“I am honored to join with Auditor Yost and Senator Schaffer in sponsoring this legislation, because ensuring that fiscal officers in our communities do not abuse or mishandle public dollars is one of the most important tasks we can undertake at this time,” said Representative Hagan. “Every dollar counts when we are looking at ways to keep our public officials honest and our spending under control.”

The need for the Fiscal Integrity Act arose in Stark County, when the chief deputy of former Stark County treasurer Gary Zeigler was alleged to have stolen as much as $2.96 million from the county treasury. Zeigler was removed from office as a result of the allegations but fought the removal. The Ohio Supreme Court ultimately ruled in Zeigler’s favor, stating that he could not be removed from office with no requirement of a complaint or hearing.

To this end, the Fiscal Integrity Act, among other measures, will create a uniform removal provision and due process for county auditors and treasurers, municipal fiscal officers, and township fiscal officers. It also states that any offenders convicted of dereliction of duty would be prohibited from holding public office for four years and may not hold another office until repayment or restitution required by the court is repaid. A conviction of dereliction would carry a fifth-degree felony charge.

“This issue really hits home for me because it happened right in Stark County,” Representative Hagan said. “Although the vast majority of Ohio’s fiscal officers do great work and respect the public purse, there are cases where an individual takes their position for granted and betrays those they have been entrusted to serve. This legislation will help address those cases and increase accountability for the taxpayers.”

“One bad apple spoils the bunch and the worms must be rooted out,” said Auditor Yost. “Being entrusted with taxpayer dollars requires accountability and education – this bill provides both.”

The legislation would also state that if an Ohio county, township or municipal government is declared “unauditable” and fails to make a reasonable effort to bring its financial records to an auditable condition within 90 days, the Auditor of State may notify the Office of Budget and Management and state funding may be withheld.

Similarly, if a public school district is declared “unauditable,” the treasurer responsible will be suspended until the audit is completed. Within 45 days of the “unauditable” declaration, the school must present a plan to the Auditor of State, and if the district has not made a reasonable effort to bring its financial records to an auditable condition, the Auditor may notify the Ohio Department of Education and state payments may be withheld.

Like the rules established for public schools under the legislation, community schools would be subjected to similar standards. A community school treasurer will be suspended if the school is declared “unauditable,” and the state board of education may suspend, revoke or limit the treasurer’s license. Upon an “unauditable” declaration, the sponsor of the community school may not open a new school between 90 days after the declaration and the date the financial audit is completed for that school.

“I believe wholeheartedly that accountability creates an environment where people are less likely to fall short,” said Representative Hagan. “I am glad to work towards ensuring that such an environment can exist, where temptation is minimized due to sound controls, further education and the understanding that repercussions are strong against one’s ill actions.”

The Fiscal Integrity Act will soon be introduced in the House by Representative Hagan, with companion legislation to be introduced in the Senate.

Watch the press conference here:

Speaker of the Ohio House William G. Batchelder (R-Medina) today proudly announced that State Representative Peter Stautberg (R-Anderson Twp.) was awarded Ohio Auditor of State Dave Yost’s prestigious Champion of Performance Audits Award for his outstanding work in support of efficient, accountable state government.

The award recognizes Representative Stautberg’s work on House Bill 2 (Senate Bill 4), legislation that he sponsored to require the Ohio Auditor of State to conduct performance audits of at least four state agencies each biennium. The goal of this legislation is to institute a policy of good government within the state of Ohio and ensure that Ohio’s government is operating as efficiently as possible.

“Representative Stautberg has been a valuable partner in our efforts to achieve greater government efficiency, ensuring that taxpayer dollars are spent wisely,” said Auditor Yost. “I look forward to continuing our work to ‘skinny down’ the size of government in Ohio, and I’m honored to present him this award today.”

“I would like to commend my good friend and colleague Representative Stautberg for his hard work in putting Ohio’s taxpayers first and helping to create a more cost-effective government,” said Speaker Batchelder. “He is truly a public servant who understands what it means to respect the public purse and keep our government transparent.”

“It is truly an honor to be recognized by Auditor Yost and to receive this award,” Representative Stautberg said. “As a staunch fiscal conservative, I believe that one of the most important things we can do to promote sound fiscal policy is keep spending under control and ensure that every taxpayer dollar is spent wisely.”

Ohio House Speaker Pro Tempore Lou Blessing (R-Cincinnati) has announced that the Ohio House of Representatives today passed House Bill 380, legislation designed to bring transparency and accountability to asbestos-related litigation.

According to an overview of asbestos bankruptcy trusts released by the U.S. Government Accountability Office, there were 60 asbestos bankruptcy trusts with assets of more than $36 billion as of 2011. These trusts are a major source of funding for asbestos claimants and exist entirely outside the tort system. There is no limit to the number of trusts against which a claimant may file, nor is there a monetary cap on the amount a claimant may recover in the aggregate from the trusts.

In Ohio, there is no statewide requirement that asbestos claimants disclose in court if they are also pursuing recovery from the bankruptcy trusts. House Bill 380 addresses this issue by improving disclosure and transparency in the asbestos litigation process by requiring claimants seeking recovery from defendants in Ohio’s courts to disclose and pursue viable claims against the bankruptcy trusts. It is not designed to limit a claimant’s access to recovery from the trusts or defendants, nor does it limit a claimant’s ability to be fully compensated for their injuries.

“House Bill 380 is based on the premise that openness in legal proceedings is good and helps ensure that justice is fairly administered for all parties,” said Representative Blessing, who sponsored the legislation. “Any instances of fraud have the potential to deprive future claimants of fair compensation by depleting the resources of defendants and trusts. It is important that we address this issue here in Ohio now because this is an issue that has become particularly rampant in our court system.”

Among other provisions, the bill:

• Requires a clamant to provide all parties in the action a sworn statement identifying all existing asbestos trust claims made by or on behalf of the claimant and all trust claims material pertaining to each such identified claim

• Permits a defendant in the action to file a motion for an order to stay in the proceedings if a defendant in good faith believes that the claimant has not submitted a legitimate claim to an asbestos bankruptcy trust

• Specifies that the claimant has the burden of proof by preponderance of the evidence of the allegations in the claimant’s response

• Permits the parties in the action to introduce at the trial any trust claims material to prove alternative causation for the claimed injury, death, or loss to prove a basis to allocate responsibility and to prove issues relevant to an adjudication of the asbestos claim

Asbestos is a naturally occurring fiber that was widely used in industrial products throughout much of the 20th century and is now known to be toxic. It has been linked to several diseases, including mesothelioma and lung cancer.

House Bill 380 will now be sent to the Ohio Senate for further consideration.

State Representative Ross McGregor (R-Springfield) has announced that the Ohio House of Representatives concurred on Senate changes to House Bill 66, which will codify a reporting mechanism for Ohio citizens and public employees to report the fraud, waste and abuse of tax dollars.

Specifically, House Bill 66 will require the Ohio Auditor of State to maintain the Ohio Fraud Reporting System for anonymously reporting fraud and compel government entities to provide information about the fraud reporting system to their employees. Under the Ohio Whistleblower Protection Act, it also protects those employees who report the misuse of public resources to the toll-free hotline, Auditor of State’s web site or through the U.S. Postal Service.

“I am pleased to see House Bill 66 head to the Governor’s desk for his signature,” said Representative McGregor. “This legislation will help Ohioans protect our valuable resources from fraud and theft, making sure taxpayers’ dollars are being used as intended.”

According to the Association of Certified Fraud Examiners, nearly half of all fraud that is detected in government agencies is reported through tips. The median amount of loss and waste that is experienced by an entity is reduced by 50 percent for organizations with an anonymous fraud hotline.

House Bill 66 passed unanimously. It will now be sent to Governor Kasich for his signature.

In order to improve government transparency, financial forecasting, and accountability to the taxpayers, State Representatives Kristina Daley Roegner (R-Hudson) and Christina Hagan (R-Marlboro Twp.) recently introduced House Bill 368, designed to keep the public and the General Assembly better informed through a fact-based, four-year economic forecast.

The legislation calls for a four-year financial outlook report based on items such as current law, demographics, debt load, expected trends and other factors, including budgetary, economic, socio-economic and debt analysis. It will take into consideration both internal and external environmental demands and contingencies that could hinder or accelerate Ohio’s course to success. The financial outlook would project fiscal trends, including projected expenditures and expected tax revenues. The report, completed annually, will be posted on a state website to increase public awareness of the fiscal outlook of the state and keep the state’s finances accountable.

The financial outlook will keep lawmakers and Ohioans more fully aware of financial circumstances that would arise in the future. “The state currently operates on a two-year budget cycle,” Roegner said. “We as lawmakers need to be able to look beyond two years so that we can properly address potential problem areas before a financial crisis actually occurs. A four-year financial outlook is a tool we can use, like businesses do, to help us better plan for the future. It just makes common sense.”

Additionally, House Bill 368 would also create the non-partisan Long-range Financial Outlook Council, comprised of public and private-sector financial experts—serving as volunteers—who would ensure that the financial outlook each year is as complete and accurate as possible.

"I believe that a transparent approach to government, such as our financial outlook, is paramount to creating financial stability and success for our great state,” Hagan said. “Our generation's future depends on responsible policy today, and this is a step in the direction of long-term success that is non-partisan and in the best interest of all Ohioans. My goal is to demand efficiency and effectiveness, and transparency is the key to success and opportunity for my generation."

Other states such as Virginia, Florida and Kentucky have adopted similar processes in their commitment to fiscal responsibility and accountability. Florida's debt rating was recently upgraded to AAA, the highest rate possible.

House Bill 368 has been assigned to the House Finance and Appropriations Committee.

Do you know how government is spending your money? Do you think that has anything to do with job creation? I certainly do, and I want you to know why.

Last fall, the two comments I heard from residents most often were “focus on jobs” and “reduce government spending.” That’s exactly what I’ve worked on in my first six months in the legislature.

I was the primary sponsor of House Bill 1, which created JobsOhio and passed with bipartisan support in both chambers, including a majority of Democrats in the Ohio Senate. As the bill number implies, HB1 was the first measure we pursued, reflecting the priority we place on job creation.

JobsOhio’s board now includes some of the state’s most respected civic and business leaders, including Gordon Gee, president of The Ohio State University, and Bob McDonald, CEO of Procter & Gamble, a company that ranked 5th in Fortune Magazine’s “Most Admired Companies” list for 2011.

Once the state’s transition to JobsOhio is implemented, Ohio will benefit from the flexibility to respond quickly to the demands of national and international economies. This speed and flexibility means more jobs for Ohioans, and that definitely is a good thing.

Here in Ohio, we have an aggregate tax burden (state and local) that is higher than many peer states and therefore hurts our job growth. Simply put, this tax burden makes Ohio less competitive.

Worse, our per capita income has been steadily dropping relative to the other 49 states over the past several decades. This makes the burden of individual taxpayers all the more difficult.

Finally, there is Ohio’s lost decade. From 2001 to the end of 2010, Ohio lost more than 600,000 jobs, many of them to our Midwestern neighbors in Indiana, Michigan and Kentucky.

Nevertheless, we can’t just cut taxes alone. We have a variety of important, even critical, services that tax revenue provides: Medicaid, public education, higher education, police and safety services, parks and recreation, to name a few. These are not just services, but also factors in job growth, as several of these services relate to the overall quality of life and attractiveness of our state.

So how do we reduce Ohio’s tax burden without sacrificing these vital public services? The answer is greater efficiency, reduced waste and a more focused mission. We need to do more with less.

And this is how governmental spending relates to job growth. By increasing our efficiency, we can reduce spending, reduce taxes and increase job growth. It’s a win-win as they say, but it’s certainly not as easy as it sounds. It takes creative ideas to improve our efficiency.

Fortunately, the Ohio House is making an effort to do more with less. Here are just two examples:

House Bill 2 – we can save significant money by auditing our state agencies. HB2—which I cosponsored—requires the Auditor of State to conduct performance audits on a biennial basis. In 2005, the state of Washington identified more than $4 billion in waste, and I believe that examining Ohio’s agencies has the potential to provide similar savings. The companion bill to this legislation was signed in April and is now law.

House Bill 66 – The Ohio House also took a crucial step by creating a fraud and abuse reporting system through which public employees and citizens can anonymously report misuse of taxpayer dollars. I was proud to cosponsor this bill, which extends whistle-blower protections to state employees who issue a complaint through this system. According to the Association of Certified Fraud Examiners, 50 percent of government fraud is discovered through tips.

The bottom line is that every dollar counts. If we can make our government leaner and more effective without compromising the high-quality services that our citizens rely on, it is important that we do so. House Bills 2 and 66 are common-sense concepts that will provide much-needed government transparency at a time when accountability is more important than ever.

As we seek to produce job growth in Ohio, it’s important to remember the connection between our overall efficiency as a state, our aggregate tax burden and our attractiveness for new jobs.

If you have ideas on how to reinvent the State of Ohio, please send me an email, write me a letter or call my office. I can be reached at district21@ohr.state.oh.us, State Representative Mike Duffey, 77 South High Street, 13th Floor, Columbus, Ohio 43215 or 614.644.6030.

After more than 60 hours of testimony and more than 200 witnesses over a period of nearly two months, Senate Bill 5 today passed from the Ohio House of Representatives. This legislation restores fairness for Ohio’s taxpayers and helps prevent mass layoffs of dedicated public employees by giving local governments the flexibility to manage their own finances.

“Today, this House has taken an unprecedented step toward public policy that respects all Ohioans, especially our taxpayers and our hardworking middle class,” said Speaker of the Ohio House William G. Batchelder (R-Medina). “Senate Bill 5 protects the collective bargaining rights of Ohioans while also giving local governments an additional tool in the toolbox as they balance their budgets. Truly the most important thing we can do is ensure that our public services remain of the highest quality and that we give employers the ability to maintain and reward their employees—rather than resorting to mass layoffs due to ironclad contracts.”

The House version also removes the use of ticket quotas to determine performance-based pay for law enforcement officials, eliminates automatic union deductions without written consent, and prohibits “fair share” fee penalties as a requirement to be a non-union member within an organization. Additionally, under certain conditions, labor disputes may be settled by voters at the ballot, with last best offers of each bargaining party considered and resolved by Ohio’s taxpayers.

“In this bill, we have successfully maintained the bargaining rights of our communities’ most important public workers—those who educate our children, protect our families and homes, and keep our neighborhoods clean and thriving,” said State Representative Joe Uecker (R-Loveland), who serves as chairman of the House Commerce and Labor Committee. “At the same time, we’ve updated Ohio’s collective bargaining law, which for nearly three decades has rampantly expanded and put an undue strain on our local governments. We have found a delicate balance that will respect the taxpayers, save state and local jobs, and improve the public services we rely on each day.”

To specifically advance the quality of education in Ohio’s classrooms and reward teachers, S.B. 5 establishes standard state guidelines to determine educators’ compensation and other terms of employment. While 50 percent of educator evaluations must be based on student performance as developed by the Ohio Department of Education, local school boards have the authority to establish objective measures related to quality of instructional practice, communication and professionalism, parent/student satisfaction, and other relevant factors.

As the State of Ohio explores strategies for saving tax dollars and making spending more accountable, the Ohio House of Representatives unanimously passed House Bill 66, which will create a reporting mechanism for Ohio citizens and public employees to report the fraud, waste and abuse of tax dollars.

Specifically, House Bill 66 will require the Ohio Auditor of State to maintain the Ohio Fraud Reporting System for anonymously reporting fraud and compel government entities to provide information about the fraud reporting system to their employees. Under the Ohio Whistleblower Protection Act, it also protects those employees who report the misuse of public resources to the toll-free hotline, Auditor of State’s web site or through the U.S. Postal Service.

“This legislation will offer public employees one more avenue through which they can anonymously report theft or misuse of tax dollars,” said Ross McGregor (R-Springfield), who sponsored the bill. “House Bill 66 is a valuable tool for the protection of taxpayer dollars, one that is sorely needed during these difficult economic times.”

According to the Association of Certified Fraud Examiners, nearly half of all fraud that is detected in government agencies is reported through tips. The median amount of loss and waste that is experienced by an entity is reduced by 50 percent for organizations with an anonymous fraud hotline.

House Bill 66 passed by a vote of 96-0 and will now move to the Ohio Senate for further consideration.

State Representative Bob Mecklenborg (R-Cincinnati) today introduced the “Ohio Fair and Secure Elections Act,” which will require voters to confirm their identities by presenting photo identification when voting on Election Day or by absentee in person at the Board of Elections.

Under current law, when voting on Election Day, a voter may submit as proof of identification a valid photo identification, a military identification, or a copy of a current utility bill, paycheck or other government document that shows the voter’s name and current address. The proposed legislation would require that all voters voting on Election Day or in person absentee to present photo identification in the form of an Ohio driver’s license, Ohio state ID card, a military identification, or a U.S. passport. Acceptable forms of identification remain unchanged for persons voting absentee by mail.

“This is a long overdue, important first step toward securing the integrity of the electoral process,” Mecklenborg said. “This is necessary to make sure every legitimate vote is counted.”

The legislation directs the Bureau of Motor Vehicles to promulgate rules on providing free state IDs to individuals who qualify based on indigence. It also allows any person who objects for religious reasons to having their photograph taken to vote provisionally and sign an affidavit of religious objection at the Board of Elections.

“The issue of voter fraud has been a prominent issue in Ohio’s elections over the past few years, and I believe that this legislation is a vital step toward a more accountable, accurate elections process,” said House Speaker Pro Tempore Lou Blessing (R-Cincinnati), who is a joint sponsor of the bill.

Empirical data shows that photo identification has vast bipartisan support nationwide. A 2006 Wall Street Journal/NBC poll revealed that 81 percent of respondents nationwide supported photo identification requirements, compared with only 7 percent who opposed such a measure. Currently, eight states require voter photo identification, while legislation is currently pending in more than 20 other states. The “Ohio Fair and Secure Elections Act” borrows from Indiana and Georgia laws addressing voter identification, which have withstood constitutional scrutiny.

Mecklenborg said that this is one of many proposals that will be introduced by the Republican Caucus in the coming weeks to combat voter fraud and ensure a smooth, legal process for casting ballots. “Very shortly, we will be introducing a second bill dealing with many other aspects of the electoral process, including clarification of poll worker error and provisional ballots,” Mecklenborg said. “The second phase outlines a significant number of the reforms laid out by Secretary Husted recently, and we look forward to working with him on this issue.”