Why should the state provide a service bonus to Ohio veterans?

Ohio and many other states have a tradition of honoring the sacrifices of its soldiers and their families by providing a welcome home bonus for its sons and daughters who have served or died in large-scale military conflicts. This practice goes back to the Revolutionary War, when parcels of land in the Northwest Territory (which would eventually become the state of Ohio ) were awarded to veterans. More recently, voters approved amendments to the Ohio Constitution, as required, to give the state treasurer permission to sell bonds to reward veterans of World War I, World War II , Korea and Vietnam . Treasurer Cordray believes we should do the same for Ohioans who have served during the Afghanistan , Iraq and Persian Gulf Conflicts.

Who would be eligible for these benefits?

Ohio veterans who served on active duty during the Persian Gulf War or during current conflicts in Afghanistan and Iraq are eligible if they are current Ohio residents and were state residents for at least one year preceding their service.

What would the service bonus be?

Veterans who served in Iraq , Afghanistan , or the Persian Gulf would receive $100 for each month of service up to a total of $1,000. Veterans who served elsewhere during those conflicts would receive $50 a month up to a total of $500. Family members of those killed in action would receive $5,000 in addition to any other allowable compensation. These figures are in line with previous service bonuses, updated for inflation.

How much wills this proposed compensation cost?

The total cost is about $100 million as of October 2007. Through bond financing, the cost will be spread over 15 years, with a maximum annual debt service payment estimated to be approximately $9.5 million. Paying for the veterans' service bonus with bonds would actually LOWER the annual cost of benefits.

Do other states have similar programs?

Eight states have programs that are substantially similar to this proposed amendment the Ohio Constitution; Pennsylvania, West Virginia, Massachusetts, New Hampshire, Illinois, South Dakota, Minnesota (only for veterans of the first Gulf War), and North Dakota (only for members of the National Guard and Reserves.)

In addition, several states offer payments to family members while the service-member is deployed; California, Kansas, Maine, Rhode Island, South Carolina, Vermont, Wyoming, Colorado, Missouri, Michigan (only for National Guard and Reserves who have been deployed since September 11 th , 2001), and Illinois (only for National Guard or Reserves; increases if service member took a 30% or more drop in pay from civilian job),.

Why should a service bonus come from bonds instead of the state budget?

Since World War I, the Ohio legislature has unanimously agreed to give voters the opportunity to give the state permission to sell bonds for service bonuses. A bond issuance provides a dedicated budget which could stay in place for an extended period of time (beyond the state's two-year budget cycle, if necessary). This requires a constitutional amendment, which requires approval by Ohio 's voters.

Isn't compensation to soldiers a responsibility of the Federal Government?

The federal government should absolutely be pressed hard to provide adequate benefits to military personnel. Regardless of what the federal government does, however, all Ohioans owe a debt of gratitude to those who serve our country in wartime. Offering a service bonus is one way to thank our fellow citizens for their service. Thus the Ohio tradition for four generations has been to approve constitutional amendments providing a bonus to Ohio veterans of World War I, World War II, the Korean War, and the Vietnam War. Many other states have authorized bonuses for those who have sacrificed during America 's most recent military conflicts. Ohio should do the same.

What can I do to help or to learn more about the proposal?

For more information, go to our Veterans' Web Page at www.ohiotreasurer.gov . Feel free to contact me or my office if you have any questions or if we can assist you. Finally, please sign up for our updates at so we can keep you posted on the progress of the proposal.