DID THE FIRST MAJOR TAX
00:13:41REFORM IN 2005 OR 2006 AND WE
WERE PROMISED 98,000 JOBS.
00:13:48WE WERE PROMISED THAT WE WOULD
CREATE A WHOLE DIFFERENT
00:13:52REDISTRIBUTION OF INCOME IN THE
STATE, AND IT NEVER HAPPENED,
00:13:55AND WE NEVER HELD PEOPLE
ACCOUNTABLE.
00:13:58WE NEVER SAID TO THEM WHEN THE
BUSINESS COMMUNITY PEOPLE WERE
00:14:01SAYING, "TAKE AWAY OUR TANGIBLE
PERSONAL PROPERTY TAX," AND
00:14:06PEOPLE WERE COMING IN SAYING
THEY WANTED TO BE EXEMPTED FROM
00:14:08IT, AND THE LOCAL GOVERNMENT
WERE TOLD THAT THIS MONEY WOULD
00:14:11ULTIMATELY GO AND THEY WOULD
HAVE FIVE YEARS OF BEING HELD
00:14:15HARMLESS, IN FACT, NOW, HALF OF
THE MONEY STAYS WITH THE LOCALS.
00:14:19YOU AND I COULD HAVE DONE THIS
YEARS AGO WHERE WE WANTED TO GET
00:14:24RID OF TANGIBLE PERSONAL
PROPERTY TAX AND COULD NOT
00:14:25BECAUSE WE SAID IT WAS ALL LOCAL
MONEY, AND WE PRETENDED WE WERE
00:14:29GOING TO TAKE IT AWAY FROM THE
LOCALS AND NEVER DID.
00:14:30>> THIS BUDGET WOULD INCREASE IT
FROM .2% TO .6%.
00:14:38YOU HAVE TALKED ABOUT DOUBLING
IT.
00:14:40YOU BOTH TALKED ABOUT A LOW RATE
OF BROAD-BASED.
00:14:42DOES THIS BUDGET DO THAT?
IS IT AT A LOW ENOUGH RATE TO
00:14:46REALLY SATISFY YOU, OR SHOULD IT
BE HIGHER REACT OUT WHAT DO YOU
00:14:49THINK?
>> I THINK WHAT THIS DOES IS
00:14:52INCREMENTAL RAISING OF THE CAT.
BUSINESS PEOPLE HAVE ARGUED WE
00:14:55ARE WILLING TO PAY THAT TAX
ACROSS THE BOARD AS LONG AS IT
00:14:58DOES NOT GET TOO HIGH.
>> WITH THEY JUST PASS IT ALONG
00:15:01TO CUSTOMERS?
>> TECHNICALLY, THE LAW SAYS YOU
00:15:04CANNOT.
THERE'S ONLY ONE INDUSTRY THAT
00:15:06I'M AWARE WITH WHO ACTUALLY HAVE
A DIFFERENCE IN THEIR INCREASE
00:15:12-- AN INCREASE IN THE PROCESSING
FEE, BUT YOU CANNOT DIRECTLY
00:15:15PASS IT ON TO AN ADD-ON TO A
PRODUCT.
00:15:21>> IT DEPENDS ON THE INDUSTRY.
WHERE IT IS VERY COMPETITIVE, IT
00:15:24WOULD BE HARDER.
WHAT I THINK THIS OPENS UP THE
00:15:29GOVERNOR DOING THIS IS THE NEXT
GOVERNOR LOOKING FOR MONEY, IT
00:15:34BECOMES VERY EASY TO DO AN
INCREMENTAL INCREASE, AND IT
00:15:38DOES NOT SEEM LIKE MUCH, AND IF
YOU ARE NOT CAREFUL, PEOPLE
00:15:41START GETTING EXEMPTED, AND THE
RATE HAS TO GO UP.
00:15:43>> I HEAR CONSERVATIVES SAY THAT
THEY ARE WORRIED ABOUT THAT.
00:15:50>> SOME CONSERVATIVES THINK THAT
THEY HAVE A MONOPOLY ON THE
00:15:52TRUTH.
>> WITH INTERESTING -- I ALWAYS
00:15:57KEEP GOING BACK TO 1980 BECAUSE
THAT'S WHEN I STARTED, BUT BACK
00:16:00IN 1980, TOTAL GR SPENDING WAS
LIKE $4,357,000,000.
00:16:11TOTAL REVENUE SHOULD BE AROUND
$12 BILLION, AND IT'S A LOT MORE
00:16:15THAN THAT.
WHEN PEOPLE TALK ABOUT WHAT WE
00:16:19HAVE AND DO NOT HAVE, I REALLY
DO NOT CARE ABOUT THAT.
00:16:22WHAT I CARE ABOUT IS ARE WE
FUNDING OUR SCHOOLS PROPERLY,
00:16:26KEEPING TUITION DOWN FOR KIDS
GOING TO COLLEGE, PROVIDING
00:16:29PEOPLE THE ABILITY WHEN THEY
LOSE THEIR JOB TO BE RETRAINED
00:16:32AND GET BACK INTO THE MARKET?
ARE WE MAKING SURE THAT NO
00:16:36FAMILY EVER LOSES THEIR HOUSE,
LOSES THEIR ABILITY TO HAVE
00:16:41COMFORT BECAUSE OF A MEDICAL
ILLNESS?
00:16:43>> DO YOU FEEL WE ARE DOING
THESE THINGS?
00:16:47>> I WANT TO MAKE SURE WE ARE
DOING THE THINGS THAT ARE
00:16:50NECESSARY FIRST BEFORE WE TALK
ABOUT TAX BREAKS.
00:16:52I THINK IT'S IMPORTANT FOR US TO
SAY TO KEEP KIDS IN THIS STATE,
00:16:55WE CANNOT LET THEM KEEP COMING
OUT OF SCHOOL WITH 100 DIRTY
00:16:58THOUSAND DOLLARS, WITH --
$130,000, 150 THOUSAND DOLLARS
00:17:04WORTH OF DEBT.
INSTEAD OF USING THE MONEY THEY
00:17:07HAVE EARNED TO BUY A HOUSE, IT'S
NOT GOING TO HAPPEN.
00:17:09>> AT SOUNDS LIKE A DEMOCRATIC
ARGUMENT.
00:17:11>> IT'S FUNNY, WHEN I GOT THE
JOB IN THE REPUBLICAN SENATE, I
00:17:16WAS A REGISTERED DEMOCRAT, AND
IT WAS NOT UNTIL A MEETING THAT
00:17:20SOMEONE SAID THAT WAS REALLY
STRANGE COMING FROM THE MOUTH OF
00:17:22THE DEMOCRAT, AND I CHANGED
IPARTY.
00:17:25IT'S OK TO BE A MODERATE.
IT'S OK TO SAY THAT THERE'S
00:17:28FAIRNESS AND WE NEED TO APPLY
STRINGENT RULES ABOUT HOW WE
00:17:31SPEND MONEY.
I AM PARTICULARLY OFFENDED BY
00:17:39THIS TAX POLICY WHO CAME WITHOUT
CONSULTING OTHER MAJOR
00:17:46BUSINESSES WHO DO NOT BELIEVE
THAT IT WAS A FAIR TAX PACKAGE.
00:17:48>> THE CIGARETTE TAX INCREASE --
THE MONEY COULD BE USED FOR
00:17:59OTHER THINGS -- WHAT DO YOU
THINK?
00:18:01>> AS A FORMER SMOKER, I WOULD
HAVE PAID ANYTHING FOR A PACK OF
00:18:07CIGARETTES.
>> THAT'S WHY WE NEED MORE FAT
00:18:13CAT SMOKERS.
>> BUT SINCE I AM NO LONGER A
00:18:14SMOKER, I SEE -- IT IS TOO EASY
OF A TAX TO INCREASE BECAUSE
00:18:20THOSE THAT DO IT ARE ALREADY
ADDICTED TO IT, AND THEY ARE PUT
00:18:23INTO A SITUATION OF HAVING TO BE
FORCED TO MAKE A HARD CHOICE.
00:18:30>> A LOT OF PEOPLE DO NOT HAVE A
PROBLEM WITH IT.
00:18:32>> ONLY 22% OF THE POPULATION
THAT PAY THAT SMOKE, SO YOU'RE
00:18:41TALKING ABOUT A NARROW GROUP OF
PEOPLE, BUT I COULD TAKE THE
00:18:43REVERSE AND SAY A LOT OF PEOPLE
DO NOT PAY CERTAIN OTHER TYPES
00:18:46OF TAXES, AND WE DO NOT GO AFTER
THEM.
00:18:50AGAIN, TO ME, IT'S ABOUT OUR TAX
POLICY AND HOW WE ARE TRYING TO
00:18:53APPLY A TAX POLICY THAT IS FAIR
TO EVERYONE, THAT EVERYONE PAYS
00:18:58THEIR FAIR SHARE AND THOSE
MONEYS ARE USED TO DIGITALLY BY
00:19:00THE GENERAL ASSEMBLY AND HOW
THEY SET PRIORITIES AND HOW THEY
00:19:03SPEND IT.
>> ALTHOUGH THE CIGARETTE TAX
00:19:09DISPROPORTIONATELY HURTS POOR
PEOPLE BECAUSE THEY TEND TO
00:19:11SMOKE MORE, I AM A NON-SMOKER, I
HATE SMOKING, AND THE COST OF
00:19:17SMOKING -- LUNG CANCER AND
EVERYTHING ELSE -- BELONGS TO
00:19:20SOCIETY, SO TO PUT THAT KIND OF
TAX ON IT, I DO NOT HAVE A
00:19:22PROBLEM WITH THAT.
TO USE THAT TO REPLACE INCOME
00:19:27TAX REVENUE, I DO BECAUSE THAT
IS NOT A TAX SOURCE THAT IS
00:19:30GOING TO GROW.
I THINK THERE IS A HIDDEN PART
00:19:35OF THIS TAX PACKAGE THAT MAKE IT
LOOK LIKE IT IS LESS BUDGET
00:19:41NEUTRAL BENNETT APPEARS, AND IT
WILL PUSH OFF PROBLEMS FOR
00:19:43EITHER THIS GOVERNOR IN HIS
SECOND TERM IF HE IS REELECTED
00:19:46OR ANOTHER GOVERNOR BECAUSE THEY
ARE GIVING AWAY MORE MONEY THAN
00:19:48THEY ARE GENERATING, BUT THEY
ARE NOT DEALING WITH WHAT THEY
00:19:52WILL NOT BE ABLE TO DO AS A
RESULT BECAUSE THINGS LOOK GOOD
00:19:56RIGHT NOW.
I THINK THAT'S ANOTHER POTENTIAL
00:19:59PROBLEM.
>> THE GOVERNOR WANTS A BIGGER
00:20:00SEVERANCE PACT AND HOUSE
LEADERSHIP HAS PROPOSED.
00:20:01ANOTHER TAX A LOT OF PEOPLE HAVE
SAID THEY HAVE NO PROBLEM WITH,
00:20:07BUT ALSO ANOTHER TAX THAT COULD
BE UNSUSTAINABLE.
00:20:10>> OIL AND GAS DRILLERS ARE NOT
GOING TO GET A LOT OF SYMPATHY
00:20:14AT THIS TABLE.
THEY OUGHT TO PAY THEIR FAIR
00:20:16SHARE OF TAXES, AND THE ONLY
REASON THEY ARE NOT AS BECAUSE
00:20:18OF THE CLOUT THEY HAVE IN THE
GENERAL ASSEMBLY, SO I GIVE THE
00:20:21GOVERNOR CREDIT.
I DON'T KNOW IF YOU SAW THE NEWS
00:20:26STORY THIS MORNING, BUT THE
LEGISLATIVE SERVICE COMMISSION
00:20:28CAME OUT WITH A DIFFERENT AND
LOWER ESTIMATE THAN THE
00:20:30GOVERNOR'S OFFICE, AND I DON'T
KNOW WHO IS RIGHT, BUT THAT IS A
00:20:32BIG DIFFERENCE.
>> WE WERE LED TO BELIEVE THAT
00:20:36THE LEGISLATIVE SERVICE
COMMISSION IS CORRECT, AND
00:20:38THAT'S ONE REASON WHY HOUSE
REPUBLICANS ARE KIND OF PULLING
00:20:40BACK ON THIS, IT SOUNDS LIKE.
>> THIS IS A NATURAL RESOURCE
00:20:48THAT IS BURIED UNDER THE GROUND.
IT BELONGS TO ALL OF US.
00:20:51WHEN IT IS DEPLETED, IT IS GONE.
DURING THE COURSE OF THIS, I
00:20:55TAKE THE GOVERNOR'S SIDE ON
THIS.
00:20:57I ACTUALLY WOULD HAVE MADE IT
EVEN HIGHER.
00:21:01I DON'T WANT TO HEAR ABOUT "YOU
WON'T COME HERE AND DO THIS."
00:21:05WHEN YOU FIND GOLD, YOU EXTRACT
IT.
00:21:08TO SAY TO ME THAT YOU ARE NOT
GOING TO, YOU HAVE GOT TO BE
00:21:10KIDDING ME.
THE ONLY REASON WE ARE NOT DOING
00:21:12THAT IS BECAUSE NATURAL GAS
PRICES MAY BE TOO LOW OR THE
00:21:15MARKET THEY NOT BE READY FOR IT,
BUT WE NEED TO BE PAYING AND
00:21:18EXTRACTING, AND I THINK THE
GOVERNOR'S NUMBER WAS EVEN TOO
00:21:24LOW.
>> TO CLOSE THIS ALL OUT, WE
00:21:25STARTED OUT BY WHAT WAS IN THE
BUDGET FOR THE GOVERNOR.
00:21:28WHAT IS IN THIS BUDGET FOR
DEMOCRATS WHO ARE TRYING TO
00:21:32UNSEAT HIM?
>> I WOULD LIKE TO POINT OUT A
00:21:34COUPLE OF THINGS THAT ARE NOT IN
THE BUDGET.
00:21:35ONE IS IF YOU REMEMBER LAST
YEAR, WE TALKED ABOUT SCHOOL
00:21:40FUNDING REFORM, AND THE GOVERNOR
MADE A BIG PROMISE HE WAS GOING
00:21:42TO CHANGE IT.
YOU DON'T HEAR A WORD ABOUT THAT
00:21:46NOW.
APPARENTLY HE CAME TO THE SAME
00:21:47CONCLUSION THAT WE DID, WHICH IS
POLITICALLY IT IS NO WIN FOR
00:21:52HIM.
THEY WERE ABLE TO GET OVER THAT
00:21:53BECAUSE THEY TOOK EXTRA MONEY
AND THREW IT AT THE PROBLEM LAST
00:21:56TIME AND PATCHED UP WHATEVER
PROBLEMS, BUT THEY WILL COME
00:22:00BACK, AND MY GUESS IS THEY WILL
NOT HAVE AS MUCH MONEY TO DEAL
00:22:03WITH IT.
THAT IS AN UNRESOLVED ISSUE.
00:22:05SECOND THING THEY HAVE NOT DEALT
WITH -- YOU HAVE SOMETHING LIKE
00:22:09-- ACCORDING TO THE GOVERNOR'S
OWN NUMBERS -- $8 BILLION IN TAX
00:22:14GIVEAWAYS AND WRITE OFFS, MOST
OF WHICH GO TO BUSINESS.
00:22:18SOME OF WHICH ARE LEGITIMATE,
LIKE THE DIRECT USE EXEMPTION,
00:22:22AND SOME OF WHICH ARE JUST
POLITICAL PAYOFFS.
00:22:24THIS IS A REFORM GOVERNOR WHO IS
RIGHTFULLY PROUD OF REFORMS IN
00:22:28SOME AREA, BUT FOR SOME REASON
-- AND I THINK I KNOW WHAT THE
00:22:31REASON IS -- HE AND HIS
LEGISLATIVE ALLIES DO NOT WANT
00:22:34TO LOOK AT THIS.
YOU HAVE REPUBLICANS RAILING ON
00:22:39POOR PEOPLE BECAUSE THEY ARE
LAZY AND ALL THIS STUFF, YET,
00:22:43THEY ARE GIVING AWAY ALL THIS
MONEY TO INDUSTRY AND BUSINESS
00:22:46WHO SHOULD BE PAYING A FAIR TAX,
AND THEY WILL NOT EVEN LOOK AT
00:22:49IT.
THAT'S THE SECOND THING THAT'S
00:22:51MISSING.
THE THIRD THING -- IF YOU TALK
00:22:52ABOUT TAXES THAT ARE BAD FOR
OHIO BUSINESS, THE LOCAL INCOME
00:22:57TAX, THE CRAZY PATCHWORK OF
LOCAL AND SCHOOL DISTRICT INCOME
00:23:03TAXES AND SOMETHING BUSINESS
PEOPLE CLAIM AS THEIR BIGGEST
00:23:06PROBLEM -- AND I CAN SEE
ADMINISTERING THAT, AND THERE IS
00:23:09A BILL GOING THROUGH THE
LEGISLATURE, BUT THE COUNTIES
00:23:12AND SCHOOL DISTRICTS AND
MUNICIPALITIES ARE RIGHTFULLY
00:23:14OPPOSING IT BECAUSE IT MAY TAKE
MONEY AWAY FROM THEM.
00:23:17WHAT I WOULD THINK WOULD HAPPEN
IF YOU REALLY BELIEVE IN REFORM
00:23:21IS TO TAKE SOME OF THE MONEY
THEY'VE GOT NOW, FIND SOME WAY
00:23:24TO HOLD THE CURRENT SCHOOL
DISTRICTS AND CITIES THAT HAVE
00:23:29MUNICIPAL INCOME TAXES HARMLESS
FOR SOME TIME FOR THESE CHANGES
00:23:34AND MAKE THE REFORM THAT IS
NEEDED AND GET RID OF THAT
00:23:36PARTICULAR THING, BUT THERE IS
NOTHING IN THERE ABOUT THAT.
00:23:40>> THE GOVERNOR IS A BOWL, AND
HE IS READY TO RIDE 'EM ANY
00:23:50TIME.
HE IS CLEARLY THE KIND OF GUY
00:23:51THAT ONCE HE IS REELECTED, HE
WILL BE.
00:23:53I THINK THIS IS GOING TO BE A
VERY BAD YEAR FOR DEMOCRATS
00:23:56BECAUSE THE ECONOMY IS DOING
WELL.
00:23:57I THINK THAT THERE IS NOT REALLY
ANY REAL SENSE OF CORRUPTION AND
00:24:02OTHER THINGS THAT USUALLY HURT A
GOVERNOR.
00:24:04I EXPECT HIM TO DO QUITE WELL.
I EXPECT ALL OF THEM TO DO QUITE
00:24:09WELL.
AS A RESULT, THIS BOWL WILL COME
00:24:12OUT OF HIS CAGE IN JANUARY AND
FEBRUARY AND CONTINUE HIS RUN
00:24:18FOR MAJOR REFORM IN THE STATE
AND WILL NOT LET ANYONE STAND IN
00:24:19HIS WAY.
HE WILL, I BET YOU, TAKE ON
00:24:25PEOPLE NEXT TIME EVEN WORSE THAN
WHAT HE HAS THIS TIME, AND I
00:24:28DON'T THINK HE'S GOING TO BE IN
TOO MUCH OF A MOOD FOR
00:24:32COMPROMISE.
>> YOU THINK SOME OF THE THINGS
00:24:33THAT BILL IS TALKING ABOUT THAT
WILL COME BACK TO HAUNT HIM
00:24:36ACTUALLY WILL?
>> NOTHING WILL HAUNT HIM.
00:24:39WHEN PEOPLE GO INTO CAMPAIGNS,
THEY THINK ABOUT THIS.
00:24:42THEY THINK ABOUT THIS.
WHEN THE ECONOMY IS DOING WELL
00:24:47AND EVERYONE HAS A JOB AND
PEOPLE ARE STARTING TO LOOK AT
00:24:49LIFE IS BETTER, THEY WANT TO SEE
THAT PROGRESS CONTINUE.
00:24:53AGAIN, FOR HIM, THE THINGS THAT
COULD HOT HIM WOULD BE A FAILING
00:24:57ECONOMY THAT SUDDENLY THE JOBS
STOP, AND IT STARTS TO DECLINE
00:25:01AND UNEMPLOYMENT GOES UP -- THE
COLD REALITY IN THIS STATE --
00:25:04FULL EMPLOYMENT PROBABLY MEANS
6%.
00:25:07WE WILL PROBABLY NEVER SEE THE
RATES THAT YOU AND I SAW DURING
00:25:11ALL THESE YEARS.
THE SECOND PART TWO THAT IS IF
00:25:13THERE IS A SCANDAL, IT WOULD
HURT HIM.
00:25:16RIGHT NOW, IT IS NOT.
SOMEDAY SOON, I HOPE, SO THIS
00:25:21RACE CAN BE FUN, I WOULD HOPE
THAT THE DEMOCRAT CANDIDATE WILL
00:25:24HAVE MORE THAN THE 70% OF THE
PEOPLE THAT DO NOT KNOW HIM AT
00:25:30THIS STAGE.
70% AFTER ALL THE TIME -- A YEAR
00:25:34-- 70% OF PEOPLE STILL DO NOT
KNOW HIM.
00:25:36>> BUT THE POLLS ARE STILL
CLOSE.
00:25:38>> I UNDERSTAND, TO COUNTIES
MAKE UP 150,000 DEMOCRAT VOTES.
00:25:47NO REPUBLICAN IS EVER GOING TO
COME IN THIS STATE ANYMORE AND
00:25:50HAVE THAT BLOWOUT YEAR.
IT'S JUST NOT GOING TO HAPPEN.
00:25:54STATISTICALLY, DEMOCRATS FALL IN
CERTAIN AREAS AND YOU WILL
00:25:57ALWAYS BE FACED WITH THIS.
>> THANK YOU VERY MUCH FOR BEING
00:25:59HERE.
THAT'S IT FOR THIS WEEK.
00:26:00THANKS FOR WATCHING.
IF YOU WOULD LIKE TO ASK
00:26:05QUESTIONS, MAKE COMMONS, OR
WATCH THIS WEEK'S SHOW OR
00:26:09EARLIER EPISODES, PLEASE VISIT
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00:26:15YOU CAN WATCH ON THE OHIO
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00:26:19PLEASE JOIN ME AGAIN NEXT TIME
FOR "THE STATE OF OHIO."
00:26:23>> SUPPORT FOR THE STATEWIDE
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00:26:27COMES FROM THE LAW OFFICES OF
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00:26:31ARTHUR, LLP, HELPING INDIVIDUALS
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00:26:35LEGAL PROBLEMS THROUGHOUT OHIO,
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00:26:38WORLD.
AND FROM THE OHIO EDUCATION
00:26:41ASSOCIATION REPRESENTING
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00:26:44AND HIGHER EDUCATION FACULTY
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00:26:45EVERY CHILD.
Note : Transcripts are compiled from uncorrected captions