Recently, The Ohio Society of Certified Public Accountants provided questions on topics of importance to CPAs and the business community, the following are my responses:
1. In legislation pertinent to the working papers of private CPA firms performing audits of publicly funded entities subject to open records laws, I would support legislation requiring retention of working papers for a reasonable period of time. This is a step under full disclosure at all times as has been proposed. In the event a claim arises that specifically requires reference to the working papers, memoranda and related documents, I suggest these should be subject to in camera review and inspection by an appropriate judge or magistrate before other use. I believe there should be a balance that favors disclosure while maintaining the professional integrity of the CPA firm conducting the audit. Further, this will allow the audit to be conducted in a cost effective manner while preserving potential evidence in the case of alleged illegal activity within the publicly funded entity.
2. I would not support expanding the Ohio sales tax to include professional accounting, tax audit and consulting services.
3. I would support creating a CPA/client testimonial privilege to ensure the CPA, unless fraud is involved, could not be forced by subpoena to reveal verbal discussions (and notes regarding those conversations but no other written documents) with clients.
4. Do you support the new broad based, low rate Commercial Activity Tax?
No. I support a fair and balanced tax on commercial activity. I believe that the basic premise of a low rate Commercial Activity Tax is a good idea that needs to find enactment in good legislation. The critical balance to the CAT direction must be found in responsible and controlled state spending. The phasing out of franchise, personal income and tangible personal property taxes creates a more inviting framework of business tax laws for the state of Ohio. In the balance, the state must exercise monetary restraint to take advantage of these business tax changes. If manufacturing is to return to the State of Ohio, the state must act with fiscal responsibility.
It is now well recognized that the CAT does not apply equally to all business. It is particularly harsh on general contractors and merchants who have high commercial activities in contracts or sales with a high cost of goods, labor or materials involved in the activity. Moreover, if a business suffers a loss, it is administratively difficult or fails to account for lost business income.
I do not favor caving out industry exceptions or tax credits to the CAT, but believe some of the internal statutory language may be modified to allow enforcement of a business tax that is perceived as fair for all impacted business without complex credits or exceptions.
5. State Spending: If you could cut state spending, where would you begin and why?
I believe the first way to cut state spending would be to require all contractors who seek to perform services for the state or its agencies bid competitively on the work. I have practiced law in firms that performed work for the Ohio Attorney General. The work was preformed by associates who charged the state substantially more than may be charged by other firms. I believe that allowing competitive bidding by qualified firms would save our taxpayers millions of dollars each year. I suggest that those firms that seek state contract work deserve to make a reasonable profit while serving the public. At the same time, the public served should not be exploited by non-competitive fees.
The next area in which I believe state spending may be cut is by making our administrative agencies more efficient in procedures, requiring their conversion to acceptance of electronic documents as now done with some federal agencies and a reduction in the number of non-substantive filings and hearings. This would save the agencies time and expense while allowing those who deal with them to engage in more substantive matters.
As an elected representative, I would seek to find means to simplify administrative demands and procedures while maintaining a respect for substantive rights. I believe that we
can seek higher levels of efficiencies from our business and social agencies while allowing better service to the citizens of our state.
6. Do you support the new statutory cap on state spending that resets the spending cap every fourth year at 3.5 percent of the prior ceiling (Senate Bill 321)?
I do not support tax and expenditure limitations in our state. I believe these measures are traps cloaked in political gimmickry. I believe self control is always better than legal or legislated control. As a result, I strongly favor self-imposed aggressive tax and expenditure restraints. I am also concerned that the rapid substitution of legislation for what appeared to be an ill advised and badly worded TEL amendment to the Ohio Constitution will result in lengthy litigation about applications, definitions and unresolved but necessary interpretations. I question whether such legislation will truly serve the citizens of our state and a desire for new business and economic progress.
7. What are the main priorities you will focus on as a member of the 127th Ohio General Assembly?
The main priority that I will focus on as a member of the 127th Ohio General Assembly is to restore investment in business and job growth in our state. Without continued investment in new business and jobs, Ohio will continue to suffer the exodus of it citizens to more promising states. I have proposed a plan called “Ohio First” that requires the funds held by our state agencies to be re-invested in business in our state. Ohio First is a plan to invest Ohio resources in business that invests in Ohio.
Second, I have stated that education is essential for the future of our state. This state must make the funding of education a priority. So often we say that our children are our future; however, it only appears that our children do not see their own futures in the State of Ohio. I believe that in education we find the singular key to open the door to Ohio’s future. I also believe that we must create an environment of cooperation between business and education that allows a promise of good jobs and prospects that gives each successive generation a reason to invest their lives and futures in our state. I believe that we must seek to educate each child from pre-school to the highest level of education each can achieve. In our state, we need the talents of many diverse people with as much respect given for good working people as those who excel at math and science. With this said, if we make educational funding a singular priority, we make every thing else fall in line.
8. In your opinion, what separates you from your opponent(s) (i.e. philosophical and/or background)? Why should Ohio CPS’s support your candidacy?
The primary difference that separates me from my opponent is experience. I have engaged in civil law practice representing business interests for nearly 25 years. I have taught college classes in Contracts and Negotiable Instruments for over 15 years at The University of Findlay. My legal practice has required experience in regulatory work; statutory and case law
interpretation; litigation; contracts and dispute resolution. I am pleased to have successfully argued several landmark cases before the Ohio Supreme Court and Ohio Courts of Appeal. I have successfully litigated hundreds of cases, prepared the documentation necessary to complete and closed real estate, business, commercial loan and multi-million dollar merger transactions. Much of this work has required the successful coordination of applicable law with accounting professionals. This is particularly important in preparing and advising in business formation, audits, merger and acquisition work. I have experience in business with businesses. My opponent has no noted business or legal experience.
Second, I believe my focus and understanding of economic issues critical to the 76th Ohio House District and the State of Ohio separate me from my opponent. I have proposed “Ohio First” as a plan for the investment of Ohio funds into Ohio business. In borrowing from a supply side economic model, my first effort is to allow investment in business and job growth. Growth will allow the good working people in a working state to get to work. Business and Job growth will invite workers to our state and serve as an incentive for our children to invest their futures in Ohio. The growth appreciated will bring more funds into commercial activity and wages that will, in cycle, allow responsible tax money paid to the state. This money can be used to restore education, service and balance to our state budget.
Third, my philosophy of government separates me from my opponent. I believe in a government dedicated to the recognition and preservation of unalienable rights is the purpose for government. The purpose for government is to protect individual rights and serve people. This view places a focus on individuals and service to individual needs that includes support for business owners and those who work for them. When I combine my skills from years of law practice, experience and desire to serve the interests of the citizens in the 76th Ohio House District, I believe that through my representation, people my District will feel they have a strong, balanced and fair voice in Columbus
Thursday, August 24, 2006
Wednesday, August 23, 2006
AARP Candidate Questionnaire - Kostyo Answers
LONG TIME CARE:
I strongly support redirecting funding from nursing homes to home and community based services.
I learned valued lessons about the importance of personal independence years ago in the course of my mother’s care for her mother, and later while caring for my mother. I understand that “home” has a significant and critical meaning of security for our aging parents and seniors. The ability of an individual to remain in their home serves as a continued guarantee of independence for life, liberty and the pursuit of happiness. These are the unalienable rights central to our Declaration of Independence and continue in meaning when not forfeited as we age by removal to nursing home care.
I support every effort to provide home and community base services like PASSPORT funded by Medicaid. These programs save invaluable individual independence and personal dignity that cannot be found in the very best nursing home facilities. Moreover, I believe PASSPORT and similar programs are a valid stewardship that save tax dollars in Ohio.
PRESCRIPTION DRUG AFFORDABILITY:
I strongly support establishing evidence based research to compare drug effectiveness.
To restore “health care” as our “care for health,” we must fully restore the dynamic of patient-doctor relationships. We must fully empower doctors to actively address and follow the care of their patients. All too often, patients’ services and prescription drugs are directed, if not dictated, by health insurance providers. Often, this means that prescriptions are issued for newer and usually far more expensive drugs.
I support empowering our state to take every competitive approach available that will allow doctors to prescribe the correct drug that can be obtained at the most competitive price. Our states must pool every resource to exercise strong purchasing power for bulk purchases of prescription drugs.
I believe we should eliminate every border or barrier, international or otherwise, that allows for the purchase of prescription drugs at the most competitive price available from drug manufacturers.
When we save on the cost for prescription drugs, we reduce the state cost for Medicaid. I see this as my duty when elected as a steward of our public trust.
HEALTH CARE:
I strongly support empowering state government to play an active role to insure that every Ohioan has access to adequate and affordable health care.
I believe we must direct and empower individuals to take active responsibility for their personal health. Common sense directs that healthy people at each age will require less medical attention and less medical cost from our health care system. As a responsible first step in a transition from our present “health care” system to a prospective or “care for health” system, we must direct and reward physicians and health care providers to practice preventive medicine. I strongly support requiring health care providers to reimburse for preventive medical expenses.
Whether by a system as recently adopted in Massachusetts or as proposed by United States Senator John Kerry, we must see that every American citizen and every citizen of this state has coverage for their health and care.
I strongly support redirecting funding from nursing homes to home and community based services.
I learned valued lessons about the importance of personal independence years ago in the course of my mother’s care for her mother, and later while caring for my mother. I understand that “home” has a significant and critical meaning of security for our aging parents and seniors. The ability of an individual to remain in their home serves as a continued guarantee of independence for life, liberty and the pursuit of happiness. These are the unalienable rights central to our Declaration of Independence and continue in meaning when not forfeited as we age by removal to nursing home care.
I support every effort to provide home and community base services like PASSPORT funded by Medicaid. These programs save invaluable individual independence and personal dignity that cannot be found in the very best nursing home facilities. Moreover, I believe PASSPORT and similar programs are a valid stewardship that save tax dollars in Ohio.
PRESCRIPTION DRUG AFFORDABILITY:
I strongly support establishing evidence based research to compare drug effectiveness.
To restore “health care” as our “care for health,” we must fully restore the dynamic of patient-doctor relationships. We must fully empower doctors to actively address and follow the care of their patients. All too often, patients’ services and prescription drugs are directed, if not dictated, by health insurance providers. Often, this means that prescriptions are issued for newer and usually far more expensive drugs.
I support empowering our state to take every competitive approach available that will allow doctors to prescribe the correct drug that can be obtained at the most competitive price. Our states must pool every resource to exercise strong purchasing power for bulk purchases of prescription drugs.
I believe we should eliminate every border or barrier, international or otherwise, that allows for the purchase of prescription drugs at the most competitive price available from drug manufacturers.
When we save on the cost for prescription drugs, we reduce the state cost for Medicaid. I see this as my duty when elected as a steward of our public trust.
HEALTH CARE:
I strongly support empowering state government to play an active role to insure that every Ohioan has access to adequate and affordable health care.
I believe we must direct and empower individuals to take active responsibility for their personal health. Common sense directs that healthy people at each age will require less medical attention and less medical cost from our health care system. As a responsible first step in a transition from our present “health care” system to a prospective or “care for health” system, we must direct and reward physicians and health care providers to practice preventive medicine. I strongly support requiring health care providers to reimburse for preventive medical expenses.
Whether by a system as recently adopted in Massachusetts or as proposed by United States Senator John Kerry, we must see that every American citizen and every citizen of this state has coverage for their health and care.
Tuesday, August 15, 2006
Endorsements - With Great Thanks
It is a pleasure for me to share the great news of receiving endorsements and the considerate thoughtfulness of those who have taken the time and effort to engage in the process.
First, I must thank the National Association of Social Workers, Ohio Chapter, and the political action committee (PACE) for their endorsement. Social workers are critical to the many services and family supports on which our communities rely. More, social workers are daily involved in the recognition and protection of the most basic civil rights promised by our laws and Constitution. I am pleased to welcome the support and involvement of NASW Ohio members in my campaign and as experts on a range of social policy issues.
I am equally pleased to accept the endorsement of the Ohio Association of Public School Employees (OAPSE/AFSCME Local 4/AFL-CIO). OAPSE is more than 38,000 working men and women who daily perform services of our schools, Head Start programs, MMRD's and libraries in Ohio.
With equal enthusiasm I am pleased to accept the endorsement of the Ohio State Building and Construction Trades Counsel for their endorsement of my candidacy as State Representative for the 76th District. These trades are fundamental to a vision of rebuilding Ohio from within with living wage jobs and skilled workers whose labor is the pillar on which our communities are based.
Once again, my thanks. I look forward to the insights and assistance that I have received. I look forward to serving the great people of my District and this State.
First, I must thank the National Association of Social Workers, Ohio Chapter, and the political action committee (PACE) for their endorsement. Social workers are critical to the many services and family supports on which our communities rely. More, social workers are daily involved in the recognition and protection of the most basic civil rights promised by our laws and Constitution. I am pleased to welcome the support and involvement of NASW Ohio members in my campaign and as experts on a range of social policy issues.
I am equally pleased to accept the endorsement of the Ohio Association of Public School Employees (OAPSE/AFSCME Local 4/AFL-CIO). OAPSE is more than 38,000 working men and women who daily perform services of our schools, Head Start programs, MMRD's and libraries in Ohio.
With equal enthusiasm I am pleased to accept the endorsement of the Ohio State Building and Construction Trades Counsel for their endorsement of my candidacy as State Representative for the 76th District. These trades are fundamental to a vision of rebuilding Ohio from within with living wage jobs and skilled workers whose labor is the pillar on which our communities are based.
Once again, my thanks. I look forward to the insights and assistance that I have received. I look forward to serving the great people of my District and this State.
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