Saturday, October 28, 2006

Smoking. Gambling. A sin tax for the arts. An increase in the minimum wage.
These are among the contentious issues voters here will decide at the ballot
box November 7. Perhaps the most confusing for Ohio voters are statewide
Issues 4 and 5. Both would limit smoking in public places, but to different
degrees. Issue 4 is a constitutional amendment spearheaded by Smoke Less
Ohio, a group supported by the tobacco industry and businesses that cater to
smokers. It would allow smoking in bars, restaurants, bowling alleys and
bingo halls, but ban smoking in almost all other public places. Because it
is a constitutional amendment, it would overturn smoking bans currently in
effect in 21 Ohio cities, including Columbus. Issue 5, sponsored by
SmokeFree Ohio, a campaign of the American Cancer Society, would ban smoking
statewide in all public buildings and workplaces. Exceptions include
family-owned small businesses where all employees are related to the owner
and where enclosed smoking areas are not open to the public. Also exempt
would be outdoor patios, tobacco stores and nonprofit private clubs with no
unaffiliated employees. Nursing homes and hotels also could designate
smoking rooms. If both initiatives pass, Issue 4 would prevail because it
is a constitutional amendment, while Issue 5 is merely a law. Because of the
high stakes, Issue 5 supporters are working hard to explain that voters must
defeat Issue 4. It is not enough to vote for Issue 5. For the SmokeFree
measure to become the law in Ohio, voters must also vote against Issue 4.
While Issue 4 supporters criticize the scientific validity of studies
showing the harmful effects of secondhand smoke, they also say that
well-ventilated areas in bars and restaurants protect non-smokers. But the
latest report this summer from the U.S. Surgeon General says there is no
safe level of secondhand smoke. Furthermore, employees in the hospitality
industry have no choice but to breathe in secondhand smoke. Issue 5
supporters also note that smoking does not simply affect the smoker.
Families and society also bear the costs associated with health care for
smoking-induced illnesses, reduced productivity or death. The economic
issues of banning smoking have been hotly debated. Bar and restaurant owners
say smokers will stop patronizing them, costing jobs in the hospitality
sector. Smokers, they claim, will buy liquor and drink at home where they
can smoke. But studies in cities with bans have either shown that revenues
have not decreased, or that declines in some businesses have been balanced
by gains in others.

Today's minimum wage buys less than at any time in the last 50 years.

Ohio remains one of only 14 states that do not allow casino gambling.

Arts groups are struggling with declining ticket sales and lower donations
in a stagnant economy.

Issue 5 supporters also note that smoking does not simply affect the smoker.
Families and society also bear the costs associated with health care for
smoking-induced illnesses, reduced productivity or death.

The economic issues of banning smoking have been hotly debated. Bar and
restaurant owners say smokers will stop patronizing them, costing jobs in
the hospitality sector. Smokers, they claim, will buy liquor and drink at
home where they can smoke. But studies in cities with bans have either shown
that revenues have not decreased, or that declines in some businesses have
been balanced by gains in others.

Issue 2 would raise Ohio's minimum wage from $5.15 to $6.85 per hour
starting Jan. 1; waiters and others who receive tips would see their base
pay increase from $2.13 to $3.43 an hour.

Last spring, state legislators increased Ohio's minimum wage to the federal
minimum of $5.15. That wage hasn't been changed in nine years; economists
say today's minimum wage buys less than at any time in the last 50 years.

At $5.15 an hour, a full-time employee earns $10,712 annually, nearly $3,000
below the federal poverty level for a family of two. Relatively few Ohioans
earn the minimum; about 300,000 are at that level. But that base wage sets
the floor, in effect keeping hourly earnings low, say labor unions and
religious, neighborhood and civil rights organizations who support Issue 2.

Opponents, including chambers of commerce, retail merchants, restaurateurs
and other businesses, also object to the measure's fine print. They say it
would open payroll records to scrutiny from unions and others, invading
employees' privacy and burdening employers with additional record keeping.

Supporters point to the amendment's language, which specifically forbids
disclosure of an employee's name without that person's permission. The
federal minimum wage already requires such record keeping, they point out.

Critics also object to amending the Ohio Constitution to raise wages.
Instead, they say, the legislature should act to increase the minimum wage.

Surveys show that most people think Ohio's minimum wage is too low, but
opponents of Issue 2 say its annual adjustment for inflation is a bad idea.
While Ohio's minimum wage is now below many other states, several rounds of
inflation could boost labor costs here so high that businesses would choose
to locate or expand elsewhere.

Supporters of Issue 2 emphasize that $5.15 an hour is not a living wage.
Furthermore, better-paid employees are less likely to seek work elsewhere,
which is better for businesses, they point out. Studies show that states
with higher minimum wages have more job growth than those without the more
generous wage protection, proponents say.

Supporters call Issue 3 "Learn and Earn" because the constitutional
amendment would allow 31,500 slot machines at nine sites in Ohio; a portion
of the revenue would go to college scholarships.

Gross annual revenue from slot machines will be $2.8 billion, proponents
estimate. Slots operators would get 55% of any money not won by players.
This 55% will be used to pay employee salaries and benefits, equipment, site
operations, advertising, debt service and taxes. Estimated annual profits
for each site would be about $20 million or $180 million total.

Of the remaining slots revenue, 30% would go for tuition scholarships to
Ohio students attending Ohio colleges. Supporters estimate this at about
$850 million; Ohio Office of Budget and Management estimates $324 million.

Eight percent (about $225 million) would go to economic development and
capital projects, with Cleveland's share of that totaling about $75 million.
Six percent (about $170 million) would increase purses at Ohio racetracks.
One percent ($28 million) would go to gambling addiction services.

Issue 3 would allow slots at Ohio's seven racetracks as well as at two
downtown Cleveland locations: Tower City, which is owned by Forest City
Enterprises Inc., and at Nautica Entertainment Complex, operated by Jeff
Jacobs. In 2010, voters here could expand the four Cleveland-area sites to
offer full casinos with gaming tables. Downstate racetracks would not have
that option.

Ohio gamblers spend over $1 billion annually at casinos in Indiana, West
Virginia and Michigan, estimate supporters, who include many civic and
business leaders. Ohio remains one of only 14 states that do not allow
casino gambling.

Opponents, many of whom are also religious leaders and state officeholders,
emphasize the downside of slots and casinos. Gambling will create more crime
and more addicts, burdening social service agencies and county budgets.
There's a finite amount of entertainment dollars; Issue 3 will just shift
them from theaters and restaurants to slots parlors and casinos.

Revenues from gambling will not solve the educational funding crisis in this
state, opponents say. It will only cloud the issue. However, proponents
counter that Issue 3 forbids the Ohio General Assembly from using Learn and
Earn proceeds to cut educational funding.

Critics point out that most of the profits will go to a handful of wealthy
racetrack owners and slots operators, giving them a constitutionally
mandated monopoly. Proponents counter that the slots parlors will pump
billions into Ohio's economy and create up to 56,000 good-paying jobs with
benefits. Cleveland could see 5,000 new jobs.

Ohio already has a lottery and other forms of gambling such as church bingo
games, proponents note. Thus, it's hypocritical for religious leaders and
others to oppose slots parlors.

This is the third time since 1990 that Ohioans have been asked to vote for a
gambling provision. The last two gambling initiatives were defeated
statewide by wide margins.

Issue 18 would raise the tax on cigarettes to provide funding for arts and
culture in Cuyahoga County. The measure, which lasts for 10 years, would
increase the tax per cigarette 1.5 cents, adding 30 cents to a pack.

Levy supporters estimate the tax will raise $20 million annually, even
assuming a decline in cigarette purchases due to the higher price. The money
would provide operating support for the county's 105 nonprofit arts
institutions such as Great Lakes Theater Festival and the Maltz Museum of
Jewish Heritage. It also will fund artist residencies and innovative
projects by individual artists.

The county arts and culture organizations add over $1 billion annually to
the local economy, supporters say, a larger economic impact than that of
Cleveland's major professional sports teams. The arts groups also employ
3,000 people full-time and generate 7,000 jobs at related businesses.

Arts organizations here are struggling with declining ticket sales and lower
philanthropic donations in a stagnant economy. They've lost support from
major corporations who have departed the area. Furthermore, Cleveland is one
of the few major metropolitan areas with little dedicated funding for the
arts.

Most of the opposition to the measure comes from smokers, who feel they are
being unfairly taxed again to pay for economic development. Excise or
so-called sin taxes helped pay for the Gateway complex and Cleveland Browns
Stadium.

Other opponents, who include small business owners, say the measure will
hurt convenience stores, bars and gas stations. The drop in cigarette sales
will cause them to layoff employees, thus adding to the unemployment rolls.
Retail cigarette sales will drop, further hurting the economy, and tax
revenues will decrease. Smokers will buy cigarettes online and
out-of-county, delivering another blow to state and county tax revenues.

Other detractors point to the hypocrisy of saying Issue 18 will promote
healthy living by reducing cigarette smoking at the same time it capitalizes
on that behavior to finance arts organizations.

Getting much less attention than the other ballot initiatives is Issue 19,
the 2.9-mill, four year, replacement tax for health and human services in
Cuyahoga County. The measure is listed on the ballot as a tax decrease
because the millage drops from 3.0 to 2.9. However, tax bills will increase
if the issue passes because inflation has increased property values.

Homeowners would pay $397 annually on a $100,000 house, rather than the $359
they now pay. The $38 added tax would raise $27.3 million a year.

Among other county programs, the tax helps pay for MetroHealth Medical
Center - its Metro Life Flight, Level One trauma center, and burn unit. The
levy also funds home health care, hot meals and transportation for seniors,
health care for infants and toddlers, foster care for abused children, and
treatment for emotionally disturbed youth.