High priority current reports from the OMA about legislative, regulatory, judicial and political developments that affect Ohio manufacturers:

Business Digs In Against Paid Sick Leave Mandate

A business-led campaign to resist the Healthy Families Act was formed yesterday.  Ohioans to Protect Jobs and Fair Benefits  will wage a media and grassroots campaign to defeat the union-driven ballot initiative that would mandate employers with 25 or more employees provide seven special paid “sick days” for all employees.

The OMA has been active in leading the resistance effort and urges members to support this campaign to defeat the proposed sick leave mandate.  To be successful in defeating the popular-sounding proposed mandate, the campaign will need resources to get the message out to deter voter support.  Concerned manufacturers should consider making a financial contribution to the campaign and should educate workforce and community opinion leaders.  The OMA has created communication tools for employers to share with their employees, customers, suppliers, elected officials and community leaders.  07/18/2008

Governor to Host Educational Reform Forums Across Ohio

Ohio Governor Ted Strickland will host 12 regional meetings across the state this summer focusing on reforming education in Ohio.  The forums will focus on the principles for education reform outlined in the Governor’s State of the State address aimed at  fostering a system of education in Ohio that the governor envisions as “innovative, personalized and linked to economic prosperity.” A second round of education forums will be held in the fall and will focus on how to properly finance a reformed system of education. The governor plans to introduce his education reform proposal in 2009.  07/11/2008

Tax Reform Still Vulnerable

July 1 marked the beginning of fiscal year 2009 for state government which governs state spending and tax authority.  The tax reform package enacted by House Bill 66 in 2005 has survived intact for four fiscal years – no small feat considering the change of political party control in 2006.  The tax reform package eliminated two taxes that were especially punitive to manufacturers making investment, the tangible personal property tax and the corporate franchise tax.  The reform also reduced personal income taxes by 21% which was especially important to companies organized as S-corps.  All the reforms were phased out over a period of five years.  Throughout the phase out period, the package of reforms was and is threatened frequently by industries, interests or taxpayers that sought to exempt themselves from tax burdens.  The OMA has steadfastly defended -- frequently as the lone voice -- the reform package. 

This week in an interview with a statehouse news service, the Hannah Report, an influential majority party lawmaker expressed support for various tax exemptions and credits that could jeopardize the improved tax climate. Next year’s state budget bill is a likely place for lawmakers to again tinker, further raising the importance of the November election.  The OMA recently communicated to all state legislators the importance of holding firm on the tax reforms.  It is critical for individual manufacturers to continue to communicate to lawmakers and candidates about the importance of preserving the tax reform package.  07/18/2008

Ohio Economic Advisory Council Releases “Slow Growth” Projections

The Ohio Governor’s Council of Economic Advisors released its “Consensus Economic Forecast” this week.  Not surprisingly, unfortunately, the council projected “slow growth” for Ohio through 2009.

Governor Strickland told reporters that the council conducted a “robust discussion” about the price of oil and its impact on the economy.  “I can tell you that there are estimates that what is happening is a massive transfer of wealth out of our country into oil producing regions, an amount that may equate to $1 trillion a year of wealth leaving our country going elsewhere,” Strickland said.  06/27/2008

Federal Court Vacates Important Air Quality Rule

On July 11 the DC Circuit Court vacated the Clean Air Interstate Rule which allowed for a multi-state system of cap-and-trade for pollutants including sulfur dioxide (SO2) and nitrogen oxide (NOx).  CAIR would have resulted in large, measurable reductions in pollution.  This important federal rule has been used by Ohio to show attainment for various federal requirements, including ozone attainment for the Cleveland region. 

By vacating the entire rule it is unclear what states like Ohio must do in order to meet federal air quality attainment guidelines; however, it is unlikely that any of the options will be favorable.  OMA Connections Partner, Squires, Sanders, and Dempsey, has compiled information summarizing the decision. 07/18/2008

Permitting Changes in Effect

On June 30 Air Services, Ohio EPA’s new online system for large air permits and permit reporting, was implemented.  All manufacturers with large permits (Title V and Federally Enforceable State Operating Permits) are required use the new system. 

The OMA has teamed up with OMA Connections Partner, RMT, Inc., to present a webinar learning event on August 20 to show manufacturers the ins and outs of using the new system.  RMT staff that have already worked through the system will go beyond the basics, demonstrating how to efficiently navigate through Air Serivces and its modules.   

OMA’s Kevin Schmidt emphasizes, “This webinar will present valuable information that will help manufacturers speed their learning curve of using the new, required system.  All regulated manufacturers should consider registering.”  07/18/2008