Tuesday, September 14, 2010

Tonight's Gubernatorial Debate: Fact Check from the Strickland Campaign


For Immediate Release:
September 14, 2010

FACT CHECK: KASICH'S SUPPORT FOR UNFAIR TRADE DEALS COST OHIO HUNDREDS OF THOUSANDS OF JOBS

COLUMBUS-In tonight's debate, Congressman Kasich repeatedly ignored his role in shipping hundreds of thousands of Ohio jobs overseas to countries like China and Mexico and tried to distort Ted's record of opposing unfair trade deals.

Strickland Voted Against NAFTA

1993: Strickland Voted Against NAFTA, NAFTA Cost Ohio At Least 49,886 Jobs. Ohio lost 49,886 jobs from the signing of NAFTA from 1993 to 2004. [HR 3450, Vote #575, 11/17/93; Scott et al, "Revisiting NAFTA: Still not working for North America's workers," Economic Policy Institute Briefing Paper #173, 9/28/06, p. 4]

Strickland Voted Against MFN With China

1998: Strickland Voted To Deny Chinese MFN. Passage of the bill would deny the president's request to provide 'normal trade relations' (formerly known as 'most-favored-nation' or MFN trade status) for items produced in China for the period July 1998 through July 1999. [HJR 121, Vote #317, 7/22/1998]

2000: Strickland Voted Against Permanent Free Trade With China. In 2000, Strickland voted against normalizing trade relations with China, paving the way for China's entry into the World Trade Organization in 2001. Since then, Ohio has lost at least 91,800 jobs as the trade deficit with China has increased. [Vote #228, 5/24/00;]

2000: Strickland Voted To Repeal Clinton Extension Of Most-Favored Nation Status To China. The text of the resolution stated, "Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress does not approve the extension of the authority contained in section 402(c) of the Trade Act of 1974 recommended by the President to Congress on June 2, 2000, with respect to the People's Republic of China." [HJR 103, Roll call #405 7/18/2000]

2001: Strickland Voted To Repeal Extension Of MFN To China. Passage of the joint resolution would deny the president's request to provide 'normal trade relations' (formerly known as 'most-favored-nation' or MFN trade status) for items produced in China for the period July 2001 through July 2002. [HJR 50, Vote #255, 7/19/2001]

2005: Strickland Voted Against Sham China Trade Bill. The vote was against a bill that was touted as a crack down on unfair China trade policies but in practice only called for more reports, more studies, and more dialogue. In fact, the bill was brought to the House floor in a last ditch attempt to gain votes in favor of CAFTA from wavering lawmakers. The proposal was sold as a solution to China's currency manipulation and lavish subsidies given Chinese manufacturers. Yet the currency provision, like provisions in the bill aimed at cracking down on intellectual property theft and improving the monitoring of China's compliance with its obligations as a member of the World Trade Organization, would require reports but no concrete actions. The AFL-CIO noted the bill "will do little to address serious trade issues with China." The bill passed, 255-168. [CQ Today, 7/27/05; AFL-CIO, Letter to Congress, 7/25/05; HR 3283, Vote #437, 7/27/2005]

Kasich Supported NAFTA And PNTR For China

Congressman Kasich Voted For NAFTA And It Cost Ohio At Least 49,886 Jobs. Ohio lost 49,886 jobs from the signing of NAFTA from 1993 to 2004. [HR 3450, Vote #575, 11/17/93; Scott et al, "Revisiting NAFTA: Still not working for North America's workers," Economic Policy Institute Briefing Paper #173, 9/28/06, p. 4]

Congressman Kasich Voted For Free Trade With China And It Cost Ohio At Least 91,800 Jobs. In 2000, Kasich voted for normalizing trade relations with China, paving the way for China's entry into the World Trade Organization in 2001. Since then, Ohio has lost at least 91,800 jobs as the trade deficit with China has increased. [HR 4444, Vote #228, 5/24/00; Dallas Morning News, 5/25/00; Chicago Tribune, 5/25/00; Economic Policy Institute, 3/23/10; Akron Beacon Journal, 3/24/10]

Kasich Signed Off On A Policy Of Outsourcing

As A Member Of Invacare's Board, John Kasich Signed Reports To Shareholders That Detail How The Company Outsourced Production To China To Achieve Cost Savings And Increase Profits. Invacare's yearly annual shareholder reports discuss the company's outsourcing policies at length. In 2007, for example, Invacare's board reported to shareholders, "The company continues to make progress with the restructuring initiatives that it began in 2005 to drive cost reductions and improve profitability... The cost reduction and profit improvement actions include: reduction in personnel, outsourcing improvements utilizing the company's China manufacturing capability and third parties... and exiting facilities." [Invacare ARS 4/10/2007 Pg I-33]

Ohio Lost Over 466,000 Jobs Due To Free Trade

Ohio Lost At Least 466,000 Jobs Because Of Bad Free Trade Policies. According to Policy Matters Ohio, from 1995 through May 17, 2010, 119,215 Ohioans were eligible for the Trade Adjustment Assistance (TAA) program. TAA "provides help to workers who lose their jobs because of rising imports or shifts in U.S. production to overseas locations. Workers may receive additional unemployment benefits, training and a health coverage tax credit, among other benefits." According to the Economic Policy Institute, every 100 manufacturing jobs sustain 291 support jobs. 119,215 + (119,215 * 2.91) = 466,130 Jobs. [Schiller, Zach and Mordue, Brandon. "Trade Adjustment Assistance In Ohio 2010." Policy Matters Ohio. July, 2010, Economic Policy Institute August, 2003]

Kasich Voted For Tax Breaks For Companies That Shipped Jobs Overseas

John Kasich Voted For Tax Breaks For Companies That Ship Jobs Overseas. Congressman Kasich voted against a budget bill which contained provisions to eliminate tax breaks for companies that ship jobs overseas. According to the Citizens for Tax Justice, "The tax incentive for exporting American jobs results from current tax rules that: 1. allow companies to 'defer' indefinitely U.S. taxes on unrepatriated profits earned by their foreign subsidiaries; and 2. allow companies to use foreign tax credits generated by taxes paid to non-tax-haven countries to offset the U.S. tax otherwise due on repatriated profits earned in low- or no-tax foreign tax havens." As part of the rationale for change, the house report stated, "The committee believes that income that arises from the combination of U.S. capital ownership and U.S, use or consumption of the output of that capital should bear tax at no less than the full U.S. rate. Thus when a U.S. - owned enterprise produces goods for the U.S. market, it should be subject to no lower tax burden when that production takes place abroad rather than in the United States. The deferral of U.S. tax (or elimination of U.S. tax through cross-crediting) on income from foreign production for the U.S. market can make it more advantageous for the U.S. firms to carry out that production in a low tax environment, overseas than in the United States." [Vote #392 10/29/1987; House Rpt. 100-391 10/26/1987, pp. 1103-04; Citizens for Tax Justice 7/23/1996]


FACT CHECK: TED STRICKLAND HAS REDUCED THE SIZE OF STATE GOVERNMENT

COLUMBUS - In tonight's debate, Republican gubernatorial candidate Congressman John Kasich peddled false statements stating that Ohio's state government is too large and bureaucratic. These statements could not be further from the truth since Ohio has the smallest percentage of state government workers in the nation.

As governor, Ted Strickland has slimmed down the size of state government. Strickland has cut state spending and found efficiencies to produce the smallest government in Ohio history.

Kasich

Columbus Dispatch: Kasich Wrong And Misleading About State Employment Figures - Strickland Reduced The State Workforce By Over 5,000.
According to the Columbus Dispatch, "...Kasich cited several "facts" that were either wrong or misleading...Kasich also said during his editorial board interview, "We estimate that during the governor's term, about 9,000 people retired (and) there were 4,000 hired back," referring to state workers. Asked to justify those figures, Nichols said they were based on discussions with people inside state government who said the normal attrition rate of state workers is 4 percent, or about 2,400 workers a year. The state doesn't track how many workers retire. It does produce a monthly total of state employees that shows the state had 51,763 full-time workers in August. That's down 5,046 workers when compared with the same month in 2006, before Strickland took office, to account for seasonal workers." [Columbus Dispatch, 9/14/2010]

Strickland Enacted Unprecedented Cuts To The State Budget


Joe Hallett: State Budget $2 Billion Less Than When Strickland Entered Office.
In an opinion Column, Joe Hallett wrote, "Ironically, key facets of Strickland's first-term record should be salve for what angers voters. He has cut the state property and income taxes, and reduced the size of state government by 5,000 employees, and the state's operating-fund spending is actually $2 billion less than before Strickland took office." [Columbus Dispatch 9/12/2010]

Strickland Cut $1.5 Billion From 2008-2009 State Budget. After signing the lowest growth budget in 42 years into law, Strickland cut the budget by an additional $1.5 billion to maintain a balanced budget. [HB 119, 6/30/2007; Ohio Office of Budget and Management]

Strickland Reduced 2010-2011 Budget Appropriations By Additional $1.9 Billion. Compared to actual spending in the previous ('08-09) biennium budget, Strickland passed a budget that reduced general revenue appropriations by $1.9 billion. [HB 1, 7/17/2009; Office of Budget and Management, Viewed 9/2/2010]

Strickland's Budget Decrease A First In Modern Ohio History. The budget Strickland signed in 2009 represented the first time in modern history that biennial appropriations decreased compared to the previous biennium. [HB 1, 7/17/2009; Ohio Office of Budget and Management, Viewed 9/2/2010]


Strickland Reduced The Size Of Government

Strickland Reduced Size of State Government By 5,000 Workers To The Lowest Levels Since The Reagan Administration. According to the Columbus Dispatch, "Since Strickland took office in 2007...state government has 5,000 fewer employees." According to the Plain Dealer's PolitiFact Ohio, "... as of December 2009, Ohio had 58,622 employees, the lowest number since 1983 when the state had 60,292 workers. That 28-year stretch includes a period from 1991 through 2006 when Ohio's governors were Republicans and the state had more than 65,000 employees." [Columbus Dispatch, 1/31/2010; Plain Dealer, Viewed 9/11/2010]

Ohio Has The Smallest Percentage Of Government Workers In The Nation.
According to polling data collected by Gallup, only 12% of Ohioans are employed by the government, "Seventeen percent of U.S. workers say they work for federal, state, or local government, ranging from 38% in Washington, D.C., to 12% in Ohio...The findings reflect interviews with 98,755 adults, employed full time or part time, conducted Jan. 2-June 30, 2010, as part of Gallup Daily tracking." [Gallup, 8/6/2010]



Strickland Reduced The Cost Of Government

Strickland Achieved Historic Medicaid Savings And Efficiencies. The state set records for cost containment in Medicaid expenditures, saving over $1.5 billion in fiscal years 2009 and 2010. Despite record caseload increases, these cost containment strategies allowed the state to end fiscal year 2009 and 2010 under Medicaid spending targets. [Office of the Governor; Job and Family Services, Quarterly Cost Management Report, 7/1/2010]

Strickland Worked To Reduce State Employee Salary And Benefits To Save Over $440 Million. The state estimates savings of $191.8 million in each year for the FY 2010-2011 biennium from reduced pay. Changes to the state health insurance, such as higher co-pays and out-of-pocket maximums, and a dependent eligibility audit realized a net savings of $28.5 million annually for the state employee health insurance fund. [Office of the Governor, Viewed 9/8/10, HB 1, 7/17/2009; $191.8+$191.8+$28.5+$28.5=$440.6 Million]

Strickland Saved $39.2 Million By Reforming State Purchasing. Governor directed the Department of Administrative Services to engage in a full-scale reform of the state's procurement practices. The state has renegotiated, purchased in consortium and bid out for items from mainframe software licenses to personal computers to food at correctional institutions. These actions will save the state $39.2 million through FY 2012. [Office of the Governor, Viewed 9/8/10]

Strickland Saved $8.3 Million By Reducing State Spending On Leases. The state was able to save $8.3 million for FY 10/11 through the management of commercial leases where state operations are housed, including the termination and consolidation of leases as well as relocations. [Office of the Governor, Viewed 9/8/10]

Strickland Saved Millions By Restricting Vehicle Mileage Reimbursements. The Governor worked with state agencies to reduce mileage costs for state employees. Mileage reimbursements were $0.8 million (8.2 percent) less in Fiscal Year 2009 versus Fiscal Year 2008 and $2.9 million (24.0 percent) less than Fiscal Year 2007. This resulted from a 25 percent reduction in miles driven for reimbursement in Fiscal Year 2009 versus fiscal year 2008 and a 38 percent reduction compared to Fiscal Year 2007. [Office of the Governor, Viewed 9/8/10]

Strickland Saved $180 Million By Creating And Implemented Efficiency Plans For University System Of Ohio. Strickland implemented a transformative change to the funding of Ohio's public colleges and universities, creating a national model for performance-based funding that will ensure our schools are not just enrolling more students, but also ensuring the support to be successful and graduate. Additionally, Ohio's colleges and universities have collectively achieved over $180 million in cost savings due to the 1 percent and 3 percent efficiencies mandated by the Administration. [Office of the Governor, Viewed 9/8/10, University System of Ohio]

Strickland Saved $1.6 Million By Limiting The Use Of State Dollar For Meals. In 2007, Gov. Strickland issued an executive order that set strict limits on when food could be purchased with public dollars and the amount per person per meal. This executive order resulted in $1.6 million less spent on food in FY2009 than in FY2007. [EO 2007-09S, 5/3/2007; Office of the Governor, Viewed 9/8/10]


Strickland Working For Future Cost Reductions

Strickland Ordered A Review To Search For Ways To Improve The Efficiency Of Ohio's Education System.
Strickland requested that the Knowledge Works Foundation review the state's K-12 education system to seek efficiencies. This builds on the state's recent education reform by ensuring that every dollar of efficiencies is used to improve high-quality opportunities for students in the classroom. [The Knowledge Works Foundation, 5/27/2010, Viewed 9/9/10]

Strickland, Joined By Senator Harris And Other Leaders, Called For Sentencing Reform. State leaders have partnered with the Council for State Governments to develop a data drive strategy to reduce spending on corrections while improving public safety in Ohio. This project will work to determine why the prison population is increasing and where opportunities exist to increase public safety. [Office of the Governor, Justice Investment, 9/8/10]

Strickland Ordered Business Roundtable To Seek Improved Medicaid Efficiencies. Strickland requested that Business Round Table review the current Medicaid payment structure. The Business Roundtable has agreed to analyze the current Medicaid payment structure and other Medicaid programs and identify potential opportunities for savings. [Office of the Governor, 7/12/2010, Business Roundtable, 8/30/2010]

FACT CHECK: TED STRICKLAND HAS IMPLEMENTED RECORD REFORMS IN EDUCATION

COLUMBUS - In tonight's debate, Republican gubernatorial candidate Congressman John Kasich attempted to change the facts and accused Governor Strickland of not doing enough to innovate Ohio's educational system. As usual, Congressman Kasich doesn't have the facts on his side and continues to use outdated information to criticize Ohio's schools.

As governor, Ted Strickland has instituted cutting edge reforms in Ohio's education system that will make students more competitive and increase teacher accountability.


Kasich Relies On Outdated Information To Criticize Ohio's Education System

The Brookings Institute Report Relies On Old Information From 2006, Before Strickland Was Governor. According to the Ohio State- and Local-Government Payroll and Expenditure working paper, "This report examines recent data on state- and local-government employment, payroll, and spending in Ohio and in the rest of the nation. To be specific, this project is a systematic examination of 21 distinct state- and local-government service categories for fiscal year 2006-07." [Trostel, Philip A., "Ohio State- and Local-Government Payroll and Expenditure," Working Paper, November, 2009]


Ted's Reformed Ohio Schools To Compete In The 21st Century

Ohio's Education System Ranked 5th In The Nation By Education Week - Ohio Was Ranked 27th in 2007. Education Week's annual "Quality Counts" report ranks Ohio as having the 5th best education system in the nation. The report looks at several areas, including Chance for Success, Standards, Assessment and Accountability, Teacher Profession and School Finance. Ohio has continually made progress in this ranking since Strickland took office and the recent reforms will only build on this success. In 2007, the year Strickland took office, Ohio was ranked 27th. [Office of the Governor, Viewed 9/11/10, Education Week, 1/14/2010 Viewed 9/11/2010]


Strickland Mandated New Assessments To Ensure Accountability And Student Achievement.
Instead of the high-stakes Ohio Graduation Test, Governor Strickland's plan includes a three-part graduation test that sets high standards for mastery, increases college-readiness, and tests the skills and knowledge needed to succeed in the 21st century. Universal ACT testing will increase the number of Ohio students taking the ACT by over 36,000 each year, encouraging more Ohio high school students to pursue higher education. In addition, end-of-course exams in the subjects that make up Ohio's rigorous Core Curriculum will ensure more students complete the Core requirements. [HB 1, 7/17/2009]

Strickland Legislation Enhanced Classroom Methods For The 21st Century. Governor Strickland's education reforms incorporate project-based, cooperative, and interactive classroom methods to better teach Ohio's rigorous Core Curriculum and prepare students for the workplace of the 21st century. [HB 1, 7/17/2009]

Strickland Legislation Improved Standards For Ohio's Teacher Education Programs. Governor Strickland's plan aligns teacher education standards with methods that will help educators use project-based, cooperative and interactive learning in the classroom. A reconfiguration of Ohio's teacher preparation programs means that Ohio's 50 teacher prep programs at 13 public and 37 private universities will produce 8,000 graduates a year with the knowledge to step into 21st century classrooms. [HB 1, 7/17/2009; Ohio Board of Regents]

Ohio Won Education Commission National Award For Innovation In Education. The Education Commission of the States (ECS) honored Ohio as the winner of the 2010 Frank Newman Award for State Innovation. ECS noted that Strickland education reform "demonstrates the state's commitment to informed, bold and courageous reform" and that Strickland and the legislature "made an unprecedented commitment to Ohio's schools." [Education Commission of the States, 1/26/2010]

Ohio Won Race To The Top Funds. Under Strickland's leadership Ohio was one of 9 states and the District of Columbia selected to received Phase 2 Race to the Top Funds. Ohio will received $400 million to be used to further education reforms. This award "confirms and validates the direction the state has been taking." [Catalyst Ohio, 8/24/2010]

Ted Increased Transparency and Accountability In School Spending

Strickland Demanded Increased Transparency in School Spending. In his first budget Strickland created the Ohio's School Finance Transparency Project. "We must create a better system for knowing what we're getting for our money...participating school districts will adopt a standard fiscal reporting system..In the second year, the Board of Education will be required to implement this transparent accounting system in every district in the state." [State of the State, 3/17/2007, Viewed 9/11/10]

Strickland Created System Of Fiscal Accountability. As part of his education reform plan in HB 1, Strickland again enhanced fiscal accountability for Ohio's school district. For the first time, HB 1 requires the districts to do fiscal report cards that will identify fiscal performance benchmarks to compare districts to districts of similar characteristics and state averages. This brings transparency to data that had never before been reported. [HB 1, 7/17/2009]

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