2
Winter 2014 Issue
Under the Dome: A Legislative Update for ORA
The 131
st
Ohio General Assembly is
underway. Ninety-nine state representatives
and 32 state senators were sworn in
earlier this month to begin the two-year
legislative session.
As I begin my first session as your
representative before our state’s
lawmakers, I want to preview some of the
issues that we expect will be discussed in
the coming months. I also will share some
insight and highlight the relationships that
the Ohio Restaurant Association (ORA) has
built with the General Assembly’s leaders.
First, the issues.
2016-2017 State Budget
It’s an odd-numbered year, so that means
the state’s two-year budget will be the
focus of attention through the completion
deadline of Jun. 30, 2015. Gov. John
Kasich will present his administration’s
income and spending plans on Feb. 2,
2015. His proposal will be submitted to
the legislators in the form of a House bill
and the lengthy and politically charged
legislative process will begin.
The budget bill, as many as 6,000 pages
in length, is supposed to be limited to
taxes and expenditures. In reality, it is a
vehicle for addressing virtually all public
policy issues. What that means for the
ORA is that we will remain ever-vigilant,
constantly monitoring the bill’s various
permeations and determining that which
may impact our members.
ProStart
®
The ORA Education Foundation manages
Ohio ProStart. This is our industry’s
workforce development program, teaching
culinary arts and restaurant management to
high school juniors and seniors. Students
completing the two-year course and passing
the rigorous test earn transferable college
credits and qualify to apply for higher
education scholarships. Students who
choose to go directly into the foodservice
industry have a nationally recognized
credential that helps them land better jobs.
Ohio ProStart is in 61 of the 85 school
districts that offer some type of culinary
program. To offer the program to the
remaining schools, Ohio ProStart needs
additional funding. In the last budget,
legislators authorized $216,200 to help
expand our program. The ORA will be
working with lawmakers to extend that
funding stream so ProStart can train even
more of our members’ future employees.
Tax Cuts
Gov. Kasich has made it clear that he
wants to eliminate Ohio’s personal income
tax. The budget that he submits on Feb.
2 will indicate how quickly he thinks that
goal can be accomplished.
In previous debates on lowering the
personal income tax, the ORA has taken a
position in favor—with a caveat.
We believe that lower tax rates, especially
for restaurants organized as pass-through
entities, incentivizes businesses to create
jobs. But cutting taxes reduces revenue
needed to fund state programs and services.
One way to replace lost income tax revenue
is to broaden the application of the sales
tax. When this was proposed by the
governor in early 2013, the ORA’s analysis
concluded that the increase in new sales
taxes that our members would have to pay
exceeded the reduction in income taxes. It
would have represented a net tax increase
for a typical restaurant owner.
Medicaid Expansion
The Affordable Care Act (ACA) covers most,
but not all Americans. There is a “gap” in
coverage for those generally described as
the “working poor.” That gap was filled
when Ohio expanded its qualifications
for Medicaid coverage. The expansion
expires mid-year and the governor will be
proposing that it be renewed.
The ORA supports Medicaid expansion.
The costs are born by the federal
government. The ACA requires “large”
employers to offer health insurance to
its full-time employees not covered by
Medicaid. Medicaid expansion means
that implementing Obamacare will be less
expensive for many Ohio restaurants.
Unemployment Compensation
This issue was covered in more detail in
the fall issue of à la Carte. The issue is
the indisputable fact that the revenue the
state receives from employer taxes is not
sufficient to pay benefits to unemployed
workers. Legislators will be debating how
to increase revenue and lower expenditures
to bring the system into balance—a
politically challenging task.
The ORA has established very positive
working relationships with those who will
lead the legislature in the next two years.
Following is some additional insight into
these leaders.
House of Representatives
• Speaker Cliff Rosenberger, (R)-Clarksville:
Cliff may be the youngest to serve in this role,
which many believe to be the second most
powerful position in state government. We’ve
known him since he first came to the state
capitol. Rep. Rosenbeger genuinely wants state
government to help—not hinder—the ability
of small businesses to create jobs. He knows
and values our industry, and addressed our
members at a Columbus event just last fall.
• Speaker ProTem Ron Amstutz (R)-Wooster:
A member of the legislature for 30 years, Ron
is one of those rare individuals who reads
all of the legislation and studies all of the
amendments. The ORA presented him with our
Good Government Award in 2012 for his role
The 131
st
Ohio General Assembly:
What’s on the menu for the restaurant industry?
