…..Semper Fi
Posted on 10/30/2003 10:35:48 AM PST by North Coast Conservative
VOTE “NO” ON ISSUE 1
Ohioans have the opportunity to vote against the expansion of Governor Taft’s transforming economic development plan, Issue 1, also known as the Third Frontier.
A frontier, according to Webster, is a new field for exploitive or developmental activity. The first frontier was taming the wilderness, the second, the industrial frontier according to some, or the exploration of outer space according to others.
For central planners to put the transformation of our economy on par with those frontiers is fair warning that Issue 1 is a big deal.
Proponents say it will create jobs (as though that was a legitimate function of government), but research indicates otherwise. A study of 366 Ohio companies that launched major expansions between 1993 and 1995 reveals that economic development incentives have very little (or even a negative) effect on actual job growth. Findings suggest that companies that receive tax incentives overestimate the potential of new jobs more than those companies that do not get incentives (Journal of Regional Science, Issue 4, 2002).
Issue 1 is definitely an incentive – an incentive for the chosen few but at the expense of the many. It calls for passage of a 10-year, $500 million bond issue backed by the full faith and credit of the state – meaning our tax dollars. Issue 1 is an end-run around Ohio’s constitutional 5% cap on debt service. That cap limits state borrowing. Current exceptions to the cap include justifiable spending for critical needs, such as to repel invasion, suppress insurrection, or defend the state during war.
The precise amount of the Issue 1 related debt is unknown, but taxpayers already spend $1B on state-generated debt service each year. If Issue 1 passes, that figure will jump even higher. If the interest rate is 4%, interest payments will total $225M, for a total cost of $725M - money that will be due after the so-called temporary sales tax expires. Policy Matters in Ohio reports that “substantial increases in debt will be difficult to sustain if the recent increase in the sales tax is allowed to expire as planned, and no alternative revenues are found.” Accordingly, to imply that taxes won’t be raised is disingenuous. It’s also important to remember that because payment of debt service takes precedence over spending for discretionary programs, many deserving programs are apt to get displaced.
Ohio’s Third Frontier is a multi-phase plan to link businesses with universities. One of the stated goals is to pay operating expenses such as salaries and expenses for research activities, secretarial support, conferences, meetings, and related travel.
It is fully expected that universities, researchers, professors, and businesses which have had their work underwritten by taxpayers will “commercialize” their products. That means they will make a profit when their subsidized products hit the market, giving them an unfair competitive advantage in the marketplace. The Third Frontier is a slick plan to funnel corporate welfare to the chosen few. The obvious question is: How will non-subsidized companies be able to compete?
Proponents budgeted $3M to persuade voters to support Issue 1. Where is the “get-out-the-vote” money coming from? Well, there is no prohibition on donations to the campaign from corporations that may later receive Third Frontier money, so it is conceivable that wanna-be recipients of tax credits and grants are ponying up the money.
Our economy is based on a free-market system. Economic decisions are supposed to be made by producers and consumers, not the government. Any transforming move away from capitalism is, by default, a move toward some other ism – for example, socialism, a planned economy where economic decisions are made by those affiliated with the government; in the case of Issue 1, three governor appointees.
Passage will abolish a 156-year-old ban against government being a stockholder in private businesses. Yes, the state already gives grants to businesses (a topic for another day), but those grants are not for operating expenses. In addition, the money comes from existing revenue and it is generally limited to capital improvements.
Be forewarned, Issue 1 is a vehicle to lift the cap on excessive state borrowing, promote unfair competition, transform our economic system, and lift the ban on government being a stockholder in private businesses.
Certainly there is no merit in saddling ourselves or our children with debt for the next 29 years (when the last payment comes due) especially when there will be nothing concrete to show for it. I encourage you to join me in voting “No” on Issue 1.
------------ Diana Fessler represents Miami County and a portion of Darke County. E-mail: diana.fessler@ohr.state.oh.us
…..Semper Fi
Everybody is going to the polls on Tuesday, right?
In God We Trust…..Semper Fi
Yes sir, I am. Anything that is for "economic development" is a definite NO vote for me.
Amen! That, and it's opposed by the Buckeye Institute (a conservative Ohio-based think tank similar to the Heritage Fdn. or the Cato Inst.) on the grounds that it allows government to "pick" winners and losers in the economy—robbing some industries to incentivise others. Issue 1 is also opposed by Ohio's LARGEST industry association, the Farm Bureau.
More than enough to convince me it's worth defeating next Tuesday!
Yeah, it’s the old bate and switch routine. Except you usually get this type of con job from the dims.
The precise amount of the Issue 1 related debt is unknown, but taxpayers already spend $1B on state-generated debt service each year. If Issue 1 passes, that figure will jump even higher. If the interest rate is 4%, interest payments will total $225M, for a total cost of $725M - money that will be due after the so-called temporary sales tax expires.
It will take an a lot of new high paying jobs to generate enough money to pay off that kind of debt.
Why is it that politician love to spend other people’s money so much that they so easily are willing to sell their honor for the pleasure?
Is it some kind of addiction?
Ken Blackwell. He's about the only Republican in statewide office with any kind of cajones. I even voted for him to be guv in '98 and '02...and in '06 many Ohioans have a realistic hope he will actually have a shot at governor!
It is one of the worst places in the country for business, and for just the reasons you stated. Regulations are a nightmare. Taxes and fees for start-ups are a crushing burden, and our Workers' Comp...uh, now that's a quagmire!
My dad started up a business years ago with a partner who was based in Illinois. Once they had looked at the options and done a cost analysis, the choice of IL as the company's home base was a no-brainer. Ohio would've been almost impossible!
No 1,220,685 51%
Yes 1,173,250 49%
LAST UPDATED: Nov-05-2003 08:28 AM EST
WOO-HOOOOOOO!!!!!
1)Many Ohioans just don't give a damn. They are ignorant of what is going on, and really don't want to know. I found this out when running for city council four years ago and was knocking on doors.
2) They don't have any idea of the proper place or function of government, so they don't understand what the Beltway Cretins should or should not be doing.
3) Many can't see into the future to extrapolate what happens to taxes and business if/when the issue at hand does not pan out, the jobs do not materialize to drive tax revenues through the roof, and the bonds have to be paid back to the lenders. Why are my taxes going up? I don't understand.
The answer is education, plain and simple. And we are the professors.
Let me plug this great organization, and ask everyone to go here:
Link to OTA to read up, and possibly join.
The big push next year should be for a Tax and Expenditure Limitation Amendment to the Ohio Constitution, and I ask that you all help me in supporting this with your state reps and senators.
…..Semper Fi
Tony, I am working on a paper about just this type of situation exactly. If you have any articles, statistics, research, etc. that you could forward to me (public stuff only of course) I would appreciate it.
By 39 votes I heard this morning. Every vote counts.
and our Workers' Comp...uh, now that's a quagmire!Give the politicians some credit, they tried to fix that mess. They had a new system in place, then the unions got a referendum on the ballot that put the quagmire back.
A couple of jobs ago, we suspected we had some WC freeloaders costing us money. A crew of PIs armed with video cameras confirmed our suspicions. The hearing officers:
1) Wouldn't provide a VCR or TV. Our HR Manager had to carry them through downtown streets from the parking lot to the hearing room. They wouldn't even provide a bailiff/escort.
2) Didn't consider a video of a full and vigorous workout on a weight machine conclusive evidence that a guy out for a back injury was faking it.
-Eric
I bet, they could give you, the lastest stats on their favorite team thou.
BTW, Issue I passed in Trumbull County:
26,761 for
26,103 against
Isn't this Senate Select Intelligence Committee memo that was leaked just astonishing?! That makes my case, and we really need to continue "counter-acting" the mis- and dis-information put out by people with a "hidden agenda" that's not related to security or intelligence issues...
RE: Lakewood and "eminent domain"...there will be a recount, since the issue failed by less that one half of one percent...but their Mayor (who's pet project this was) lost her re-election bid, and although the newly elected mayor also apparently favored the project, perhaps he will reconsider in light of the other developments (no pun intended!)...I'm presuming the count will stand, there will be no "manufacturing" of additional votes, and etc....
You are right, conspiratoristo...we must be the "teachers" in whatever ways we can...Howard Dean isn't the only one who's "Internet-savvy", and of course we should be "active" in our own communities as well as we can (Kucinich is my Rep...GACK! but DeWine is my Senator, and that's a good Ohio "reminder" that he's on the afore-mentioned Senate committee)...
"Huzzah"!!! for the new Kentucky and Mississippi governors...your "common sense local activism" at work! ;)
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