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by German Lopez 01.11.2013
Posted In: News, Prisons, Privatization at 02:55 PM | Permalink | Comments (0)
 
 
Liberty for Sale

More Bad News From Private Prison

Conneaut councilman asks state to intervene at CCA facility

Private prison critics have been proven right once again. Smuggling incidents are on the rise around Lake Erie Correctional Institution, which Ohio sold to the Corrections Corporation of America (CCA) in 2011.

In a letter to Gov. John Kasich’s northeast Ohio liaison, Conneaut Councilman Neil LaRusch claimed a rise in contraband smuggling has forced local police to increase security around the CCA facility.

Since the end of 2012, four have been arrested and charged with smuggling. Another four were arrested Monday and police suspect they were in Conneaut for a smuggling job. According to the Star Beacon, the four suspects arrested Monday were only caught due to the increased police presence outside the Lake Erie prison.

LaRusch said Conneaut and its police department are already running tight budgets, and they can’t afford to continue padding prison security. He then asked the state and governor to help out with the situation.

The letter prompted a reaction from the American Civil Liberties Union of Ohio (ACLU), which has staunchly opposed prison privatization in the state. In a statement, Mike Brickner, director of communications and public policy for the ACLU, said, “Unfortunately, this is a predictable pattern with private prisons. Promises of lower costs quickly morph into higher crime, increased burdens on local law enforcement, and in the end, a higher bill for taxpayers.”

He added, “This is not an anomaly. It is a predictable pattern. The private prison model is built on profit above all else. These facilities will cut corners and shift responsibility to taxpayers wherever necessary to maximize profits.”

The governor’s office and Ohio Department of Rehabilitation and Correction (ODRC) could not be immediately reached for comment. This story will be updated if a response becomes available.

Update (5:00 p.m.): Col. John Born, superintendent of the Ohio State Highway Patrol, responded to the councilman's letter. In his own letter, Born doesn't contradict that there's a rise in drug smuggling, but he gives the issue more context.

Born wrote criminal incidents at the Lake Erie prison have actually decreased. He acknowledges drug smuggling cases went up from four in 2011 to seven in 2012, but he says drug cases have gone down at the prison since 2010.

He also claims seven other state prisons have seen a greater rise in drug smuggling. Born frames the issue in a national context: Unfortunately, despite best efforts, the national problem of illegal drug usage and drug trafficking continues to plague our nation.

Regarding state assistance, Born wrote the Ohio State Highway Patrol does not have the authority to strengthen security in order to directly prevent drug smuggling: It is important to point out the Ohio State Highway Patrol's legal authority and corresponding duties prior to the sale of the prison and after the sale remain largely unchanged. Ohio troopers did not have original jurisdiction on private property off institution grounds while under state operations nor do they today.

He adds the Ohio State Highway Patrol has already deployed more cruisers at the prison, but he believes local law enforcement are still the best option for responding to incidents.

JoEllen Smith, spokesperson for ODRC, wrote in an email, DRC will be in communication with the parties involved to ensure any remaining concerns are addressed.

CityBeat previously covered private prisons in-depth (“Liberty for Sale,” issue of Sept. 19). Within a week of the story going to stands, ODRC Director Gary Mohr said the state would not privatize any more prisons. On the same day of his announcement, Mohr apparently received an audit that found the CCA facility was only meeting 66.7 percent of state standards (“Prison Privatization Blues,” issue of Oct. 10).

 
 
by German Lopez 10.26.2012
Posted In: News, Privatization, Budget at 03:33 PM | Permalink | Comments (2)
 
 
milton dohoney

City Manager Suggests Privatizing Parking

Council member says approach seems shortsighted

It’s nearly budget season in Cincinnati again. In a bit of a head start, City Manager Milton Dohoney has unveiled his plan to look into privatizing the city’s parking services.

In a memo to city employees, Dohoney claimed leasing could provide a few benefits to the city: “For example, a third party can invest in technology across the entire system more efficiently, can conduct enforcement and bill scofflaws, and can assume maintenance and facility upgrades to the system. ... Further, leasing the system could allow the City government to focus current staff on other services, and provide a pool of funding that could be paid immediately to support neighborhood investment among other priorities.”

Dohoney also wrote he had met with American Federation of State, County and Municipal Employees (AFSCME) workers that would be affected by the change. He assured any new parking operator would have to interview AFSCME parking workers for jobs.

Councilman P.G. Sittenfeld responded to the proposal critically in a statement: “I’ll await more details, but it seems penny-wise and pound-foolish to forgo a steady revenue stream for a lump-sum payment. Cincinnati needs a structurally balanced budget, and can’t keep relying on one-time sources. Places like Chicago and Indianapolis have seen their parking rates more than double following privatization — that’s a bad deal for citizens, and something we don’t need while were experiencing an urban renaissance.”

Some have cited the experience in Chicago as a failure of privatization. When New York City moved to privatize its parking meters, Matt Taibbi of Rolling Stone criticized New York City Mayor Mike Bloomberg for his plan: “These deals involve a sitting executive selling off a valuable piece of city property at a steep discount to private financial interests (often, to friends or campaign contributors), in order to solve a current cash flow problem that, surprise, surprise, will still be there the year after you finish spending the proceeds of your sale.”

But New York City’s plan for privatized parking meters kept pricing in public hands. It’s possible Cincinnati could take a similar approach and keep meter rates at the same level.

City officials could not be reached to elaborate on the proposal. This story will be updated if more information becomes available.

The full budget proposal typically comes out in late November. Mayor Mark Mallory and City Council will have to approve the proposal.

 
 
by German Lopez 02.23.2013
Posted In: Privatization, Prisons, News at 05:34 PM | Permalink | Comments (0)
 
 
Liberty for Sale

Inspection Finds Dangerous Conditions at Private Prison

Report echoes concerns raised by privatization critics

A surprise inspection of the private prison owned by Corrections Corporation of America (CCA) on Feb. 22 revealed higher levels of violence, inadequate staff, high presence of gang activity, illegal substance use, frequent extortion and theft, according to the report from the Correctional Institution Inspection Committee (CIIC), Ohio’s nonpartisan prison watchdog.

The CIIC report found the Lake Erie Correctional Institution had a 187.5-percent increase in inmate-on-inmate violence between 2010 and 2012, leading to a rate of inmate-on-inmate violence much higher than comparative prisons and slightly below the Ohio Department of Rehabilitation and Correction (ODRC) average for all state prisons. Rates of inmate-on-staff violence increased by 305.9-percent between 2010 and 2012 and were much higher than comparative prisons and the ODRC average, according to the report.

Safety and security were major areas of concern, with the report noting “personal safety is at risk.” Fight convictions were up 40 percent, but they weren’t any higher than comparative prisons or the ODRC average, the report found. Disturbances, use of force, access to illegal substances, shakedowns and bunk searches were all in need of improvement, but rounds were acceptable.

How staff handle the use of force and sanctions were particularly problematic, the report said: “Incident reports indicate that staff hesitate to use force even when appropriate and at times fail to deploy chemical agents prior to physical force, risking greater injury to both inmates and staff. Staff also do not appropriately sanction inmates for serious misconduct. At the time of the inspection, the facility had no options for sanctions other than the segregation unit, which was full.”

Fair treatment, fiscal accountability and rehabilitation and reentry were all found by the report to be in need of improvement, with many of the problems focusing on inadequate staff — a common concern critics repeatedly voiced after Gov. John Kasich announced his plan to sell the state prison to CCA in 2011. “The above issues are compounded by high staff turnover and low morale,” the report said. “New staff generally do not have the experience or training to be able to make quick judgments regarding the appropriate application of force or how to handle inmate confrontations. Staff also reported that they are often required to work an extra 12 hours per week, which may impact their response.”

The troubling findings left CIIC with dozens of recommendations for the private prison, including a thorough review of staff policy and guidelines, stronger cooperation between staff, holding staff and inmates more accountable and the completion of required state audits and evaluations.

The only positive findings were in health and well-being. The report said unit conditions, mental health services and food services were all good, while medical services and recreation were acceptable.

The report echoes many of the concerns raised by private prison critics, which CityBeat previously covered (“Liberty for Sale,” issue of Sept. 19). A September audit from ODRC also found the prison was only meeting two-thirds of the state’s standards, and reports from locals near the prison in January warned about a rise in smuggling.

 
 
by Andy Brownfield 12.03.2012
 
 
milton dohoney

Budget Hearing Raises Questions About Parking Privatization

City Manager says without lease, 344 city workers would lose jobs

Cincinnati City Council members today focused a lot of attention on a contentious plan to lease city parking assets during a Monday committee presentation on the 2013 budget.

It was the first opportunity council members had to publicly question the budget’s architects. The proposed budget would cover the first half of 2013. The city is switching over to a fiscal year starting in July.

Many council members expressed concern over the plan to use $21 million from a proposed 30-year lease of the city’s parking meters, garages and lots to help close a $34 million budget deficit.

“It seems like … the city budget wins, but the citizens are losing,” said Councilman P.G. Sittenfeld.

City Manager Milton Dohoney said the parking facilities net Cincinnati about $7 million a year. That would equal out to about $210 million over 30 years.

Sittenfeld called into question the wisdom of leasing the facilities for an estimated $50 million and taking half of the profit, for an earnings of about $150 million over 30 years.

Other council members expressed concern that whoever leased the parking would hike rates, something Councilman Cecil Thomas dismissed.

“The market would dictate the rates that are charged,” he said.

Dohoney said a combination of cuts, savings, revenue, projected growth and one-time funding sources helped eliminate the $34 million deficit. He said a budget containing only cuts would result in the layoff of 344 city workers.

A slide show provided by the city showed that 802 positions had been cut since 2000.

Dohoney advocated eliminating the property tax rollback promised as part of the deal to build two new sports stadiums in 1996. He said it would bring in about $9 million a year. However council has had little appetite to allow any increase in taxes as the city recovers from the Great Recession. Property taxes make up about 6 percent of the budget fund used to pay most of the city's operating expenses.

The cuts proposed in the 2013 budget include eliminating support for public access company Media Bridges, the Downtown and Neighborhood Gateways Program, Juvenile Firesetter Program and Arts Grants.

It would also eliminate the Cincinnati Police Department’s Mounted Patrol, which covers downtown on horseback. Dohoney said that would allow Cincinnati Police Chief James Craig to redeploy those nine officers elsewhere. Dohoney said Craig had asked for a new recruit class of 50, but Dohoney requested 30. He said the additional nine from the horse patrol would bring that closer to 40.

Dohoney said he was also allowing 10 additional recruits to cover patrols of University Hospital, which is no longer going to use University of Cincinnati police starting Jan. 1.

He said the police department would also look for ways to save money by increasing the involvement of civilian members who could do things like take reports of non-injury car accidents.

Councilwoman Laure Quinlivan asked if the budgeteers had considered restructuring the police force to save money. She has long been a proponent of “right-sizing” the police and fire forces, saying staffing levels remain at a high while the city’s population is shrinking.

The proposed budget also includes investments in business groups that promote economic development, like the Port Authority, Greater Cincinnati Partnership, Film Commission and African American Chamber of Commerce.

Councilman Chris Seelbach praised Dohoney and his budget team, saying he saw Cincinnati as being better off than it had been six years ago. But he also said he’d like to see the administration focus on people who are barely getting by instead of businesses and developers.

“There is a focus on helping people make more money that are already making a lot of money,” Seelbach said. “Helping people that aren’t paying a lot of taxes still pay very little.”

Cincinnatians can weigh in on the budget in a public hearing Thursday evening at 6 p.m.

 
 
by German Lopez 02.19.2013
Posted In: Parking, News, Privatization, Government, City Council at 06:08 PM | Permalink | Comments (1)
 
 
milton dohoney

City Manager Proposes Parking, Economic Development Plan

Dohoney touts “public-public partnership”

In a presentation to City Council Feb. 19, City Manager Milton Dohoney Jr. unveiled an unexpected parking proposal that will solve a $25.8 million budget deficit for the 2014 fiscal year and avoid full privatization. The 30-year plan will also put more than $100 million toward economic development in the city.

The plan involves teaming up with the Port of Greater Cincinnati Development Authority and some private operators to manage and modernize Cincinnati’s parking assets. Dohoney called it a “public-public partnership” that will allow Cincinnati to keep control over rates, operation hours and the placement of meters.

The money raised by the plan will be used for multiple development projects around the city, including the I-71/MLK Interchange, Tower Place Mall and a high-rise that will house a downtown grocery store.

The new parking plan will cap rate increases at 3 percent or the cost of living, with any increases coming in 25-cent increments. Private operators will not be allowed to change operation hours, but hours will be initially expanded to 8 a.m. to 9 p.m. downtown and 7 a.m. to 9 p.m. in neighborhoods.

The proposal will not immediately increase downtown’s $2-an-hour rates, but it will increase all neighborhood parking meters to 75 cents an hour. Afterward, the rate cap will make it so downtown rates can only be increased every four years and neighborhood rates can only be increased every 10 to 11 years.

But the rate hikes will only come after technological improvements are made to parking meters. The new meters will allow users to pay with a smartphone, which will enable remote payment without walking back to the meter. After the plan’s 30 years are up, parking assets will be returned to the city with all the new technological upgrades, according to Dohoney.

Some critics were originally concerned that private operators will aggressively enforce parking rules to run bigger profits, but Dohoney said enforcement standards will remain the same.

Enforcement will be done through booting instead of towing, according to the plan. Booting will only be used after the accumulation of three unpaid parking tickets, which is similar to how towing works today. The boots will be automatically removed once the tickets are paid, which will be possible to do remotely through a smartphone.

The plan, which is a tax-exempt bond deal, will provide the city with $92 million upfront cash and $3 million in annual installments after that, although the city manager said the yearly payments will increase over time. The city originally promised $7 million a year from the deal, but Dohoney said estimates had to be brought down as more standards and limitations were attached to address expressed concerns.

The money will first be used to pay for a $25.8 million deficit in the 2014 fiscal year. Another $6.3 million will be set aside for the working cap reserve and $20.9 million will be put in a reserve to pay for a projected deficit in the 2015 fiscal year.

The rest of the funds will be used for economic development. About $20 million will go to the I-71/MLK Interchange, which would match $40 million from the state. The project is estimated to create $750 million in economic impact, with $460 million of that impact in Hamilton County. Dohoney says the economic impact will create 5,900 to 7,300 permanent jobs, and ultimately bring in $33 million in earnings taxes, which means the plan will eventually pay for itself. He also says the funding from the parking deal will allow the city and state to complete the project within two to three years, instead of the seven to 10 years it would take if the city waited for support from the federal government.

If the state does not agree to take up the I-71/MLK Interchange project, Dohoney promised a “mega job deal” that will create 2,500 jobs.

With $12 million for development and $82 million in leveraged funds, the city will also take on massive development projects downtown. Tower Place Mall will undergo a massive conversion. The city will also tear down Pogue’s Garage at Fourth and Race streets and replace it with a 30-floor high-rise that will include 300 luxury apartments, 1,000 parking spaces and a grocery store.

The plan will also use $3 million for the Wasson Line right-of-way and $4 million for the next phase of Smale Riverfront Park, which should be completed in time for the 2015 Major League Baseball All-Star Game.

AEW, Xerox, Denison and Guggenheim will partner with the city and Port Authority for the plan. AEW will manage assets, Xerox will handle parking operations and on-street spaces, Denison will operate off-street spaces and manage facilities and equipment and Guggenheim will act as underwriter and capital provider.

After the City Council hearing, Councilman P.G. Sittenfeld released a statement that raised concerns about expanded meter operation hours, which Sittenfeld fears could burden certain neighborhoods. He also pointed out the plan will not fix Cincinnati’s long-term structural deficit problems. Still, he said the local Port Authority’s management could make the plan “worthy of support.” 

Sittenfeld has been skeptical of the parking plan since it was first announced in October. In the past, he warned privatization could cause parking rates to skyrocket. ©

 
 
by German Lopez 12.14.2012
Posted In: 2013 Election, Mayor, Budget, News, Privatization at 12:15 PM | Permalink | Comments (1)
 
 
cranley wiki copy

Fact Check: Cranley's 'Very Easy' Budget Plan

Mayor candidate’s budget suggestions are inadequate, impossible

Former Democratic city council member John Cranley is kicking off his 2013 mayoral campaign by getting involved in budget talks. In a public hearing at City Hall last week, Cranley tried to provide an alternative to privatizing the city’s parking assets, which City Manager Milton Dohoney has suggested to pay for $21 million of the city’s $34 million deficit.

“It’s not the citizen’s job to balance the budget, but let me make it very easy for you,” Cranley said. “You have $12 million in casino money that can be used but is currently being used on pet projects, like street sculptures. The parking meters themselves produce $7 million a year. That’s $19 million. And $5 million for garbage cans. That’s $24 million. You only need ($21 million) to cancel the parking privatization plan, so I got you $3 extra million to spare.”

In short, Cranley's alternative to parking privatization is using $12 million from casino revenue, $7 million from keeping parking meters under city ownership and $5 million saved from not purchasing trash carts.

So how viable are Cranley’s ideas? In a memo, Dohoney’s office responded. The memo points out that casino revenue is currently estimated at $7.2 million, not $12 million, and $1.3 million is already included in the budget for Focus 52, a neighborhood redevelopment project. That leaves casino revenues $6.1 million short of what Cranley proposed.

Regarding parking meters, Dohoney’s office says revenue from parking meters is restricted to fund “operations and maintenance in the right-of-way.” The memo says City Council could authorize using the money to plug the deficit, but it would then have to find alternatives for funding operations and maintenance.

Even the trash cart proposal doesn’t work. Not buying trash carts would only save $4.7 million, not $5 million. And the plan, which is part of the city’s effort to semi-automate trash collection, is in the general capital budget, not the general fund operating budget that’s being debated. The memo concludes, “If the trash carts are not purchased, the funds would not be available to close the gap because this is a capital budget expenditure and resources supporting the capital budget cannot be used in the operating budget.”

In other words, Cranley’s “very easy” budget plan isn’t just difficult; it’s a mix of inadequate and impossible. If CityBeat was PolitiFact, Cranley’s suggestions would probably get him a “Pants on Fire” label.

 
 
by German Lopez 03.04.2013
Posted In: Privatization, News, Parking, Budget, Economy at 12:28 PM | Permalink | Comments (0)
 
 
downtown grocery

Parking Meter Company's Past Problems Resurface

Before Xerox buyout, audit found ACS improperly managed parking meters

The company that would operate Cincinnati’s parking meters if the city passes its controversial parking plan this week was mired with audited problems and complaints in the past. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing.

A 2007 audit found ACS had failed to take care and keep track of parking meters it operated in Washington, D.C. The audit claimed 35 percent of parking meters listed in ACS’s inventory were missing, about 16 percent of the remaining meters were completely inoperative and 65 percent had problems that ranged from defacing to improper height and stability. ACS also failed to fix meters within the 72-hour period mandated by its contract, according to the audit.

For some residents, the broken meters led to unfair tickets, with 6,888 tickets, or nearly 1 percent of parking meter tickets, being improperly issued at unfixed meters, according to the audit. The audit also found a 903-percent increase in overall parking meter complaints under the privatization contract with ACS.

The audit also questioned the financial gains for Washington, D.C., which had to pay $8.8 million, or 33.4 percent, more under privatization than projected trends under public management.

The bad audit wasn’t enough for Washington, D.C., to cut its contract with ACS, which still manages the city’s parking meters today.

The audit was among a few other problems tipped to multiple media outlets by Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. In 2007, ACS was accused of bribing police officers in Edmonton, Canada, but a judge ruled in favor of ACS, stating there wasn’t sufficient evidence. In 2010, the Securities Exchange Commission (SEC) charged ACS with backdating and falsely disclosing stock options between 1996 and 2005, and ACS consented to a permanent injunction without admitting or denying the charges.

All the discovered problems occurred before 2010, when Xerox bought ACS.

Kevin Lightfoot, a spokesperson at Xerox, says the audit’s findings were based on faulty information.” He says Xerox and the District of Columbia Department of Transportation found ACS had saved Washington, D.C., money. He also claims the auditor had misunderstood the parking meters screen displays, which he says led to the improper identification of inoperative or malfunctioning meters.

CityBeat previously covered the parking proposal, which would lease the city’s parking assets to fund deficit reduction and economic development, in detail. Mayor Mark Mallory and Vice Mayor Roxanne Qualls have endorsed the plan, and it’s currently expected to have the five votes necessary to pass a possible City Council vote today.

On Friday, Councilman Chris Seelbach revealed Plan S, an alternative proposal that would not lease the city’s parking assets and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.

City Manager Milton Dohoney Jr. also put forward his “Plan B,” which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit.

Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years.

 
 
by German Lopez 12.19.2012
Posted In: News, Development, Government, Privatization at 11:24 AM | Permalink | Comments (0)
 
 
music hall

Music Hall Renovations Coming

City will lease Music Hall to private company for 75 years

Cincinnati’s Music Hall will be getting renovations, but the project will be much smaller than anticipated. Instead of the previously estimated $165 million, the project, which involves the city leasing the iconic building to the Music Hall Revitalization Company (MHRC) for 75 years, will only cover approximately $95 million.

At a joint press conference Wednesday, Mayor Mark Mallory and Otto Budig, president of MHRC, officially announced the plan, which City Council will take up early next year.

Not many details or a timeline were announced at the press conference, but some information did come to light. The renovations will include more comfortable seating, extra restroom capacity, heating, air conditioning, improved plumbing and new escalator models. During the renovations, Music Hall, home of the Cincinnati Symphony Orchestra, Cincinnati Opera and Cincinnati Ballet, will be closed for an estimated 17 months.

“We will do this in a manner that carries with it the surety that the project will be complete,” Budig said. “The worst thing we could do is start this project without the natural resources and pledges available.”

On top of the leasing agreement, the city will also help fund the project through tax credits. 

The lease continues the trend of public-private partnerships city government has used to revitalize Over-the-Rhine and downtown Cincinnati in recent years. From the Banks to Washington Park, the city of Cincinnati has pushed to be seen as a more attractive, business-friendly environment.

However, that has come with some push back. The Cincinnati Center City Development Corporation (3CDC) and city have previously faced criticisms from homeless advocates for allegedly discriminatory rules at Washington Park, which were later voted down by the Cincinnati Park Board.

Some public officials have also raised concerns about the city giving away too many of its public assets. The 2013 budget currently relies on a proposal that will privatize Cincinnati’s parking assets, a plan that has faced heavy criticism from Councilman P.G. Sittenfeld and mayoral candidate John Cranley. City Manager Milton Dohoney argues the privatization plan is necessary to avoid 344 layoffs.

 
 
by German Lopez 10.23.2013
Posted In: News, Privatization, Economy at 03:40 PM | Permalink | Comments (0)
 
 
ohio statehouse

National Report Criticizes JobsOhio, Other Privatized Agencies

Good Jobs First says privatized agencies create scandals, not jobs

JobsOhio and other privatized development agencies have created scandals and potential conflicts of interests instead of jobs, claims an Oct. 23 report from Good Jobs First, a research center founded in 1998 that scrutinizes deals between businesses and governments.

The report looked at privatized development agencies in seven states, including Ohio, and found that many of the same problems and scandals appear from state to state.

“These experiments in privatization have, by and large, become costly failures,” the report found. “Privatized development corporations have issued grossly exaggerated job-creation claims. They have created ‘pay to play’ appearances of insider dealing and conflicts of interest. They have paid executives larger salaries than governors. They have resisted basic oversight.”

The report focuses much of its findings on JobsOhio, a privatized development agency that Gov. John Kasich and Republican legislators established in 2011 to replace the Ohio Department of Development. The agency uses tax subsidies and other financial incentives to attract companies to Ohio with the intention of creating jobs.

But the report states JobsOhio “assembled a board of directors whose members included some of (Kasich’s) major campaign contributors and executives from companies that were recipients of large state development subsidies. It received a large transfer of state monies about which the legislature was not informed, intermingled public and private monies, refused to name its private donors, and then won legal exemption (advocated by Gov. Kasich) from review of its finances by the state auditor.”

It found similar issues in privatized development agencies in Wisconsin, Arizona, Indiana, Florida, Rhode Island and Michigan. In some cases, the scandals have cost states millions of dollars with little job creation to show for it, according to the report.

The latest report concurred many of the findings in a similar 2011 report from Good Jobs First, which sought to warn states, including Ohio, about the potential risks of privatized development agencies.

For JobsOhio, a major cause for concern in the report is how difficult it is to hold the agency accountable. State legislators have approved multiple measures that shield JobsOhio from public scrutiny, including exemptions that exclude the agency from public records laws, open meeting rules and the possibility of a full public audit.

Some of the controversy also focuses on how the state funds JobsOhio.

“The proposal called for ‘leasing’ the state liquor profits ($228 million the year prior) for up to 25 years to JobsOhio, which would eventually issue $1.4 billion in bonds to pay for the use of the funds,” according to the report. “Critics charged that this was not a fair market price for profits that could potentially amount to $6 billion over the term of the agreement.”

The report laments that the privatized and secretive agency represents a shift for Ohio, which the report claims “was an early practitioner of online subsidy disclosure.”

Good Jobs First concludes privatized development agencies perpetuate an economic environment in which big companies already have too much say.

“The privatization structures we describe here, including the increasing use of corporate seats for sale on governing or advisory boards, absolutely favor large businesses that have the money and executive staff time to pay and play at such levels,” the report concluded. “But small businesses already get short shrift in economic development resource allocation, and they are still suffering the most in the Great Recession’s aftermath.”

The organization also takes issue with the idea that public agencies aren’t “nimble”: “In all of our years tracking development deals, we have yet to hear of a state agency that lost an important deal because it failed to provide labor market or real estate or incentive data in a timely manner.”

Asked about the report, Kasich spokesperson Rob Nichols responded in an email, “We don't pay much attention to politically-motivated opponents whose mission is to combat job creation.”

Kasich and other Republicans claim JobsOhio’s privatized, secretive nature is necessary to secure job-creating development deals with private companies in an economic environment that, through the Internet and globalization, moves more quickly than ever before.

Democrats, including gubernatorial candidate Ed FitzGerald, claim the agency is ripe for abuse, difficult to hold accountable and unclear in its results.

State Auditor Dave Yost plans to release an audit of JobsOhio soon, but no specific date or time frame is set for the release. The audit was granted prior to state legislation that barred the state auditor from doing a full sweep of JobsOhio’s financial details.

The full report:


 
 
by German Lopez 10.24.2013
Posted In: News, Privatization, Prisons at 10:57 AM | Permalink | Comments (0)
 
 
Liberty for Sale

Audit: Private Prison Retains Increased Levels of Violence

New audit of Lake Erie facility finds improvements, but some problems linger

A re-inspection of the privatized Lake Erie Correctional Institution (LECI) found the prison is “heading in a positive direction,” but the facility is still on pace in 2013 to maintain increased levels of violence similar to the year before, according to the report.

In 2011, LECI became the first state prison in the country to be sold to a private company after Ohio, under the urging of Gov. John Kasich, sold the facility to Corrections Corporation of America (CCA) as a cost-cutting measure. Since then, multiple inspections found deteriorating health and safety conditions that anti-privatization critics warned of prior to the sale.

The audit, published on Oct. 8 but conducted on Sept. 9 and 10, comes from the Correctional Institution Inspection Committee (CIIC), Ohios independent prison watchdog.

The inspection was announced beforehand, unlike the unannounced audit on Jan. 22 that found a sharp rise in violence and various health problems. In other words, CCA had time to prepare for the latest inspection but not the one conducted earlier in the year, which could explain some of the mixed improvements.

“The CIIC inspection team’s overall sense is that conditions have improved,” the report claimed. “CCA has poured significant resources into the prison, including removing or changing staff, hiring on former (Ohio Department of Rehabilitation and Correction) staff, investing in additional security measures, and bringing in outside consultants.”

But for all the improvements, CIIC found issues of safety, security and inmate discipline linger: “Although improved slightly, the percentage of inmates reporting that they feel unsafe or very unsafe is still high.”

CIIC found inmate-on-inmate and inmate-on-staff assaults remain on track to match 2012’s higher levels of violence. The previous CIIC audit found inmate-on-inmate violence had increased by 188 percent and inmate-on-staff violence had increased by more than 300 percent between 2010 and 2012.

Staff reportedly told inspectors that there was “significant progress” in rates of violence throughout 2013, but the provided statistics for the year don’t reflect an improvement.

In some areas, conditions measurably worsened: CIIC reported that a “significantly higher percentage of inmates” tested positive for illegal substances in the first eight months of 2013 compared to the same time span in 2012.

Disciplinary actions and use of force were noted concerns for CIIC, even though LECI staff apparently made strides to exert more control over the inmate population. The prison also has more serious misconduct than similar minimum- and medium-security facilities.

CIIC didn’t formally inspect medical services and recreational facilities, but inspectors received various complaints from inmates in both areas. The amount of inmate grievances against staff actions also remain higher than the years before CCA took over the facility, although CIIC found slight improvement.

Still, the report repeatedly praised CCA for its improvements, particularly in rehabilitation and reentry services, better performance of rounds and shakedowns, and stronger health services and records. One example: CIIC found inmates are receiving 47.9 percent more GED diplomas, which certify a high school-level education, than they did in 2011, putting LECI’s GED achievement level at the average for similar prisons.

Staffing issues also improved, although the staff turnover rate remains above the Ohio Department of Rehabilitation and Correction average and security officers reported poor morale because of low wages.

For some critics of privatization, the poor conditions come as no surprise. Before CCA bought LECI, the American Civil Liberties Union of Ohio repeatedly warned that the for-profit incentive encourages private prison companies to cut services, security and staff while maintaining as many prisoners as possible, since the prison’s pay is based on how many inmates it holds.

CityBeat previously reported on the deteriorating conditions at LECI after inmates’ insider accounts, requested public records and numerous state reports found increasing violence and health concerns (“From the Inside,” issue of May 29).

The full CIIC audit:

 
 

 

 

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by Nick Swartsell 06.11.2014 76 days ago
Posted In: Prisons, Privatization at 10:07 AM | Permalink | Comments (0)
 
 
Liberty for Sale

ACLU Says Feds Should End Contract at Ohio Private Prison

Private prisons "a failed experiment," group says

Youngstown's Northeast Ohio Correctional Center, Ohio's only privately run prison, has had a fraught history since it was opened by Corrections Corporation of America in 1997. In its first year, the prison saw 13 stabbings, two murders and six escapes, far more than comparable prisons. 

Under a cloud of violence and mismanagement, the prison closed in 2001, only to reopen three years later on a federal contract to hold mostly undocumented immigrants who have committed federal crimes. 

Now, the American Civil Liberties Union of Ohio is calling for the federal government to stop contracting CCA to hold immigrant prisoners at the NEOCC, citing mismanagement at private prisons across the country.

“Unfortunately, this is nothing new for Ohioans,” says ACLU of Ohio Senior Policy Director Mike Brickner. “For-profit prisons have been a failed experiment here for decades. Violence increases, drug use is common and medical care is neglected, leading to facilities deteriorating rapidly. Despite all these problems, we continue to give taxpayer money to these for-profit companies that are subject to little oversight.”  

Critics like Brickner say private prisons create perverse incentives to maximize the number of incarcerated people and keep inmates in jail longer. Supporters say private prisons are cheaper because companies are compelled to run them more efficiently to turn a profit. 

CityBeat has reported on issues at the prison extensively. Problems with violence among prisoners and between prisoners and staff, drug use, unsanitary conditions, medical neglect and poor ventilation are common in the facility, according to inmates and some officials. 

In "Liberty for Sale," published in September of 2012, then-CityBeat reporter German Lopez explored some of the problems running rampant at NEOCC and other private prisons. Adding profit motive to incarceration has some serious implications, Lopez wrote:

The conflict between costs and adequate safety measures presents real-life, statistical consequences. A study at George Washington University found private prisons have a 50 percent higher rate of inmate-on-staff assault and a 66 percent higher rate of inmate-on-inmate assault than publicly owned and managed prisons. Another study, in the Federal Probation Journal in 2004, had similar results — it found that, compared to public prisons, private prisons have a 50 percent higher rate of inmate-on-staff assault and inmate-on-inmate assault.

Lopez also found that private prisons may not even be cheaper and more efficient in the long run — the main point supporters of the private prison system use to explain why they're preferable to state or federally run facilities.

CCA’s contract with the U.S. Bureau of Prisons is up in 2015, and the ACLU is asking the federal government not to extend it. The call comes after a report done by the advocacy group found a number of human rights violations at other privately run prisons contracted to detain immigrant prisoners in Texas. The report found similar abuses at these facilities, with prisoners experiencing neglect, violence and unsanitary conditions.

 
 
by German Lopez 12.03.2013
Posted In: News, Privatization, Governor at 03:19 PM | Permalink | Comments (1)
 
 
cover-kasich-2

Court Allows JobsOhio Documents to Remain Secret

ProgressOhio loses case against privatized development agency

The Ohio Supreme Court on Tuesday unanimously dismissed a request to compel JobsOhio to disclose various documents.

The court argued the Republican-controlled General Assembly largely exempted JobsOhio from public records law and therefore allowed the agency to keep most of its inner workings secret.

The decision was a major loss for advocacy group ProgressOhio, which claims the documents should be on the public record.

The Republican-controlled legislature, with the support of Republican Gov. John Kasich, in 2011 established JobsOhio, a privatized development agency, to replace the Ohio Department of Development. The JobsOhio Board of Directors is chaired by wealthy Ohio businessmen.

Republicans argue JobsOhio’s secretive, privatized nature is necessary to quickly foster economic development deals across the state. Democrats say the anti-transparency measures make it far too difficult to hold JobsOhio accountable as it recommends how to spend taxpayer dollars.

An Oct. 23 report criticized JobsOhio and other privatized development agencies around the country for consistently displaying conflicts of interest and other scandalous behavior. The report came from Good Jobs First, a research center founded in 1998 that scrutinizes deals between businesses and governments.

Kasich previously touted JobsOhio as one of the reasons Ohio’s economy quickly recovered following the Great Recession, but recent indicators show the state’s economy is now slowing down. Ohio is one of five states whose economy worsened in the past three months, according to an index from the Federal Reserve of Philadelphia that combines four economic indicators to gauge states’ economic health.

Others have more directly questioned the Kasich administration’s claims to success. An Oct. 29 investigation from The Toledo Blade found jobs numbers from the Ohio Development Services Agency are vastly inflated, indicating that the state government isn’t producing nearly as many jobs as it claims.

 
 
by German Lopez 11.21.2013
Posted In: News, Guns, Governor, Privatization at 09:58 AM | Permalink | Comments (0)
 
 
eric kearney

Morning News and Stuff

Local senator to run for lt. governor, audit clears JobsOhio, House OKs "stand your ground"

Democratic gubernatorial candidate Ed FitzGerald selected State Sen. Eric Kearney of Cincinnati as his running mate for his bid against Gov. John Kasich in 2014. Although Kasich is widely perceived as a favorite as the incumbent, recent polling found the race is tied. (The poll was commissioned by Ohio Democrats, but the firm behind it was deemed the most accurate national pollster of 2012.)

Republican State Auditor Dave Yost’s long-awaited audit of JobsOhio found no substantial conflicts of interests at the privatized development firm established by Gov. Kasich and Republican legislators to replace the public Ohio Department of Development. But the audit found 113 items totaling nearly $69,000 in inadequately documented expenditures financed through the state’s leased liquor profits and insufficient safeguards to identify potential conflicts of interest. In a statement, John Patrick Carney, the Democratic candidate for state auditor running against Yost in 2014, claimed the audit was a whitewashed attempt that fails to give taxpayers a full accounting of JobsOhio” and touted it as evidence the state auditor’s office needs change. CityBeat previously wrote about criticisms towards JobsOhio in further detail here. (Updated at 10:45 a.m.: Rewrote paragraph to add Carney’s comments.)

The Ohio House yesterday approved sweeping gun legislation that would impose “stand your ground” rules in the state and automatically recognize concealed-carry licenses from other states. “Stand your ground” rules remove a duty to retreat before using deadly force in self-defense when a person is in areas in which he’s lawfully allowed; current Ohio law only removes the duty to retreat when a person is in his home or vehicle. The bill is particularly controversial following Trayvon Martin’s death to George Zimmerman in Florida, where a “stand your ground” law exists but supposedly played a minor role in the trial that let Zimmerman go free. The bill now requires approval from the Ohio Senate and Gov. Kasich to become law.

Commentary: “False Equivalency Confuses Streetcar Debate.”

The American Civil Liberties Union of Ohio says it opposes new early voting limits that would shorten the in-person early voting period from 35 to 29 days and remove a “golden week” that allows Ohioans to simultaneously register and vote in person. The Ohio Association of Election Officials claims the limits are necessary to establish uniform voting days across all counties without placing too much of a burden on smaller counties. But Democrats claim the limits aim to suppress voters. The Ohio Senate yesterday cleared the new early voting limits, which now require approval from the Ohio House and Gov. Kasich to become law.

If property and business owners along the planned streetcar line sue over the cancellation of the $133 million project, legal experts say they have a very slim chance of winning. The threat of litigation is one of the potential back-up options discussed by streetcar supporters if Mayor-elect John Cranley and the incoming City Council agree to cancel the project, as CityBeat covered in further detail here.

Hamilton County commissioners agreed to increase the tax return local property owners will get as part of the deal funding Paul Brown Stadium and Great American Ball Park. The deal boosts the rebate to $13 million in 2014, up from $10 million in 2013 but still below the $20.5 million promised to property owners after voters approved a sales tax hike to fund the stadiums. Commissioners estimate property owners will receive nearly $46 for each $100,000 of property value from the boosted rebate, up from $35 this year, but Hamilton County Auditor Dusty Rhodes told CityBeat that the exact number is unclear until the tax commissioner approves new tax rates.

College campuses generally struggle with too-frequent cases of sexual assault, but one lawsuit from an alleged victim is targeting Miami University for supposed negligence and a breach of the student code of conduct. The female student claims she was raped by former Miami University student Antonio Charles, but she says that multiple red flags could have prevented the alleged incident. Charles was eventually expelled from Miami University for “sexual misconduct” in response to the incident involving the plaintiff, but that was after he was investigated for multiple other accusations related to sexual misconduct. Miami University Sexual Assault Response Coordinator Rebecca Getson defends some of the university administration’s actions regarding sexual assault cases as a strict adherence to protocol and blames some of the public perception on the administration’s lack of awareness about the atmosphere.

Cincinnati’s economy will grow more slowly than the nation’s economy next year, according to Cincinnati USA Partnership for Economic Development’s panel of five regional economists.

Al Neyer plans to build a $22 million luxury apartment tower in downtown Cincinnati.

Cancer research done on mice might get screwed up by standard laboratory temperatures.

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by German Lopez 10.25.2013
Posted In: News, Pensions, Prisons, Privatization, Voting at 09:29 AM | Permalink | Comments (0)
 
 
city hall

Morning News and Stuff

Few local contributions to Issue 4, private prison mired in violence, Ohio could limit voting

Issue 4, the ballot initiative that would semi-privatize Cincinnati’s pension system, obtained most of its financial support from out-of-town tea party groups, according to financial disclosure forms filed to the Hamilton County Board of Elections on Oct. 24. Of the more than $231,000 raised for Issue 4 by Cincinnati for Pension Reform, $229,500 came from groups in West Chester, Ohio, and Virginia. Chris Littleton, a leading consultant for Issue 4 and a long-time tea party activist involved in a few of the listed groups, is also based in West Chester. City leaders unanimously oppose Issue 4 because they argue it would force the city to cut services and city employees’ retirement benefits — two claims that have been backed by studies on Issue 4. Supporters say Issue 4 is necessary to help fix the pension system’s $862 unfunded liability. Vice Mayor Roxanne Qualls previously told CityBeat that City Council will take up further reforms to address the unfunded liability after the election, assuming voters reject Issue 4 on Nov. 5.

A re-inspection of the privatized Lake Erie Correctional Institution (LECI) found that, while the private prison has made some improvements in rehabilitation, health services and staffing, it remains on pace in 2013 to match the previous year’s increased levels of violence. Various state reports found the facility quickly deteriorated after it became the first state prison to be sold to a private company, Corrections Corporation of America, in 2011, under the urging of Gov. John Kasich. In particular, inmate-on-inmate and inmate-on-staff assaults rapidly rose between 2010 and 2012 and appear to remain at similar increased levels in 2013, according to an audit conducted on Sept. 9 and 10 by Correctional Institution Inspection Committee, Ohio’s independent prison watchdog. CityBeat previously covered the deteriorating conditions at LECI in further detail here.

Ohio Secretary of State Jon Husted advocated trimming the amount of early voting days in a letter to the state legislature yesterday. Husted says he wants the rules passed to establish uniformity across all Ohio counties. But Democrats — including State Sen. Nina Turner, who is set to run against Husted in 2014 for secretary of state — say the measures attempt to limit voting opportunities and suppress voters. In 2012, Doug Preisse, close adviser to Gov. Kasich and chairman of the Franklin County Republican Party, explained similar measures that limit early voting in an email to The Columbus Dispatch: “I guess I really actually feel we shouldn’t contort the voting process to accommodate the urban — read African-American — voter-turnout machine.” Husted’s suggestions also included measures that would allow online voter registration and limit ballot access for candidates in minor political parties.

A Hamilton County judge yesterday dismissed another legal challenge against the city’s parking plan, but the conservative group behind the legal dispute plans to appeal. The plan would lease Cincinnati’s parking meters, lots and garages to the Greater Cincinnati Port Authority, which would then use private operators to manage the assets. Supporters say the lease is necessary to leverage the city’s parking assets for an $85 million upfront payment that would help pay for development projects. Opponents argue it gives up too much control over the city’s parking assets to private entities.

Several Medicaid overhaul bills began moving in the Ohio House yesterday, following months of work and promises from Republican legislators. The bills increase penalties for defrauding the state, require the Department of Medicaid to implement reforms that seek to improve outcomes and emphasize personal responsibility, and make specific tweaks on minors obtaining prescriptions, hospitals reporting of neonatal abstinence syndrome, behavioral health services and other smaller categories. The overhaul bills follow Gov. Kasich’s decision to bypass the Ohio legislature and expand Medicaid eligibility for at least two years with federal funds approved by the Controlling Board, an obscure seven-member legislative panel.

Ohio’s controversial facial-recognition program can be used by some federal and out-of-state officials, according to The Cincinnati Enquirer. The program allows police officers and civilian employees to use a photo to search state databases for names and contact information; previously, law enforcement officials needed a name or address to search such databases. Shortly after the program was revealed, Gov. Kasich compared it to privacy-breaching national intelligence agencies.

Ohio students aren’t as good at math and science as students in China, Japan, Korea and Singapore, among other countries.

A bipartisan “open container” bill would allow cities, including Cincinnati, to legalize drinking alcohol in the streets. In the case of Cincinnati, the city could allow public drinking in up to two districts if the bill passed. Supporters of the bill say it would boost economic activity in certain areas, but some are concerned the bill will enable “trash and rowdiness.”

Cincinnati leads the way on Twitter.

Vitamin B2, which is commonly found in cottage cheese, green veggies and meat, could be used to 3-D print medical implants.

Early voting is now underway. Find your voting location here. Normal voting hours are 8 a.m. to 4 p.m., although some days are extended. Check out CityBeat’s coverage and endorsements for the 2013 election here.

On Oct. 29, local residents will be able to give feedback to Cincinnati officials about the city budget — and also nab some free pizza. The open budgeting event is from 6 p.m. to 8:30 p.m. on Oct. 29 at 1115 Bates Ave., Cincinnati.

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by German Lopez 10.24.2013
Posted In: News, Privatization, Pensions at 03:35 PM | Permalink | Comments (0)
 
 
tea party pensions

Few Local Contributions to Issue 4 Campaign

Financial disclosures show mostly out-of-town contributions to pension privatization effort

Issue 4, the ballot initiative that would semi-privatize Cincinnati’s pension system, obtained most of its financial support from out-of-town tea party groups, according to financial disclosure forms filed to the Hamilton County Board of Elections on Oct. 24.

The report confirms concerns previously raised by city officials, unions and mayoral and City Council candidates: The pension privatization effort is coming from outside Cincinnati and, in some instances, Ohio.

Up to Oct. 16, Cincinnati for Pension Reform, which successfully placed Issue 4 on the ballot, received more than $231,000 from campaign contributors. Of that money, $209,500 came from groups in West Chester, Ohio — organizations called Jobs and Progress Fund, A Public Voice, Ohio 2.0 and Ohio Rising — and $20,000 came from the Virginia-based Liberty Initiative Fund, which CityBeat previously reported as an early supporter of pension privatization schemes around the country.

Chris Littleton, a leading consultant for Issue 4 and long-time tea party activist, is also based in West Chester. He’s blogged about his involvement in Ohio Rising and Ohio 2.0, and he helped create the Cincinnati Tea Party and Ohio Liberty Coalition, another tea party group.

Upon receiving the contributions, Cincinnati for Pension Reform used more than $215,000 to circulate petitions, email blasts, advertisements and other typical campaign expenses.

The infusion of cash from out-of-town sources also helps explain why Cincinnati for Pension Reform managed to mobilize its efforts so quickly and without the knowledge of many city officials, who previously said they’re bewildered by the effort and don’t know where it came from.

If approved by voters, Issue 4 would semi-privatize Cincinnati’s pension system so city employees hired after January 2014 would contribute to and manage individual retirement accounts, which would also be supported by a proportional match from the city. That’s a shift from the current system in which the city pools pension funds and manages the investments through an independent board. The idea is to move from a public plan and instead imitate a 401k plan that’s often seen in the private sector.

The conservative Buckeye Institute, which supports Issue 4, previously studied the proposal and found it could greatly reduce retirement benefits for city employees. Although the Buckeye Institute’s report claims Issue 4 could ultimately save Cincinnati money, it was laced with caveats that could actually lead to higher costs for the city.

Another study from a finance professor at Xavier University found Issue 4, if approved, could force the city to cut services, excluding police and firefighters, by up to 41 percent or increase taxes by a similar amount in the near term by mandating that the city more expediently pay off the current pension system’s $862 million unfunded liability.

A major concern for critics of Issue 4 is that it could cost the city its Social Security exemption. Under the current pension system, the city doesn’t have to pay into Social Security. If Issue 4 passes, the city’s contributions to the pension system might not be generous enough to keep the exemption, which could force the city to make costly Social Security payments.

And if the city doesn’t lose its exemption, city workers would be left with an individual retirement plan that wouldn’t have the safety net of Social Security — unlike private-sector workers who get both an individual retirement account and Social Security.

Supporters of Issue 4 dismiss the criticisms. They say that Issue 4 is necessary to address Cincinnati’s large unfunded pension liability, which credit ratings agency Moody’s cited as one of the reasons it downgraded the city’s bond rating in July.

The city’s leaders, who unanimously oppose Issue 4, say they are working on solving the liability, but they argue it’s better to reform the system, not scrap it altogether.

Vice Mayor Roxanne Qualls previously told CityBeat that pension issues for current city employees are covered by reforms passed in 2011, and she says City Council will take up further reforms to address the unfunded liability after the election in November.

Voters will make the final decision on Issue 4 on Nov. 5.

The full financial report:


Updated with more information Chris Littleton and the involved groups.

 
 
by German Lopez 10.24.2013
Posted In: News, Privatization, Prisons at 10:57 AM | Permalink | Comments (0)
 
 
Liberty for Sale

Audit: Private Prison Retains Increased Levels of Violence

New audit of Lake Erie facility finds improvements, but some problems linger

A re-inspection of the privatized Lake Erie Correctional Institution (LECI) found the prison is “heading in a positive direction,” but the facility is still on pace in 2013 to maintain increased levels of violence similar to the year before, according to the report.

In 2011, LECI became the first state prison in the country to be sold to a private company after Ohio, under the urging of Gov. John Kasich, sold the facility to Corrections Corporation of America (CCA) as a cost-cutting measure. Since then, multiple inspections found deteriorating health and safety conditions that anti-privatization critics warned of prior to the sale.

The audit, published on Oct. 8 but conducted on Sept. 9 and 10, comes from the Correctional Institution Inspection Committee (CIIC), Ohios independent prison watchdog.

The inspection was announced beforehand, unlike the unannounced audit on Jan. 22 that found a sharp rise in violence and various health problems. In other words, CCA had time to prepare for the latest inspection but not the one conducted earlier in the year, which could explain some of the mixed improvements.

“The CIIC inspection team’s overall sense is that conditions have improved,” the report claimed. “CCA has poured significant resources into the prison, including removing or changing staff, hiring on former (Ohio Department of Rehabilitation and Correction) staff, investing in additional security measures, and bringing in outside consultants.”

But for all the improvements, CIIC found issues of safety, security and inmate discipline linger: “Although improved slightly, the percentage of inmates reporting that they feel unsafe or very unsafe is still high.”

CIIC found inmate-on-inmate and inmate-on-staff assaults remain on track to match 2012’s higher levels of violence. The previous CIIC audit found inmate-on-inmate violence had increased by 188 percent and inmate-on-staff violence had increased by more than 300 percent between 2010 and 2012.

Staff reportedly told inspectors that there was “significant progress” in rates of violence throughout 2013, but the provided statistics for the year don’t reflect an improvement.

In some areas, conditions measurably worsened: CIIC reported that a “significantly higher percentage of inmates” tested positive for illegal substances in the first eight months of 2013 compared to the same time span in 2012.

Disciplinary actions and use of force were noted concerns for CIIC, even though LECI staff apparently made strides to exert more control over the inmate population. The prison also has more serious misconduct than similar minimum- and medium-security facilities.

CIIC didn’t formally inspect medical services and recreational facilities, but inspectors received various complaints from inmates in both areas. The amount of inmate grievances against staff actions also remain higher than the years before CCA took over the facility, although CIIC found slight improvement.

Still, the report repeatedly praised CCA for its improvements, particularly in rehabilitation and reentry services, better performance of rounds and shakedowns, and stronger health services and records. One example: CIIC found inmates are receiving 47.9 percent more GED diplomas, which certify a high school-level education, than they did in 2011, putting LECI’s GED achievement level at the average for similar prisons.

Staffing issues also improved, although the staff turnover rate remains above the Ohio Department of Rehabilitation and Correction average and security officers reported poor morale because of low wages.

For some critics of privatization, the poor conditions come as no surprise. Before CCA bought LECI, the American Civil Liberties Union of Ohio repeatedly warned that the for-profit incentive encourages private prison companies to cut services, security and staff while maintaining as many prisoners as possible, since the prison’s pay is based on how many inmates it holds.

CityBeat previously reported on the deteriorating conditions at LECI after inmates’ insider accounts, requested public records and numerous state reports found increasing violence and health concerns (“From the Inside,” issue of May 29).

The full CIIC audit:

 
 
by German Lopez 10.24.2013
Posted In: News, Privatization, 2013 Election, Taxes at 09:00 AM | Permalink | Comments (0)
 
 
city hall

Morning News and Stuff

CityBeat endorsements unveiled, report slams JobsOhio, tax reform could hurt city budgets

CityBeat yesterday revealed its endorsements for the City Council and mayoral races. Check them out here. Also, early voting is now underway. Find your voting location here. Normal voting hours are 8 a.m. to 4 p.m., although some days are extended.

JobsOhio and similar privatized development agencies in other states create scandals and potentials of conflicts of interests instead of jobs, according to an Oct. 23 report from Good Jobs First. The report found that privatized development agencies in seven states, including Ohio, tend to also exaggerate job claims and resist basic oversight. JobsOhio in particular is chaired by people who donated to Gov. John Kasich’s campaign. The agency also received public money without informing the legislature, and it gained a legal exemption from full public audits, public records laws and open meeting rules. Kasich and Republican legislators in 2011 established JobsOhio to replace the Ohio Department of Development. They argue JobsOhio’s privatized, secretive nature helps the agency establish job-creating development deals at the “speed of business.” But Democrats say JobsOhio is ripe for abuse, difficult to hold accountable and unclear in its results.

A bill that intends to bring uniformity to Ohio’s complex municipal income tax code got a makeover, but cities say the bill still reduces their revenues. Business groups are pushing for the bill so they can more easily work from city to city and county to county without dealing with a web of different forms and regulations, but cities are concerned they’ll lose as much as $2 million a year. Many cities already lost some state funding after Kasich and the Republican legislature slashed local government funding, which reduced revenues for Cincinnati in particular by $22.2 million in 2013, according to City Manager Milton Dohoney.

Opponents of Issue 4, the tea party-backed city charter amendment that would semi-privatize Cincinnati’s pension system, say it could force the city to cut services by 41 percent or raise taxes significantly. CityBeat analyzed the amendment in further detail here.

Converting Mercy Mt. Airy Hospital into a crime lab for the county coroner’s office could cost $21.5 million, well under the previously projected $56 million. Hamilton County Coroner Lakshmi Sammarco says it could be the most economical way for the county to get a crime lab, which the coroner’s office says it desperately needs. Hamilton County Administrator Christian Sigman says he’s still concerned about operating costs, but he’ll review the new estimates and advise county commissioners on how to proceed.

An Over-the-Rhine business owner says Cincinnati Center City Development Corp. (3CDC) “dropped the ball” with incentives for retail businesses, and he’s now looking to move his store, Joseph Williams Home, to the suburbs. Specifically, Fred Arrowood says 3CDC has done a lot to accommodate restaurants and bars, but it failed to live up to promises to attract and retain retail businesses. But 3CDC points to its own numbers: Spaces in OTR are currently leased in contracts with 20 businesses, 15 restaurants or bars and 14 soft goods retailers.

Cincinnati State and the University of Cincinnati yesterday signed an agreement that will make it easier for students with two-year degrees at Cincinnati State to get four-year degrees at UC.

The Cincinnati Enquirer hosted a City Council candidate forum yesterday. Find their coverage here.

Northeast Ohio Media: “Ohio abortion clinic closings likely to accelerate under new state regulations.” (CityBeat reported on the regulations, which were passed with the two-year state budget, here.)

Gov. Kasich and Ohio Sen. Rob Portman, two Republicans widely perceived as potential presidential candidates in 2016, don’t register even 1 percent of the vote in New Hampshire, a key primary state.

Cincinnati-based Omnicare agreed to pay $120 million to resolve a case involving alleged kickbacks and false claims, according to lawyers representing a whistleblower. The company says the settlement is not an admission of liability or wrongdoing.

Chef David Falk of Boca wrote a moving love letter to Cincinnati.

On Oct. 29, local residents will be able to give feedback to Cincinnati officials about the city budget — and also nab some free pizza. The open budgeting event is from 6 p.m. to 8:30 p.m. on Oct. 29 at 1115 Bates Ave., Cincinnati.

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by German Lopez 10.23.2013
Posted In: News, Privatization, Economy at 03:40 PM | Permalink | Comments (0)
 
 
ohio statehouse

National Report Criticizes JobsOhio, Other Privatized Agencies

Good Jobs First says privatized agencies create scandals, not jobs

JobsOhio and other privatized development agencies have created scandals and potential conflicts of interests instead of jobs, claims an Oct. 23 report from Good Jobs First, a research center founded in 1998 that scrutinizes deals between businesses and governments.

The report looked at privatized development agencies in seven states, including Ohio, and found that many of the same problems and scandals appear from state to state.

“These experiments in privatization have, by and large, become costly failures,” the report found. “Privatized development corporations have issued grossly exaggerated job-creation claims. They have created ‘pay to play’ appearances of insider dealing and conflicts of interest. They have paid executives larger salaries than governors. They have resisted basic oversight.”

The report focuses much of its findings on JobsOhio, a privatized development agency that Gov. John Kasich and Republican legislators established in 2011 to replace the Ohio Department of Development. The agency uses tax subsidies and other financial incentives to attract companies to Ohio with the intention of creating jobs.

But the report states JobsOhio “assembled a board of directors whose members included some of (Kasich’s) major campaign contributors and executives from companies that were recipients of large state development subsidies. It received a large transfer of state monies about which the legislature was not informed, intermingled public and private monies, refused to name its private donors, and then won legal exemption (advocated by Gov. Kasich) from review of its finances by the state auditor.”

It found similar issues in privatized development agencies in Wisconsin, Arizona, Indiana, Florida, Rhode Island and Michigan. In some cases, the scandals have cost states millions of dollars with little job creation to show for it, according to the report.

The latest report concurred many of the findings in a similar 2011 report from Good Jobs First, which sought to warn states, including Ohio, about the potential risks of privatized development agencies.

For JobsOhio, a major cause for concern in the report is how difficult it is to hold the agency accountable. State legislators have approved multiple measures that shield JobsOhio from public scrutiny, including exemptions that exclude the agency from public records laws, open meeting rules and the possibility of a full public audit.

Some of the controversy also focuses on how the state funds JobsOhio.

“The proposal called for ‘leasing’ the state liquor profits ($228 million the year prior) for up to 25 years to JobsOhio, which would eventually issue $1.4 billion in bonds to pay for the use of the funds,” according to the report. “Critics charged that this was not a fair market price for profits that could potentially amount to $6 billion over the term of the agreement.”

The report laments that the privatized and secretive agency represents a shift for Ohio, which the report claims “was an early practitioner of online subsidy disclosure.”

Good Jobs First concludes privatized development agencies perpetuate an economic environment in which big companies already have too much say.

“The privatization structures we describe here, including the increasing use of corporate seats for sale on governing or advisory boards, absolutely favor large businesses that have the money and executive staff time to pay and play at such levels,” the report concluded. “But small businesses already get short shrift in economic development resource allocation, and they are still suffering the most in the Great Recession’s aftermath.”

The organization also takes issue with the idea that public agencies aren’t “nimble”: “In all of our years tracking development deals, we have yet to hear of a state agency that lost an important deal because it failed to provide labor market or real estate or incentive data in a timely manner.”

Asked about the report, Kasich spokesperson Rob Nichols responded in an email, “We don't pay much attention to politically-motivated opponents whose mission is to combat job creation.”

Kasich and other Republicans claim JobsOhio’s privatized, secretive nature is necessary to secure job-creating development deals with private companies in an economic environment that, through the Internet and globalization, moves more quickly than ever before.

Democrats, including gubernatorial candidate Ed FitzGerald, claim the agency is ripe for abuse, difficult to hold accountable and unclear in its results.

State Auditor Dave Yost plans to release an audit of JobsOhio soon, but no specific date or time frame is set for the release. The audit was granted prior to state legislation that barred the state auditor from doing a full sweep of JobsOhio’s financial details.

The full report:


 
 
by German Lopez 10.09.2013
Posted In: News, Parking, Privatization at 08:15 PM | Permalink | Comments (0)
 
 
news1_parkingmeters

Port Authority Cuts Parking Plan Payment

City to get $85 million lump sum, down from $92 million

The parking plan’s lump sum payment is being reduced to $85 million, down from $92 million, and the city could be on the hook for $14 million to $15 million to build a garage, according an Oct. 9 memo from City Manager Milton Dohoney to council members and the mayor.

Dohoney wrote that the Greater Cincinnati Port Authority, which is leasing Cincinnati’s parking meters, lots and garages under the 30-plus-year deal, reduced its lump sum payment because of rising interest rates and its decision to reduce parking meter enforcement hours outside of Over-the-Rhine and the Cincinnati Business District.

Under the reviewed deal, the Port Authority also handed the responsibility of building a garage at Seventh and Sycamore streets to the city of Cincinnati. Dohoney recommends using the parking plan’s upfront payment to fund the garage, which will cost between $14 million and $15 million, according to city spokesperson Meg Olberding.

If City Council approves the allocation, the upfront funds would be effectively left at $70 million to $71 million.

The city still estimates it will get at least $3 million in annual installments from the lease.

Supporters of the parking plan claim it’s necessary to fully leverage Cincinnati’s parking assets to fund development projects and help balance the operating budget.

The plan also requires private operators, which will be hired by the Port Authority, to upgrade Cincinnati’s parking assets. The upgrades should allow parking meters to accept remote payments through smartphones, among other new features.

Critics claim the plan gives up too much local control over the city’s parking assets. They say the city and Port Authority could easily be pressured by private operators to hike parking rates far beyond the 3-percent-a-year increase currently called for under the plan.

The plan has also been mired in controversy, notably because the city administration withheld a consultant’s memo from the public and council members that claimed the plan is a bad deal for the city. The city administration says the memo was based on outdated information, but opponents still criticized the lack of transparency behind the deal.

Dohoney wrote in the Oct. 9 memo that the Port Authority’s board plans to meet on Oct. 19 to finalize contracts with private operators. If all goes as planned, the Port Authority estimates the new parking system will be in place by April 2014.

 
 
by German Lopez 09.27.2013
Posted In: News, Women, Development, Privatization at 08:59 AM | Permalink | Comments (0)
 
 
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Morning News and Stuff

Conflicts of interest at JobsOhio, transportation projects approved, Ohio women fare poorly

CityBeat is participating in a City Council candidate forum on Oct. 5. Have any questions you would like to ask candidates? Submit them here.

State Auditor Dave Yost says he will investigate the potential conflicts of interest found by the Ohio Ethics Commission for nine of 22 top JobsOhio officials, including six of nine board members. For critics, the conflicts of interest add more concerns about JobsOhio, the privatized development agency that proposes tax breaks for businesses and has been mired in controversy ever since it was set up by Gov. John Kasich and Republicans to replace the Ohio Department of Development. Because the agency is privatized and deals with private businesses, many of its dealings are kept from the public under state law. Republicans argue the secrecy is necessary to allow JobsOhio to more quickly establish job-creating development deals, but Democrats say the secrecy makes it too difficult to hold JobsOhio accountable.

A state board approved nearly $3 billion in transportation projects proposed by Kasich, including work on the MLK/I-75 Interchange in Cincinnati that city and state officials say will create thousands of jobs in the region. The projects will require additional state and local money to be fully funded over the next few years.

In comparison to men, Ohio women have lower incomes, hold fewer leadership roles and disproportionately suffer from the state’s high infant mortality rate. The issues placed Ohio at No. 30 out of 50 states for women’s issues in a Sept. 25 report from the Center for American Progress (CAP). The report analyzed 36 indicators for women in the categories of economic security, leadership and health; it then graded the states and ranked them based on the grades. CAP, a left-leaning organization, is touting the report to support progressive policies that could help lift women out of such disparities, including the federally funded Medicaid expansion and an increase to minimum wages.

Commentary: “Ohio legislator worried a same-sex marriage case will turn the country socialist, make him cry.”

Mayoral candidate John Cranley, who’s running against fellow Democrat and Vice Mayor Roxanne Qualls, says he doesn’t know if he can stop the parking plan if he’s elected. Cranley explained it will only be possible if the Greater Cincinnati Port Authority doesn’t set up contracts and sell bonds for the deal before the election. Under the parking plan, the city is leasing its parking meters, lots and garages to the Port Authority, which will then hire various private operators to manage the assets. Qualls supports the plan because it will raise money and resources to fund development projects and modernize the city’s parking services, but Cranley argues it cedes too much control over the city’s parking assets.

It turns out Toni Morrison’s The Bluest Eye won’t be removed from Ohio’s education guidelines. State Board of Education President Debe Terhar, a Cincinnati Republican, initially called the book “pornographic” and demanded its removal from the state guidelines, which led the American Civil Liberties Union of Ohio to criticize Terhar and ask her to reconsider her comments.

With the latest delay, small businesses won’t be able to enroll online for Obamacare’s marketplaces until November. Until then, small businesses will only be able to sign up by mail, fax or phone. The delay is the latest of a few setbacks for Obamacare, but the rest of the federally run online marketplaces will still launch on Oct. 1 as planned. CityBeat covered statewide efforts to promote and obstruct the marketplaces in further detail here.

Gov. Kasich is donating to charity more than $22,000 that he received in campaign contributions from an indicted man.

The city has begun work on a retail corridor that will start on Fourth Street and run north through Race Street. The corridor will take years to complete, but city officials say it will be different than previous failed plans.

The number of passengers whose trips originate at the Cincinnati/Northern Kentucky International Airport has increased for six straight months, according to airport officials.

Data-analysis company Dunnhumby is looking to invest in Cincinnati startups.

Cincinnati Children’s Hospital Medical Center landed federal money to test vaccines. The contract could prove the largest the hospital has ever obtained, according to The Business Courier.

Police in the Netherlands use trained rats to catch criminals.

 
 
 
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