Six of nine JobsOhio board members have direct financial ties to companies that have received tax credits and other help from the agency and state government, an investigation from Dayton Daily News discovered. The members are connected in various ways: Some are employed by the companies, others sit on their boards and a few just own stocks. The conflicts of interest that could undermine JobsOhio’s goals. The privatized development agency was established by Gov. John Kasich and Republican legislators to replace the Ohio Department of Development. Republicans claim JobsOhio’s privatized nature allows it to move at “the speed of business” when luring companies to the state. But Democrats argue that the agency is unaccountable and draining state funds without any clear indication of where the money is going.
Meanwhile, JobsOhio gave financial aid to a company that simply shifted jobs from one city to another. The agency gave Timbertech a 50-percent credit to create 85 jobs in Wilmington, Ohio. The company is abiding, but it’s simultaneously closing down a Columbus factory at the loss of 58 jobs.
Cincinnati will end up not laying off any city employees after City Council undoes $4 million in budget cuts with leftover revenue from the previous budget year. The restorations will reverse some or all of this year’s cuts to human services, parks, the Health Department and other city programs. Council members called the higher-than-projected revenue evidence that Cincinnati’s economic strategy is working. But the reversals also raise questions about the city administration’s original claims: When the 2014 budget was first being considered, Mayor Mark Mallory and his administration said the city would have to lay off 344 workers, including many cops and firefighters, to balance the budget without the parking lease. But without any of the parking money allocated, the city managed to avert all layoffs and undo a bulk of cuts, largely by using better-than-expected revenues from the past budget year.
Fixing up the Great American Ball Park for the All-Star Game could cost county taxpayers $5 million. The All-Star costs are just one part of the $27 million taxpayers will pay to improve stadiums in Hamilton County over the next five years. Stadiums are often touted by local officials as a way to boost the economy, but economists and urban planners have found that publicly funded sports arenas don’t lead to sizable economic growth.
Ohio’s job growth is so slow that it will take nearly five years to recover all the jobs lost during the Great Recession.
Councilman P.G. Sittenfeld is leading fundraising for this year’s Council campaigns.
The Cincinnati USA Chamber of Commerce is hosting two mayoral debates. This year’s candidates are Vice Mayor Roxanne Qualls, ex-Councilman John Cranley, Jim Berns and Sandra “Queen” Noble. Qualls and Cranley are considered the two frontrunners.
The Cincinnati Art Museum is calling on community contributions to finish the second half of its renovations. The museum has raised $2.7 million out of the $6 million it needs.
Red Squirrel, a local restaurant chain, is closing down three of five eateries.
Internet-based psychotherapy apparently works.
The rollback saves property owners $70 in taxes for every $100,000 of valuation. For the next two years they will be paying an extra $35 per $100,000 of their home’s value.
The money will be used to balance the stadium fund, which faces a $7 million deficit. The rollback reduction is expected to raise about $10 million. The board voted 2-1 for the proposal, with sole Democrat Todd Portune dissenting.
“The property tax rollback measure that has been advanced so far buys us only one year, and next year we will be doing the same thing we are doing today,” Portune said.
Portune favored raising the sales tax by 0.25 cents — to 6.75 — per dollar, which would have raised more than $30 million over 10 years. His proposal, which failed to receive any support, would have expired after the 10 years and gone up for review annually after the first five.
Portune said his proposal was more equitable. He said reducing the property tax rollback was going to affect only Hamilton County residential property owners, whereas a sales tax increase would affect everyone who spends money in the county, including visitors from neighboring Kentucky and Indiana.
Portune billed the tax increase as a long-term solution that would raise more than was needed currently but would keep the fund stable in years to come.
Board President Greg Hartmann, who authored the rollback reduction proposal, called Portune’s plan “a bridge too far.” He said it was too large of a tax increase and not a targeted approach to solve the deficit problem. He said he didn’t trust future commissions to allow the tax increase to expire.
Hartmann called the property tax rollback reduction flexible, scalable, clean, immediate and certain.
Commissioner Chris Monzel, who provided the deciding vote, said he didn’t like either and had to go against his principles with either choice.
“No way I walk out of this without breaking a promise. No way I walk out of this winning,” he said.
Monzel said he hopes that savings from the Affordable Care Act would allow the county to lower its property tax rates to make up for the rollback reduction.
Monzel also introduced a successful proposal that will include an annual review of the tax budget to make sure property taxes don’t change, a provision requiring parking revenue from The Banks to be used to develop The Banks and a directive for the county administrator to work with Cincinnati’s professional sports teams on concessions they can make to help out with the stadium funding burden.
Republican Ohio Treasurer Josh Mandel is hiring political workers and friends at his job again. His latest hires are Joe Aquilino, former campaign political director to Mandel’s U.S. Senate campaign, and Jared Borg, former campaign political coordinator. During the 2010 campaign for the state treasurer’s office, Mandel said, “Unlike the current officeholder, I will ensure that my staff is comprised of qualified financial professionals — rather than political cronies and friends — and that investment decisions are based on what is best for Ohioans.” Mandel’s spokesperson defended the hires by touting the treasurer’s accomplishments in office.
With a vote set for tomorrow, it’s still unsure how the Hamilton County Board of Commissioners will solve the stadium fund deficit, but it seems like both options require tax increases. Commissioner Todd Portune, the lone Democrat on the board, proposed increasing the sales tax by 0.25 percent. Board President Greg Hartmann, a Republican, presented an alternative plan that reduces the property tax rollback by 50 percent for two years, but he also said he’s not sure how he’ll vote. Commissioner Chris Monzel, a Republican, says he wants to find a plan that doesn’t raise taxes.
Either parking services are privatized or 344 city employees are laid off. That’s how City Manager Milton Dohoney Jr. framed budget talks to City Council yesterday. The city has already made drastic cuts since 2000, laying off 802 employees. Dohoney also pushed for repealing the property tax rollback promised as part of the stadium deal in 1996, but City Council does not want to raise taxes in the middle of a slow economy. The fact is any form of austerity will be painful, so City Council should be as cautious of spending cuts as tax hikes. A public hearing on the budget will be held Thursday at 6 p.m.
The city of Cincinnati’s plan to buy Tower Place Mall and the adjacent Pogue’s Garage in downtown is moving forward. The city offered to buy the mall and garage for $8.5 million in order to spur economic development in the area. The parking garage and half-empty mall are currently in foreclosure.
Cincinnati State is looking to expand.
One year later, the Ohio Department of Natural Resources hasn’t followed up on a court order to compensate flooded landowners.
The State Controlling Board approved three programs that will provide transitional housing and other services to the homeless. As part of the initiative, Habitat for Humanity of Ohio will receive $200,000, the Homeless Crisis Response Program will receive $12,680,700 and the Supportive Housing Program will receive $9,807,600 from the Ohio Housing Trust Fund.
Great numbers from November from auto companies could mean more hires.
A dissolving nanofabric could soon replace condoms for protecting against pregnancy and HIV.
Portune also gave ideas for possible adjustments to his sales tax proposal. He said commissioners could “sunset” the sales tax hike, essentially putting an expiration date on the tax increase. He also would like to see the sales tax hike reviewed on a regular basis to ensure taxpayers aren't being burdened longer than necessary. The idea behind possible time limits for both proposals is new revenues, perhaps from an improving economy or Cincinnati's new casino, could make changes unnecessary in the long term.
If anything came from the meeting, it’s that none of the commissioners like the position they’re in. Commissioner Chris Monzel, a Republican, said he had been placed “between a rock and a hard place.” Hartmann echoed Monzel, saying it was an “unenviable position.” Despite being the one to propose the hike, Portune said, “We’re left with two options that none of us like at all.”
Commissioners mostly repeated previous arguments during most of the meeting. Hartmann continued saying he was unsure how he would vote, but he said the two options presented are the only options left. He called Portune's plan “bold.”
Portune claimed the sales tax hike was more equitable because it spreads out the tax burden to anyone who spends money in Hamilton County, including visitors from around the Tristate area. In contrast, eliminating or reducing the property tax rollback would place the burden of the stadium fund exclusively on residential property owners in Hamilton County.
The property tax rebate and sales taxes are both regressive, meaning they favor the wealthy more than the poor. In simple terms, as income goes down, spending on goods and services take bigger bites out of a person’s income. A sales tax makes that disproportionate burden even larger.
One analysis from The Cincinnati Enquirer found
the wealthy made more money from the property tax rebate than
they were taxed by the half-cent sales tax raise that was originally
meant to support the stadium fund. For a previous story covering the stadium fund, Neil DeMause, a journalist who
chronicled his 15-year investigation of stadium deals in his book Field of Schemes, told CityBeat
the stadium fund’s problems stem from the county government making a
“terrible deal” with the Reds and Bengals.
Monzel said he will continue to try to find alternatives to raising taxes. On Nov. 28, Monzel told CityBeat he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development, before raising taxes. In the long term, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund.
The commissioners will vote on the proposals on Dec. 5.
County Commissioner Todd Portune is proposing a 0.25 percent sales tax hike to stabilize the stadium fund and preserve the property tax rebate promised to voters in 1996. The Hamilton County Board of Commissioners will have to approve the hike before it becomes law. It would raise the county sales tax from 6.5 percent to 6.75 percent.
Portune, the lone Democrat on the three-man board, says the county got to this point after years of problems with the stadium fund’s solvency culminated into one of two options: either the sales tax goes up or the property tax rebate is rolled back. He claims the two options are the only way to keep the stadium fund stable.
Portune says the 0.25-percent increase on the sales tax will hurt low-income families less than rolling back the property tax rebate. He reasoned the impact of the property tax rollback would focus on Hamilton County residents, including low-income families, while any hike in the sales tax is spread out on anyone who spends money in Hamilton County, including visitors from around the Tristate area. He also pointed out that essentials like food and medicine are exempt from the sales tax, which gives some relief to anyone trying to make ends meet.
On support from other commissioners, Portune says Board President Greg Hartmann agreed either the rebate has to go or the sales tax has to go up, but Hartmann could not be reached by CityBeat for further comment. This story will be updated if comments become available.
Update (Nov. 29, 4:25 p.m.): Hartmann called CityBeat after this story was published. He says he has not made a final decision, but he echoed Portune's comments by saying the
“reality of the situation” demands choosing between a sales tax hike or property tax rollback. If the commissioners take the latter option, Hartmann says only a partial rollback will be necessary to draw enough funds. He also cautioned that any one-time sales and spending cuts will not be enough to stabilize the stadium fund in the long term.
Commissioner Chris Monzel says he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development before raising taxes. After the year is up, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund in the long term.
The property tax rebate and sales taxes are both generally
considered regressive, meaning they favor the wealthy more than the
poor. In simple terms, as income goes down, spending on goods and
services take bigger bites out of a person’s income. A sales tax makes
that disproportionate burden even larger.
One analysis from The Cincinnati Enquirer found the wealthy actually made more money from the property tax rebate than they were taxed by the half-cent sales tax raise that was initially meant to support the stadium fund.
For a previous story covering the stadium fund, Neil DeMause told CityBeat the stadium fund’s problems stem from the county government making a “terrible deal” with the Reds and Bengals. DeMause is a journalist who has chronicled his 15-year investigation of stadium deals in his book “Field of Schemes.”
Ohio political season will be in full force today as Mitt Romney visits a manufacturing company in Carthage to discuss the manufacturing industry and trade, Barack Obama will be in Cleveland talking about the economy and Rob Portman, a candidate to be Romney's vice presidential running mate, will be in Washington D.C. telling the Faith and Freedom Coalition that it's still really important to have religious freedom.
Some Columbia-Tusculum residents are upset about the proposed design of new apartment buildings on the corner of Delta Avenue and Columbia Parkway. The 76-unit Delta Flats' design was apparently supposed to fit into the nearby business district, which includes the Precinct restaurant.
OPEC has decided to keep oil output on hold, meaning Saudi Arabia gets to decide if gas costs go up.
A new poll suggests that Americans blame George W. Bush more for America's economic issues than President Obama.
HBO and showrunners for its new medieval show Game of Thrones have apologized for using Bush's head on a stake in a scene where one of the dudes shows someone a line of traitors' heads on stakes.
Surgeons replaced a 10-year-old girl's has blood vessel with one grown with her own stem cells. The vein was taken from a dead person, stripped of its cells and then coated in the girls' stem cells. Doctors says there has been a “striking” improvement in her quality of life, according to the BBC.
Nokia will cut 10,000 jobs by the end of 2013 after being hit hard by both expensive competitors like the iPhone and cheaper Android models.
San Francisco Giants pitcher Matt Cain
threw a perfect game against the Houston Astros last night. It
included an awesome diving catch by outfielder Gregor Blanco in the
County Commissioner Todd Portune's idea to borrow more money and extend a half-cent sales tax in order to keep up with stadium costs has been shot down by a Bengals lawyer who used 15 bullet points to demonstrate that Portune's plan “proposes to breach one or both leases.”
Duke Energy is asking state regulators if it can bump customers' rates up again. Duke says the increases are to pay for infrastructure investments. The change would increase customer costs of electric service by $86 million and for natural gas by $44 million. A federal appeals court on Monday reinstated an antitrust lawsuit against Duke Energy that accuses the company of paying kick-backs to corporations opposing a 2004 rate increase.
A rally for “religious freedom” will take place on Fountain Square today in response to federal health care legislation requiring women to have abortions employers to provide insurance that covers birth control. The law includes a religious exemption, which bishops have said isn't enough.
A group pushing to ban dog auctions in Ohio has halted its effort to put the issue on the November ballot due to lack of funding and time. CityBeat in February reported the group's efforts to ban the sale of dogs through auctions or raffles, as well as all trafficking in dogs from out-of-state auctions.
New York City officials, including
Brooklyn Democratic Rep. Yvette Clarke, are arguing that the city's
“Stop and Frisk” policy is racist. The policy allows police to
stop an individual and pat him or her down for contraband if they
suspect illegal activity. From USA Today:
Clarke says the program, known as "Stop, Question and Frisk" or "Stop and Frisk," amounts to racial profiling. It is based on a 1968 Supreme Court ruling that police could stop people on the basis of "reasonable suspicion."
Last month, U.S. District Court Judge Shira Scheindlin approved class-action status for a lawsuit that alleges the practice subjects people to race-based illegal searches.
President Obama's health care law helped
6.6 million young adults stay on their parents' plans during the
first year and a half.
Rick Santorum has formed a new conservative organization aiming to recruit 1 million supporters to help get Barack Obama out of the While House. No word on how Santorum's “Patriot Voices” group will differ from the tea party patriots.
NASA says it has spotted the universe's first objects.
Black members of the Netherlands soccer team were subjected to
racist chants at their Euro 2012 practice facility in Krakow, Poland.
The team says fans were making monkey chants at the players.
LeBron James scored 45 points to lead the Miami Heat over the Boston Celtics last night, forcing a deciding Game 7 for the Eastern Conference championship. The Oklahoma Thunder await in the NBA Finals.
A federal appeals court yesterday reinstated an antitrust lawsuit against Duke Energy. The lawsuit accuses Duke of paying kickbacks to local companies in order to gain support for a 2004 electric rate increase. The lawsuit alleges that Duke appeased the more powerful opposing companies by including rebate deals for them. The suit is seeking unspecified damages and seeks to represent all Ohioans affected by the rate increase.
Todd Portune is continuing his quest to become the East Side's county's property tax rebate savior, yesterday offering a new idea to bail out the stadium fund: extend the half cent sales tax past 2032. The revenue created by extending the sales tax, which has no sunset clause, would repay loans the county could use to pay for maintenance and projects at the stadiums now. Republican Commissioner Chris Monzel is open to “any ideas,” though Democratic Commissioner Greg Hartmann says otherwise:
“Todd, here we go again,” snapped Commissioner Greg Hartmann. “Walking away from these leases is just fantasyland.
“How many times are we going to do this?” he asked.
Rob Portman will test out his GOP rallying cries at the Faith & Freedom Coalition in Washington, D.C. next week.
Bill Clinton says a Mitt Romney presidency would be “calamitous” for the U.S.
The Senate will vote on a gender pay equity bill today.
China and Russia say they'll help the UN more going forward, though they've been supporting Syria more than anyone really wants them to.
Here's an explanation of the Transit of Venus, for those who don't get it yet.
Nintendo has revamped its Wii to try to lure gamers from free Internet games they play on iPads.
A new PC virus can infect computers by imitating a Windows update.
The Enquirer today offered a dramatic headline on its front page story, asking the figurative question, “Who will blink first on Music Hall deal?” Although Mayor Mark Mallory is able to literally blink, such involuntary action will not directly affect his stance on giving away Music Hall, which he is still opposed to.
Cincinnati's outstanding stadium tax
bonds were downgraded by Moody's Investor Services, partially as a
result of the county's sale of Drake Hospital last year and its
unwillingness to cut the property tax rollback that helped convince
rich people to vote for the tax in the first place.
Gov. John Kasich this week signed an executive order allowing the Ohio Lottery Commission to expedite new rules allowing slot machines at racetracks. The state's seven racetracks are expected to begin submitting applications for the 17,500 machines within the next few months.
A Seattle man yesterday killed five people before shooting himself as authorities closed in on him. Various security cameras caught footage of the suspect entering a cafe, where he allegedly shot and killed four people. He reportedly killed another person during a carjacking. According to The Seattle Times, the suspect is Ian Lee Stawicki, 40, of Seattle, whose brother says he is mentally ill.
Florida Democrats are wondering what's up with Republican Gov. Rick Scott's effort to purge illegal voters from the state's rolls before this year's elections, partially in response to legal voters being booted.
Job creation: light. Unemployment
claims: slightly up. Economy: growing a little slower than expected. Details here
Ever ordered a medium soda only to realize that the giant cup doesn't fit in a normal car cup holder? New York City could soon ban large sodas and other sugary drinks.