Archives for July 2011
Will Ohio leave $176 million for Ohio’s unemployed on the table?
- Eligibility for part-time workers
- Benefits for leaving work due to domestic violence or other compelling family reasons
- 26 weeks of pay while enrolled in approved training
- Minimum dependent payment of $15 per week up to $50
“We were never able to get an answer as to how much this would cost in the long run,” he told reporters after session. “The question became: if we take $176 million now, how much will be obligated to pay out for the next 10, 20, 30 years? And no one could answer that question, so we chose to pass.”It really begs the question: whom did he ask? Innovation Ohio obtained a 2009 memo from the Ohio Department of Job and Family Services that showed by phasing-in two of the four policy changes (minimum dependent payments and 26 weeks of training), the state could actually save money in the long run. So if cost is not the real issue, we have to wonder: is this really part of an anti-worker, anti-middle class agenda, consistent with other policies we have seen from this General Assembly and Administration? More money for unemployed Ohioans, and savings for Ohio’s Unemployment system. It’s really a no-brainer.
IO on TV: Dale Butland on The Spectrum – July 17, 2011
News Release: Innovation Ohio Applauds Cordray Nomination
Innovation Ohio Applauds Cordray Nomination
IO President calls former Ohio AG “the perfect choice”
Columbus—Janetta King, President of Innovation Ohio, said today that Richard Cordray was the “perfect choice” to head the new Consumer Financial Protection Bureau (CFPB). King’s comments came after the White House announced earlier today that President Obama has decided to nominate Cordray as the new agency’s first Director. The previously leading candidate to head the CFPB, Elizabeth Warren, had drawn fierce opposition from Republicans who threatened to filibuster her appointment. The CFPB is being created in the wake of the housing crash and the Great Recession to protect consumers from abusive lending practices by banks, credit card companies, mortgage lenders and others. It is scheduled to begin operations later this month. Said IO President King: “Rich Cordray has all the tools needed to head this important agency. As a graduate of the prestigious University of Chicago law school, a law clerk for Supreme Court Justice Anthony Kennedy, a stint as Ohio Solicitor General, and three years as Ohio’s Attorney General, Rich has repeatedly shown that he has the intellect, temperament and judgment necessary to excel in this important job. “But in addition to his gold-plated resume, Rich Cordray also has a wealth of experience in tackling the kinds of consumer issues the CFPB is designed to address. As Ohio Attorney General, he went after financial firms for fraudulent and shoddy mortgage servicing and foreclosure practices—and built a solid reputation as a fierce but fair consumer champion. Here in Ohio, Democrats and Republicans alike know Rich to be smart, savvy, and eminently reasonable. He’s earned enormous respect on both sides of the political aisle. “Finally, Rich Cordray is that rare nominee who understands finances, economics and fiscal realities and combines it with a solid law enforcement background. President Obama could not have found a better candidate or made a wiser choice. We can’t wait for the rest of America to find out what we Ohioans already know about Rich Cordray. We look forward to what we hope and believe will be a speedy confirmation process.”-30-
Kasich’s budget office confirms IO’s report: There was never an $8 billion hole
Double-Dealing by Ohio’s Casino Consultants?
Today, Innovation Ohio alerted Ohio’s press corps to a potentially troubling linkage between Moelis & Co., the New York-based consulting company, hired by John Kasich to negotiate with casinos, and one of the two casino owners, Penn National. We find that in 2009, Moelis worked for another client who agreed to pay them more if they could secure a deal with Penn. Given that the Governor’s agreement with Moelis had Ohio taxpayers compensating them with a bonus of up to $13 million if they could reach a deal with Penn, we believe the two companies’ prior relationship, and whether it was disclosed to the State of Ohio merits further exploration. Read the press release. Read the 2009 Moelis engagement letter.
News Release: Is Moelis in Bed with Penn National?
For Immediate Release: July 13, 2011 Contact: Dale Butland, 614-783-5833
INNOVATION OHIO: IS MOELIS IN BED WITH PENN NATIONAL?
Columbus—Innovation Ohio, a progressive think tank headquartered in Columbus, said today that it has uncovered a “potentially troubling linkage” between Penn National Gaming and Moelis & Company, the New York-based consulting firm that earned a reported $13 million to help Gov. John Kasich strike a deal with Ohio’s casino and race track owners. Innovation Ohio’s discovery comes on the heels of a July 9 column by Brent Larkin of the Cleveland Plain Dealer who called Moelis’ $13 million fee “astonishing”, “preposterous” and “an unprecedented gift” which is “deserving of more scrutiny.” . Innovation Ohio said that in 2009-10, Moelis had a consulting contract with Fontainebleau Las Vegas, LLC to help that firm sell an uncompleted and bankrupt hotel and casino project. The contract, which paid Moelis at least $750,000 in consulting fees, contained “a curious provision—Section 3 (A) (ii)—specifying that if Penn National bought the Fontainebleau property, Moelis would receive an additional fee totaling 3% of the transaction value. If anyone other than Penn National bought the property, Moelis’ would receive 1% of the transaction value. Either payment would be in addition to Moelis’ consulting fee.” Read the contract here. In addition, Innovation Ohio said “it is our understanding that the Kasich administration has either stonewalled or rejected outright public records requests for information relating to the administration’s decision to retain the Moelis firm for Ohio’s own negotiations with Penn National and Rock Ventures.” Said Innovation Ohio Communications Director Dale Butland: “Since Ohio taxpayers are giving Moelis $13 million, they deserve some answers. What, exactly, is Moelis’ past and current relationship with Penn National? Why was Penn National singled out in Moelis’ contract with Fontainebleau Las Vegas? Why would Moelis receive a bonus of 3% of the transaction value if Penn National purchased the Fontainebleau property? Or 1% of the purchase price if Penn National didn’t buy it? Why would Fontainebleau—or Moelis—care about Penn National’s involvement? Since Penn National was one of the gaming firms with whom Gov. Kasich would be negotiating, did Moelis ever disclose its previous and/or current relationship with Penn National prior to being retained by the state? If so, why didn’t the Kasich administration publicly disclose that information? If not, why not? There may well be satisfactory answers to all of these questions. But since Ohio is paying Moelis $13 million for consulting efforts characterized by the Plain Dealer’s Mr. Larkin as “work that a bright, well-prepared fifth-grader could have performed as a homework assignment”, it is entirely reasonable to insist that answers be forthcoming.”IO Responds to Speaker Batchelder in the Wall Street Journal
The Sad Death of Ohio’s Death Tax Ohio House Speaker Bill Batchelder and his co-authors Jack Boyle and Dick Patten omit a few important facts in “Ohio Shows the Way on Death Tax Repeal” (Cross Country, July 2), like how their primary rationale for repeal was debunked by the Dayton Daily News on June 28. The newspaper found no “solid statistical evidence,” either for the claim that the estate tax has led to an exodus of jobs and businesses, or that it causes family farm and business heirs to sell in order to pay the tax.
The authors downplay the financial effect of repeal by disingenuously asserting that local governments receive only “a portion” of estate tax revenue. In fact, they receive 80%. The percentage matters because Ohio’s recently passed state budget also cuts the Local Government Fund, which helps pay for police, fire and emergency response, by a whopping 50%. Those cuts, coupled with the coming 80% loss of estate tax revenue ($230 million in 2010), virtually ensure local tax hikes.
Though Ohio’s estate tax affects only the wealthiest 7%, both its threshold and its rate are outdated and need reform. That is why Innovation Ohio, the progressive think tank with which I am affiliated, proposed mending it by raising the threshold to $1 million (the top 2%) and the tax rate to the national average of 16%. Instead, Mr. Batchelder and his allies chose to eliminate a tax on the top 2% and require the bottom 98% to pay for it. Now that’s class warfare, Republican-style.
As for the hoary claim that the estate tax is why wealthy Ohioans move to Florida and other Sun Belt states, weather seems a far likelier explanation. Hawaii is a popular retirement destination, despite its estate tax.
Dale Butland Columbus, Ohio