Lindner in the Background on Issue 27

When Republicans were running a political campaign last year to raise Hamilton County's sales tax to pay for a new jail, they publicly and frequently touted the support of billionaire businessman and conservative darling Carl Lindner Jr. This time — with a similar sales tax campaign being orchestrated by Democrats — ehh, not so much.

Business sources tell CityBeat that one of the largest contributors to the "Yes on Issue 27" campaign is Lindner, the entrepreneur who founded the United Dairy Farmers convenience store chain and formerly headed Chiquita Brands International. His family still holds a controlling interest in the American Financial Group.

Lindner has given $100,000 to the campaign, sources said. His contribution was timed so it wouldn’t appear on campaign finance reports that had to be filed before the Nov. 6 election, for fear of offending some Democrats who dislike Lindner’s politics.

That sharply contrasts with the sales tax campaign coordinated last year by then-Hamilton County Commissioner Phil Heimlich. A Republican, Heimlich prominently featured the 88-year-old Lindner at the press conference at Music Hall to kick off the campaign.

Lindner and his family have given hundreds of thousands of dollars to Republican candidates and causes in recent years, and he is one of the largest financial supporters of President George W. Bush. During the 2004 election cycle, Lindner helped schedule the use of Great American Ball Park downtown for a major televised Bush rally two days before the presidential election.

This year’s sales tax plan, however, was crafted by Commissioners Todd Portune and David Pepper, both Democrats. The pair is relying on a broader political coalition to publicize the proposal.

Contacted by telephone, Pepper wouldn’t comment on whether Lindner contributed. He said all contributions would be listed on the next campaign finance reports.

Forbes magazine recently ranked Lindner as the 195th richest American, with a net worth of $2.3 billion.

If voters approve Issue 27, the sales tax would increase by a half-cent, from 6.5 percent to 7 percent, for eight years; then it would be scaled back to a quarter-cent increase, to 6.75 percent, for seven years. After 15 years the sales tax increase would expire; it would generate $736 million during that period.

The money would be used to build a $198-million, 1,800-bed adult jail in Camp Washington and overhaul the county’s criminal justice system by generating more than $20 million annually to create an endowment to operate the jail and fund substance abuse treatment, counseling and probation programs for offenders.

Supporters say the plan will ease jail overcrowding and help reduce the county’s nearly 70 percent recidivism rate. Opponents counter that much of the overcrowding crisis is due to a poorly managed inmate processing system, and there’s nothing preventing future county commissions from diverting the tax revenues to pay for other types of programs if the plan is approved.

— Kevin Osborne

Comments

[David E. Gallaher]

"After 15 years the sales tax increase would expire"

Kevin,
Are you willing to predict the weather 15 years from now?

Ironically, death never expires. Neither do taxes.

[Mark Miller]

Last year's plan attempted to be revenue-neutral by increasing the sales tax while simultaneously reducing property taxes. Since many of the folks that shop in Hamilton County don't live here, this would have effectively shifted some of the burden for paying for the new jail off of residents.

In any event, the total amount at issue last year was only $200 million, and they at least had the decency to ask the voters. This year the plan was super-sized to $700 million and enacted without a vote.

Now we are learning from the county's own studies that there are serious problems with the whole criminal justice system. 81% of inmates aren't in jail for punishment, they are simply waiting for their day in court. Inmates who are eventually found not-guilty spend more time in jail than the ones who are eventually found guilty. This tells me we have a management problem, not a jail space problem.

Mr. Lindner has always used his considerable financial might to advance causes he thought were right. But I have to disagree with him on this one. This whole jail expansion looks like a big expensive band-aid to avoid having to deal with the real problem.