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June 11, 2009 | Ohio politics
 

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Thursday, June 11, 2009

Boehner on high-speed rail in Ohio

What does House Minority Leader John Boehner, R-West Chester, think about high-speed rail between Cincinnati, Dayton, Columbus and Cleveland?

The question’s pertinent - after all, Ohio Gov. Ted Strickland was in town just this week lobbying Transportation Secretary Ray LaHood in hopes of garnering some $400 million to establish passenger rail service between the four cities as soon as the first quarter of 2011.

Here’s what he had to say Thursday, June 11.

“I’ve been involved this issue for 25 years,” he said. “If it’s only going to go between Cincinnati, Columbus and Cleveland, it’s nothing but a boondoggle. But if it’s connected to a national high speed rail system, now you’re talking about something that will make it worthwhile.”

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Mayor, City Commission candidates plan fundraisers

With city elections just five months away, candidates for Dayton mayor and City Commission seats are hosting events to raise money for the campaign.

Upcoming events:

A “Pie Auction Extravaganza” for Mayoral candidate Gary Leitzell will be Thursday, June 18 from 7-9 p.m. at Dolcessa, 1106 Brown St.

Pies from local Dayton businesses such as Mehaffies Pies, Deserts by Ann and others will be up for auction. One of the pies will be thrown at the candidate.

Get more information on Leitzell’s Web site at www.daytonmayor.org

Leitzell is challenging Dayton Mayor Rhine McLin in the November election. McLin’s campaign site is www.rhinemclin.com

City Commissioner Joey Williams is hosting a BBQ bash on Tuesday, June 30, from 11 a.m. to 2 p.m. The event is at Montgomery County Democratic Headquarters, 131 S. Wilkinson Street. Food is provided by Huffies BBQ. Tickets are $10. To purchase tickets or for more information, call 285-0686 or visit Williams’ Web site, www.joeydwilliams.com

City Commissioner Nan Whaley is hosting a fundraiser on Thursday, June 25, at Jimmie’s Cornerstone Bar, 1001 Brown Street. The event is from 5 to 7:30 p.m. There is a $20 donation. For more information, visit her Facebook page.

Williams, Whaley and David Esrati are running for two City Commission seats in the fall.

Whaley’s Web site is www.nanwhaley.com

Esrati’s Web site is Esrati.com

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State budget shortfall could be $3.2 billion

House and Senate budget negotiators today, June 11, got the bad news: they’ll have to fill a hole that could be $3.2 billion deep to come up with a balanced two-year budget before July 1, start of the new fiscal year.

state budget
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Budget Director Pari Sabety

How much money is that? It’s more than the nearly $1.9 billion it costs each year to operate Ohio’s prison system.

Rep. Vernon Sykes, D-Akron, chairman of the House-Senate conference committee trying to put the budget together, said after the committee’s meeting on Thursday, June 11, that the gap appeared to be about $2.6 billion, compared to the Senate version of the budget. Sykes based his estimate on information from Strickland administration and legislative budget reports.

However, budget director Pari Sabety told the conference committee that the shortfall could be $3.2 billion. Later in the afternoon, Amanda Wurst, spokeswoman for Gov. Ted Strickland, confirmed that the $3.2 billion gap was compared to the Senate’s $53.5 billion version of the budget. In her committee testimony, Sabety added a caveat.

“However, the exact size of this gap is dependent upon substantial differences between the House and Senate versions of (the budget) in education and Medicaid that this committee will be reconciling in the days ahead,” she said.

Sabety painted a grim economic picture for the committee. The amount of revenue now coming into the state is the same as it was 10 years ago, she said.

The committee’s goal is to get a budget to Gov. Ted Strickland in time for him to sign it before July 1, start of the new fiscal year. If they don’t, legislators and Strickland would have to agree on an interim budget, something that hasn’t happened since 1991.

The conference committee is working off the Senate’s version of the budget.

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Ratings agency downgrades Ohio bonds

Fitch Ratings, which rates the bonds Ohio sells to borrow money, has downgraded the rating on outstanding general obligation bonds to “AA” from “AA+”. A lower rating generally makes it more expensive for the state to borrow money.

“The downgrade reflects the long-term deterioration in the state’s economy; in particular, the structural decline of the state’s large manufacturing sector and the resulting negative impact on state financial operations,” the ratings agency said on Wednesday, June 10.

The downgrade came as a House-Senate conference committee today began work on a compromise state budget. Budget director Pari Sabety said the budget shortfall could be $3.2 billion.

Sabety told the committee that recent low interest rates for borrowing would give the state “adequate comfort”, despite the ratings downgrade.

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UPDATED -Dayton meeting on post-NCR state help delayed

When plans are discussed on how to help Dayton and Montgomery County recover from NCR’s departure to Georgia and other recent job losses, everybody needs to be in the room.

That seems to be the reason why a meeting set for Friday, June 12, between public officials and business leaders and Lisa Patt-McDaniel, interim state development director, has been postponed.

“We had a problem getting all the parties to be able to be there,” Montgomery County Commissioner Dan Foley said on Thursday. “We want to make sure that everybody can be there.”

An aide to Patt-McDaniel said it now appears the meeting will be held next Thursday, June 18. Foley has said the meeting was expected to be rescheduled for the morning of Tuesday, June 16. City, county and state elected officials are expected to attend, said Foley.

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Forbes gets six-month law license suspension

The Ohio Supreme Court gave former Ohio Bureau of Workers’ Compensation Oversight commissioner George L. Forbes a six-month suspension from practicing law after his conviction on six charges of ethics violations.

Forbes may continue practicing law during the suspension as long as he refrains from further misconduct, the court said on Thursday, June 11.

Forbes, a Democrat who served 26 years on the Cleveland City Council and served 10 years on the BWC Oversight Commission, took an active role in shaping the bureau’s investment policies. Brokers and money managers, anxious to get a slice of the BWC’s $20.9 billion investment portfolio, often made sales pitches to Forbes and other Oversight Commission members, investigators said.

But Forbes crossed ethical lines when he accepted freebies, including charter flights, limo rides and meals, from brokers and failed to report the gifts on his annual financial disclosure statements. Forbes was convicted in 2007.

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