Issues focus on smoking, gambling, wages, the arts
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.

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