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Funding Sources, Bureaucrats and Lobbyists
By Bob Rhoades

Gov. Kasich’s recent attack on labor unions has focused on the actual act of negotiations and arbitration.  One of the things that no one has focused on is state funding in general. 

There are many forms of funding for the various state agencies.  Many state processes and agencies are funded simply by the state income taxes that people and companies pay.  Gasoline taxes pay for road improvements.  Fishing and hunting licenses pay for ODNR and keeping our state wildlife functions funded.  There are as many funding sources as there are agencies.  As you can see, if managed correctly, the funding for the various agencies is pretty constant.  People always drive vehicles, buy gas, buy insurance, feed themselves, etc.
 
Every administration in the recent past does one thing in the very beginning that makes no sense, they institute a hiring freeze.  A hiring freeze means that jobs not filled before that point aren’t going to get filled for usually about 6 months.   So what’s the problem you say?  Less people to pay must be a good thing.  Under normal situations that would be true.  In state government that isn’t true.  Many agencies don’t get their money from state coffers.  It comes from federal grants.

One of those agencies is the Ohio Department of Health.  The Centers for Disease Control (CDC) sponsors a myriad of programs at the state level and most of the programs come with funding for personnel.  The reason for this is the information gathered by these programs is used by the Federal Government to monitor our health. 

A good example was the Pandemic Flu that we experienced last year.  Trends and monitoring of outbreaks are critical to keeping the population healthy. But can it be that much?  Sure can, probably 80% or more of the funding for that agency comes from federal grants.  What the administration has never understood is that no matter who pays for those jobs they have to be done.  When you don’t use the money that you are offered through the grant process, you lose it.  Multiply that by the number of agencies the state has and it’s a pretty good chunk of money.

Another agency that is not traditionally funded is the State Fire Marshal’s Office (SFM).  There is no tax money used in that office.  The funding source is 1 tenth of 1% of every fire insurance dollar spent in Ohio.  That pretty much goes on all the time.  But every year the order will come down that arson investigator can’t go out at night.  Fires sort of happen when they want to, not 9-5.  Part of the reason for this funding problem is that SFM is a division of the Department of Commerce, not the Department of Public Safety.  Commerce sucks a couple of million off the top for “administrative costs” which goes into their general fund.  Why commerce?  Because of all of the things the SFM regulates like, hotels, motels, fireworks, underground storage tanks, licensing of inspectors and other things. 

Lobbyists have long had a grip on this which needs to stop.  It only makes sense that SFM be in public safety because it is a public safety function.  The Division of EMS which is in Public Safety licenses all levels of EMT’s and firefighters but SFM is the training arm, enforcement arm and licensing arm.  It sort of ends up being a duplication of services or sometimes lacks coordination because of the way it’s structured.  In checking around there is no other state that is structured this way and it makes no sense.  Numerous administrations have said they were going to fix it but no one ever has.

Lobbyists are a huge problem or a huge benefit, depending on which side of the fence you are on.  Their influence on legislation and other things, in this case enforcement, is a huge problem. 

The EPA has funding sources available for drinking water and waste water projects most of which are being administered by them from Federal Sources.  The American Recovery and Reinvestment Act, also known as the federal stimulus bill is one of those sources.  These are pass through funds from the federal government that come with funding for personnel as well as the grants.

Victims of Crimes get funding from the Ohio Attorney General’s Office, the Ohio Department of Health and the Office of Criminal Justice Services.  These funds are pass through funds from the federal government but they create jobs that are paid for with funds that don’t come from state funding allowing the state funding to go to other things.

These few examples show the wide variety of funding sources that help the State of Ohio work every day.  For any person, let alone the governor to get a grasp on all of these funding sources is a monumental task.  Singling out one aspect such as collective bargaining as the large problem that will fix everything makes little sense.  It is a futile attempt to fix a large problem that will make little difference on the situation and probably blow more money that could be used for something else.  If collective bargaining is done away with, what replaces it?  Do we go back to municipalities offering packages that don’t even cover the cost of living?  

Municipalities have settled into a system with their employees. It guarantees both sides the ability to control what is going on.  The contracts that are in place have clauses that say what both sides can and can’t do.  If collective bargaining goes away, do contracts also go away?  Step raises which are usually negotiated into these contracts, guarantee that employees continue their education and give the citizens the best protection they can get. 

The people who get municipal jobs in the police department, fire department and public works are educated to State specifications and tested to state specifications. These standards guarantee that a water or sewage operator in Ansonia is trained to the same level as one in Greenville or Columbus.  The same is true of law enforcement and fire. Perhaps that should be done away with also.  Perhaps the state of Ohio should get out of all of our lives.  When a system isn’t broken, it probably shouldn’t be fixed.



 
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