Dayton Daily News from Dayton, Ohio • 8

A8 COMPLETE. IN-DEPTH. DEPENDABLE. DAYTON DAILY NEWS THURSDAY, APRIL 23, 2015 The income tax cut will push the top rates down to the lowest in more than 30 years. (Lawmakers jacked up income taxes by 83.3 percent in 1983 and 90 percent in 1984.) Kasich also sought changes to the funding formula used to calculate state aid to school districts.

The governor proposed tweaking it to make wealthy districts pay a higher share than those less able to generate local money. The House, however, replaced that plan with one that guarantees no district will receive less in state funding in year 2017 than it did in the current year. Kasich still has time to for his proposals in the General Assembly. The press secretary, Rob Nichols, responded harshly to the House GOP budget. responsible budgeting has helped get Ohio back on track, which is why the governor is so troubled by the House budget.

Their spending increases and rosy budget projections threaten the progress Ohio has made in the past four years and the rejection of tax reform is a missed opportunity that, if allowed to remain, would erode our improving economic Nichols said. After nearly six hours of debate, House Minority Leader Fred Strahorn, D-Dayton, said the budget plan do enough to invest in K- 12 education, make college restore funds to local governments, hold under-performing charter schools accountable, and support the middle class. He criticized plans to attach more strings for Medicaid recipients, such as requiring modest monthly premiums. But House Finance Committee Chairman Ryan Smith, R-Bidwell, said of the budget: pro-growth, pro- business and going to take Ohio to a better Nichols disagrees. a former congressional budget committee chairman, seen this situation before: after the crisis subsides, people think OK to slip back to old habits.

The governor will do everything possible to prevent that from The budget now moves to the Ohio Senate for consideration and a version expected to be hammered out until late June. Not all Republicans in the Ohio House were on board with the budget bill. State Rep. Nino Vitale, R-Urbana, said he support the spending plan because it includes expanded Medicaid, which is the state and federally funded health care program for the poor and disabled. Vitale argued that by accepting the federal money to cover an additional 500,000 Ohioans on Medicaid, Ohio would be contributing to out of control federal spending.

Vitale was among Republicans who opposed the budget. The others were John Becker, Tom Brinkman, Ron Hood, and Paul Zeltwanger. Three Cleveland-area Democrats voted for the budget: John Barnes, Bill Patmon and Martin Sweeney. Highlights of the House version Medicaid: Spend $50 billion in state and federal money over two years. Require monthly premiums from Medicaid recipients who make more than 100 percent of the federal poverty level.

Give the Legislature say on Medicaid eligibility rules. Apply for federal permission to institute health care savings accounts for Medicaid recipients. K-12 education: Spend $15.9 billion over two years. Increase spending on K-12 by nearly $950 million in year 2017 over year 2015. Continue to reimburse districts for revenue losses sustained because the state eliminated the tangible personal property taxes on businesses.

Give $20 per student for facility costs to online charter schools and spend nearly $1 billion a year on charters. Let exemplary charter school sponsors seek their own tax levies. Higher education: Limit tuition increases to 2 percent or $200 at four- year schools and 2 percent or $100 at two-year schools. Bar schools from charging overload fees for students taking more than the typical number of credit hours. Increase college opportunity grants for low-income students by $5 million a year.

Budget continued from A 1 Gov. John Kasich (left) is worried about the size of the proposed state budget, according to his press secretary. ASSOCIATED PRESS responsible budgeting has helped get Ohio back on track, which is why the governor is so troubled by the House Rob Nichols Press secretary for Gov. John Kasich FROM PAGE ONE he earned a $50,289 bonus on top of his base. last day is May 10.

He is leaving after a tenure during which he engineered a number of deals some controversial that will impact the university for decades to come. And one of those deals has a new twist. Chatas was the driving force behind an agreement in June 2012 to lease for 50 years the 35,000 on-campus parking spaces in exchange for $483 million in cash up front. The deal was controversial because of the length of the lease and the ceding of control of the parking operation to a private investment Now, Chatas is leaving OSU to go to work for the investment Beginning next month, Chatas will be a manager for QIC Global Infrastructure, an Australia-based investment management that has the 50-year lease for parking spaces at OSU. going to be leading a new fund going to be investing in global infrastructure.

So things like energy and Chatas said in an interview. going to be building a North American team out of Columbus and New York to invest new money into new projects. They could include things like renewable energy, globally things like transportation assets that come available airports, toll roads, things like Chatas noted that he will not be involved in parking deal with OSU as part of his new role. Ohio University economics professor Richard Vedder, who leads the Center for College Affordability and Productivity, said deferred compensation plan allowing him to walk away with more than $1 million me as a misuse of public But Vedder said new job may also raise ethical questions. Ohio ethics law prohibits former public from from contracts that they arranged or had a hand in arranging while serving in a public position.

The Ohio Ethics Com mission does not whether it is investigating or planning to investigate an ethical issue. Vedder said arrangement with QIC one moment he is engineering a valuable asset, moving it into hands and then literally three years later he is going to work with them or receive money from them in some Vedder said. raises eyebrows at a minimum and maybe more than Bill Bain, Communications Workers of America District 4 Representative, which represents 1,700 OSU workers, also called for an investigation. appears to Bain said. needs to be investigated by the ethics commission or state someone who will do some dig $121,000 on travel A Daily News investigation published by in August 2013 found that Chatas spent $121,000 on travel during a two-year period, making trips to Iceland, Paris, India, China and elsewhere and staying in hotels.

OSU internal auditors too raised questions about travel bills. At the time, university defended stays at luxury hotels, occasional class and the use of private yet, saying he was in compliance with university policies. An OSU spokeswoman said Chatas was expected to travel extensively for his job. Chatas has been charged with creating a fundamentally new model of universities, which requires stronger relationship-building strategies and important face-to-face engagement of Assistant Vice President for Media Relations E. Gayle Saunders said then.

Publicly, Chatas has been heralded as a nancial genius who has helped Ohio State carve out new revenue streams. Gov. John Kasich entrusted him to head up a statewide task force on college has challenged Ohio State to look at many of our resources in a new way, all for the of our faculty, students and in support of our academic OSU President Michael Drake said in a written statement when announcing departure. forward-thinking approach to meet the changing dynamics faced by institutions of higher education leaves the university in a strong Some of cial deals, while innovative, are impossible to measure. In one such deal, OSU in October 2011 issued a for $500 million at 4.8 percent annual interest and earmarked for capital projects.

The principal must be paid in 2111. Chatas also negotiated a 15-year, $25 million contract with Huntington Bank to be the bank on campus, giving Huntington the exclusive right to put branch and ATMs across campus and make pitches to students and faculty. Huntington promised to loan out $100 million for economic development projects near campus as part of the contract. investment team raised concerns about a July 2013 plan engineered by Chatas to invest $50 million with Drive Capital, a venture capital fund co-founded by close friend Mark Kvamme. Chatas moved ahead with the deal despite the objections, which included putting so much money into an untested fund.

Strong resume Former OSU president E. Gordon Gee hired Cha tas in February 2010 to oversee the $5 billion budget and a team of 350 employees. The son-in-law of a former powerful OSU trustee, Jack W. Kessler, Chatas has a strong resume in nance and energy that includes infrastructure investments for JP Morgan Asset Management, adjunct professor at Fisher College of Business, chief cer for Progress Energy Inc. and senior vice president for for AEP, Inc.

He has solid academic credentials as well: an MBA from an international business school in France, a in history from Oxford University in England and a degree from Georgetown University in Washington, D.C. During his tenure, Chatas received positive performance reviews from both Gee and interim president Joseph Alutto. But both cautioned Chatas to work on his communication and leadership skills. In his 2013 annual review, Alutto wrote: are quick to point out the shortcomings of your peers as well as other individuals across campus, but this year I want to you totally focus on Alutto directed Chatas to work with an external coach. Contact this reporter at 614224-1624 or email Laura Chatas continued from A 1 KEY DEALS ENGINEERED BY OSU CHIEF FINANCIAL OFFICER GEOFF CHATAS: Oct 2011: OSU issued a for $500 million at 4.8 percent annual interest.

The principal must be paid in 2111. The cash is earmarked for capital projects. Feb 2012: Huntington Bank signed a 15-year $25 million contract with OSU to be the bank on campus, giving Huntington the exclusive right to put branch and ATMs across campus and make pitches to students and faculty. Huntington promised to also loan out $100 million for economic development projects near campus. June 2012: OSU signed a 50-year lease of its 35,000 parking spaces with QIC Global Infrastructure and LAZ Parking in exchange for $483 million in cash.

OSU plans to use investment earnings the cash for scholarships and hiring more faculty. July 2013: OSU invested $50 million with Drive Capital, a venture capital fund co-founded by Gov. John close friend Mark Kvamme. investment team raised a dozen concerns about the new, untested fund but Chatas moved ahead with the deal. AIR CONDITIONING ASPHALT AUTOMOTIVE SERVICES BATHROOM REMODELING CONCRETE ELECTRIC SERVICES HOME IMPROVEMENT REPLACEMENT WINDOWS ROOFING TIRES SEPTIC SYSTEMS Lots of companies say they are trustworthy.

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