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.
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.
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.
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.
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.
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:
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.
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:
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.
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.