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September 16th, 2013 By German Lopez | News | Posted In: News, Business, City Council

Disparity Study Moves Forward

Committee unanimously approves city manager’s proposal

city hallCity Hall - Photo: Jesse Fox

City Council’s Budget and Finance Committee on Sept. 16 unanimously approved a proposal that will allow the city administration to study whether city contracts should favorably target minority- and women-owned businesses and report back with the results in February 2015.

City officials support the measures because reported city contract participation rates have plummeted for minority-owned businesses and remained relatively flat for women-owned businesses since Cincinnati dismantled its previous minority- and women-owned business program in 1999.

The study, which the city now estimates will cost $450,000 to $1 million, is necessary because of a 1989 U.S. Supreme Court ruling that requires governments to empirically prove there is a racial or gender-based disparity before enacting policies that favorably target such groups.

It’s also unclear if the latest participation numbers are accurate.

As part of the city’s previous business program, minority- and women-owned businesses were required to report as minority- and women-owned businesses. But the classification has been voluntary since the program was terminated, which could be leaving out businesses who choose not to report.

In August, council members supported funding the disparity study with money from the parking lease or any other funds the city administration could locate.

“We need to put all of Cincinnati to work building Cincinnati,” said Vice Mayor Roxanne Qualls, who introduced the August motion, in a statement. “To make sure that the city has an open, fair, inclusive process that ensures everyone benefits from our public investments and from private development that we support with public money, we need an updated disparity study.”

Cincinnati hasn’t undertaken a disparity study since 2002. That study found evidence of disparities but ultimately recommended race- and gender-neutral policies to avoid legal uncertainty that surrounded the issue at the time.

Officials claim they couldn’t conduct another study until the city administration finished implementing suggestions from OPEN Cincinnati, a task force established in 2009 to reform the city’s small business program after Mayor Mark Mallory and his administration were accused of neglect.

The study has also been stalled by cost concerns. Some critics argue the money would be better spent elsewhere, but, in an uncommon moment of consensus, all council members have backed funding.

The city manager’s proposal calls for conducting the study between February 2014 and January 2015. The city administration will report the results to City Council and take public comments on the study in February 2015.

 
 
 
 
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