OHIO SB5 MYTHS OR FACTS

SB5? What if taxpayers remain apathetic and do not inform themselves? What explains the recent passing of Washington Court House’s 5 levies by a mere 6% of voters on a rainy day. Each levy was a renewal, but the renewal- if rejected - would have put money taken from taxpayers back into their pockets. Does rain explain the cancellation of the parade to the polls or just apathy?

Senate Bill 5 also recently passed by a narrow margin in the Ohio Senate, 17-16. It affects about 350,000 of the 6 million workers in Ohio. If the latest fight to repeal it in November succeeds, it may not even take effect. Public workers, unions and liberals have something to lose. Consequently, 111,000 teachers just approved a one-time contribution totaling $5.5 million dollars, to help in the effort to repeal SB5.

SB5 affects wages, hours and working conditions of public workers. It asks for the contribution of workers to their health premiums to be raised to 20% and bans negotiating for health care, sick leave and pension benefits. Question #1. Do you pay more or less than 20% into your health plan at work? Private workers and the self-employed do and some business owners even choose not to purchase health insurance. Note that SB5 will RAISE the contribution to about 20% from the present, low rate already negotiated by the unions and paid for by the taxpayers.

SB5 eliminates pay increases. Question #2. What are salaries now? This freeze will save $3.6 billion, but the relevant question is whether public employees are overpaid now.

SB5 limits sick leave and vacations. You have guessed question #3. What do public employees now enjoy as the number of sick leave and paid vacation days? Compare them with private workers, full-time or part-time and the self-employed.

Only public employees can collectively bargain for higher salaries and benefits at the expense of Ohio taxpayers. Yet their current retiree benefits are “underfunded” by about one billion dollars. Over-paid public employees might be public servants, but businesses both large and small and independent entrepreneurs are also true public servants, serving the public by generating jobs as well as providing services.

The situation has gotten so far out of hand that in California, for example, an ordinary prison guard earns in salary than General Petraeus (before overtime). Of course, budget deficits in certain states correlate with unsustainable public workers’ salaries and benefits.

Let’s bust some myths about SB5. Are firefighters and police jobs threatened? Will jobs (unspecified) be lost? Are the kids in schools threatened? Strike all three myths out because they are merely emotion-laden boogies spread by some politicians, liberals and unionized public employees opposed to SB5. Since I’m brandishing my sword against myths, let’s cut down the promise of the federal Treasury to stop payments Aug. 2nd if the debt limit is not increased.


Is a pay freeze a bad thing? Is a slightly higher contribution to health care for each public worker a bad thing? Is cutting back on days off for sick time and paid vacations a bad thing? Is restricting collective bargaining and the ‘right’ to strike a bad thing? Only if the principle of the thing is false. In the present economic climate where states and the federal government extend their spending way beyond their means to stay out of red ink, why should taxpayers ante up through taxes and levies each time states scream for more money?

The point is, when does it stop? When does the principle of living within one’s means come into play? When does a principle stop losing out to emotion, to appealing but misleading rhetoric and to the individual’s control over his own money? SB5 is just the tip of the iceberg. First we save money with SB5. Then we stop the White House and the GOP from compromising on deficit targets, on spending cuts and on raising the debt ceiling.

How do we explain the contradiction of both raising the debt ceiling and cutting spending? Higher debt just allows for increased spending and higher taxes (cleverly named ‘revenue raising mechanism). Can higher taxes on the rich bail us out? No, they already pay 50% of taxes and confiscating their entire wealth would keep government afloat only a short time.

The national debt is 14 trillion dollars, a meaningless number to most citizens who only interpret reality by the $2000 social security check, the $3000 pay check or the $1000 mortgage payment. (substitute your personal numbers.) The Obama plan calls for a deficit reduction over for 10 years of 7 or 8 billion. His debt commission’s recommendation is 5 billion. Rand Paul’s plan, 5 billion. Biden’s proposals is ‘smoke and mirrors.’ I for one am not impressed with any of these plans. Our deficit is a whopper because America cannot respect the principle of living within its means. Ask any granny.