Live-Blogging the Kasich-Jeb Bush Biz Forum in Mason, OH (Scroll for Updates)
Well, look what yours truly has stumbled into.
Thanks to Rose, I received an invite to attend a Kasich for Governor event in Mason, Ohio at the Fanuc Robotics facility (a “Jobs Roundtable Discussion”). So here we are, and with surprise access to public wi-fi with a strong signal. And Jeb Bush will be here. Cool.
The event, which I understand is supposed to be business climate-oriented (here is a Dayton Daily News item about it), will start shortly.
(click on more if you’re at the home page to see the running commentary)
Before it begins, I will let everyone know the question I submitted for Kasich to answer (among probably a hundred submitted, given that there are about 250-300 people here, so the chances it will be asked are very small, especially given the chicken-scratch quality of my handwriting):
What would you have done several weeks ago as Ohio Governor if you had faced the $850 million budget shortfall Ted Strickland faced? (and no fair saying “I would never have gotten into that situation in the first place”)
10:45 a.m. — Initial impressions: Very professional, very noisy, very organized. Loud rock plays in the background, various robots on display (about a dozen). Organizer encouraged people to get in their seats, and the crowd is standing room only (luckily, yours truly is not among the standees!). Actually, as people squeeze in, it looks like the chairs are all or virtually all occupied, and those standing are those who need to be (cops, photographers, etc.).
10:50 a.m. — Having a nice talk with a gentleman who sells the robotic equipment. I’m a sucker for discussions about production and business processes. We’ll get to stuff readers are actually interest shortly. Update: I’m also a sucker for helping people promote their businesses. In this case, it’s Motion Controls Robotics, out of Fremont, OH (not a short drive), and the person I met is company President Scott Lang.
10:55 a.m. — Announcer comes on and says, “Turn cell phones to the off position.” The guy must be a moonlighting flight attendant.
Putting computer to sleep until the expected standing o’s and intros are done ….
11:03 a.m. — Well, never mind on that. They’re still not here. Given the parking and car navigation situation outside, it’s not going to be too easy for Kasich et al to get in.
There are eight stools in front, with three already occupied by people I don’t recognize (not as if that means much).
11:08 a.m. — They’re onstage now. Fanuc person doing a quick infomercial. Wants to see new and high-tech businesses come to the state. Agenda: How can we improve business in the state? Kasich will be moderator.
11:15 a.m. — Kasich has the microphone. … Can we fix Ohio? Great crowd.
People are tired of the same old, same old. ….. People are really struggling. ….. This is not about a campaign, this is about a movement to save our state, to keep it from being second-rate.
…. Jeb Bush is a visionary. …. FL was 2nd in jobs created, 8th in income growth, while OH was usually 49th.
…. OH tax burden too high …. govt. is old and tired. …. education system is poor.
…. People had doubts about me in Washington and said you can’t get this balanced budget done. And we did, and had the best government and best economy in a long time.
…. I want you to be involved in the next administration. …. come see me if some state knucklehead is keeping you from creating jobs.
…. We have underutilized assets. …. I am so glad I stepped out of politics for 10 years to learn more about how business works.
…. In 1970 when I came to OH we were the promised land. I want to get that back.
…. Jeb Bush is a great role model. (hands mike to Bush)
JEB BUSH: The best job in the world is what John is running for.
Washington is one big food fight. …. at the state, you can find common ground …. incredible things can happen.
… Governors have to be the chief development officer of the state. ….. 5% relentlessly pursue jobs, and 95% is to tear down the barriers and protect the niches.
…. FL saved tons on workers’ comp — 60% reduction in costs. Litigation reform. People won’t invest capital if legal environment is uncertain.
…. in FL saw immediate results. ….. I’m confident that you can do the same in OH. …. It’s important that we get this right. …. we have to take part in the new world creating exciting jobs …. we need to build a world-class business climate.
KASICH: We WILL reform workers’ comp. We will work with training vouchers to help you improve your workforce.
Others on Forum Panel:
ROSS BUSHMAN of Cast-Fab Technologies (yours truly was controller there many years ago; Bushman is the company co-founder’s son; the company was a spin-off of Cincinnati Milacron about 20 years ago).
BOB KOHLHEPP of Cintas.
RYAN PATTERSON, Fanuc Robotics NW Ohio.
JOHN ROMISH, GM of Fanuc Robotics.
JOHN DEUCE, Emerson Climate Technologies, Sidney, OH, part of Emerson Electric.
DON LAY, CEO of Makino, Machine Tool Manufacturer in Mason
KASICH asks Kohlhepp what to do about people leaving.
KOHLHEPP, on how OH stacks up. Since 2001, OH has lost 500K jobs, 170K in last year. Will lose 2 Congressional seats. Forbes rates OH as 48th growth prospects. 46th in bankruptcies, 49th in foreclosures, 42nd in unemployment, 47th in business tax climate.
All of these things have to be considered when investing capital and if you won’t get a return you’ll invest somewhere else.
…. Need lower business and individual taxes. …. streamline state govt. and make it more efficient and provide the needed services. ….. need top-notch econ development director. …. everyone in state govt. should be a salesman for the state …. need fair state regs. In 2009, there were 40,000 laws passed in all states and the feds combined.
In TX, Perry went from $10 bil deficit to $8 bil surplus from 2001 to 2005. VA did tort reform, good employee recruiting and training, and improved education system.
Visited China recently, and was constantly being recruited by Communist(!) mayors who were being evaluated on how many new jobs they bring in.
KASICH: We (OH) just raised taxes again and declared victory.
BUSH: I-75 happens to run down to Florida; it’s amazing how many Ohioans have moved to Florida. …. The net effect is that a population decrease is a vortex that’s tough to stop.
DON LAY: Not a believer in someone helping me fix my problems. I want more people in business in OH so people can buy stuff from us. So I invited tool and die people whose businesses were struggling and did seminars. We know that several followed our suggestions and found lots of business …. in Texas and other out-of-state places (while staying here). (he’s advocating proactive business management/business development training, which seems like a good idea, and largely isn’t being done now).
…. we have a base of talent we’re not utilizing and some of them are leaving.
…. we need to get over the hump of “let’s save the auto industry” and get these skills applied to the next generation of manufactured products.
KASICH: How to improve skill levels?
JOHN ROMISH: Skill levels are high, they just need some retraining. Robot programming is something that could make a difference.
ROSS BUSHMAN: Need a coordinated effort to get training together. 130 of employees are on layoff out of 330. Wanted to do 12 weeks of training on a variety of subjects and applied for stimulus money to do it, but it didn’t qualify.
No more competitors in foundry business in Ohio. They’re out of state or in China, Poland, Taiwan, etc.
KASICH: asks if the training voucher idea is viable.
JOHN ROMISH is pretty enthusiastic about the idea, esp given the flexibility.
RYAN: As governor, I would be traveling anywhere looking for new business in OH. Lots to fix here, but we have to be out there selling and promoting and advertising what OH does well. Lots of wonderful companies already.
KASICH: You need to change the environment to attract people to get here. If business returns in OH aren’t acceptable, they go elsewhere.
JEB BUSH: Uncertainty esp if things appear they will get worse kills innovation and investment. Self-perpetuating downturn. But when you’re transparent and clear, it’s a self-fulfilling improvement cycle.
KASICH: How did Jeb Bush overcome the bias towards higher govt. costs?
JEB BUSH: We demanded that personal income growth had to grow faster than government spending. Outsourced a lot. Created a culture. Sadly, lots of business people put their hands out too, and you have to resist that.
People want limited, good, effective government. (Applause)
KASICH: What does it take to get Emerson’s board and CEO to move more biz into OH?
EMERSON GUY: Start with the structure of business. We wouldn’t even put OH on the list right now. We’re in an extremely competitive industry. OH is not friendly.
KASICH: That has to change (applause).
EMERSON GUY: I want OH to succeed, I lived here all my life. I’d like to see things change.
KASICH: …. companies are coming to Indiana thanks to Mitch Daniels.
KOHLHEPP: OH needs one strong voice of a person who knows business. We don’t need politicians who don’t have a clue. OH’s web site is hostile to new businesses; IN’s is inviting.
KASICH: Moving to Qs on energy costs. Asks Bush how he dealt with enviro issues.
BUSH: Not well, unfortunately. Couldn’t get past barriers. Huge problem. Fed and state regs are not in harmony, keeping nuke plants from being built. We need energy policy as a country and don’t have it. Also a national security issue since lots of our energy come from hostile/unstable sources. Troubling in every aspect.
You should be able to exploit the resources of your state.
KASICH: OH EPA regs are sometimes tougher than US EPA. (AK Steel prez offstage agrees).
KASICH: How do we deal with cap and trade?
KOHLHEPP: Energy Dept. in DC was created supposedly to reduce dependence on foreign oil when it’s recently done everything to increase it. We need Guv willing to stand up to the feds when necessary.
KASICH: Will GOP and Dem governors get together to oppose what DC is doing?
BUSH: Out-years Medicaid costs in the health care bill are brutal. So the answer is “give everybody kickbacks to deal with it.” Our country needs a business climate strategy.
KASICH: How do you resolve business frustration?
DON: 50 different people in the state say different things. They need to be aligned with each other so business people can navigate. Right now it’s a Tower of Babel. Need one government that speaks in one voice.
KASICH: Group rating in workers’ comp is causing people to have their rates jacked up 300% (despite their own claims experience — Ed.)
BUSH: We crafted workers’ comp for significant savings.
ROSS BUSHMAN: We need John’s strong leadership with a business background.
RYAN PATTERSON: We need high-tech education.
EMERSON GUY: I want my kids to stay in OH and for the two in Chicago to come back, and they might with a good business climate.
KASICH: We need to have entrepreneurs driving economic growth. We’re thinking about multiple levels for getting these things done.
BUSH (wrap): I’ll be back in September for Univ. of Miami vs. Ohio State and to help John Kasich get elected.
********
Assessment: Done well. Some decent ideas noted, atmosphere of realism. No breakthrough thoughts, but lots of blocking and tackling. Seemed light on Qs, but with 8 people participating, it’s not surprising that they burned through the available time before getting to them. I like the training voucher idea, and want to see if anyone else has tried that yet. In the wrong hands, it could be seriously abused, I’m afraid.










Thanks bunches for covering this. So cool.
What I’ll remember about Kasich, so far:
- One of his main platforms is to repeal Ohio’s income tax. He’ll be using Florida, and its former Governor Jeb Bush, to showcase the value of no income tax to economic growth. Broadly, I agree. For practical purposes (and as an Ohio-centric theme), I have some qualms. More on that in a follow-up.
Has Kasich got something else, other than an income tax repeal? (He needs more than one wishful dream solution to produce a winning campaign.) Yes. Some glimmers of a couple ideas emerged from the Bizzyblog coverage:
- A training voucher.
- Reform Workers’ Comp.
To avoid a super-long comment, will create a follow-up comment on these two ideas.
To close this comment: Yes, good, Kasich has (or is trying to get via forums like this one) some economy ideas more than just repeal the income tax. Now to watch if and how Kasich make turn these nuggets into implementable solutions, and thus campaign themes.
Comment by Cornfed — January 13, 2010 @ 11:03 am
A summary of the two new economic nugget ideas, so far, from this post with my added experience/reactions:
(i) The training voucher. ***************
Could be a good concept. Fits as a state level solution.
The only info so far is summarized as follows: “DON LAY: Not a believer in someone helping me fix my problems. I want more people in business in OH so people can buy stuff from us. So I invited tool and die people whose businesses were struggling and did seminars.” ….”
The challenge is how to explain this as a CONSERVATIVE solution. It can’t just be another way to spend govt money, yet another tailored (read “pay to play”) tax break or more govt-spending disguised as an “investment”.
(ii) Workers’ Compensation *********
“KASICH: Group rating in workers’ comp is causing people to have their rates jacked up 300% (despite their own claims experience — Ed.)
BUSH: We crafted workers’ comp for significant savings.”
Wow, this was VERY specific. Really REALLY looking forward to hearing what Florida’s specific workers comp solutions were. These good be a very explainable solution to voters, if FL solutions can be applied to OH.
Best one-liner: “JEB BUSH: We demanded that personal income growth had to grow faster than government spending. “
Comment by Cornfed — January 13, 2010 @ 11:27 am
My apologies for one more post. I’m really trying to get sorted out in my mind what Kasich stands for. (His fund-raising letters are pathetically generic.)
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(iii) Cap and Trade
Kasich will run AGAINST cap and trade; his “NO” to that issue was already known.
The new info from this meeting: This exchange begins to reveal Kasich’s thinking on the Cap-and-Trade issue, but more important on the broader issues of Energy policy (Palin big BIG on that topic) and on a State’s natural resources:
“KASICH: Moving to Qs on energy costs. Asks Bush how he dealt with enviro issues.
BUSH: Not well, unfortunately. Couldn’t get past barriers. Huge problem. Fed and state regs are [***]not in harmony[***], keeping nuke plants from being built. We need energy policy as a country and don’t have it. Also a national security issue since lots of our energy come from hostile/unstable sources. Troubling in every aspect.
[!!!!begin emphasis:] You should be able to exploit the resources of your state. [end emphasis!!!!]
KASICH: OH EPA regs are sometimes tougher than US EPA. (AK Steel prez offstage agrees).”
In other words, Kasich can run on a platform of “Regulatory Reform”. He is not just saying “NO” to Cap-N-Trade/Cap-N-Tax; he is saying “Yes” to solutions. How he explains this reform will be telling to voters. If it becomes “regulatory minimization”, that appeals to Conservatives; but is it too laissez faire to win a majority of OH voters? If it becomes “regulatory harmony”, perhaps that’s a way to explain a balance, and address that State regs should match/compliment Federal regs. Running for Gov, he must work within existing Fed regs. Ohio is a coal state, so I don’t think complaints about NIMBY to nuke plants will win any voters. Kasich would be better addressing how to leverage our coal and other resources in ways that are environmentally safe. Starter ideas: The research at Wright-Patterson. Economic policies that promote R&D within energy companies: improve filtering of emissions from coal plants to protect our air, improve mining methods to balance the goals of coal extraction yet water resources protection. Kasich can’t just ignore the words “Climate Change” and can’t run on only “No to Cap-N-Trade”. He needs a positive message. There may be nuggets of such a message emerging here, conservative yet positive. Solutions, but not just more big-govt or too-little govt; explainable to voters as how much govt.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Thanks much for covering this forum, Mr. Blumer. I’m finally beginning to feel a little warm to Kasich as a Governor.
Comment by Cornfed — January 13, 2010 @ 11:33 am
#1-#3, thx for the thx, and your comments.
“Sensible, firm, cost-efficient regulation” seems like a good term.
Kasich in person is pretty passionate and really conveys his commitment to get this state going again.
Comment by TBlumer — January 13, 2010 @ 12:12 pm
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