The Law resulting from SB 5 would:
Rescind the 1983 law which allowed collective bargaining by 360,000 public employees. A quote from the April 5th issue of the Columbus Dispatch, “The Kasich administration says local governments could save nearly $1.1 billion from health care and longevity pay provisions of SB 5, but a contract expert says that the methodology used to calculate the numbers for school workers is flawed.” It would be a burden on the backs of the teachers and other employees who are not overpaid. They earn 12% less than equally qualified employees in the private sector. Innovation Ohio estimates that 51,000 public employees will lose jobs due to SB 5. Many experience teachers will be replaced by those from Teach for America who are poorly trained and inexperienced.

The “saving” would be more than offset by higher costs at all levels of government:
1. Employees would pay less tax because they would earn less.
2. Some would lose their jobs and have to use their unemployment insurance.
3. The economy would be more depressed because workers would have less money to spend. They spend most of their income so there is a secondary effect X 2.
4. There will be more legal cost because of law suits by employees and unions, as were occurring before 1983 when the Collective Bargaining Bill for Public Worker was passed.
5. Teachers and others would leave their profession and/or leave Ohio.
6. Bright young people would not enter these professions.
The Law and the Budget would harm the finances of teachers 23 ways. STRS retires would be harmed two ways. The Ohio General Assembly has several more Bills including amendments to the Budget pending, which will cost teachers and retirees.
The Republicans rushed to get SB 5 signed before April 4, so it could not be put on the ballot for the General Election in 2012.

Public employees who have Defined Benefit Plans, when fired or treated unfair and quit may even leave Ohio. They will withdraw their portion from the fund. This will weaken and may cause the collapse of the Pension Fund.

SB 3 Would Rescind the Ohio Estate Tax.
· It will result in the loss of $388,000,000 revenue from the wealthiest Ohioans.
· It will result in the loss of $ 277,000,000 to sub state entities which receive 80% of the revenue.
More local regressive tax will be required: sales, property or flat income tax, or there will be a loss of essential services and jobs.

The “Jobs”? Budget

This is an oxymoron. It, along with SB 5 will kill jobs. Much of the $8 billion deficit in the next $55.5 million biannual budget could have been avoided if the Ohio Income Tax rate had not been cut by the Republicans in 2005. That cut favored those with high incomes. It resulted in the loss of about $1 billion revenue per year for 5 years. The Republicans will cause increased regressive taxation, sales, property and/or flat income tax by sub state entities, because of gradually eliminating the Ohio Income Tax. Jobs will be lost in schools, cities, counties and townships. Failure to pass the VLTs at the horse racetracks, proposed by Governor Strickland caused loss of $1 billion revenue for each year, 2010 and 2011. At least 20,000 jobs were lost in the horse industry, not counting secondary effects. Governor Kasich turned down perhaps as much as $1 billion in stimulus money. The total of this lost revenue is more than the $8 billion deficit we are facing in the 2011-2013 Ohio Biannual Budget.

Federal Stimulus Funds

The $ 400 million for passenger rail service connecting Cleveland, Columbus, Dayton and Cincinnati was turned back to the federal government by Governor Kasich. Although it would not have given us high speed rail service, the $ 400 million would have done the following:
· Given us passenger rail service between Ohio’s four largest cities.
· Connected these cities with Amtrack.
· It would improve the rail bed for faster, safer and more
economical freight rail service between these cities.
· It would have stimulated the Ohio economy by providing useful jobs improving the rail system, building four stations and improving the economy by the building service businesses in the area of the stations.

Governor Kasich probably turned down a total of $ 1 billion Federal money, but it is difficult to account. That money was from Federal Income Tax, including from Ohioans. It was turned back only because of his hyper conservative principles.


It will be impossible to amend the Ohio Constitution to require casinos to provide fair revenue, because the casino owners are the most powerful lobby in Ohio. Governor Strickland was against that ballot issue, but Republicans were silent. Governor Kasich has a plan to have them pay the CAT Tax on every transaction, rather than on net profit. The courts will rule against this proposal. This issue is holding up the constructions of the casinos in Cleveland and Cincinnati, owned primarily by Gilbert, because he must borrow a large amount of money. Potential lenders are in doubt because of the CAT Tax.

VLTs at the racetracks
Now Governor Kasich plans to institute Video Lottery Terminal at the horse racetracks, although he said he was against all gambling during most of the Campaign, so he could get the fundamentalist vote. The Republican Senate and Ohio Supreme Court prevented Governor Strickland from passing a law which was the fairest for tax payer of any ever proposed in the U. S. It would have produce $ 1billion state revenue per year. It was predicted since last summer that Governor Kasich would institute VLTs at the race tracks if elected, and that he will tax the money retained at such a high rate that so there will be inadequate money remaining for purses to revive the horse breeding in Ohio. It is nearly dead because of unfair advantage by surrounding states which have alternative forms of gambling at their tracks. Six of the seven Ohio racetracks are now owned by large gaming companies. The casino owner own part or all of four of the seven tracks. The track owners will be agents for the Lottery Commission. They will receive the money retained from the machines beyond the tax. They fill not be obliged to give a fair share for race purses to save the industry. Governor Strickland would have required binding arbitration between the horsemen’s association which act as unions and the tracks if they could not arrive at an agreement. It is very doubtful if Governor Kasich will have binding arbitration involving the horsemen’s unions.

At least 10% of the retained money is necessary to revive the horse breeding and racing industry. Other states with alternative gambling at the tracks, the range is 9% to 30%, with a weighted average of about 16%. The gaming companies which now own the tracks are suggesting that they pay only 2%, 4% or 6%, so the horse breeding and racing industry will be lost.

Heath Care
The plan to streamline Medicaid and other health programs appeared to be quite good if funded adequately. However, the Budget will severely underfund it.

Schools and teachers are being harmed 23 ways by the Budget and SB 5.

The universities are losing 7% of their funding. A plan at OSU gives college deans flexibility in human resources, including whom to offer buyouts. There is a plan to develop a method to get more of the profit when marketing research results and patents. There should be effort to retain those whom do minimal research, and are primarily good teachers. During the last four years 10 teachers who did little research in my department of about 55 left OSU, and only one is now an administrator at another college. To learn the seriousness of this problem read “Failed Grade, The corporatization of higher education in America”, by Al Soloway, Dean Emeritus of the OSU College of Pharmacy.

HB 159 would require a picture I. D. to vote at the polls
· There is very little, if any fraudulent voting at the polls, because it is easy to detect. Secretary of State Jon Hustad and most experts on election law do not support this Bill. It passed in the House of Representatives, but several Republican Senators are reticent to vote for it.
· This law would suppress the vote of the 800,000. Included are mostly Democrats who are poor, elderly, African American and Hispanic or combinations of these groups.

Privatization of state functions
This includes the Ohio Turnpike, more prisons, the liquor industry and permitting more Charter Schools. Some of these businesses may be sold to private parties for less than they are worth, and the stream of profit from them will stop for one-time money to balance the current budget. Three of the four functions of the BWC are already privatized. There is a plan to privatize the benefits payment, or to turn the whole thing over to a for-profit insurance company. It would be owned out-of-state, since Ohio companies are not capable. When governmental functions are privatized they usually cost more, are done poorer and entrepreneurs, usually Republicans, become multi-millionaires. White Hat Brennan, the Charter School administrator donated $4,226,505 to Republicans during the last decade, so his profit from state funds must be very high.


The voters are so distressed that the required signatures to put the referendum to repeal SB 5 on the Fall Ballot will be collected quickly. A record amount of money will be spent to influence the outcome of the referendum on both sides, much of it from outside of Ohio. It will pass, repealing SB5!

It is not possible to fool so many voters so badly for so long. Hitler’s Propaganda Minister Gobbel’s statement “If you tell big enough lies often enough, most people will believe them”, has a limit.

I predict that if Democrats make a reasonable effort they will sweep the election at the federal and states level in 2012. A sleeping giant has been awakened by the currently passed unfair Republican laws in many states.


Albert A. Gabel, Professor Emeritus, Ohio State University