Journal-News

Issue 1 State of Ohio

Issue Information:

ISSUE 1: PROPOSED CONSTITUTIONAL AMENDMENT TO AUTHORIZE THE STATE TO ISSUE BONDS TO PROVIDE COMPENSATION TO VETERANS OF THE PERSIAN GULF, AFGHANISTAN, AND IRAQ CONFLICTS (Proposed by Joint Resolution of the General Assembly of Ohio)

To adopt Section 2r of Article VIII of the Constitution of the State of Ohio

A YES vote means approval of the amendment.
A NO vote means disapproval of the amendment.
A majority YES vote is required for the amendment to be adopted.

If approved, this proposed amendment shall take effect immediately.

League Explanation of Issue 1: This ballot issue proposes a constitutional amendment that would provide compensation to veterans serving during the Persian Gulf, Afghanistan, and Iraq conflicts. The amendment is similar to the bond issues passed by the voters to compensate veterans of World War I, World War II, the Korean War, and the Vietnam conflict. It will provide the state with the authority to issue up to $200 million of bonds. The Ohio treasurer has estimated that only $106 million of the bond proceeds might actually be needed. All bonds must be issued by December 31, 2013. Repayment of these bonds would be a general obligation of the state backed by the taxing power of the state. Revenue from these bonds would be used to provide additional compensation as follows:

Payment may be made to Ohio residents who have served on active duty in the United States armed forces between August 2, 1990 and March 3, 1991, which was the duration of the Persian Gulf conflict; between October 7, 2001 and the end of the United States’ involvement in Afghanistan; and between March 19, 2003 and the end of the United States’ involvement in Iraq.

Veterans who served domestically or in foreign service in locations other than the Persian Gulf, Afghanistan, or Iraq may receive $50 for each month served up to a maximum of $500.

Veterans who served in the Persian Gulf, Afghanistan, or Iraq may receive $100 for each month served up to a maximum of $1000, or may receive $1000 if medically discharged due to combat-related disabilities.

If a person died as a result of injuries sustained in Persian Gulf, Afghanistan, or Iraq service, that person’s family may receive $5000.

If a person is missing in action or held in enemy captivity, that person’s family may receive $5000.
The Legislative Services Commission estimates that issuing $200 million of obligations could increase the state’s annual debt service expense by up to $18 million. The voters must approve this bonding authority because the Ohio constitution does not permit an appropriation being made for a period longer than two years.

Proponents of the proposed amendment argue that:
1. Passing the amendment by vote of the people shows that Ohioans appreciate Ohio veterans.
2. The payments will ease veterans’ transition back into civilian life.

Opponents of the proposed amendment argue that:
1. Tax monies will be diverted to paying principle and interest, and this may limit the availability of state revenue for other state programs during a period of financial crisis.
2. Future taxpayers will be responsible for the debt incurred for these payments. The payments should be paid for by revenues available in the current biennium.

Websites: Websites not available for proponents and opponents.