Tag Archives: Ohio

American Majority–Grassroots Organizing and Mobilization

This entry is part 6 of 7 in the series American Majority Training

constitutionMost grassroots movements have the same fundamental parts to them, with the tea party movement being a notable exception.  Understanding those parts will help activists and candidates to generate and sustain momentum and support for your issue.

Chris Faulkner from Faulkner Strategies discussed the keys to a grassroots movement.  You have to have ‘The “IT”‘, ie. the key root basis of your movement:  the idea, issue or value(s) that define your movement, identified clearly and succintly.  Think abortion for the pro-life movement, war opposition for both the Dean campaigns and the Paul campaigns, etc.

You also have to have “The ‘Host'”, the person or group that becomes the avatar and carries the “IT”.  Most “hosts” have been too weak to carry the “It” effectively (think Howard Dean) but sometimes a “host” is strong enough to carry the “It” (think Barack Obama carrying the “Move ON” idea).

The “Host” can’t do it alone; in come the “Evangelists”: those who are opinionated, well-informed, and more interested in the “It” than in the “Host”.  These folks are the ones who really drive and make the movement happen and catch fire.  Sometimes they may be “sneezers” who push information out (think bloggers, talk radio, etc.).  Next you need the “medium” of how the message is going to be delivered.  In our Founding era, it was Committees of Correspondence and the Federalist Papers; today it is the Internet and social media.

All of this is focused on getting the message, and the momentum, to the “Crowd”, ie. everyone else.  The Tea Parties seem to have found a way to effectively do this and also bypass the need for a “Host”, thus decreasing the likelihood of a personality eclipsing the message or turning off those who otherwise could and should be part of the movement.

Maybe the conservative movement can learn some lessons.  The time is now, and the resources are available.

American Majority–New Media and Online Engagement

This entry is part 5 of 7 in the series American Majority Training

constitutionChris Faulkner spoke to the entire group after lunch on the ability to harness and utilize the “new media”of social networking and other online portals to create a more effective campaign (either political or activist).  He gave a disclaimer that this is the most difficult session for him to teach, as he has 20% who won’t get it, 20% who is already using it effectively, and 60% who may get useful information out of the presentation.

Facebook, Twitter, Linked In, etc.  are all tools that allow for greater online engagement (dynamic interactive communication), versus the early days of the Internet where someone might have an online presence (static website).  A major focus of Faulkner’s presentation was on the potential power of Twitter as a means of creating community and building your persona.  I was impressed by the fact that there are approximately 15 million Twitter users (as opposed to 300 million Facebook users) and President Obama has 12% of that community following his ‘tweets’ (1.8 million follwers).  There is potential power in this application, as Faulkner put it, 140 charcters to take over the world.

Faulkner discussed how you need to “control your brand” by using social media effectively, and getting your message and your information up to the top of the list on search engines such as Google.  It’s all about getting your name out long enough, loud enough, and in as many venues as possible to give it “juice” to help you control your “brand”.  Another good way, especially for candidates, is the creation of “fan pages” for your campaign or business on Facebook.

An amazing, but not really surprising statistic is that of various contact media being utilized today, Facebook is used as the primary contact point by more people than who use email (24% vs. 11.1%).  Twitter is a close and growing third at 10.8%.  It is pretty apparent that instead of a time wasting distraction, social media is becoming somewhat of an indispensible communication tool.  Sorry, US Postal Service!

The conversation turned to blogging, and how to go about setting up an effective blog site, how to drive traffic and attention, and how to make your blogging become an activist activity.  Faulkner presses the point home that new media will be increasingly more critical to message successs, and in generating action for your agenda.

Social media is now creating a new way of accountability.  As Thomas Paine put it, “An army of principles can penetrate where an army of soliders cannot.”

American Majority–On the Candidate trail, part 3

This entry is part 4 of 7 in the series American Majority Training

constitutionThis session is on political communication, more specifically on paid and earned media options for a campaign.  Faulkner discussed the elements of a communication strategy from establishing or increasing name id, developing image and issue, creating contrast, to defending yourself against attacks.

Most people think of political communication of being mainly centered around television advertising, but Faulkner brought a great perspective on the fact that our new technological milieu, while still maintaining the importance of running TV, has exposed some of the things that TV can’t do for a campaign, including targeting voters effectively, reaching as many voters as it did 10 years ago (too many channel choices now), and giving detailed information/messaging for your campaign.

Much of the discussion on paid media explored the ability to use direct mail effectively and to use radio as a “rapid response” vehicle for staying abreast of issues and getting out early on attack response/damage control.  However, because of the constraints of the day’s schedule, Faulkner had to skip over a number of points of discussion, which participants in the training can access via a membership gateway at American Majority’s website.

A discussion of earned media and its effectiveness (both in terms of costs and in terms of name/issue identification for voters) was the second half of the session, but much of it was passed over due to time constraints.  It might be a better plan for future trainings for the earned media portion of the training to be a separate session.

And yes, even though many don’t want to hear it, Faulkner reiterated that negative ads (attack ads) do work and work effectively.  He did warn that candidates should try to create contrast, but to stay away from the clearly personal attacks on the opponent:  attack issues and track records, not personalities and families.  Faulkner did utilize some time for a fairly lively and informative question and answer session at the end of the session.

American Majority–On the Candidate track, part 2

This entry is part 3 of 7 in the series American Majority Training

constitutionThis session in the Candidate track is one that most candidates hate talking about, but is absolutely necessary to achieve the goals of the campaign:  fundraising.  The “mother’s milk of politics” is also the bane of most candidates, who struggle to spend the requisite time and personal investment to have a successful fundraising program.  Relying on direct mail and generic requests won’t equate to enough resources to cross the finish line strong.

Faulkner spent the bulk of the time in this session discussing the various means of fundraising, from direct mail solicitations to online fundraising.  Faulkner walked participants through the personal solicitation, direct mail and fundraising event portions of the finance plan in general terms, as a general overview of the basics of these traditional fundraising activities.

The discussion on online fundraising was engaging, showing the power of smaller voices coming together to create a political roar (ala Ron Paul more than Howard Dean), and bringing people into the campaign by directly engaging them with your campaign message in a format with which they are comfortable .

Online fundraising has other advantages as well, such as creating “fans” (strong supporters), being able to grow your email lists (remember the Obama campaign’s millions of emails?), asking for smaller amounts but in greater numbers of people, and creating community around your campaign.

However, as Faulkner brought home, a candidate still has to spend 35-50% (or more) of their time on doing personal, face to face solicitation of potential big donors in order to create the financial foundation to build the rest of the campaign on.  Sorry, candidates, there is no magic wand in the Internet to keep you from having to do the hard, humbling work of asking other people to give you and your ideas the money to make them work.

American Majority–On the Candidate track, part 1

This entry is part 1 of 7 in the series American Majority Training

constitutionChris Faulkner of Faulkner Strategies out of Indianapolis led the Candidate track for the American Majority training.  I am impressed to see that there are about 30 people who are taking this track our of the 50+ who are in attendance.  Some of these people are support or campaign staff/volunteers, but the numbers are encouraging, nevertheless.

The opening session of this track is on the development of the campaign plan to ensure success.   Faulkner opened with what I found to be refreshing:  Create your entire campaign plan in PowerPoint utilizing a maximum of 10 slides!  He is now breaking down the overall plan with five major areas that must be focused upon, with questions the candidate must be asking themselves and their campaign in order to make sure they are on the right track.

He is discussing the necessity of fleshing out the administration and committee aspects of the campaign, the message you are delivering and how to deliver it, how to position both yourself and your opponent for maximum benefit for your campaign, how to structure the campaign budget to meet your goals and prepare for unexpected expenses, create your finance committee and asks for contributions, how to set vote goals and know how to sift the information to create accurate benchmarks and targets, how to effectively get out the vote in an era of early voting (in Ohio, voters can cast ballots 35 days prior to the election) and setting GOTV timelines for the greatest impact.

A former Marine machine gunner trainer, Faulkner’s presentation is engaging, lively and filled with significant pieces of information that are very helpful for those seeking to be effective candidates.

American Majority–Building Coalitions

This entry is part 2 of 7 in the series American Majority Training

constitutionThe AM staff began the session by describing what a coalition is (individuals or organizations coming together to address a common issue, who have common interests and values) and why they form (for solving a problem, naturally!)

Discussion centered around purposeful coalition building–creating a roadmap for success, with clear planning for identifying the issue, growing the group intelligently, creating the vision for the solution, establishing clear targets for success, planning the specific strategies, and implementing.  One thing that wasn’t discussed was having a post-issue analysis to certify that the goals were actually met.

Credibility and authority of the group and leaders was noted as being critical to the foundation for success of any coalition.  In order to be effective, the coalition leadership have to be visible and accessible, and be able to accurately assess the depth of the network,  broaden and deepen the network (including direct methods and social networking options),  and mobilize and motivate your volunteers and core membership.

Examples of effective tools for reaching the community you are wanting to impact was discussed, from the traditional word of mouth to getting earned media, from petitioning to fundraising events to educate and connect more people to your cause, from networking to building and deepening relationships.  All of these tools and options are going to be explained in more detail during the activist training break out sessions (of which I will bring you information after the event).

A thought struck me during this presentation, especially during the part on networking:  No time was allowed for participants at this event to introduce themselves and to let others know who is in attendance.  Maybe this will happen before the lunchtime “networking”.  We’ll see.

YES On State Issue 5

This entry is part 4 of 5 in the series 2008 Election Issues

Voting MachineOne of the two most contentious issues on Ohio’s Fall 2008 ballot is Issue 5. In 1995 Ohio’s legislature foolishly repealed the existing usury laws. In the wake of that action hundreds of so-called “payday” lenders popped up all over the state, usually in or near areas where predominantly lower- to lower middle class workers reside.

Just a few years ago, Ohio passed very tight new bankruptcy laws. The combination of tighter bankruptcy laws and the repeal of usury laws have created an economic atmosphere in which usurers can flourish. And have they ever flourished. The number of payday lenders grew by more than 1500% since 1996 from 107 to 1638 in 2007. Between 2006 and 2007 the number of Ohio’s payday lenders grew by 76 or over 5%1.

Taking advantage of Ohio’s current law which allows a 391% Annual Percentage Rate (APR) ceiling (this is for a two-week loan. A 10 day loan can be as high as 548% APR2 due to the decreased loan duration and subsequent increase in annual repayment periods ; to be fair a loan at the $800 cap is “only” 367% APR3) and an $800 borrowing cap, Ohio’s virtually unregulated payday lenders are reaping huge revenues from their chosen targeted customer base. And just who is that base? Those who can least afford it, naturally. People who have limited or no access to other kinds short-term credit- credit cards, equity in real property, acceptable credit rating (or in the case of young people new to the job market and college students, any credit rating) people in low-income jobs (seasonal employees, etc) or on a “fixed-income (retirees, injured and disabled workers4).” A favored target of payday lenders is families of enlisted military, whose pay rates tend to be dismally low. In many states payday lenders cluster near military bases. Or they used to. The federal government recently (2006) capped loans to soldiers and their immediate families at 36% and most payday lenders have moved on to greener pastures like subsidized housing.5 So much for noble payday industry claims of “just being there to provide a necessary service.” Only if the interest rate is in the triple digits as we will prove later.

What payday industry watchdogs say about the industry-

Morgan Stanley IPO Analysis of Advance America:

The Georgetown study reveals the long-term nature of much payday lending. At a 300 percent APR, the interest on a payday advance would exceed the principal after about four months. In these circumstances, the loan starts to look counterproductive: rather than bridging a gap in income, the payday advance may contribute to real financial distress. Advance America’s disclosures show that repeat borrowing is important. [emphasis added]

FDIC Center for Financial Research:

‘We find that high-frequency borrowers account for a disproportionate share of a payday store’s loan and profits.

Ernst & Young Analysis of Payday Lending Business Model:

The survival of payday loan operators depends on establishing and maintaining a substantial repeat customer base.’

Michael Stegman’s “Payday Lending: A Business Model that Encourages Chronic Borrowing” – Economic Development Quarterly:

The financial success of payday lenders depends on their ability to convert occasional users into chronic borrowers.

What the Payday lenders themselves say-

Stephen Winslow–Former Harrisonburg, Virginia Payday Store Manager:

This industry could not survive if the goal was for the customer to be ‘one and done’. Their survival is based on the ability to create the need to return, and the only way to do that is to take the choice of leaving away. That is what I did.6

My customers were not stupid or ignorant – they were in crisis. I ended any ability they may have had to overcome that crisis by putting the final nail in their financial coffins.7 [emphasis added]

Rebecca Flippo – Former Virginia Payday Store Manager:8

These companies feed on the people living on a paycheck-to-paycheck basis.The customers who do come in and repay the loans take out another loan right then almost every time.They want to create a dependence on their services so the customer is forced to reissue the loan on every payday.

We saw most of our customers every month.

We really played down the APR. We disclosed it, but we played it down.[emphasis added]

What the Bible has to say about deliberate gouging those who can least afford it-

If you lend money to any of my people with you who is poor, you shall not be like a moneylender to him, and you shall not exact interest from him. Ex. 22:25 ESV

Take no interest from him or profit, but fear your God, that your [poor] brother may live beside you. You shall not lend him your money at interest, nor give him your food for profit. Lev. 25:36, 37 ESV

You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest. Deu. 23:19 ESV

Whoever multiplies his wealth by interest and profit [That is, profit that comes from charging interest to the poor] gathers it for him who is generous to the poor. Prov. 14:31 ESV

Though the exegesis of this is well beyond the scope of this article (see Gary North and R.J. Rushdoony for an expansion), the Bible doesn’t condemn interest bearing loans for commercial purposes. The Institute For Principled Policy believes in the basic economic premise that market forces should set interest rates for commercial loans under normal circumstances. However, the Bible does strongly condemn the lending of money at interest, especially at rates that are condemned as usury under any circumstances except extreme hyperinflation, to those in society least able to repay the loan for reasons that are obvious. Truly, the book of Proverbs states it most eloquently

The rich rules over the poor, and the borrower is the slave of the lender [emphasis added] Prov. 22:7 ESV

Compare the verse above with the highlighted part of Steven Winslow’s quote above. The payday lenders know they are a lender of last resort (i.e., the bad players are little better than loan sharks) and they are fully aware that most of their customers are unable to repay within the normal 2 week window without creating either a severe financial hardship or taking out another loan at the same usurous interest rate. That is why payday lenders specifically target a specific demographic of borrower. Why would anyone with a credit card or home equity loan capped at no more than 36% APR borrow from a payday lender at 391% APR in an emergency?

Currently there is no mechanism for making 0% bridge loans to needy borrowers. The Progressive movement and its influence on policy making, has resulted in the takeover of church functions like charitable loans, feeding, clothing, housing and educating the needy through the old church tithe agencies by the government, complete with gross over-taxation, nearly completely. Therefore, the biblical concept of equity provides for the private-enterprise establishment of a system to provide loans at reasonable cost and under reasonable repayment conditions for those who have fiscal emergencies but have no other recourse.

Unfortunately, the lenders have completely failed to govern themselves, as illustrated by the earlier quotes and, more importantly, the statistics which show that unscrupulous lenders know a cash cow ripe for milking when they see one.

Here are some interesting numbers9. Statistically, the average Ohio payday loan is $328. The average interest rate is 391% with a two-week interest due payment of $49.33. But as we have noted, the payday industry thrives on and cultivates repeat business. The average payday borrower visits a single location 7.4 times per year. This means that the average borrower pays out $365.01in interest alone on top of his original loan amount of $328 or more than 111% of the original. But that doesn’t end the story. That same borrower doesn’t just visit one payday store front. On average, he visits 1.7 per year. That means that the 7.4 times he visits a single shop has to be multiplied by 1.7 to get his total number of loans taken each year at the average $328. That brings the total to 12.6 loans of $328 each with an interest payout of $49.33 each, bringing the total interest only to $621.51or 189%  total interest paid. This also means that the average payday borrower is indebted to a payday lender for nearly 6 months per year!

But the situation is worse than it looks at first blush. Using data from Michigan , the state closest to Ohio’s demographic and economic numbers, we find that 94% of the entire revenue generated by payday lenders came from borrowers who had 5 or more transactions per year (pretty close to our example above and the equivalent of 75% interest only repayment). Seventy-seven per-cent of their revenue came from borrowers who had 12 or more transactions per year (very close to the example). Eight per-cent of Michigan customers had 30 or more transactions but they accounted for 27% of the revenue of Michigan payday lenders. In other words, a small but significant percentage of borrowers were indebted with one loan for the entire year, and a second loan virtually certainly with at least one other payday lender for at least part of the year and paid 450% or more in total interest. That’s $1476 or more in interest alone for a $328 loan. If that’s not usury then what is?

Here’s the bottom line. Low-income payday borrowers are easily trapped in a cycle of debt by extremely high interest rates and very short pay-off times from which there is virtually no escape.10 It’s designed that way by testimony of former and present industry insiders and industry analysts

The financial success of payday lenders depends on their ability to convert occasional users into chronic borrowers.11

Irrespective of whether the repeat transactions are cast as “renewals,” “extensions,” or “new loans,” the result is a continuous flow of interest-only payments at very short intervals that never reduce the principal.12

– Michael Stegman, “Payday Lending: A Business Model that Encourages Chronic Borrowing,” Economic Development Quarterly

Having put to rest the false industry arguments that it “isn’t really 391% interest” by showing that, indeed it can be 391% interest and more and that the APR is a reasonable description that allows loan comparisons with credit cards, banks and credit unions, we now must deal with the question that seems to have ruffled so many libertarian feathers- the loan registry.

An analysis of HB 545 shows the following information: Under the new law loans are capped at 28% APR and borrowers are permitted only 4 loans per year, only one at a time and only 2 in a given 90 day period (this final requirement is waived for borrowers who complete a state-approved “financial literacy” course to be offered at low cost at local community colleges). The repayment period must be longer than 30 days.

And, to insure that these requirements (and a number of others borrower safeguards including seriously restrictions to the loan shark-style harassment collection methods often used by payday lenders against those whose finances they have had a significant hand in ruining) are adhered to there is a provision for the creation of a loan registry. BUT, and this is important, the registry CANNOT be used by law for any purpose other than tracking the transparency of the loan transactions, CANNOT by law contain any private financial identity information (e.g., the Social Security number of the borrower, bank ID numbers, etc.) and CANNOT by law even be created if there are less than 400 licensed payday lenders. Industry sources have made it clear that 90-95% of lenders will leave the state if the law passes.

Taking the best case scenario given by lenders would leave 10% of the current number of lenders or about 164 proprietors left to pull licenses, well under 400. Therefore, no registry.13 And if there ever is one, it will most likely be under the supervision of a contractor with experience handling sensitive records- just like a bank, credit card company or credit union!

The loan registry is recommended by groups like The Ohio Coalition For Responsible Lending because it keeps the more predatory payday lenders from playing the corporate shell game of moving loans around to corporate subsidiaries and partners to hide them from regulators, hardly an unimaginable scenario for companies who have no qualms about targeting low- and fixed- income borrowers with 391% APR interest rates. The experience of other states proves the necessity of the registry.

Frankly, we’ve left out a lot of information regarding details like interest rate and cost deception and collection methods employed by the payday industry but you can research these yourself, especially by reading Stephen Winslow’s blog site and The Center For Responsible Lending website (see footnotes below).

It is clear that the current payday lender regulation is completely inadequate to control the rampant greed and usury that creates a cycle of debt in the low- and fixed-income community which the industry targets. While the Institute For Principled Policy applauds initiative and vehemently supports the right of businessmen to conduct their chosen business, we cannot sit on our hands and say nothing as social Darwinists actively work to allow the poor to be trapped into penury and wage slavery by unscrupulous lenders. To do so would be a dishonor and curse on our own heads.

The legislation which will be approved by a “YES” vote on the Issue 5 referendum will go a long towards keeping low- and fixed-income families from disintegrating due to debt and bankruptcy and the downward spiral of family despair and destruction that often follows. It will also allow the principled players in the industry who really do want to provide a needed service stay and run an efficient and profitable business to continue to operate. It is not an outright ban, as the industry has claimed. We know this from the several other states which have been forced, as has Ohio, to regulate corporations who have allowed themselves to become no better than the loan sharks the usury laws were passed to stop originally.



1 Rothstein, David & Jeffrey D. Dillman, The Continued Growth of Payday Lending, Policy Matters Ohio, The Housing Research & Advocacy Center, Mar., 2008, p. 1

2 Rothstein, p. 3f

3 Rothstein, P. 3, table 1

4 Rothstein, P. 8

5 Rothstein, P. 8

6 King, Uriah & Leslie Parish, Center For Responsible Lending, Springing the Debt Trap: Rate caps are only proven payday lending reform Dec., 2007, P. 12

7 Winslow, Stephen, Payday Lending: A practice whose end has come, Conservative Viewpoint blog entry for May 25, 2007

8 Center For Responsible Lending, Payday Loans Trap Borrowers, video at http://www.responsiblelending.org/issues/payday/inside-the-payday-industry.html

9 Ohio Coalition For Responsible Lending Trapped By Design: Payday Lending By The Numbers, Sept. 19, 2007

10 Rothstein, P. 10, Table 5

11 King, P. 11

12 King, P. 12

13 Gakh, Max, Ohio General Assembly Legislative Service Commission Final Analysis Sub. H.B. 545 127th General Assembly

NO on State Issue 6

This entry is part 5 of 5 in the series 2008 Election Issues

Four times. November 4 will mark four times in the last 18 years that gambling advocates have tried to persuade Ohio citizens to allow them to set up to play in the Buckeye state. Normally, in a ballgame, three strikes is an “out”. Three swings of the electoral bat, and the gamblers have a perfect average: .000. That’s three “NO” votes, by resounding margins, one each in 1990, 1996 and 2006. Now they are swinging again.

This time the bat (or should I say bait?) is a single “resort destination” casino which, if approved, would be located right in the middle of southwestern Ohio farm country: Chester Township in Clinton County. Why there? Easy access to I-71, and within 50 miles of three major population centers (Columbus, Dayton, Cincinnati).

The team this time trying to break out and be the winners of the Gambling World (Ohio) Series is MyOhioNow, a collaboration of a retired podiatrist and a business liquidator from Cleveland, and a professional gambler from Minnesota with a history of taking the money and running. With tens of millions of dollars invested in this initiative, mainly in advertising, from television to drop mailers, they seek to assure the suckers (er, citizens) of Ohio that the odds are stacked in their favor and not the House’s.

Promises of jobs, jobs, jobs and money, money, money have flowed as freely as cheap alcohol to a high roller at the blackjack table. When one reads the material supporting their claims, one reads the words “up to” before each promise of money and jobs…”up to” meaning “we won’t be held to any hard numbers, but we will be using them to fool you into supporting this con job.”

The Institute for Principled Policy has already posted a position paper on the Biblical admonitions against gambling, which can be found here. Focus on the Family has an excellent brochure about the social costs of legalized gambling here.

Additionally, a study conducted by the Buckeye Institute for Public Policy Solutions shows that the license for this casino is worth $1 billion on the open market, but that MyOhioNow will get it for a mere $15 million, all of which is reimbursed to them upon startup by the state. Additionally, there is nothing, either in law or in the proposed amendment to the Ohio Constitution, to keep this license from being immediately sold to another interest (think Eastern Shawnee tribe).

If Ohio voters fall for this bluff, then Ohio will become, for purposes of federal gambling laws, what is known as a Class III state. This is one of the three pieces of the puzzle that the Eastern Shawnee tribe need to open a casino in the state. One other piece is the recognition of a land claim to establish a reservation (and this tribe already has or is in process of having intergovernmental agreements with numerous cities in Ohio, such as Monroe, Botkins, and Lordstown). The last piece is two signatures: one from the Secretary of the Department of the Interior, and one from Ohio’s Governor. All of these have a realistic possibility of being obtained by the tribe in the near future.

A peculiarity about Indian tribal casinos is their immunity from taxation, at the federal, state and local levels. As a sovereign nation, they cannot be taxed by another government. That makes a tribal casino’s tax rate ZERO. Accidentally, according to MyOhioNow, language was written into the amendment proposal of Issue 6 to set the tax rate for their casino at the lesser rate of either 25% or equal to any other casino that would operate in Ohio. Should voters approve Issue 6, and a tribal casino be authorized, long gone will be the promised “estimated” annual payday for all of Ohio’s 88 counties: Zero divided by 88 is still Zero.

Conveniently, Lakes Entertainment, one of the MyOhioNow partners, specializes in managing Indian tribal casinos in other states. This sounds less like a coincidence or an accident and more like a plan being executed by a savvy operator who is looking to fleece a mark who can’t read the cards.

Time to fold MyOhioNow’s hand and vote a resounding, resonating, reverberating “NO” on State Issue 6 on November 4th.

Then, on November 5th, let’s get to working on an initiative to make sure that Ohio voters don’t have to say “NO” again.

YES on State Issue 3

This entry is part 3 of 5 in the series 2008 Election Issues

Voting MachineState Issue 3 on the November 4 ballot in Ohio has been given little attention during this tumultuous election season. No one seems to be focusing on what is possibly one of the most important issues the voters will decide next month.

This proposed amendment to the Ohio constitution would secure private property rights of Ohio citizens in relation to the use of ground water or the use of the waters of lakes or watercourses that flow through or are adjacent to their land.

This seems like a pretty inocuous, potentially superfluous, amendment. Historically, property owner rights to water were held in common law. However, given the bend to judicial activism in all levels of the judicial branch, “common” law isn’t common nor is it an adequate protection of fundamental, nigh unalienable, rights.

Therefore, the voters of Ohio have before them an opportunity to protect one of these rights through the adoption of state Issue 3. This language explicitly spells out the water rights of Ohio citizens, and prevents such rights from being impaired or limited by any other provision of the state constitution. This is an important proviso, as it trumps the “home rule” authority which Ohio’s local governments can exercise.

Language in this amendment would subordinate such property rights in the ground water to “the public welfare”, which indicates that such rights can be abrogated, but not without similar eminent domain action and compensatory payment for the loss of such property rights by the owner as currently exists for the land over which the ground water is located (already secured by Article 1, section 19 of the Ohio Constitution).

The protection of these fundamental rights to the productive use and valuation of a basic resource such as ground water is a proactive step to ensure that as Ohio’s government enters into future compacts or agreements with other Great Lakes states or as part of intergovernmental treaties with neighboring countries over water rights, Ohio property owner rights will be protected in our Constitution.

The Institute for Principled Policy encourages Ohio voters to support their water rights, and vote “YES” on State Issue 3.

NO on State Issue 2

This entry is part 2 of 5 in the series 2008 Election Issues

Voting MachineOhio State Issue 2, which voters will be deciding on November 4, is a proposal to allow the state of Ohio to issue and spend an additional $400,000,000 in bonds for conservation and environmental revitalization purposes. $200,000,000 would be issued for conservation puposes and $200,000,000 for revitalization. The Institute for Principled Policy urges Ohio voters to cast a “NO” vote and reject this expansion of the state’s bonded indebtedness.

In an economic environment that would best be described as “toxic”, especially as it relates to Ohio’s economy, the proposal to push for more debt so the state can use it to buy up farmlands and other private property under the guise of “conservation”, is foolhardy. The state would in effect be taking those properties out of the tax bases of communities and creating a double tax burden. Other landowners will have to assume the burden of the lost tax revenue base as the state gobbles up more land, and the bonds, once matured in 25 years, will have to be repaid with interest.

This represents hoisting an additional tax burden on the next generation, as the bonds for conservation are backed as “general obligations of the state, and the full faith and credit, revenue and taxing power of the state.” This means that these obligations will be paid first out of the public treasury, including interest and debt service, as they mature. Given the economic catastrophe that is Ohio, this is nothing more than a future tax increase on our children.

The “revitalization” package, although not general obligations of the state and thus not a guaranteed tax increase for future years, has it’s own significant drawbacks.

These bonds may be used, as authorized in this constitutional amendment, for the support of privately owned lands, in a number of ways classified as “revitalization.” This aspect of “public-private partnership” is nothing more than central planning and favoritism toward private parties utilizing public taxpayer funds (which will have to be used to pay off the $200,000,000 in bonds that may be issued under this proposal).

There are many promises made by the committee who drafted the argument in favor of Issue 2, the most repeated of which (and in actuality in the language, bolded, italicized, underlined and written in all capital letters) is the claim that passage of this “DOES NOT RAISE TAXES.” Yeah. Right. Sure. What the committee, Rep. Barbara Sears, Senator Mark Wagoner and Senator Sue Morano, neglected to add was the phrase “RIGHT NOW.” The whole truth is that yes, indeed, this is an all-but-guaranteed tax increase on future generations, just not on those who are “living for the moment.”

A long-term vision includes providing economic opportunity and security for our children’s children. State Issue 2 militates against that vision. For this reason, we ask Ohio voters to vote “NO” on State Issue 2.