Sunday, March 13, 2011

Kasich Will Be Robbing Peter to Pay Paul

A very bizarre plan from the Kasich administration will transfer the state's liquor sales to fund the highly questionable JobsOhio program, currently being managed by Kasich appointee, Mark Kvamme.  (The Kvamme appointment has been called illegal, since he is not  a resident of Ohio, as required by law.)

Dayton Daily News:

The Kasich administration plans to transfer the state’s $740-million liquor sales business to the newly formed, nonprofit JobsOhio program, according to information obtained by the Dayton Daily News....

....Last year, spirituous liquor sales totaled $742.7 million and the state realized a $228.8 million profit. Some profits are used to pay off bond debt while a portion is transferred to the general revenue fund and to other funds that pay for alcohol treatment and public safety programs....

....She (Kim Zurz) said that Kasich’s plan to spin off liquor profits to JobsOhio raises questions about how liquor control, licensing and enforcement would be done by the non-profit organization....

As the article concludes, the state would "....no longer be able to use that revenue stream to back bonds going forward...."

Is this some sort of shell game?  How would bond raters evaluate this move?  Is this even legal?  How can state money be used to fund a private entity?  Will more lawsuits be filed to stop Kasich's reckless agenda?  When will the Republicans in the Ohio House and Senate stand up and say that these proposals are just plain stupid,risky, and illegal?