Since our arrival on the scene eight years ago, Policy Matters has warned about an economy that excessively compensated the wealthiest while leaving out low- and middle-income workers. We noted the frightening spike in foreclosures and demanded better regulation. We’ve raised caution about underinvestment in people, infrastructure and alternative energy, and we’ve laid out a vision of a smarter economy that invests in the future, creates opportunity, and increases equity and sustainability.

Creating a more fair, prosperous and sustainable Ohio requires thinking big. This campaign briefing and our other resources will, we hope, provide the beginnings of a blueprint for a smarter approach that leaves us prepared for tomorrow.

Action Items for Ohio Candidates Seeking and Holding Office in Ohio:

• Raise Adequate Revenue to Invest in Needed Services and Increase Tax Fairness
• Invest in Pre-Kindergarten Education
• Train and Retrain Ohio’s workforce to Meet Labor Demands
• Invest in Energy and Infrastructure.
• Create Opportunity in Ohio
• Construct On-Ramps to the Middle Class
• Strengthen Unemployment Compensation
• Help Build and Protect Ohioans’ Assets

Providing opportunity, investing in the future, building on-ramps to the middle class, protecting assets and providing strong public infrastructure led to a more prosperous, educated, productive, equitable and sustainable Ohio. A renewed commitment to these policies will create a better Ohio and a better America.

Click Here to Read Campaign Briefing 2008:  Achieving an Economy that works 

Tricky economy - Since our founding eight years ago, Policy Matters has warned about an economy that doled out treats to the wealthiest while leaving low- and middle-income workers out in the cold. We noted the frightening spike in foreclosures and demanded better regulation. We warned about underinvestment in people, infrastructure and alternative energy, and we laid out a vision of a smarter economy that invests in the future, creates opportunity, and increases equity and sustainability. This campaign briefing for candidates provides the beginnings of a blueprint for a smarter approach that leaves us less scared about tomorrow.

Bloodsucking loans - A recent small survey of Ohio credit counselors found that these accredited professionals are deeply concerned about the costs of payday loans to their clients. The responses, summarized in our new report, revealed a consistent conclusion that payday loans are harmful to low- and middle-income working families. If you agree, vote YES on Issue 5 next week to keep in place a sensible cap on interest rates that was passed by the legislature. A “yes” vote on issue 5 has been endorsed by our current Governor Ted Strickland, former Governors Bob Taft, George Voinovich, Richard Celeste and John Gilligan, current Attorney General candidates Richard Cordray and Mike Crites and previous Ohio Attorneys General James Petro and Betty Montgomery. The campaign will hold a seance tonight to seek the bipartisan support of the ghosts of governors past…

Terrifying Tax Breaks -  Ohio gives special tax treatment to payday lenders and mortgage brokers, who pay a lower state tax rate than banks under an outmoded tax law unique to Ohio. Lobbyists and debt collectors don’t have to bill their clients for sales tax. The state also recently made it much easier for high-income retirees who spend part of the year out of state to avoid paying Ohio income tax. These are among a dozen tax breaks our report says could be slashed to generate up to $270 million annually for essential programs and to make the tax system more fair. We recommend putting the nail in the coffin on these loopholes, and finding more to bury.

But here are a few treats: a clean-energy, job-rich future – Governor Ted Strickland joined Apollo Alliance President Jerome Ringo and Apollo Alliance Board Chair Phil Angelides (who was California’s state treasurer), along with business, labor, community and environmental leaders, to unveil the new national Apollo Alliance plan for clean energy and good jobs. Click here to learn about the 10-year plan for energy independence.

…with better teachers - In 1981, a groundbreaking Toledo program created a model for teacher support and development that has fostered new relationships among teachers and administrators. Since then, about 70 districts nationally have put similar efforts in place, often laying the foundation for other new ways to improve teaching and learning. This study can help Governor Strickland review one very effective model as he seeks to improve Ohio schools.

… and new jobs - Join the Ohio Department of Development, the Ohio AFL-CIO, the United Labor Agency and other leaders to think about how best to spur job creation in Ohio, ensure that workers are ready to fill those jobs, and assist those displaced by our volatile economy at a Columbus conference on November 18-19. If you want to brainstorm a brighter future for Ohio’s workforce, contact nancy.roth@ula-ohio.org to register or learn more.

You might have missed -  Our other research on payday lending, our director on TV, our annual report, or our prescriptions for health care, the income tax, unemployment and more. Go to www.policymattersohio.org for sweet solutions to some very petrifying policies …

That’s all!
The Policy Matters Ohio Team 

Policy group’s small survey finds no fans of short-term credit
By Jim Siegel

Columbus Dispatch

A Cleveland research group says that Ohioans who try to help people drowning in debt generally see payday loans as part of the problem.

The liberal-leaning Policy Matters Ohio said yesterday that 17 accredited credit counselors from across the state answered its survey. They said that more than one-quarter of their clients’ debt included payday loans. Those clients averaged four payday loans apiece, and some reported as many as eight, the report said. The average payday-loan debt was about $1,000.

Ohio voters will decide Nov. 4 whether tough new state payday-lending regulations will prevail.

Only one of the counselors said he would recommend a payday loan, and then only under “extreme conditions.” The report said most had concerns about the interest rates on payday loans, which compounds to 391 percent annually, and the two-week term of the loans.

Every respondent, the report said, indicated that payday loans added to their clients’ financial problems.

“You can’t get out of debt by taking out another loan,” one counselor said.

Researcher David Rothstein, who conducted the study, said he was surprised by the extent to which counselors said payday loans hurt people’s ability to pay other bills.

“I often thought these were very small amounts of money people were taking out,” he said. “But when a lot of them are outstanding, it adds up.”

Reacting to the study, the conservative Buckeye Institute called it presumptuous to second-guess why people get payday loans.

“Most are not the ignorant borrowers portrayed by the opponents of payday lending,” said Marc Kilmer of the Buckeye Institute in Columbus. “Instead, they are making an informed choice that is rational to them.”

Policy Matters recommends a “yes” vote on Issue 5, which would restrict payday loans to a maximum 28 percent annual interest rate under House Bill 545. A “no” vote would allow lenders to continue operating as they do now, charging $15 per $100 on a two-week loan.

Lenders say they cannot operate under a 28 percent rate, which would cut off a valuable credit source to those with nowhere to turn.

Kim Norris, spokeswoman for the coalition opposing Issue 5, said a payday loan is often more affordable than late fees or bounced checks.

“It’s easy for wealthy politicians and activists to dismiss short-term payday lending options, in large part, because they have never been in a tight financial position themselves,” she said.

Dayton Daily News

COLUMBUS — The cost of payday loans is harmful to low- and middle-income working families, according to a new report from Policy Matters Ohio, a nonpartisan research organization.

Credit counselors surveyed about payday loans — borrowed by consumers as a short-term effort to pay debts — said they are concerned about the high interest rate on such loans and the number of clients who have several loans outstanding at the same time, Policy Matters Ohio said Wednesday, Oct. 15.

On average, those clients have payday loan debts of $1,000, the credit counselors said. Payday loan debt hinders a consumer’s ability to pay household expenses including housing and transportation costs, the counselors said.

Policy Matters Ohio said it surveyed 17 credit counselors who serve an area covering 28 of Ohio’s 88 counties.

The organization’s report recommends preservation of a bill the Ohio General Assembly enacted to cap the annual percentage rate of payday loans to 28 percent, down from prior annual rates of up to 391 percent.

The payday loan industry has submitted petitions in support of a ballot issue that would set aside that bill and allow the higher usury rates. The issue will be on the Nov. 4 ballot if Ohio determines there are enough valid petition signatures.

A “yes” vote on the ballot issue would limit lenders to the new 28 percent interest cap while a “no” vote would allow lenders to keep the 391 percent cap.

A recent survey of Ohio credit counselors found that these accredited professionals are deeply concerned about the costs of payday loans to their clients. The responses, summarized in a new report from Policy Matters Ohio, revealed a consistent conclusion that payday loans are harmful to low- and middle-income working families.

Press Release

Full Report

Ohio Governor Ted Strickland joined Apollo Alliance President Jerome Ringo and Apollo Alliance Board Chair Phil Angelides (who was California’s state treasurer) to unveil the new national Apollo plan for clean energy and good jobs, at a phenomenal event at the International Brotherhood of Electrical Workers training center in Columbus Ohio. The event, held on October 8th, also featured an appearance by Washington Congressman Jay Inslee, and leaders from the business, labor, environmental and low-income communities. This diverse alliance is united behind a federal investment agenda that will rebuild American infrastructure, make our buildings and electrical transmission grid more efficient, invest in renewable energy and fuel technologies, revitalize domestic manufacturing, and train American workers to fill the millions of jobs created or retained by these strategies. We’re grateful to IBEW Training Program Director Steve Lipster for opening his state-of-the-art facility to this event – the ideal place to catalyze a conversation on training and investment for a new energy economy!

Full Report

Recent Presentation

Amanda Woodrum
October 8, 2008
Columbus, Ohio

Ohio Governor Ted Strickland joined Apollo Alliance President Jerome Ringo and Apollo Alliance Board Chair Phil Angelides (who was California’s state treasurer) to unveil the new national Apollo plan for clean energy and good jobs, at a phenomenal event at the International Brotherhood of Electrical Workers training center in Columbus Ohio. The event, held on October 8th, also featured an appearance by Washington Congressman Jay Inslee, and leaders from the business, labor, environmental and low-income communities. This diverse alliance is united behind a federal investment agenda that will rebuild American infrastructure, make our buildings and electrical transmission grid more efficient, invest in renewable energy and fuel technologies, revitalize domestic manufacturing, and train American workers to fill the millions of jobs created or retained by these strategies. We’re grateful to IBEW Training Program Director Steve Lipster for opening his state-of-the-art facility to this event – the ideal place to catalyze a conversation on training and investment for a new energy economy!

Full Presentation

In 1981, a groundbreaking Toledo program commonly known as Peer Assistance and Review created a model for teacher support and development that has fostered new relationships among teachers and administrators. Columbus and Cincinnati followed with their own programs. Since then, about 70 districts nationally have put similar efforts in place, often laying the foundation for other new ways to improve teaching and learning.

These programs release experienced, qualified teachers from classroom duties to help new teachers and struggling veteran teachers develop and improve their skills. These mentors also evaluate their peers, often recommending them for dismissal if they don’t make the grade.

This study by Policy Matters Ohio seeks to bring Peer Assistance and Review, or PAR, to the attention of state policymakers and other stakeholders as the administration of Gov. Ted Strickland focuses its attention on improving Ohio’s public education system; in his 2008 state of the state speech, the Governor highlighted the need to learn from Ohio’s best teachers, those who know “what works best in the classroom.” PAR, with its reliance on teacher leaders, provides just this opportunity. Policy Matters recommends that the Strickland administration and the Ohio Department of Education develop a pilot program to begin to expand PAR statewide.

By Mary Kuhlman and Chris Thomas

Public News Service

Cleveland, OH – As Ohio deals with a budget shortfall of nearly $2 billion, state agencies continue to cut back on services and projects to try to make up the difference. A new report finds that instead of cutting into the basics, lawmakers should take a closer look at the tax code. APolicy Matters Ohio study identifies a dozen tax breaks that get some of the blame for squeezing the budget.

Report author Zach Schiller, research director of Policy Matters Ohio, points out there are ways for the state to ease the shortfall.

“If the legislature limited or eliminated specific tax breaks, they would not only improve the fairness of the Ohio tax system but also generate up to $270 million of revenue annually.”

Critics of the report say tax breaks are designed to be economic drivers. While that may be true, says Schiller, their usefulness needs to be scrutinized periodically, to determine whether they bring solid returns. He also believes there likely are many parts of the state tax code that simply are no longer useful.

“Unfortunately, much of our tax code was written over a long period of time. Perhaps these rules had a useful purpose when they were first approved, maybe not, but once codified they rarely get any further scrutiny.”

The study recommends the elimination of special tax treatments for payday lenders and mortgage bankers, as well as limiting the availability of three property tax reduction programs to those with low to moderate incomes. The report also recommends that the state review the way it applies the sales tax code to services.

ACLU

Can the next president really make government more responsive to the concerns and needs of American women? Who speaks for us? Can there be a “Women’s Agenda” that advances women’s rights?

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