Unemployment Hits Record High

Not in 22 years has Ohio’s unemployment rate been as high as it is now, 7.8 percent. This is a terrible statistic, but it is not the worst part of the story.

In the past 12 months, Ohio lost 118,000 jobs. Currently 465,000 people are unemployed and economists predict that number will go higher. But those are not just numbers, they are real people. They are families who are now struggling to make ends meet and they need hope, but even more, they need jobs.

A federal “stimulus” package is supposed to help, that remains to be seen. But Ohio needs its own plan. Governor Strickland offered a plan two years ago, the “Turnaround Ohio” plan. We expect an update on his progress with “Turnaround Ohio” this week in the state-of-the-state address,

How Ohio gets through the tough times will be the foundation for our state’s future, and if it is or is not a more prosperous future than the times we and the 465,000 unemployed people in Ohio are experiencing right now.

Putting Stimulus/Bailout in Perspective

Last fall, Congress bailed out the financial industry at a tab of $700 billion. Now Congress is considering a “stimulus” package for the economy that began at $850 billion and could reach $1 trillion.

However, the “stimulus” package is to some extent, beginning to look like a state government “bailout” package. The latest estimates show $200 billion will go to state government to cover costs for education, Medicaid and general government expenses–Ohio’s share of the bailout is presently estimated to be over $7.5 billion.

If you include the assistance Ohio already receives from Washington, under this new proposal the federal government will become Ohio’s single largest source of revenue, outpacing what we bring in from the income tax or the sales tax.

Sure, the new proposal seems fine on the surface–more free money for our expenses. But the idea that our biggest donor is broke, with nearly $11 trillion in debt and deficits estimated at more than $1 trillion a year for the foreseeable future, is not very reassuring

So, as we consider the upcoming state operating budget, it becomes clear that Ohio will balance it with one-time money from the federal government. As a result, we will become addicted to a level of spending we cannot afford and down the road it will mean either major tax increases or program cuts, and most likely both. Again, kicking the can down the road and passing the tough decisions on to someone else.

We got in this economic crisis by borrowing and living beyond our means, and it appears we have learned nothing, because that is exactly the road Congress is leading American down again.

Ohio’s Business Tax Climate Ranks 14th Best

During my first term as House Speaker, in 2005, we reformed Ohio’s tax code with the goal of making our business tax climate more inviting to new business investment and job creation.

With that goal in mind I was excited to learn that a new study released by Small Business and Entrepreneurship ranks Ohio’s business tax climate 14th in the nation, the only state in the Midwest ranked in the top 15.

Recently, these tax reforms have been attacked by groups who are seeking higher taxes and more spending on government programs. And, while the economy is not producing jobs at the moment, this study serves as a reminder that when the economy recovers and new investments grow businesses and create jobs, that Ohio is better positioned to succeed.

Just a few years ago we were ranked one of the worst states in the nation regarding our tax system, now we are in the top 15 and the best in the Midwest. While not 1st, it is significant progress.

Due to state budget challenges, over the next few months there will be calls to retreat on tax reform. If we want to truly see a recovery of the Ohio economy, we must not retreat.

Debt and More Debt

On this blog I have talked a lot about our national debt and the threat that it and the future obligations to Medicaid, Medicare and Social Security. On the front page of the HustedforOhio.com website you will see the national debt clock as it rolls up a million dollars of debt about every 10 seconds. (The debt is presently $10.6 trillionand growing).

Now, news from Washington, the deficit for this year is going to be $1.2 trillion, with projections of a trillion per year deficits into the future. Add in what could be another trillion for the coming “economic stimulus package” and it begs the question what are the consequences of all of this deficit spending? Many economists warn that this spending trend will have detrimental, long-term economic consequences for our nation.  Those same economists also seem resigned about the need for some sort of short-term economic stimulus plan.

Spending on infrastructure seems to be a consensus expenditure. But like some banks and automakers, state and local governments also want a bailout.  One Ohio city wants bailout money to spend on a crackdown on prostitution–sort of an anti-stimulus stimulus package.

Ohio’s governor wants a big bailout for our state budget and that would make the job easier–the governor and the legislature can just charge the bill to someone else’s credit card without having to make the tough decisions about our spending habits.  I am not suggesting there is no room for federal help, especially with the federal programs that the state administers. However, if the Ohio budget is balanced largely on the back of the federal government, we will face even bigger problems in the next budget when the one-time revenue for ongoing expenses all disappears. Today’s Columbus Dispatch has an excellent editorial that is worth reading. Read: Columbus Dispatch Editorial

If that is what happens, will have learned nothing from failures of the financial crisis and once again solve today’s problems by mortgaging the future.  It has to stop.

Voter Fraud Conviction

Kevin Duffy, 24, of Manchester, Conn. admitted this week that he lived out of state when he voted in Hamilton County in this fall’s general election. He pleaded guilty of attempted false voter registration before a Hamilton County Common Pleas Judge.

Duffy was sentenced to one year of probation, a $1,000 fine and 250 hours of community service.
Duffy further agreed to cooperate with an ongoing investigation of alleged improper voting involving as many as 600 votes in Hamilton County.

Had Duffy not voluntarily come forward, it is unlikely anyone would have ever known.

The Cincinnati Enquirer reported that Duffy’s vote was one of hundreds questioned by Hamilton County Prosecutor Joe Deters that were cast during Ohio’s so-called “golden week” when anyone could register to vote and then vote at the same time.

The “Golden Week” was authorized by the Ohio Secretary of State and challenged unsuccessfully by the Ohio Republican Party. Last week the legislature approved a Senate Bill that will resolve the matter by eliminating the overlapping time period that would have allowed same day registration and voting.

Unfortunately, the Governor’s spokespersons say he will veto the legislation. Let’s hope the conviction of Mr. Duffy, and the potential for more voter fraud convictions that will further undermine the confidence of our system of elections, will convince the Governor to sign the bill.

Happy New Year!

As I close out my term as House Speaker and begin my term in the Senate, let me say thank you for your support.

Together we reformed the tax code, passed two of the most fiscally conservative budgets in Ohio history, helped children escape failing schools with choice in education, froze college tuitions, expanded STEM education and passed a new energy law that expands advanced and renewable energy in Ohio.

After all of this, I feel like my work has just begun.  Thank you for joining me on this journey.

Warm Regards,
Jon Husted