Critics Raise Concerns With Non-Profit Funding Plan

Thursday May 7, 2009 4:31 PM
UPDATED: Monday May 11, 2009 8:01 AM

A new approach to funding state government through the formation of non-profit organizations has been endorsed by Gov. Ted Strickland, but critics said Thursday the plan could put public interest up for auction.

Opponents of the plan said lawmakers in the Ohio House of Representatives slipped a huge number of amendments into the state's budget bill at the last minute, 10 Investigates' Paul Aker reported.

"The midnight rider, I think we'll call it," said Ohio House minority leader Bill Batchelder.

The amendment would change the way fundraising looks in Ohio. Until now, organizations like the United Way and the Red Cross have never competed with state government for donations, but they could start, Aker reported.

The amendment would make it legal for state agencies, like the Ohio Department of Transportation and the Environmental Protection Agency, to form non-profit corporations to fund operations.

In addition to taxes, donations would also fund government, Aker reported.

Strickland endorses to amendment, saying it is a good way to make up for falling state revenues.

"An avenue to where they could make a contribution to try and accomplish those positive outcomes that we simply don't have the resources right now to pay for," Strickland said.

Critics said the plan will cause problems.

They believe that if the amendment gets approval from the Ohio Senate, then you might as well put a For Sale sign at the base of the Ohio Capitol steps. Watchdog groups said state-run non-profits could quickly become outlets for companies that want special treatment.

"You can imagine the problems," said Catherine Turcer, director of Money in Politics. "This is really a time when we don't want to be giving away state resources to contributors."

Strickland has acknowledged critics' concerns, but said there was a way to use the amendment and ensure government ethics.

"The only way to keep unethical things from happening is to keep ethical people in charge," he said.

Watch 10TV News and refresh 10TV.com for additional information.

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