Senate passes vet's bonus measure; House speaker opposing bond funding
A constitutional amendment that would award a bonus to Ohioans who served in the military during the nation's major combat engagements since 1990 has cleared the Ohio Senate with unanimous support, but might have a tougher time in the House.
The Ohio Senate on Wednesday unanimously passed Senate Joint Resolution 5. If the proposed amendment makes it past the House and to voters in November, they will choose to authorize up to $200 million in bonds to provide a one-time benefit of up to $1,000 to Ohioans who served or were on active duty during the Persian Gulf, Afghanistan and Iraq wars. More than 206,000 Ohioans have served, died or were listed as POW/MIA during the conflicts specified in the amendment as of October 2007.
With interest rates falling, Ohio Treasurer Richard Cordray called the bond funding a sensible measure. Based on the October estimates, the bonus' estimated cost would be $105.9 million and annual debt service for the bonds would be about $9.5 million over 15 years.
But House Speaker Jon Husted, R-Kettering, while supporting the idea of veterans' bonuses, opposes using bonds, his spokeswoman said.
"We want to look at other ways of paying for this rather than borrowing from the future," Karen Stivers said.
Despite a gloomy forecast for Ohio's budget - Gov. Ted Strickland on Thursday announced more than $700 million in budget cuts for the 2008-09 biennium - Stivers maintained a "pay-as-you-go" system is more sensible.
"We think a plan could still be worked out in the House with regard to the issue but we prefer to use existing revenue," she said.
Responding to Husted's position, Cordray said pulling the funding from revenue instead of bond financing puts a strain on a budget already projected to be short - and sidesteps an important part of the process.
"Putting the bonds before voters gives people the opportunity to have the choice," he said. "If we do (the bonus) from current revenue, the people don't have the opportunity to weigh in on it."
The Senate will begin reviewing the proposed amendment in the near future, Stivers said.
Breaking down the bonus
The following is a cost estimate for the proposed veterans' bonus using personnel data as of October 2007.
• $100 per month served ($700 maximum) to 29,940 Ohioans on active duty during the 1990-91 Persian Gulf War - $20.96 million maximum cost.
• $50 per month served ($350 maximum) to about 85,000 Ohioans on active duty elsewhere during Persian Gulf War - $29.75 million.
• $100 per month served ($1,000 max) to 17,545 Ohioans on active duty in the Afghanistan and Iraq wars - $17.55 million maximum cost.
• $50 per month served ($500 max) to 73,386 Ohioans on active duty elsewhere during Afghanistan and Iraq wars - $36.69 million maximum cost.
• $5,000 to families of 195 Ohioans killed or held as POW/MIA in Persian Gulf, Afghanistan or Iraq - $975,000.