Another “Proposed Constitutional Amendment"

[Richard Baker]

This is getting as common as rain another “Proposed Constitutional Amendment” to be voted on May 6th, 2025 Primary Election
Proposed by Joint Resolution of the General Assembly To enact Section 2t of Article VIII of the Constitution of the State of Ohio

Summary:

This is to allow the State of Ohio, “to issue bonds or other obligations to finance or assist in financing public infrastructure capital improvements for local governments and other governmental entities. Capital improvement projects would be limited to roads and bridges, waste water treatment systems, water supply systems, solid waste disposal facilities, storm water and sanitary collection, storage, and treatment facilities.”

“Limit the total principal amount of the state general obligations issued under the amendment to no more than $2.5 billion over a ten-year period. Any principal amount that could have been issued in any prior fiscal year, but was not issued, may subsequently be issued.”

Facts:

The current interest rate on 30-year bonds on 2.5 billion dollars $2,500,000,000 is 3.8 percent .038 or $95 million $95,000,000 annual simple interest.

As of the end of fiscal year 2024, Ohio's state debt was approximately $39.64 billion, while local government debt stood at about $75.91 billion. Total of $115.55 billion or $9,720.58 for every man, women and child in Ohio.

According to the Ohio Education Policy Institute, state public schools stand to lose more than $100 million under the budget proposal by DeWine for 2025.

Your state taxes will be subsidizing local governments, who were to hold capital improvement funds from taxes and capital improvement charges on sewer and water rates. Instead, they used the funds for maintenance instead of necessary capital improvements.

The question, was the lack of local government capital due of inept and inert management, excessive personnel, or wages and benefits are significantly higher than the private sector? I suggest that it was all three, no different than what, in part, DOGE is discovering in DC.

Conclusion:

Vote NO, the State of Ohio is already in debt, it’s avoiding a budget deficit by removing $100,000,000 from education funding.