In Northeast Ohio Local Government Represents 10% of Local Economy

According to this study, in northeast Ohio, local government costs everybody in the seven-county region a whopping $3,750 per person. Here are the key findings:

656 Ohio government entities (16 counties, 169 municipalities, 164 townships, 99 special districts and 208 school districts) provided data for the most recent Census of Governments (2002) and reported total spending of nearly $16 billion; more than 10% of the region’s overall economy.

In the prior Census (1997), 852 governments had reported. Thus, the $16 billion in government spending reported to the most recent Census is conservative. Had all entities provided information, reported spending would have been higher.

In analyzing data for the 604 Northeast Ohio governments that reported for all three of the most recent Census of Governments (1992, 1997 and 2002) CGR found spending rose from $9.25 billion to $15.7 billion. On a per capita basis, spending rose 68%. The inflation rate in the Midwest for the same period was about 29%.

There is a wide disparity in spending on a per capita basis among the counties in Northeast Ohio. Even with under reporting of information, the database illustrates there is a multiplicity of government entities delivering similar services in the region.

I think this statement sums up why northeast Ohio is in the shape it is:

“On a per capita basis, when we compare our expenditures in Cuyahoga County with those of Franklin County, we spend $800 million more per year than they do in Franklin County. We’ve been talking about fixing government for far too long. This research sets the stage for real action to immediately improve the efficiency of government in Cuyahoga County,” Miller said.

...and it is a warning sign for the rest of the state too. We need to bring down the cost of government. Governor Strickland's model for the state is to pull out our grandkids' credit card and charge it...and it is sad to say, but entirely true, that Republicans in the state legislature put up a token fight but eventually went along with it. Now that fight has to be taken locally...we must fight back against runaway spending in government. A line must be drawn somewhere...

UPDATE: More from the Cleveland Plain Dealer here.

UPDATE 2: Peter Kirsanow brings up a very valid point over at The Corner:

Ohioans, already struggling with a mammoth jobs and brain drain, will be voting this fall on a ballot initiative called the Ohio Healthy Families Act. The Act will require most Ohio businesses to provide up to 7 paid sick days to their employees who are ill or who have an ill family member. The paid sick leave begins to accrue immediately upon hire.

Over the last 25 years, policies based on economic populism have been strangling businesses in Ohio. As noted recently in the WSJ by Ohio native Chester Finn, the best and brightest young people are fleeing Ohio in droves. Cleveland lost more residents last year than any major city in the country.

Whatever the merits of OHFA, it's likely to contribute to that trend. Before you can take sick leave, paid or otherwise, you have to have a job.

Ohio is not business friendly to begin with...and northeast Ohio is probably the least business friendly region in the state...and this Ohio Healthy Families Act is not a step in the right direction. For Ohio, the choice is clear: we can embrace socialism and get destroyed economically, or we can embrace free market ideas and encourage businesses to locate here.