My name is Gavin DeVore Leonard. I am the State Director of One Ohio Now, a coalition of 97
health and human service organizations, labor unions, and advocacy groups who believe that great
public services lead to stronger communities, and we need revenue to pay for those services. Our
partner organizations represent over 1 million Ohioans.
I am here to testify today on HB472. As of this writing, a fiscal note has not been issued by the
Legislative Service Commission and the bill no longer includes components like the severance tax,
many appropriation and education changes, and more. The goal of this testimony is to examine the
overall effect of the bill as we understand it at this point, as well as the larger context it sits within.
Here are our main questions and concerns:
• Ohio needs more revenue for needed investments – the overall effect of this bill is a step
backward. If we want to solve problems in our state – fight the opiate epidemic, make college
more affordable, ensure great public education for every child regardless of zip code, fix the
5,700 bridges that are currently listed as structurally deficient or “fracture critical” by the County
Engineers, expand broadband access to every hill and valley in Ohio to close the digital divide,
and more – we need to have sufficient revenue. These investments form the basis for a strong
economy in Ohio, providing the infrastructure that both businesses and individuals need. The
total changes in the bill will mean hundreds of millions dollars the state cannot invest.
• The biggest piece of this bill, by far, is an income tax cut that benefits the wealthy
the most and continues on a path that simply has not worked. The overall effect of the
proposed changes would mean another tax shift that benefits the wealthy the most. The poorest
Ohioans already pay more out of every dollar for state and local taxes than the wealthiest
Ohioans. The income tax helps reduce regressivity, so when we lower income tax rates it means
our system gets even less fair. Ohio has been pursuing jobs and growth by cutting taxes –
especially income taxes, but also corporate taxes and more – since 2005. Since then, we are
47th in the country in job growth, and at a cost of now over $3 billion per year. For $3 billion, we
should see some real impact. In fact, we could likely make pre-K education free for all Ohioans
with that sum. We could pay off our unemployment debt to the federal government. We could fix
those bridges and re-fill the Local Government Fund and the potholes they do away with.
• This bill is fiscally irresponsible. We’re very concerned about trading relatively stable income
tax revenue for revenues with major question marks like severance and tobacco taxes. I realize
these are currently in a different bill, HB375, but the total fiscal impact is often discussed and
so deserves reflection. This legislature should not pass the buck to future legislatures when
an honest look at the facts makes it clear that this proposal is not conservative enough. Initial
severance tax estimates from Governor Kasich and the Legislative Service Commission, for
instance, had notable discrepancies that would mean less revenue than has been widely
discussed.
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We are appreciative of a conversation that includes acknowledgement that we need revenue to
pay for the services that Ohioans count on – from roads to schools, prisons to libraries. We want
to see a revenue system that gets fairer by supporting low and middle-income people. But, we
have to see the forest through the trees. The overall effect of the proposed tax changes takes us
in the wrong direction.
In closing, I hope that you will seriously reflect on these important questions:
• If we are cutting taxes to get jobs, what happens if we don’t get those jobs? Shouldn’t we at
least discuss other ways those billions of dollars could be invested?
• Why should we expect income tax cuts to work? The preponderance of academic and
economic research shows that state income tax cuts do not lead to growth. At a minimum,
there are serious questions about state income tax cuts’ efficacy. Shouldn’t we at least discuss
what the research shows?
• How is it fiscally responsible to pass budget deficits on to future legislatures? Are the estimates
for revenue from severance and cigarette taxes conservative enough/realistic?
I look forward to a robust conversation about these major proposed changes, and would be happy
to answer any of your questions.
COALITION PARTNERS: Action Ohio Coalition for Battered Women wAFSCME Council 8 wAIR Inc.wAll Aboard OhiowAmerica Votes OhiowASIA, Inc.
wCenter for Working Class Studiesw
Children’s Defense Fund - OhiowCleveland Jobs with JusticewCleveland Tenants OrganizationwClintonville-Beechwold
Community Resource CenterwClintonville for ChangewChurch for All PeoplewCoalition on Homelessness & Housing in OhiowColumbus Metropolitan
Area Church CouncilwCommon CausewCommunications Workers of AmericawColumbus Jobs with JusticewCommunity Partners for Affordable Accessible
HealthcarewCommunity Action Patrnership of Greater DaytonwCorp. for Ohio Appalachian DevelopmentwEcumenical Communities for a Compassionate
OhiowEducational Service Center of Lake Erie WestwEmpowering and Strengthening Ohio’s PeoplewThe Empowerment CenterwEnvironmental Health
WatchwEquality OhiowFindlay Hope House for the HomelesswForging Responsible YouthwGeorgetown Federation of TeacherswGreater Cincinnati Homeless
CoalitionwGreater Hilltop Area Shalom ZonewHavar, Inc.wHispanic Alliance, Inc.wThe Hunger Network of OhiowInnovation OhiowIUE-CWAwLegal Aid of Southwest
OhiowLiveCLEVELAND!wLutheran Metropolitan MinistrywMahoning Valle Organizing CollaborativewNational Assoc. of Social Workers-OhiowNeighborhood
SolutionswNortheast Ohio Alliance for Hope (NOAH)wNortheast Ohio Coalition for the HomelesswNorthern Ohioans for Budget and Legislation EqualitywOhio
AFL-CIOwOhio Alliance for Retired AmericanswOhio Assoc. of Community Action Agenciesw Ohio Assoc. of Free ClinicswOhio Assoc. of Professional Fire
FighterswOhio Assoc. of School Business OfficialswOhio Community Development CorporationwOhio Civil Service Employees AssociationwOhio Coalition
for Equity & Adequacy of School FundingwOhio Communities UnitedwOhio Conference of the American Association of University ProfessorswOhio Conference
of the NAACPwOhio Conference on Fair TradewOhio Congress of Parents and TeacherswOhio Domestic Violence NetworkwOhio Education AssociationwOhio
Farmers UnionwOhio Federation of TeacherswOhio NOWwOhio Organizing CollaborativewOhio Partners for Affordable EnergywOhio Poverty Law CenterwOhio
Public Transit AssociationwOhio Retired Teachers AssociationwOhio School Boards AssociationwOhio Student AssociationwOhio Voicew Ohio Voter FundwOhio
VoteswOhio Youth VoiceswOrganize! OhiowOver-the-Rhine Community HousingwPeople’s Empowerment CoalitionwPlanned Parenthood Affiliates of OhiowPolicy
Matters OhiowProgressOhiowPutting People First CoalitionwRahab’s HideawaywSEIU District 1199wSEIU District 1wTapestrywToledo Jobs with JusticewUHCAN
OhiowUFCW 1059wUFCW 75wWe are the UninsuredwWe Believe OhiowWorking AmericawWright State University AAUPwYouth Empowerment Program
INVESTING
IN OHIO’S
FUTURE.
www.OneOhioNow.org « 614.859.9669