In response to Ohio Attorney General Dave Yost’s suit against the Biden Administration to use their COVID relief funding to give tax cuts to the wealthy and corporations instead of bringing back lost jobs, Protect Our Care’s Coronavirus War Room Director Zac Petkanas released the following statement.
“Nothing speaks more volumes about the values of the Republican party than Ohio’s Attorney General suing to take funds allocated in the American Rescue Plan to restore the jobs of the 57,500 Ohio essential workers who are now out of work and instead try to give that money to the wealthy and corporations.
“Let’s be clear: this action will leave frontline health care workers, teachers, first responders, transportation workers and others who have borne the brunt of this pandemic high and dry. Attorney General Yost’s lawsuit is not only an insult to those who have put themselves and their families lives at risk for our safety — it’s killing our economy.
“Giving tax cuts for the wealthy and corporations at the expense of working families is a Republican fantasy as old as time. But it takes on a whole new level of gall at a time when our country is faced with the worst public health and economic crisis in a generation.”
BACKGROUND:
- Ohio Attorney General Dave Yost Sued The Biden Administration Over The American Rescue Plan, Saying The Billions In State Relief Funds Came With Unconstitutional Limits On How They Could Be Spent. “Ohio Attorney General Dave Yost sued the Biden administration Wednesday over its $1.9 trillion coronavirus relief package, alleging the federal government sought to impose ‘unconstitutional’ limits on states’ ability to access some of the aid. […] The Ohio lawsuit centers on a $350 billion fund meant to help cities, counties and states cover the costs of responding to the coronavirus pandemic. The stimulus law opened the door for cash-strapped local governments to tap federal aid to pay for expenses, including for first responders, although it prohibited states from using the money to directly or indirectly offset new tax cuts.” [Washington Post, 3/17/21]
- The American Rescue Plan Prohibits ARP State Relief Funds From Being Spent Directly Or Indirectly To Offset New Tax Cuts. “The stimulus law opened the door for cash-strapped local governments to tap federal aid to pay for expenses, including for first responders, although it prohibited states from using the money to directly or indirectly offset new tax cuts.” [Washington Post, 3/17/21]
- January 2021: Ohio Governor Mike DeWine Ordered $390 Million In New Spending Cuts. “Ohio, in particular, stands to see about $11.2 billion in fiscal relief at the state and local levels, according to a March analysis from the Congressional Research Service. The money could provide a boost after Gov. Mike DeWine (R) ordered $390 million in new spending cuts across state agencies in January.” [Washington Post, 3/17/21]
- Ohio Lost 57,500 Public Sector Jobs From February 2020 To June 2020. According to the Economic Policy Institute, Ohio lost 57,500 public sector jobs from February 2020 to June 2020. [Economic Policy Institute, 7/29/20]
- State And Local Governments Set The Budgets For Police And Fire Departments, Public Schools, Health Departments, And Other Essential Workers. “State and local governments set the budgets for local police and fire departments, public schools, health departments, road constructions and repair, public transportation and many other essential public services. How each state, city or town gets revenue varies widely, though it ultimately is some combination of income, sales and property taxes. No matter what the combination, when the economy is hurting – people are unemployed and are buying less and businesses are closing – state and local governments can take a huge hit.” [The Guardian, 1/13/21]
- Education Workers Have Been Particularly Hit By Budget Shortfalls, With Employment Being Down In Public Education In Nearly Every State. “This will prove particularly important for public education, which has received the brunt of state and local government layoffs during the pandemic. Employment is down in public education in nearly every state compared to 2019, according to an analysis from Pew Charitable Trusts.”[The Guardian, 1/13/21]
- Ohio Lost 0.9 Percent In Tax Revenue During The Pandemic Period. According to the New York Times, Ohio lost 0.9 percent in tax revenue from April 2020 to December 2020. [New York Times, 3/1/21]
- January 2021: The Unemployment Rate In Ohio Was 6.3 Percent And Over 300,000 Ohioans Were Unemployed. According to deptofnumbers.com, the January unemployment rate in Ohio was 6.3 percent and over 306,861 Ohioans were unemployed. [Department of Numbers, accessed 3/18/21]
- Ohio Lost Nearly 650,000 Private-Sector Jobs During The Three Months That The COVID-19 PAndemic Locked Down The State. “Ohio lost nearly 650,000 private-sector jobs during the three months that the Covid-19 pandemic and public health orders locked down the state in 2020.” [Columbus Business First, 1/28/21]