Bad budget news isn't dampening state Treasurer Richard Cordray's desire for state legislators to quickly approve a plan that could give service bonuses to recent Ohio veterans.

With 24 co-sponsors, the resolution appears to have enough support to win approval in the 33-member Senate. A possible committee vote is set for Tuesday, and the resolution could go to the full Senate as early as Wednesday.

However, disagreement remains over how to pay for it.

Cordray wants to let Ohioans vote in November on whether to issue up to $200 million in bonds to fund financial bonuses for veterans who served in conflicts in the Persian Gulf, Afghanistan and Iraq. But others, particularly House Speaker Jon Husted, R-Kettering, oppose the additional borrowing.

Under the resolution, veterans who served in the recent conflicts would get $100 for each month of service in those areas, up to $1,000. Veterans who served elsewhere during those conflicts could receive up to $500. Family members of those killed in action would get $5,000.

The Rev. Herbert Goetz Jr. of Columbus, who served Navy and Marine Corps personnel for 30 years before retiring in 1990, told legislators this week that these men and women serve the cause of freedom while being uprooted from their jobs, families and homes.

"Our men and women expect nothing more at their return but a grateful nation," he said. "While these monetary gifts are very modest, they will be seen as gifts which will recognize their service as our war veterans and help them with their critical passage into the life they once knew."

Cordray developed the proposal after a Lake County veteran last year asked his office about available benefits.

Bonds were used when the state issued similar bonuses in four past military conflicts, Cordray said. He said he opposes using the state's rainy day fund for the estimated $106 million program.

But although the plan may fly in the Senate, Husted is taking an "enough is enough" approach to more borrowing.

"Do we really think that borrowing into the future is the appropriate way to do this?" Husted said. "We want to do a giveaway so it's popular now and, by the way, we're going to hand the bill to our children and grandchildren. I just think that's irresponsible."

The House may still approve the bonuses, Husted said, "but I am not for borrowing the money to do it. That's how we got in this trouble at the federal level."

Cordray argues that borrowing is actually a cheaper option than paying upfront because of low bond interest rates, and he says the debt would be paid off in 15 years.

"It is very much our generation and not a future generation that will shoulder the entire burden," he said.

The proposal comes as Gov. Ted Strickland is warning that the state budget could be nearly $2 billion in the red by June 2009.

Asked about the timing, Cordray said, "There are always ups and downs in the economy, yet what's been a constant is that the people of this state have always made provision … to support our veterans."

jsiegel@dispatch.com

Ohio's treasurer wants to sell bonds to pay for bonuses. Bad idea, says the House speaker.