BY MICHAEL HAWTHORNE
Enquirer Columbus Bureau
COLUMBUS -- For Joseph Deters, the popular Republican prosecutor from Hamilton County, it was only a matter of time before he tried to move up to statewide office.
But standing firmly in the way of his run for treasurer is another strong vote-getter, John Donofrio, the 20-year Democratic treasurer from Summit County.
Thirty-two days from today, Ohio voters will determine which of these confident, driven men will assume responsibility for collecting, investing and safeguarding tax dollars as state treasurer.
Mr. Deters, 41, and Mr. Donofrio, 50, have been aggressively playing up their differences to boost their name recognition around the state.
Both want to change the direction of the treasurer's office or build upon existing programs. Mr. Deters wants to increase the political clout and visibility of the office, while Mr. Donofrio sees the job as a way to promote economic development and create jobs.
On the campaign trail, the two men also have taken every opportunity to snipe at their opponent's credentials and experience.
Recent opinion polls suggest the race may be one of the closest statewide.
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COMPARISON
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Donofrio: Cautions that cutting the number of agencies able to borrow money would consolidate power in the hands of a few. Says borrowing at variable interest rates doesn't make sense when fixed rates are at historic lows.
Deters: Wants the state to consolidate its debt, reducing the number of agencies authorized to borrow money to 5 from 16. Also wants 20 percent of the state's debt borrowed at variable interest rates.
Donofrio: Wants to build upon state program that encourages banks to lend money to small businesses and farmers.
Deters: Supports the program but wants to attack unspecified abuses and make sure recipients actually need loan funds.
Donofrio: Supports state investment pool for local governments and school districts
Deters: Also supports program.
Donofrio: Notes that 71 percent of public fund managers, himself included, participated in continuing education programs last year under a law he helped push through the General Assembly.
Deters: Wants to require all public fund managers to attend annual financial education seminars or lose their ability to invest tax dollars. |
An Ohio Poll conducted Sept. 8-21 showed Mr. Deters leading by 9 percentage points, with 24 percent undecided. The poll has a margin of error of plus or minus 4.3 percentage points.
A poll conducted Sept. 10-14 for the Cleveland Plain Dealer showed Mr. Deters leading Mr. Donofrio by 7 percentage points, with 38 percent undecided. The poll had a margin of error of plus or minus 3 percentage points.
"Turnout for this race really depends on what happens at the top of the ticket," said John Green, director of the Ray Bliss Institute for Applied Politics at the University of Akron. "That's what happens in these "down ticket' races where the candidates aren't very well known statewide."
Republican leaders are bullish on Mr. Deters, but a GOP strategy memo prepared last month suggested they also are wary about his opponent's experience.
"This race will come down to which candidate can drive his name recognition highest by Nov. 3," the memo stated. "Donofrio is also one of the most credible candidates on the statewide Democratic ticket."
Although he's behind in raising money, Mr. Donofrio is banking on his two decades of experience as his county's treasurer to sway voters.
"I think one of the main differences between the two of us is I will not run for any other state office except the treasurer's office," Mr. Donofrio said. "For me this is a culmination of my entire knowledge in the public financial field."
Mr. Deters, prosecutor since 1992, turned down chances to run for lieutenant governor and attorney general in 1994. He said he wanted to concentrate on his young family and his job as county prosecutor.
But his frequent appearances before legislative committees on law and order issues helped keep him in the spotlight. He jumped at a spot on the ticket that opened up earlier this year when Treasurer Ken Blackwell, a Republican, opted to run for secretary of state.
Although he won't deny he is interested in higher profile jobs like attorney general or governor, Mr. Deters said he resents assertions that he is running for treasurer merely to gain more experience.
"I'm only going to run for an office that I can make a difference in," Mr. Deters said. "The attractiveness of this office is what Ken did with it. He took the job about 10 times higher in terms of political influence. I intend to do the same thing."
Indeed, the centerpiece of his campaign would make the treasurer a much more powerful player in the state's financial matters.
With help from a Republican-controlled General Assembly, Mr. Deters wants to consolidate the state's $6.8 billion debt under the auspices of the treasurer's office. A portion of that debt would then be borrowed under variable interest rates.
"We have a very convoluted system," he said. "I don't think we should even think about asking the voters to raise taxes when we haven't done enough to reduce bureaucracy and save money."
In response, Mr. Donofrio said slashing the number of agencies authorized to borrow money would consolidate power in the hands of a few. He said the proposal goes far beyond the duties of the treasurer's office.
Mr. Blackwell cautioned that the proposal may be viewed by the next governor as a power grab. Moreover, some state officials question borrowing at variable interest rates when fixed rates are at historic lows.
Paul Goggin, executive director of the Ohio Building Authority, said variable-rate borrowing makes sense when fixed interest rates are high. But he noted that his agency, which issues bonds for state building projects, recently saved $3 million by refinancing bonds for the Riffe Tower in Columbus to lower fixed rates.
Mr. Donofrio, meanwhile, wants to concentrate on how the state manages its investments. He touts programs he created at the county level.
He proposes cutting taxes for businesses that pay their estimated taxes early. The state would invest the early payments, then distribute the proceeds to Ohio schools.
Mr. Donofrio also promotes an investment program he created that assists small businesses in Summit County. The program was patterned after a state initiative that encourages banks to lend money to businesses and farmers struggling to get started.
Under so-called linked-deposit programs, the state or county trades a portion of the earnings it otherwise would earn on its investments to create a pool of loan funds. More than 80,000 jobs have been created through the state's program, according to the treasurer's office.
Mr. Donofrio accuses Mr. Deters of wanting to scrap the program, citing a newspaper interview in which Mr. Deters said, "If a business can't survive in today's economy, it probably shouldn't be in business."
"He is coming up with all these buzz words trying to make people think he knows what he is talking about," Mr. Donofrio said. "But he keeps talking about things that either don't make sense or already are being done."
Tim Clark, Mr. Deters's spokesman, said the Republican supports the linked-deposit program but wants to make sure loans are being granted to businesses that need the money and put it to good use. Sharply worded attacks are flying from both sides. Mr. Deters has focused on a state audit that criticized Mr. Donofrio's bookkeeping practices as county treasurer.
"I would shudder to think if that was allowed to happen at the state level," Mr. Deters said.
In response, Mr. Donofrio said the audit findings are based on insignificant clerical errors that didn't cost taxpayers a dime. The findings represent a difference of opinion between his office and the state auditor about when accounts should be balanced, he said.
He called the timing of the audit politically motivated. According to an internal memo from Republican Auditor Jim Petro's office, a staff member working on the report allegedly told a colleague, "When we get through with him (Mr. Donofrio), he won't be state treasurer."
Mr. Petro denies the charge. He disciplined a staff member who leaked the memo to Mr. Donofrio's campaign.
Talk about the treasurer's race often boils down to money and experience. Mr. Deters has more of the former, Mr. Donofrio more of the latter.
Mr. Deters said he isn't a stranger to public finance. As legal counsel to the county, he said, he worked with outside lawyers negotiating bonds for the new Bengals stadium.
"I'm not thinking beyond this election," he said. "I have something to offer in this job."
If the two men were running for attorney general, Mr. Donofrio said, he would recommend voters choose Mr. Deters. But he contends his qualifications make him a more appropriate choice for treasurer.
"It's an extension of what I'm already doing," Mr. Donofrio said. "If you retired today with $100,000, who would you go to for investment advice, a prosecutor or a treasurer?"
