Kasich's Reverse Robin Hood Budget

On the Ides of March, thousands of Cincinnatians gathered downtown at Fountain Square to rally against Governor Kasich’s proposed budget and Senate Bill 5. The demonstration was organized by Stand Up For Ohio. A handful of speakers representing various unions, the College Democrats, and city council, voiced their opposition to SB5 and the budget cuts. At least a dozen similar actions were held in other cities across the state.

Ohio supposedly faces a $8 billion deficit over the next two years. Kasich’s proposals include selling five Ohio prisons, cutting funding to local governments and schools, revamping Medicaid, doubling the number of vouchers to send children to private schools, lifting the cap on charter schools, and leasing the Division of Liquor Control to help pay for the new, private JobsOhio economic development program. This forces local governments - and the people they serve - to bear the burden of the budget deficit.

Many of these ideas are complete nonsense. There is no reason why leasing a state entity like the Division of Liquor Control, which makes money for the state, to a private entity will lead to more income for the state of Ohio. The same goes for his proposals on the profitable Ohio turnpike and the Ohio lottery.

One of the themes of Kasich's budget can be called "passing the buck" or "bait and switch." Fiscal conservatives voted for Kasich hoping to inaugurate a government with a responsible money policy. Instead like so many investors, they've been tricked by a former Lehman Brothers banker. Not only is Kasich cutting the amount of state funds that typically go to local governments, he is reducing their forms of income. Revenue from personal income tax, the commercial activities tax, electric and gas utilities, and insurance companies, for example, are being directed toward the state General Revenue Fund in greater proportions and away from local governments and school districts. In some cases the local and school shares are being phased out completely.

In short Kasich is defunding local government. For all his talk about giving school districts, cities, and towns the tools they need to run healthy budgets, what he's really doing is creating panics at the local level that will show up as desperate tax levies in May and November later this year. He's shifting responsibility for public education, libraries, and other services from the state to local taxpayers. That would have a huge impact on the already wide disparity in education and other services throughout the state and increase competition among local governments in the race to the bottom to attract business and retain jobs. The degree to which local officials have to prostrate themselves before business leaders to attract or retain jobs in their locality is shameful as it is now.

Perhaps most shocking is how this crisis has been manufactured and that many of these proposals would be on the table, regardless of a deficit. Just the other day Wayne Struble, one of Kasich's policy advisers, was quoted in the Columbus Dispatch saying, "Even if there weren't an $8 billion deficit, we'd probably be proposing many of the same things."

Since 2004 Ohio has embarked on a major revision of the tax code. Proponents of the changes would call them reforms. The Ohio Department of Taxation estimates that taxpayers are saving roughly $2.1 billion each year as a result of changes to tax laws beginning in 2005 (under Republican Gov. Bob Taft), when Ohio began phasing out taxes on corporate profits and lowering individual tax rates. That's more than half of the biennial budget shortfall that the Kasich administration is claiming.

Real solutions to Ohio's budget shortfall might be to add higher income tax brackets (right now the highest bracket tops out at $201,800) to make up for the 21% rate cut since 2005, stop sending public money to private charter schools, expand the State Infrastructure Bank to service the state's debt and provide loans for more than just transportation projects, and increasing taxes on luxury items or vices (cigarettes and alcohol).

We also need an honest dialogue about Ohio's real financial situation. If there is a $8 billion shortfall, why does Kasich's 2012-2013 budget contain $5 billion MORE in expenditures than Strickland's last 2010-2011 budget? There definitely is a problem here, and it's not the making of ordinary Ohioans. Kasich is a corporate stooge and probably doesn't care much about reelection, so waiting for the next election cycle will be far too late. Our only options are to fight him every step of the way, making sure his efforts are in vain, or to recall him as soon as possible.

Scenes from SB5 Protest in Columbus

What happens when over 4000 Ohioans protest right-wing attacks on labor, students, and families? See for yourself:

Special kudos to the folks who made the bus :)

Way to Go, Wisconsin

As Ohio State Senators debate Senate Bill 5, which would strip public employees of collective bargaining rights in their unions, Wisconsin's protests have been as loud and vibrant as ours need to be. Workers packed the Capitol building last week (read about it here), and we're going to have to keep it up.

Tuesday the 22nd is expected to be the last day for debate. Protesters will be gathering at the Statehouse at 1pm tomorrow for the hearing at 3:30. Be there! The resistance to this bill probably will make Kasich think twice about what cuts he proposes in his budget next month. Let's give him plenty to think about.

Facebook event: http://www.facebook.com/event.php?eid=127973343942048

Take a look at this music video from the Wisconsin protests:

A cold reception for Kasich

COLUMBUS, Ohio--John Kasich became Ohio's new governor on January 10. But before he was even sworn in, he was met with resistance from the Defend Ohio Campaign, which held a protest outside the statehouse during a pre-inauguration celebration. Approximately 150 people from around the state participated in a march downtown.

It was around 20 degrees Fahrenheit outside, and protesters chanted, "I don't know but I've been told, Kasich's heart is mighty cold!" They were referring to the steep budget cuts he's proposed, including 20 percent or more from education, even though the state already does not fund public education to the level required by law.

Speakers included Jobs With Justice organizer Deb Steele, Rev. Eric Brown, former Green Party gubernatorial candidate Bob Fitrakis, Pat O'Connell of Free the Planet at Ohio State University, Bob Parks of the Ohio State Labor Party, environmental justice advocate Elisa Young, and community activist Ruben Castilla Herrera.

During a brief speech, Cincinnati teacher Dan LaBotz, who ran as a Socialist Party candidate for one of Ohio's U.S. Senate seats last November, summed up the situation: "How many people here like the public library? How many went to public schools? How many people use the public parks? Any of you drink the water from the public water works? Did you drive here on the public highway?"

Each question was answered with raised hands and affirmations. He continued, "They want to sell all of those things! They want to sell them off and get rid of the public employees, who are union members."

Kasich's attempt to blame public employees and funding of public services like education and Medicare for Ohio's budget deficit simply don't add up. Ohio's budget has to be viewed in the context of the national crisis, whether Kasich wants to or not. Unemployment and foreclosures mean less payroll and real estate taxes are being collected.

Kasich's refusal to accept federal aid and money to develop a passenger rail system between Cleveland, Columbus and Cincinnati--which would help create jobs--flies in the face of his goal to balance the budget.
What he's really after is using the recession to further a conservative agenda that cuts health care and education, guts unions, and bleeds the state dry. This is what it means to be more "business friendly."

If Saturday's protest is any indication, Kasich will be met with resistance every step of the way.

www.socialistworker.org

RALLY to Stop Kasich Before He Gets Started!

Governor-elect Kasich has promised cuts throughout the State of Ohio, the same type of austerity agenda that has deepened the economic crises throughout Europe. He wants to force the working class to pay for the financial catastrophe caused by rich bankers and speculators. Politicians like Kasich are using the national recession as a pretext for gutting social services like education and Medicaid and driving down public employee wages. Working people already are having a more difficult time than usual making ends meet, with the official unemployment rate around 10%.

We're going to have to fight Kasich every step of the way on this, and we're starting January 8th to send him a message right before he takes office. There will be a rally in Columbus followed by a march to the Statehouse. Go check out http://defendohiocampaign.com/ for the latest information. There's also a link to join the Defend Ohio Campaign. Please forward the call throughout the State and contact your local ISO branch to see about carpooling.

Cincinnati ISO blog is back!

The site is now under construction, so it looks a bit bare at the moment, but we intend to make good use of it. This will be a universal focal point to get information out to people who are not on Facebook or Google. Expect to find plans for local events, national and local news stories, articles written by ISO members and others, and plenty of opportunities to get involved.

Our first meeting of 2011 will be on the 4th (a Tuesday) at 7pm in Swift 619 at UC. We'll be talking about our plans for the quarter, including a campus debate and bringing Sherry Wolf. There's also a rally sponsored by the Defend Ohio Campaign that will take place in Columbus on the 8th. This will focus on fighting against Kasich's right-wing agenda of massive cuts in the public sector and services (like education and health care) that people need.

If you're on Facebook please RSVP here: http://www.facebook.com/event.php?eid=162944330415727