stlouiedipalma;714586 wrote:There has been reference made here of Kasich "privatizing" certain services of the state goverment. Can anyone please be specific on what programs or services he is thinking of?

stlouiedipalma;714795 wrote:Any more talk of privatizing the Turnpike?

Ty Webb;715066 wrote:Looking at his budget....

Ohio has made a giant ass mistake

Ty Webb;715066 wrote:Looking at his budget....

Ohio has made a giant ass mistake

Kevin OBrien at the PD wrote:... there is a limit to what the people are willing to pay for government. The real reaction to Kasich's budget -- the response that comes from the people who write the checks rather than the people who collect them -- will tell us whether Ohioans have reached that limit.

Profits on liquor sales generate $228 million for the state of Ohio every year. JobsOhio is set to take over liquor sales oversight and own that revenue stream. They, in turn, will sell 30 years worth of that revenue — worth around $6.8 billion — to a group of investors (recruited by a Wall Street firm, who will of course take a cut) in return for a lump sum payment to the state.

According to the administration, they expect to receive about $1.5 billion in return for this $6+ billion in state revenue. Of that, around $300 million will fund JobsOhio, $700 million will defease the bonds that are currently back by liquor profits and $500 million will go to the state general fund to plug the current budget hole.

How many problems do you see here?

* We are selling nearly $7 billion in revenue for $1.5 billion
* If there are $700 million in outstanding bonds against liquor profits floated by the state, it will likely cost far more than $700 million to pay them off and float new bonds. And they clearly intend to float new bonds, as the liquor-backed economic development programs funded by the bonds — including the facilities establishment fund at ODOD — are fully funded for both years in the Governor’s budget.
* JobsOhio is an unproven entity, the legality of whose business model is questionable according to the Ohio constitution. How attractive, in these credit markets, will its bonds be to investors? At best, we’re probably talking junk bond ratings, perhaps explaining why the State is paying such an insane premium to get anyone to invest.

stlouiedipalma;715792 wrote:After all, if someone or some corporation wants to make that deal, there is probably long-term profit to be had.

ptown_trojans_1;715597 wrote:I'm intrigued by the budget from what I read. The only thing I would object to, is from what my dad was telling me, (who worked out at SOCF prison) is they want to close another watch tower on the prison grounds. Given there are two schools within a few miles of the prison, I would advise against that.

Other than that, like NJ and NY, Ohio is now an experiment.

tsst_fballfan;716255 wrote:Possible solution ... convert prisons back into prisons. Eliminate the bball courts, weight rooms, TV rooms, libraries, legal services, etc. Keep them locked in their cells 22 hrs a day. The only out of cell time is for meals which should consist of cold cereal and water for breakfast, pb&j and water for lunch, chicken or beef broth and water for dinner(the same every single day). Build more cells with the money saved from bball courts etc to keep prisoners locked up for full sentences. :shrugs:

I guess this should be it's own topic.

tsst_fballfan;716255 wrote:Possible solution ... convert prisons back into prisons. Eliminate the bball courts, weight rooms, TV rooms, libraries, legal services, etc. Keep them locked in their cells 22 hrs a day. The only out of cell time is for meals which should consist of cold cereal and water for breakfast, pb&j and water for lunch, chicken or beef broth and water for dinner(the same every single day). Build more cells with the money saved from bball courts etc to keep prisoners locked up for full sentences. :shrugs:

I guess this should be it's own topic.

We would, however, caution Governor Kasich on over-‐relying on savings achieved by programmatic consolidation and other “streamlining” efforts. Many a politician has sought such savings only to find them illusory or stymied by the bureaucracy. Vigilance will be required to make these savings happen.

On the hit to local government and the tax implications:

Because of this total [State/local] tax burden, we had encouraged Governor Kasich to hold a tax reform summit with representatives from local governments to come up with a solution to Ohio’s tax burden. Our belief is that eliminating a tax “here” that pops up again over “there” simply rearranges the chairs on the deck of the Titanic. We need a thoughtful discussion on how to restructure our governmental units and taxes in Ohio to make us competitive with other states. Instead, Governor Kasich’s budget makes deep cuts in funding to local governments and keeps revenues projected to go to local governments. Because of a few solid reforms in procurements and other areas, as well as the projected savings from passage of Senate Bill 5, Governor Kasich’s budget presumes that local governments will have the flexibility to adjust their budgets accordingly.

We are not as hopeful.

BoatShoes;716301 wrote:Where do these untrue beliefs come from?

BoatShoes;716301 wrote:Where do these untrue beliefs come from?

BoatShoes;716301 wrote:Where do these untrue beliefs come from?