Rep. Rader Urges Lawmakers to Strike Budget Provision That Seizes Private Funds for Billionaire-Owned Project
COLUMBUS – State Rep. Tristan Rader (D-Lakewood) today is calling on fellow lawmakers to reject an unprecedented, and likely unconstitutional, maneuver buried in the state operating budget that would allow the state to permanently seize unclaimed funds from Ohio residents and funnel it into a fund supporting stadium construction, including a proposed new stadium for the Cleveland Browns.
“Ohioans’ private property should not be taken without due process, and certainly not to subsidize billionaire developers,” said Rep. Rader. “This isn’t economic development, it’s a constitutional red flag.”
The measure, tucked into the final version of the state’s operating budget via House Bill (HB) 96, would permit the state to take ownership of unclaimed funds, such as dormant bank accounts, insurance proceeds, or uncashed payroll checks, after 10 years. Critically, even if the rightful owner comes forward later, they would be permanently barred from reclaiming what is rightfully theirs.
These state-taken funds would then be redirected into the Ohio Cultural and Sports Facility Performance Grant Fund, which lawmakers have indicated will be used to help finance the Browns stadium project.
“This breaks with more than 50 years of precedent and sets a dangerous new standard,” said Rep. Rader. “And now we know it may also break the Constitution.”
A newly released legal memo from the nonpartisan Legislative Service Commission (LSC), the legislature’s own legal and policy experts, warns that the provision may violate the Takings Clause of both the U.S. and Ohio Constitutions. The memo cites Sogg v. Zurz (2009), where the Ohio Supreme Court held that unclaimed funds remain the rightful possession of its original owner and cannot be seized without just compensation.
“This isn’t just a bad budget gimmick, it’s a massive constitutional liability,” said Rep. Rader. “We’re talking about the government declaring your property ‘abandoned,’ keeping it, and using it to build luxury sports facilities for the rich. That’s a betrayal of public trust.”
Despite overwhelming public opposition to corporate welfare for sports teams, the legislature appears on track to approve the deal, with a final budget vote expected Wednesday.
“Some lawmakers have claimed this deal is legally sound. However, they’ve offered no documentation to support that claim. What we have now is clear, nonpartisan legal analysis showing this provision is on shaky constitutional ground,” said Rep. Rader. “We should not be risking taxpayer dollars on legally dubious giveaways to billionaires.”
Rep. Rader is calling for the removal of the provision taking over unclaimed funds from the final budget and urging his colleagues to restore both constitutional integrity and fiscal sanity to Ohio’s spending priorities.