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).
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.
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.
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.
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.”
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
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
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.
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:
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.
The full budget proposal typically comes out in late November. Mayor Mark Mallory and City Council will have to approve the proposal.
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
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.
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. ©
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.
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), Ohio’s 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:
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
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.
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.