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Home , Bob Taft, John Kasich, The Repository

2016 Presidential White Paper SERIES Paper #9 GOVERNOR October 1, 2015

INTRODUCTION spending policies and actions. Kasich’s grades were: After working as an administrative as- sistant to a state senator, John Kasich was 2012 – “B”6 elected to the State Senate in 1978, at 2014 – “D”7 the age of 26. In 1982, Kasich won election In addition, in 1992, Taxpay- to the U.S. Congress from the 12th congres- ers Union (NTU) began providing an an- sional district (based in Columbus). He nual scorecard that rates members of Con- served in Congress for nine terms, having Photo credit:: corbis images gress on “reducing spending and opposing been re-elected each time with at least 64% higher taxes.”8 Kasich scored a “B” during rate below 5%.11 The net tax reduction of of the vote. the first three years of NTU’s scorecard Ohio’s 2015 budget was approximately Kasich formed an exploratory presiden- (1992-1994), and again in 1997. He tallied $1.9 billion.12 Kasich also argued for repeal tial committee in February of 1999, but three “A” grades during the ensuing years of the state’s Death Tax in 2011. Though dropped out in July after dismal fundrais- and “B+” grades during his final two years he did not include the repeal in his budget ing, and endorsed then- Governor in Congress (1999-2000).9 proposal,13 the legislature did and Kasich George W. Bush.1 After Congress, Ka- signed it into law.14 sich hosted a TV show on the Fox While Governor Kasich’s budgets have Channel. In 2001, Kasich joined Lehman TAXES typically been proposed and passed with Brothers’ division as a net decreases in overall taxation, he has managing director. He remained with the The is committed to also proposed numerous new taxes and tax company until its bankruptcy and collapse lower taxes – especially lower tax rates increases, including: in 2008.2 – across the board. Lower taxes on work, savings, and investments lead to greater Repeated calls to raise the severance In the 2010 Ohio governor’s race Kasich levels of these activities, thus encouraging 15 defeated incumbent Democrat Ted Strick- greater economic growth. tax on oil and gas extraction 3 land in a close contest, but won re-election A financial institutions tax in 2012 on 4 As governor, John Kasich has a mixed by a wide margin (64-33) in 2014. He Ohio banks’ net worth, to replace the announced his bid for the 2016 Repub- record on taxes. He has repeatedly signed existing corporate franchise tax and the lican nomination for the presidency on into law budgets that include cuts to the 10 Dealers in Intangibles tax16 July 21, 2015.5 . The state budget that he signed in 2015 reduced income tax rates Kasich’s time in Congress was prior to the in all brackets by 6.3%, bringing the top Club for Growth’s annual scorecard. How- 11 Ohio Country Journal, 7/16/2015 ever, the Cato Institute, a free market think 12 Ibid. tank, produces a biennial scorecard on the 6 Fiscal Policy Report Card on America’s Governors 13 John Kasich Budget Summary, http://1.usa. nation’s governors based on their tax and 2012, Cato Institute, 10/9/2012 gov/1hUfFyr 7 Fiscal Policy Report Card on America’s Governors 14 Toledo Blade, 7/1/2011 (http://bit. 1 CNN, 7/14/1999 2014, Cato Institute, 10/2/2014 ly/1LUvkdM) 2 NPR, 7/21/2015 8 NTU.org 15 Enquirer, 3/11/2014 (http://cin. 3 9 NTU.org ci/1iyeLGq); 6/16/2015 (http://cin.ci/1EBx5tU) 4 Ohio Secretary of State 10 Toledo Blade, 7/1/2011 (http://bit. 16 , 3-16-12; http://bit. 5 , 7/21/2015 ly/1LUvkdM); Cleveland.com, 7/1/13 ly/1hUjYKf 2016 Presidential White Paper Series - GOVERNOR John Kasich Raising the tax on cigarettes17 already taxed at the federal level.25 SPENDING

Increasing Ohio’s Commercial The Ohio legislature did not include a sev- The Club for Growth is committed to Activities Tax on Ohio business’s erance tax increase and instead created a reducing government spending. Less gross receipts to 0.30 percent from task force to review the issue. The legisla- spending enhances economic growth by 0.26 percent.18 ture also dropped Kasich’s call for a sales enabling lower taxes and diminishing the tax increase and a tax increase on business government’s economically inefficient al- In 2013, Kasich signed a budget that commercial activity. And the legislature location of resources. 19 raised the state sales tax by .25%. In did not pass Kasich’s plan to tax Social Governor Kasich inherited an $8 billion 2015, Kasich proposed increasing the state Security benefits.26 sales tax by half a cent and expanding it to shortfall when he took office in January As a member of Congress, Kasich: cover many business services not currently 2011. By the time the state legislature covered, such as consulting and public passed a budget at the end of June 2011, relations. This was expected to raise $2.7 Voted against the 1990 Bush “read-my- improving state revenue had shrunk the 27 32 billion over the next two years.20 lips” tax hike estimated shortfall to $6 billion. Since Kasich began as governor, Ohio’s rainy day Voted against the 1993 Clinton tax In 2015, Kasich proposed a 6.5% increase fund has gone from being nearly nonexis- hike28 in the severance tax on oil and gas extrac- tent to now holding a $2 billion balance.33 tion. The tax was projected to cost $3.25 Supported a constitutional amendment The budget that passed in 2011 reduced per barrel of oil, up from the state’s exist- to require a 2/3 vote of Congress to 21 the amount of state general revenue funds ing charge of 20 cents per barrel. The raise taxes29 total tax hike was estimated to be $260 distributed to county and city governments million.22 One industry expert wrote, “The Voted for cuts in the Capital Gains by 25% in fiscal year 2012 and another 34 last thing Ohio needs is to add a tax to the Tax rates, taking the top rate from 28% 25% in fiscal year 2013. The budget also 35 cost of producing oil and gas. Instead we to 20%30 allowed the sale of six state prisons, one 36 need to encourage energy investment in more than Kasich had recommended. Voted to repeal the tax on Social the state, not push it away.”23 A coalition 31 State spending in Ohio has increased of Chambers of Commerce of Ohio’s major Security benefits significantly since Governor Kasich’s first cities opposed Kasich’s 2015 tax plan, ar- Overall, Kasich’s record on taxes is on the budget, leading the CATO Institute, in guing that it shifted tax burdens and would side of net decreases, but the Ohio legisla- 2014, to give Kasich “the worst score of any hurt businesses.24 ture gets credit for stopping a number of governor in the country on spending.”37 Kasich also proposed taxing Social Security significant tax increases that Kasich pro- According to CATO, state spending under benefits to raise approximately $167 mil- posed. In particular, the legislature has re- Kasich increased by 12% from 2012 to 38 39 lion by 2017. Social Security benefits taxed jected Kasich’s annual calls for a severance 2015. By contrast, inflation plus popula- 40 41 at the federal level are not taxed in Ohio. tax on gas and oil exploration, including on tion grew by only 5.1%. Likewise, growth Under Kasich’s proposal, seniors with for . incomes above $100,000 would have their 32 Cincinnati Enquirer, 6/29/11; http://bit. benefits taxed at the state level if they are ly/1L5LVFD 25 Cleveland.com, 2/4/15; http://bit.ly/1fVnWjV 33 Cleveland.com, 7/12/2015 26 Cleveland.com, 6/26/15; http://bit.ly/1PLFfzX 34 Cincinnati Enquirer, 6/29/11; http://bit. 17 While Governor Kasich proposed a $1 per 27 Roll Call vote 528, 1990; http://clerk.house. ly/1L5LVFD pack increase, the Ohio legislature settled on 35 gov/evs/1990/roll528.xml 35 Plain Dealer, 6/29/11; http://bit.ly/1Q95AZF Cleveland.com cents a pack. , 6/24/2015 28 Roll Call vote 406, 1993; http://clerk.house. 36 John Kasich Budget Savings, http://1.usa. 18 Cleveland.com, 3/12/14; http://bit.ly/1fVkZjl gov/evs/1993/roll406.xml gov/1UnAqnp 19 Cleveland.com, 7/1/13; http://bit.ly/1JMmAnC 29 Roll Call vote 117, 1996 (http://clerk.house. 37 Cato Institute, 8/3/15 gov/evs/1996/roll117.xml), Roll Call vote 102, 20 Cleveland.com, 4/14/15; http://bit.ly/1iifsVP 38 Ibid. 1998 (http://clerk.house.gov/evs/1998/roll102. 21 Ibid. xml), Roll Call vote 119, 2000 (http://clerk.house. 39 Bureau of Labor Statistics, Consumer Price 22 Cleveland.com, 2/2/2015 gov/evs/2000/roll119.xml) Index

23 , 4/3/15; http://bit. 30 Roll Call vote 245, 1997; http://clerk.house. 40 U.S. Census Bureau ly/1XgRZUT gov/evs/1997/roll245.xml 41 Population estimates from the Census Bureau 24 Cleveland.com, 3/10/15 31 Roll Call vote 450, 2000 only go through 2014, so the Club’s projection

PAGE 2 2016 Presidential White Paper Series - GOVERNOR John Kasich in total spending (state spending plus able Growth Rate (SGR) formula. Howev- ment reform is also severely marred by his federal contributions to the state) was 5.7% er, in 2003 Congress began to block annual expansion of during his first term for fiscal years 2012 through 2014. cuts in reimbursement rates that were as Ohio Governor. brought about by the SGR formula.48 In terms of general revenue spending, The year before Governor Kasich took of- Ohio will “spend $71.2 billion… during As a presidential candidate, Governor fice, Medicaid was costing the state $15.4 the 2016-2017 budget cycle,” compared to Kasich has said, “I’m not big on subsidies,” billion, with about 2.1 million enrollees. $52.5 billion during 2011-2012.42 The Cato and added that he hopes that ethanol sub- The cost was about double from ten years Institute also reported in 2014 that “state sidies and the Renewable Fuel Standard earlier and was 40% of the state’s operat- government employment is up more than 3 “fades away.”49 As a member of Congress, ing budget.56 In addition, the state was percent since Kasich took office.”43 Kasich voted against subsidies for cotton, facing a jump in its share of Medicaid costs tobacco, mohair, honey, and milk,50 but in fiscal year 2012.57 Governor Kasich says that spending voted against a measure to phase out price increases in Ohio have only been modest. supports for some dairy products.51 He also In his first proposed budget, Kasich called However, the Cato Institute argues the voted to keep the National Endowment for a combination of cuts in Medicaid reim- governor is using federal funds for Medic- for the Arts,52 and to increase spending on bursements to providers and a restructur- aid, education, and transportation to “hide Fannie Mae and Freddie Mac.53 ing of elements of the Medicaid program. how much Ohio’s state spending has grown Reimbursements to doctors, hospitals and during his tenure.”44 nursing homes would be cut by $1.1 billion over two years, while services to enroll- As a member of Congress, John Kasich ENTITLEMENT REFORM ees would remain essentially unchanged. served six years as the Chairman of the America’s major entitlement programs The Kasich administration estimated that House Budget Committee (1995-2001). are already insolvent. The Club for Medicaid spending would still increase, Kasich sponsored the Balanced Budget Act Growth supports entitlement reforms that but at $1.4 billion less than what had been of 1997, a measure that was signed into law 58 enable personal ownership of retirement projected. by President in August 1997.45 and health care programs, benefit from The U.S. government ran annual budget In the first fiscal year under Kasich, market returns, and diminish dependency surpluses for the next four years (1998- Medicaid costs grew about 6.5% over the on government. 2001). However, those surpluses were not previous year. But, the cost growth in the primarily due to spending cuts, with the While in Congress, John Kasich sponsored year before had been 10%.59 Faced with a exception of significant cuts in defense the above-mentioned reform that continued rise in Medicaid costs, and the spending. In fact, overall federal spending turned out to be a flawed formula for reim- option of states expanding Medicaid under rose during that same period from $1.65 bursement rates. He also supported strong Obamacare and having the federal govern- trillion in 1998 to $1.86 trillion in 2001.46 in 1995 and 1996.54 ment pick up the entire tab until 2017, Rather, it was a growing economy, boosted Kasich “expressed concern over the cost for by newly-enacted capital gains tax relief, Governor Kasich has called for the repeal Ohio’s taxpayers,” when federal funding that led to a growth in government revenue of Obamacare, saying he’d “…rather have would begin to decrease.60 that significantly aided in shrinking the a market-oriented system.” However, he budget deficit.47 did indicate that he would keep the portion However, in his budget announcement in of Obamacare that addresses pre-existing February 2013 Governor Kasich declared The Balanced Budget Act of 1997 also in- conditions.55 Kasich’s record on entitle- his support for expansion of Medicaid cluded temporary cost savings to Medicare under Obamacare, providing coverage for reimbursement rates through the Sustain- those who earn up to 138% of the federal 61 48 Heritage Foundation, 7/18/2013 poverty level. The claim was that the deci- sion to expand Medicaid under Obamacare through 2015 is based on the current population 49 Agri-Pulse, 6/24/2015 would bring to the state $13 billion in average for 2011 through 2014. 50 Roll Call vote 310, 1997; Roll Call vote 435, 42 Columbus Dispatch, 8/2/2015 1999, Roll Call vote 383, 2000, 56 Dayton Daily News, 1/2/11; http://bit. 43 “Fiscal Policy Report Card on America’s 51 Roll Call vote 36, 1996 ly/1Ks9Kgr Governors, 2014,” CATO Institute, p. 25; http:// 52 Roll Call vote 500, 1993 bit.ly/1rOm9QP 57 Plain Dealer, 2/21/2011 53 Roll Call vote 300, 2000 44 Cato Institute, 8/3/15 58 Plain Dealer, 3/15/11; http://bit.ly/1Nb8Nd1 54 Roll Call vote 269, 1995 (http://clerk.house. 45 Congress.gov, H.R. 2015, 105th Congress 59 Plain Dealer, 7/7/12; http://bit.ly/1JO62Hp gov/evs/1995/roll269.xml); Roll Call vote 383, 46 WhiteHouse.gov, Historical Tables 1996 (http://clerk.house.gov/evs/1996/roll383.xml) 60 Cleveland Plain Dealer, 7/15/2012

47 Heritage Foundation, 9/8/2008 55 CBS News, 8/18/2015 61 Plain Dealer, 2/5/13; http://bit.ly/1NbbMC1 PAGE 3 2016 Presidential White Paper Series - GOVERNOR John Kasich federal aid over the next 7 years.62 Kasich lion.70 Despite the rising costs, Kasich “in- ban public workers from striking, prohibit also argued in a USA Today op-ed that his sisted he wouldn’t cut back on the expan- [public] employers from paying more than plan for Medicaid expansion was following sion of Medicaid.”71 85 percent of workers’ health insurance in the footsteps of Ronald Reagan.63 costs and set pay raises on performance As a member of Congress, and as a 2016 rather than length of service.”77 In addi- Despite Kasich’s efforts, Medicaid expan- presidential candidate, Kasich argued that tion, public employees would also have to sion under Obamacare was not included in younger workers should be allowed to contribute 10% to their retirement.78 the state budget passed by the Ohio legisla- invest a portion of their Social Security in ture in June of 2013. State lawmakers even private accounts.72 Once Kasich signed the bill, opponents included a provision that Ohio would not launched a petition drive to put repeal of be able to expand Medicaid without spe- SB 5 on the November . With suf- cific authorization from the legislature.64 REGULATION ficient signatures, the referendum, Issue 2, Kasich used a line-item veto to remove the was placed on the November 2011 gen- language requiring approval from the legis- Excessive government regulation stymies eral election ballot. The law was repealed lature to expand Medicaid.65 individual and business innovation neces- by Ohio voters, 62% to 38%.79 President sary for strong economic expansion. The Obama released a message from the White In October 2013, without the funding or Club for Growth supports less and more House congratulating those who had op- the legislative mandate, Governor Ka- sensible government regulation as a criti- posed the bill.80 sich acted to change the state’s Medicaid cal step toward increasing freedom and program to allow for expansion. Kasich growth in the marketplace. When Governor Kasich campaigned for re- turned to a small non-elected state budget election in 2014, he was asked if he would committee, called the Controlling Board, Governor Kasich’s first executive order was pursue right-to-work legislation that would which has the authority to approve spend- the creation of the Common Sense Initia- prohibit labor unions from requiring union ing when additional revenue becomes tive (CSI), a regulatory review program dues as a condition of employment. Kasich available outside the normal budget pro- designed to analyze state agency rules that told reporters, “It’s not on my agenda,” 73 cess.66 The board voted 5-2 vote in favor of affect the state’s business community. and refused to say whether he would sign accepting “$2.5 billion in extra Medicaid According to the CSI 2014 annual report, a right-to-work bill if it was passed by the funds from the federal government.”67 Crit- that process has resulted in the review legislature.81 Since his reelection, Kasich ics called Kasich’s move an end run around of more than 5,500 business-impacting has remained opposed to a right-to-work the legislature, and possibly illegal.68 rules, with 56% of those either amended or law in Ohio, saying he believes it “isn’t 74 rescinded. necessary.”82 The Wall Street Journal As of May of 2015, 537,010 Ohioans had reported that Kasich “promised union During Kasich’s first year in office he enrolled in Medicaid expansion, nearly leaders he will oppose efforts to turn Ohio signed Senate Bill 5, overhauling Ohio’s 50% more than had originally been pro- into a ‘right to work’ state that bars labor 69 30-year-old collective bargaining law for jected. Projected costs for the state have contracts requiring all workers to be union unionized public employees.75 At the time, more than doubled from an estimated members or pay dues.”83 $55.5 million in 2017 to about $130 mil- the Kasich administration argued that had the bill been in place the year before, it On other regulatory issues, Governor would have saved local governments $1.1 Kasich: billion.76 According to the Cleveland Plain Dealer, SB 5 would: “…reduce the number Supports construction of the Keystone 62 Columbus Dispatch, 4/19/13; http://bit. of topics subject to collective bargaining, XL pipeline84 ly/1Jzqywn

63 USA Today, 6/2/2013 77 Plain Dealer, 3/31/11 70 The Repository (Canton, Ohio), 7/20/15 64 Cincinnati Enquirer, 6/25/13; http://bit. 78 Cleveland Plain Dealer, 10/1/2011 ly/1Vx9DSB 71 Cincinnati Enquirer, 8/17/2015 79 NPR State Impact, https://stateimpact.npr. 65 Columbus Dispatch, 7/1/13; http://bit. 72 New York Times, 4/9/1998; Columbus org/ohio/tag/sb-5/ ly/1JO85uZ Dispatch, 7?15/2015 80 Toledo Blade, 11/8/2011; http://bit. 66 Cleveland.com, 9/19/13; http://bit. 73 Cleveland.com, 2/1/2011; Exec. Order 2011- ly/1fXFYSD ly/1fVREVU 01K 81 Cleveland Plain Dealer, 2/14/2014 67 New York Times, 10/21/2013; http://nyti. 74 Common Sense Initiative 2014 Annual ms/1iiQ3er Report, 2/1/15; http://1.usa.gov/1y9o69b 82 Cincinnati Enquirer, 6/4/15

68 Ibid. 75 Politifact, 3/5/2013; http://bit.ly/1JPEIwR 83 WSJ, 8/14/13

69 , 7/19/15 76 The Lima News, 3/6/2011 84 Columbus Dispatch, 2/12/2015 http://bit.

PAGE 4 2016 Presidential White Paper Series - GOVERNOR John Kasich

Says he believes is real, I’m pretty much for open [trade], but ing tax money to send children to private but wants emissions regulations left to I think the American workers have schools,” and allowing entrepreneurs to set 96 the states and private companies85 been shafted… I’m for open but I want up new schools and compete for students. to make sure that the workers in this Signed a bill freezing so-called green In Kasich’s first year as governor, the num- country are protected. That’s another energy requirements in Ohio, arguing ber of students with vouchers increased thing that creates an enigma for me, 97 that the requirements drove up “energy from 14,000 to 30,000 families. The because I’ve never been a total free costs for job creators and consumers86 EdChoice Scholarship Program, started in trader because I think that the rules 2005 under Governor , provides Added Ohio to a legal challenge against ought to apply to other countries like taxpayer-funded vouchers to students the Obama Administration rules on they apply to us…91 in the state’s lowest performing schools, power plant emissions87 allowing them to attend private schools. Kasich expanded the program to include While in Congress in 1993, Kasich voted While serving in Congress, Kasich: low-income kindergartners.98 By the fall for the North American Free Trade Agree- 92 of 2014, as reported by the Columbus Dis- Repeatedly rejected efforts to raise the ment (NAFTA). He also voted to impose 93 patch: “Kasich has been a strong supporter 88 steel tariffs in 1999. federal minimum wage of school choice, quadrupling the number Voted to increase private property In 1992, Kasich voted for reauthorization of EdChoice vouchers available and remov- ing the cap on community schools.”99 rights regarding the Endangered of the Export-Import Bank, a taxpayer- 89 backed fund that distributes export subsi- Species Act Kasich also supports the controversial dies to some of America’s biggest corpo- Common Core standards,100 but, he ended Voted to deregulate the commercial rations.94 However, as a 2016 presidential the state’s relationship with the controver- shipping industry90 candidate he has stated his opposition sial Partnership for Assessment of Readi- to the bank. Kasich said, “I don’t like the ness for College and Careers (PARRC) test idea that if the private banks cannot make designed to accompany those standards.101 loans, that therefore the government ought 95 FREE TRADE to make them.” During his tenure in Congress, Kasich Free trade is a vital policy necessary for voted: maximizing economic growth. In recent For a bill allowing states to provide decades, America’s commitment to ex- SCHOOL CHOICE vouchers to low-income families102 panding trade has resulted in lower costs The Club for Growth supports broad for consumers, job growth, and higher school choice, including charter schools Twice for vouchers for students in the levels of productivity and innovation. and voucher programs that create a com- District of Columbia103 petitive education market including pub- John Kasich also has a mixed record on For repealing federal education lic, private, religious, and non-religious trade. On the question of support for Trade programs and blocking-granting schools. More competition in education Promotion Authority, Governor Kasich 104 will lead to higher quality and lower costs. education funding to states said recently, John Kasich has been a strong advocate of school choice, saying he “wants ‘total school choice,’ which would allow states ly/1ikDy27) to organize schools as they wish, even us- 96 , 4/6/1999 85 The Hill, 5/12/2012 97 NPR State Impact 86 Columbus Dispatch, 6/14/2014 91 YouTube, 4/28/2015 of appearance at New 98 Columbus Dispatch, 1/20/2015 America’s 2015 Annual Conference, 4/24/2015 87 West Virginia Attorney General’s Office, 99 Columbus Dispatch, 10/5/14; http://bit. 8/5/2015 92 Roll Call 575, 1993; http://clerk.house.gov/ ly/1UpWoWL evs/1993/roll575.xml 88 Roll Call vote 195, 1996 (http://clerk.house. 100 Columbus Dispatch, 7/19/15 gov/evs/1996/roll195.xml), Roll Call votes 43 93 Roll Call vote 56 101 Cleveland Plain Dealer, 7/2/2015 & 45, 2000 (http://clerk.house.gov/evs/2000/ 94 Roll Call vote 483, 1992 (http://clerk.house. roll043.xml; http://clerk.house.gov/evs/2000/ 102 Roll Call vote 569, 1997 gov/evs/1992/roll483.xml); Roll Call vote 492, roll045.xml) 1997 (http://clerk.house.gov/evs/1997/roll492. 103 Roll Call vote 119, 1998; Roll Call vote 411, 89 Roll Call vote 197, 1995 xml) 1998

90 Roll Call vote 144, 1996 95 Daily Caller, 5/29/2015 104 Roll Call vote 452, 1998

PAGE 5 2016 Presidential White Paper Series - GOVERNOR John Kasich TORT REFORM reform in 1995, Kasich voted: what I believe the answer is, but I will tell you if I win I will think the system works The American economy suffers from For a “Loser pays” attorney fees pretty well. And if I don’t win, I’m going to excessive litigation which increases the 109 provision blame it on the system.”115 cost of doing business and slows economic growth. The Club for Growth supports For discouraging frivolous lawsuits Appearing on a CNN show in 2000, Kasich 110 major reforms to our tort system to re- regarding securities was asked about campaign finance reform. store a more just and less costly balance in For product liability reforms111 He advocated full disclosure. He said: tort litigation. “We’re not going to try to build another When John Kasich campaigned for POLITICAL FREE SPEECH complicated mouse trap to figure out Governor in 2010 he talked about improv- how to shut some segment of America ing the state’s business climate with tort Maximizing prosperity requires sound up. We’re going to say, if you want to reform and regulatory reform,105 vowing government policies. When government participate in the political system, give to “crack down” on trial lawyers.106 In the strays from these policies, citizens must be what you want, tell us who you are, tell last state budget, Kasich vetoed a provi- free to exercise their constitutional rights us what you do, and let the voters de- sion favored by trial lawyers and opposed to petition and criticize those policies and by tort reform groups. In his veto message, the politicians responsible for them. cide whether they like the people who 116 Kasich explained that the provision made are contributing.” During a 2015 interview in New Hamp- “…significant changes to long-established shire, Governor Kasich was asked, “What While in Congress, Kasich opposed: procedures for distributing recoveries in steps will you take on lobby reform, tort actions involving subrogation,” and campaign contributions and the revolving Limiting contributions from outside a while the “changes could be very well door?”112 Kasich answered that, despite the candidate’s district117 merited,” that should be determined “after 107 McCain-Feingold laws, a thorough public debate.” Requiring candidates to raise at least 50% of their donations from within In May of 2015 Kasich signed a tort reform Now we have a campaign finance their state118 bill (SB 38) that, among other things: system that we don’t like… I think campaign finance has to constantly A ban on campaign bundling119 Placed fee caps and transparency be looked at and I don’t like a system 120 measures on the government’s use of where, frankly, billionaires can decide A ban on soft money private attorneys – requiring a finding whose gonna be the next president. Kasich also voted in favor of raising cam- from the state Attorney General that I don’t like that… We can have all of paign contribution limits from $1,000 to private representation is cost effective these rules, [but] it’s hearts we need $3,000.121 and in the public’s interest to change… We can have these sort of Set forth the maximum allowable legalistic changes, and I’m all in favor of constructive ones, but it’s all about percentage that a private attorney POLITICAL ACTIVITY & ENDORSEMENTS can receive under a contingency fee whether… you’re more interested Robust political activity is essential to pro- contract with the state in serving than you are in serving yourself.113 ducing a federal government that is more Required public disclosure of respectful of free markets and produces contingency fee contracts between the At a recent town hall in New Hampshire, more pro-economic growth policies. The state and a private attorney108 Governor Kasich, according to a published Club for Growth’s PAC has been active in report, was asked how he “…planned to some of the more central battles within curb the influence of money in politics…”114 During a series of votes in Congress on tort In his response, Kasich said, “I don’t know 115 Ibid.

116 CNN “Capital Gang” Transcript, 6/10/2000 105 Lima News, 3/10/10 109 Roll Call votes 207 & 214 (http://cnn.it/1N620zs) 106 Radio Show Transcript, 110 Roll Call vote 216 117 Roll Call vote 360, 1998 11/19/10; http://bit.ly/1LYal9J 111 Roll Call vote 229 118 Roll Call vote 370, 1998 107 John Kasich Veto Message, 6/30/15; 112 WMUR, 5/8/2015 119 Roll Call vote 376, 1998 http://1.usa.gov/1JQIypo 113 Ibid. 120 Roll Call vote 405, 1998 108 SB 38, Ohio Legislative Service Commission Final Analysis 114 Huffington Post, 8/12/2015 121 Roll Call vote 374, 1998

PAGE 6 2016 Presidential White Paper Series - GOVERNOR John Kasich the Republican Party nominating process in recent years, supporting pro-growth candidates over pro-government ones.

When John Kasich dropped out of the presidential campaign in 1999, he en- dorsed then Texas Governor George W. Bush.122 When he ran for governor in 2010, he was endorsed by the political arm of the Ohio Chamber of Commerce, “breaking what had been at that time a 117-year tradi- tion of remaining neutral in the race.”123

In April of 2011, it was reported that Gov- ernor Kasich would endorse Mississippi Governor Haley Barbour, if Barbour ran for president.124 Eleven days later Barbour decided to not run. In March 2012, just before Ohio’s Republican presidential primary, Kasich declined to make an endorsement.125 A month later he endorsed Mitt Romney for President.126 By that time Romney had a lock on the nomination.

SUMMATION John Kasich is a lifelong politician, with a long and mixed record on matters of economic liberty. His votes for lower taxes while in Congress, along with work for passage of the 1997 Balanced Budget Act, stand alongside his efforts to lower the Ohio state income tax. However, as Gover- nor of Ohio, Kasich almost single-handedly expanded Medicaid under Obamacare, leaving Ohioans with a costly long-term burden. He’s also responsible for a very high rate of state spending, and for his persistent efforts to increase taxes on oil and gas extraction. Kasich’s record on economic freedom might have been even worse had a Republican legislature not stopped some of his tax proposals. While there are pro-growth steps along the way in his political career, there are enough big government missteps to send a clear warn- ing to fiscal conservatives.

122 Associated Press, 7/24/99

123 Dayton Daily News, 9/10/2014; http://bit. ly/1Ndf8ED

124 Politico, 4/14/2011

125 Wall Street Journal, 3/2/2012

126 Lima News, 4/19/12

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