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Faber says budget
“fix” will hurt
By Jan Boyer
Senior Scribe
GREENVILLE - Expect “gnashing of teeth and wailing” as Ohio works to
fix its budget woes. This was State Senator Keith Faber’s (R-12)
message to a room full of Chamber of Commerce members and friends at
Romer’s Catering Friday.
“For too long, inactivity has been the state government norm,” Faber
said. There is general agreement that the problem can’t be cured by
spending. But he also noted that everyone is for cutting funds, as long
as it is not their own funds.
Faber likened it to being on a cruise ship… we have to decide what deck
chairs go over the side before the ship sinks.
“Comfortable is not always the way to get the job done,” he said.
Faber told the group – all of whom braved ice, cold and snow to hear
his message – that there will be many new initiatives coming out of
Columbus.
“JobsOhio” will replace a practice that has been in effect for the past
50 years but has not gotten the job done. Capital Gains receipts were
$14 billion in the past, but last year only $4 billion. Ohio Gov. John
Kasich has appointed Mark Kvamine – at a salary of $1 a year – to head
up the Department of Development, he said. Kvamine’s qualifications
include helping Google develop into the multi-billion dollar entity it
is today.
Ohio House Bill No. 1 would be the biggest change, Faber said. It
proposes to replace the public Department of Development with a private
board that would allow decision-making to move with the speed of
business; to be able to put a plan in place within 72 Hours. The board
would be filled with experienced people working for zero dollars to fix
a problem.
Ohio House Bill No. 2 is the Regulatory Reform Bill, which would
promote common sense in regulatory department compliance. Faber told
the group that it will institute a “customer service” attitude among
state department employees rather than the current attitude that “we
work for them” not “they work for us!” Those who do business with
Indiana know it is very responsive. In the future, Ohio will be
responsive, also.
Faber said that some seem to think the EPA means “Eliminate Productive
Activity.” He added, however, that the aim of the regulatory
agency should be to streamline productivity, get things done quickly.
The Division of Natural Resources is working closely with the EPA to be
more efficient and cost effective, he said. When a form is submitted,
it won’t be a lengthy process. It will be possible to pick up the phone
and get information quickly.
“Indiana has already figured this out,” he said.
Faber told the group that under current rules, state employees can
retire after 30 years and receive their pensions. He said that pension
plans are going bankrupt and by 2023 will be insolvent.
“At today’s rate, in 2024, 70 percent of the entire state budget will
have to pay for past pension obligations,” he said. The reality is that
this has to change, to bring the public sector in line with the private
sector. To do this, the retirement age will have to change.
Faber said that the state must be able to promote efficiency and
effectiveness in all agencies. The current collective bargaining for
public employees does not give employees and employers a chance to work
out their differences. This leads to inflation. So, he added, although
an unpopular concept with some, we must work on the collective
bargaining system. The Legislature has not addressed as of yet
whether collective bargaining works, he said.
Faber said the State of Ohio has an $8 billion hole in the $50 billion
budget. Unlike the federal government, the state cannot print dollars
or borrow money. It can only increase taxes.
“But that cuts into businesses,” he said. Seventy to 75 percent of the
budget goes to education and Medicaid. The question is what do you cut?
Local governments, libraries, property taxes are part of that budget.
All the shareholders will have to take their turn in the box, he said.
“The solution is unacceptable if we don’t start cutting some from all
of those. We can’t get there if we ignore any part of the transfer
payments received by the various entities,” he added.
Faber urged that if anyone hears of a business that is thinking of
relocating, contact him and he will work with them to solve their
problems and find what Ohio can do for them. He emphasized that
now we will react quickly. If a response is not quickly
forthcoming to a problem, contact him.
All legislators there agreed that spending needed to be reduced. They
also welcomed citizens to contact them with their concerns. Kasich was
commended for appointing Jim Zehringer to lead the Department of
Agriculture, and Zehringer’s replacement State. Rep. Jim Buchy (R-77).
Faber noted that Kasich has already started to work to keep businesses
in Ohio, and bring new ones to the state.
“Our young people get the finest education in top Ohio institutions and
should not have to look elsewhere for jobs,” Faber said in his closing
comments. “We will be able to say to them… The jobs are here!”
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