There’s even more bad news coming from Ohio’s newly privatized prison. Violence last week forced Corrections Corporation of America (CCA) to call in the state’s special response team, according to Plunderbund. Two teams from the Ohio Department of Correction and Rehabilitation were dispatched. Gov. John Kasich pushed prison privatization in his 2012-2013 budget to save costs. CityBeat covered private prisons and the shady connections CCA had to the current state government prior to the sale here.
There might be a court case disputing JobsOhio’s constitutionality, but that hasn’t stopped the state government from moving forward with implementing the private, nonprofit agency. On Friday, the state announced it transferred $500 million in state liquor funds to JobsOhio. The Ohio Supreme Court recently agreed to take up a case from ProgressOhio disputing whether state funds can be used for the private agency. Kasich established the agency in an effort to encourage job growth in Ohio.
Kasich will reveal the blueprint for his 2014-2015 budget plan later today. According to Gongwer, his proposed budget will cut personal income taxes across the board
and offset the cuts by closing loopholes and broadening the sales tax
base. The governor has long been eying an income
tax cut. He previously suggested raising the oil and gas severance tax
to help pay for a tax cut, but the plan faces bipartisan opposition.
In the 2013 mayoral race, John Cranley is currently outraising
Vice Mayor Roxanne Qualls, but both Democrats are fairly close. Qualls has raised $134,188, while Cranley
has raised $170,877. Most of the race has focused on the streetcar so far, with Qualls supporting and Cranley against the twice-voter-approved transit project.
The city of Cincinnati and Duke Energy have reached a limited agreement to meet in court to settle who has to pay for moving utility lines to accommodate for the streetcar’s tracks. As part of the agreement, Duke will begin moving lines in the next few weeks, even while the city and Duke wait for courts to decide who will pay for moving the lines. Mayor Mark Mallory also announced the city will try to finish the streetcar project in time for the 2015 Major League Baseball All-Star Game, but he added there are no guarantees. For more on the streetcar and how it relates to the 2013 mayoral race, check out CityBeat’s cover story.
Libertarian Jim Berns recently forced a mayoral primary by entering the race.
Community leaders around Greater Cincinnati are mapping out veteran services programs.
Ohio is expanding its foreclosure prevention program. The maximum benefit possible has increased from $25,000 to $35,000, and the highest annual household income allowed to participate in the program is now $112,375.
The Ohio Board of Regents finished moving to the Ohio Board of Education building.
Looks like Ohio First Lady Karen Kasich’s Twitter account was hacked.
Smokers will pay higher prices under Obamacare.
Physicists have created crystals that are nearly alive.
In-person early voting is underway in Ohio. Find your nearest polling booth here.
The first presidential debate took place last night. Most of the
“liberal media” says Mitt Romney beat President Barack Obama, but the
impact of the relatively dull debate is probably being overstated as the
media tries to sensationalize some sort of comeback narrative for Romney. Although
the debates are important for capturing a candidate’s policies and
speaking ability, they don’t matter much in political terms.
Policy-wise, it seems Romney ran to the center last night. If last night’s debate wasn’t enough debate for you, here are the three most awkward presidential debate moments in history.
Republican National Committee Chairman Reince Priebus held
a conference call with Ohio reporters yesterday in response to Vice
President Joe Biden’s comments that the middle class has been “buried”
in the past four years. Priebus claimed the
Republican ground game in Ohio will “crush” Democrats. But that’s going
to require a lot of work. As it stands, Obama and Democratic Sen.
Sherrod Brown are beating their respective Republican opponents pretty
badly in aggregate polling.
PolitiFact says Republican claims that Issue 2 will create a redistricting commission that will “have a blank check to spend our money” are false. While there is no cap on spending designated in Issue 2, that does not mean the redistricting commission will get infinite funding. If Issue 2 is approved by voters, redistricting will be handled by an independent citizens commission. If Issue 2 is rejected by voters, redistricting will continue being handled by politicians that commonly use the system in politically advantageous ways. A Republican majority redistricted the First Congressional District, which includes Cincinnati, to also include Warren County. The new boundaries give Republicans an advantage by putting more emphasis on rural voters, which typically vote Republican, instead of urban voters, which typically vote Democrat. CityBeat previously covered the redistricting process and Issue 2 here.
An analysis by the Ohio Office of Budget and Management
found Issue 2 would cost the state about $11-$15.2 million over eight
years. That’s about $1.4-$1.9 million a year, or about 0.005-0.007
percent of Ohio’s budget for the 2013 fiscal year.
To put the cost of Issue 2 in further context, state tax revenues were $39 million above estimates in September.
Ohio Attorney General Mike DeWine announced the Ohio
Department of Rehabilitation and Correction (ODRC) and the
Cincinnati-based Ohio Justice and Policy Center (OJPC) have settled out
of court in a case involving health care in prisons. OJPC brought the
case forward with a lawsuit in 2003, arguing that inmates were not
receiving adequate health care as required by the Ohio Constitution.
Courts agreed in 2005, and they created an oversight committee to ensure
medical standards rose. Today, health care in prisons is much better. With the
settlement, OJPC and ODRC will continue watching over medical policies
and procedures for the next two years, but courts no longer have an
City Council unanimously approved six projects for historic tax credits yesterday.
Cincinnati-based Fifth Third Bank reclaimed its top spot for local bank deposits this year, although data released by the Federal Deposit Insurance Corporation (FDIC) shows it might never have lost the top spot to U.S. Bank.U.S. service firms, which employ 90 percent of Americans, grew at their fastest rate in six months. The boost was brought about due to rising consumer demand.
Ever curious about why politicians use similar body language in all their public appearances? The New York Times has an explanation.
A new, strange dinosaur was recently identified.
is No. 3 in the nation for “megadeals” — massive government subsidies to
corporations that are meant to encourage in-state job creation — but a
new report found many of the deals rarely produce the kind of jobs initially
touted by public officials.
In the Good Jobs First report
released on June 19, Ohio tied with Texas as No. 3 for megadeals,
which Good Jobs First defines as subsidies worth $75 million
or more. Michigan topped the list with 29 deals, followed by New York
no secret the deal with Convergys went sour for Cincinnati. In December 2011,
the company, which provides outsourced call center services, agreed to pay a $14 million reimbursement to the city because the company’s
downtown employment fell below 1,450 — the number of jobs required under
the initial deal. The reimbursement deal also calls for the company to pay an additional $5 million if its downtown employment falls below 500 before 2020.
Good Jobs First report finds this kind of failure is not exclusive to
the Convergys megadeal or Cincinnati; instead, the report argues that
megadeals are expensive and often fail to live up to
their high costs, some of the deals involve little if any new job
creation,” said Good Jobs First executive director Greg LeRoy in a
statement. “Some are instances of job blackmail, in which a company
threatens to move and gets paid to stay put. Others involve interstate
job piracy, in which a company gets subsidies to move existing jobs
across a state border, sometimes within the same metropolitan area.”
For the jobs that are kept and created, states and cities end up paying $456,000 on average, with the cheapest deals costing less than $25,000 per job and the most expensive costing more than $7 million per job.
report finds the number of megadeals per year has doubled since 2008,
on top of getting more expensive in the past three decades. Each
megadeal averaged at about $157 million in the 1980s, eventually rising
to $325 million in the 2000s. The average cost dropped to $260 million
in the 2010s, reflecting the price of deals made in the aftermath of the
Great Recession, which strapped city and state budgets.
subsidy awards are getting out of control,” said Philip Mattera,
research director of Good Jobs First and principal author of the report,
in a statement. “Huge packages that used to be reserved for ‘trophy’
projects creating large numbers of jobs are now being given away more
Ultimately, the report aims to increase transparency for such subsidies, reflecting an ongoing goal for Good Jobs First. To do this, the organization has set up a database (www.subsidytracker.org) that anyone can visit to track past, present and future subsidy deals.
But the report claims much of this work should already be done by the Governmental Accounting Standards Board (GASB), which “has been long-negligent in failing to promulgate regulations for how state and local governments should account for tax-based economic development expenditures,” according to a policy sidebar from LeRoy. “If GASB were to finally promulgate such regulations — covering both programs and deals — taxpayers would have standardized, comparable statistics about megadeals and could better weigh their costs and benefits.”
There is an old saying that goes, “There are three kinds of lies: lies, damned lies, and statistics." It’s alternately been credited to writer Mark Twain and British Prime Minister Benjamin Disraeli.
No matter where it originated, though, the quote applies well to unemployment figures released by the U.S. Labor Department.
Earlier this month the Labor Department reported the nation’s unemployment rate dropped for the fifth consecutive month in January to 8.3 percent, its lowest level in three years. That is good news, but not quite as good as it first appears.
Using that measure, 12.3 million people are unemployed, which is a decline of 0.2 percent from December.
The number of long-term unemployed — those jobless for six months or more — was 5.5 million people, accounting for 42.9 percent of the unemployed.
Critics of how the government calculates the unemployment rate, however, say it’s misleading because it doesn’t count so-called “discouraged workers.” Those are people who are jobless and have looked for work sometime in the past year but aren’t currently looking because of real or perceived poor employment prospects. In other words, they’ve given up.
Federal data shows a disproportionate number of young people, African-Americans, Hispanics and men comprise the discouraged-worker segment.
Including those workers, the unemployment rate was 16.2 percent in January. Some analysts, however, believe that grossly understates the numbers. (The highest the rate got during the Great Depression was 25 percent in 1933.)
Here’s some context. In the modern era (1948-present), the U.S. unemployment rate averaged 5.7 percent — reaching a record high of 10.8 percent in November 1982 and a record low of 2.5 percent in May 1953.
As economist and New York Times columnist Paul Krugman has noted, “we started 2012 with fewer workers employed than in January 2001 — zero growth after 11 years, even as the population, and therefore the number of jobs we needed, grew steadily.”
Krugman added, “at January’s pace of job creation it would take us until 2019 to return to full employment.”
In a little noticed report, the nonpartisan Congressional Budget Office (CBO) stated last week that the rate of unemployment in the United States has exceeded 8 percent since February 2009, making the past three years the longest stretch of high unemployment in this nation since the Great Depression.
Additionally, the CBO — which is the official, objective analyst for the federal government — estimates that the unemployment rate will remain above 8 percent until 2014.
If that’s not depressing enough, consider this: The share of unemployed people who have been looking for work for more than a year — referred to as marginally-attached workers— topped 40 percent in December 2009 and has remained above that level ever since.
The CBO stated the high unemployment rate’s primary cause is weak demand for goods and services as a result of the recession and its aftermath, which results in weak demand for workers.
To produce the largest increases in employment per dollar of budgetary cost, the agency recommended reducing the marginal cost to businesses of adding employees; and targeting people most likely to spend the additional income — generally, people with lower income.
“Policies primarily affecting businesses’ cash flow would have little impact on their marginal incentives to hire or invest and, therefore, would have only small effects on employment per dollar of budgetary cost,” the CBO’s report stated.
“Despite the near-term economic benefits, such actions would add to the already large projected budget deficits that would exist under current policies, either immediately or over time,” it added. “Achieving both short-term stimulus and long-term sustainability would require a combination of policies: changes in taxes and spending that would widen the deficit now but reduce it later in the decade.”
Let’s make that clear — economic stimulus for poor people who would actually spend the money is most effective, and to have an impact the federal deficit needs to increase in the short-term.
Republicans, are you listening?
Despite problems with staff and records, a report is calling changes to Ohio’s youth prisons system a model for the nation. The report from a court-appointed monitor praised the Ohio Department of Youth Services for reducing the number of offenders in secure confinement and spreading services for youthful offenders around the state. However, the report also points out staff shortages, inadequate teachers and inconsistent medical records. Advocates for youthful offenders claim the bad findings show a need for continued court supervision.
There’s a new sheriff in town, and the old one is becoming a visiting judge. Simon Leis, who served as sheriff for 25 years, is best known for going after an allegedly obscene Robert Mapplethorpe exhibit and prosecuting pornographer Larry Flynt. As visiting judge, he will take on cases other judges are assigned but can’t get to due to full dockets.
An appeals court is allowing City Gospel Mission to move to Queensgate. The special assistance shelter wants to move from its current Over-the-Rhine property to Dalton Avenue, but businesses and property owners at Queensgate oppose the relocation. In its opinion, the Ohio First District Court of Appeals said opponents to the relocation “have not raised any genuine issues of material fact in support of their constitutional attack upon the notwithstanding ordinance in their capacity as neighboring businesses and property owners.”
Butler County nonprofit services are worried that a greater need for their services in 2013 will force more budget tightening.
U.S. retailers did not have a good Christmas. Holiday sales were at the lowest they’ve been since 2008. The disappointing sales have forced retailers to offer big discounts in hopes of selling excess inventory.
Former president George H.W. Bush is in intensive care “following a series of setbacks including a persistent fever,” according to his spokesperson.
The Food and Drug Administration says FrankenFish, a giant, genetically modified salmon, is environmentally safe.
Fun fact: More Iranians worry about global warming than Americans.
Colleges are now helping students scrub their online footprints.
Antifreeze now tastes bitter to deter animals and children from eating it.
Scientists have developed a highly advanced robot boy capable of doing chores. Keep its face in mind, for you could be looking at the first of our future robot overlords.
A Hamilton County budget shortfall could force officials to cut more than 300 county jobs, according to Hamilton County Administrator Christian Sigman. If the county doesn’t fix its problems, it could fall into “fiscal emergency.” Officials are worried some cuts could jeopardize functions required by state law. A recent study found that the national unemployment rate would be at 7.1 percent if it wasn’t for government job cuts.More than $85 million has been awarded to local transportation projects by the Ohio-Kentucky-Indiana Regional Council of Governments. The funding will go to Metro buses, roads, traffic signals and more.
City Councilmember Charlie Winburn, the lone Republican on City Council, is thinking about running for mayor in 2013. Mayor Mark Mallory is currently serving his last term, so he will not be able to run again.
Ohio Secretary of State Jon Husted said he is considering establishing uniform early voting hours statewide. Recently, Democrats have been accusing Republicans of a statewide conspiracy to extend voting hours in Democratic counties and shrink voting hours in Republican counties.
Ohio was the 13th fattest state in 2011, according to a new report from the Center of Disease Control. Fortunately, Ohio managed to stay under a 30 percent obesity rate, unlike the 12 fattest states.In the future, Ohio will be the ninth worst state to live in, according to a new Gallup analysis. Ohio still beat Kentucky, which ranked third worst. Not so fortunately, Utah topped the ranks. I’ve been to Utah, and I prefer Ohio. I don’t trust your math, Gallup!
Ohio Treasurer Josh Mandel, a Republican who is also running against Democratic Sen. Sherrod Brown for U.S. Senate, is scheduled to appear with presidential candidate Mitt Romney today. Mandel is also famous for earning the “Pants on Fire” crown from Cleveland’s The Plain Dealer for his excessive lying in campaign ads.
The Medicaid expansion does not have to be permanent, according to federal officials. States can expand then scale back, although it will cost federal funds. Medicaid expansions have been proven to save lives and boost health, but Gov. John Kasich is still undecided about the expansion.
The Cincinnati Museum Center earned top accreditation.
Unmanned drones could soon be flying in domestic skies.
The Ohio Supreme Court late last week dismissed a legal challenge by the Campaign to Protect Marriage, which had filed a motion challenging the attorney general’s authority to verify a proposed constitutional amendment that would allow same-sex marriage. The Freedom to Marry coalition is collecting the necessary signatures to put a repeal of the state’s 2004 amendment that only recognizes marriage as between a man and a woman on the ballot in 2013.
City Councilman Wendell Young says there’s nothing secret about a plan to combine the region’s water and sewer agencies even though most people assumed to be needed for approval know little about it. The Enquirer today detailed a plan to integrate the Metropolitan Sewer District, Stormwater Management Utility and Greater Cincinnati Water Works, potentially by September, in an attempt to save money. The plan will reportedly be shared with Council June 20.
Seems like the John Edwards trial is never going to end. Day seven of deliberations begins today.
The U.S. could be one of the countries to benefit from the growth of natural gas use during the next 20 years, potentially reducing the importance of Middle East energy production.
Common painkillers might help protect against skin cancer. Bring on the nonsteroidal anti-inflammatory painkillers such as aspirin and ibuprofen!
There was a face-chewing attack in Miami over the weekend. And the chewer was naked. Seriously.
Google Chrome was the world’s top browser in May. Thought you knew.
If commercial space flights are going to be basting up onto the moon, NASA says they’ll have to stay off the spots where historical things happened.
Hamilton County Commissioner Greg Hartmann wants Mayor Mark Mallory to live up to past promises of county-city collaboration. In a letter to Mallory, Hartmann criticized the mayor for failing to stick to his pledge of supporting the City-County Shared Services Committee. The committee seeks to streamline county and city services to end redundancies and make the services more competitive and efficient.
Cincinnati Economic Development’s director asked City Council to create a “mega incentive” for “huge impact” development. He also asked City Council to pledge $4 million of casino revenue a year to a local neighborhood project. If City Council agrees, casino revenue will be used to boost local businesses.
Metro is looking at the world’s quickest-charging electric bus. It supposedly can charge in 10 minutes and travel 40 miles.
The day before Pennsylvania’s voter ID law faced trouble in court, Secretary of Jon Husted suggested a “more strict” voter ID law for Ohio. Husted said the current ID system needs to be streamlined and simplified. Democrats criticized the suggestion for its potential voter suppression.Sept. 22 will be the “Global Frackdown,” a day where activists will protest around the world in a push to ban hydraulic fracturing — or fracking. Cincinnati will have its own “Frackdown” at Piatt Park. Activists are generally against fracking because it poses too many risks, which CityBeat covered here. But Gov. John Kasich and other supporters of fracking insist it can be made safe with proper regulations. Some have also suggested that natural gas, which is now plentiful due to the spread of fracking, can be used as part of a bigger plan to stop global warming.
A new survey says Cincinnati companies will continue hiring through the fourth quarter.It wasn’t as good as last year, but it was better than the month before. A new state report says 7,341 new businesses filed to do work in Ohio in August, down from 7,423 in August 2011.
A state commission approved $1.5 million for the Cincinnati Art Museum and a $600,000 reimbursement for the Art Academy of Cincinnati.
More than half of Ohioans could be obese by 2030, a new report found. The rise in obesity could push up medical costs by $23.8 billion.
But screw worrying about weight. Taste of Belgium (writer’s note: best restaurant in the land) is thinking about expanding.
The full footage for Mitt Romney’s controversial comments
at a May 17 fundraiser has become available here. The footage shows why
Romney prefers to be dishonest most of the time. More importantly,
Romney’s comments about Obama voters are not accurate. The Onion, a satirical newspaper, has an explanation for why Romney insists on unleashing gaffe after gaffe.
One astrophysicist says there is no such thing as time.
City Council wants to do more research before it proceeds with freestanding public restrooms in downtown and Over-the-Rhine. The vote has been delayed. Critics say the restrooms are too expensive at $130,000, but supporters, particularly Councilman Chris Seelbach, insist the restrooms will not be that expensive. A majority of City Council argues the restrooms are necessary because increasing populations and growth in downtown have made 24-hour facilities necessary.
A new report found Ohio’s budget would benefit from a Medicaid expansion. The expansion would mostly save money by letting the federal government pick up a much larger share of the cost for Ohio’s population, particularly prison inmates. A previous study found Medicaid expansions were correlated with better health results, including decreased mortality rates, in some states. Another study from the Arkansas Department of Human Services found the state would save $378 million by 2025 with the Medicaid expansion. Most of the savings from the Arkansas study would come from uncompensated care — costs that are placed on health institutions and state and local governments when uninsured patients that can’t and don’t pay use medical services.
The Dayton Daily News has a wonderful example of how not to do journalism. In an article on the supposed “climate debate,” the newspaper ignored the near-unanimous scientific consensus on global warming and decided to give credence to people who deny all scientific reasoning. To be clear, there is no climate debate. There’s the overwhelming majority of scientists, climatologists and data on one side, and there’s the pro-oil, pro-coal lobby and stubborn, irrational conservatives who will deny anything that hurts their interests on the other side.
The Ohio Board of Education approved policies for seclusion rooms. The non-binding policy requires parents to be notified if their children are placed in a seclusion room, and the Ohio Department of Education can also request data, even though it won’t be made public. More stringent policies may come in the spring. Seclusion rooms are supposed to be used to hold out-of-control kids, but an investigation from The Columbus Dispatch and StateImpact Ohio found the rooms were being abused by teachers and school staff for their convenience.
If the city wants to buy Tower Place, the mall will have to be cleared out, according to City Manager Milton Dohoney. Last week, the remaining businesses at Tower Place were evicted, and Dohoney said the city did not sign off on the eviction orders. Apparently, the city really didn’t agree to or enforce eviction orders, but the city’s buyout requires evictions. Dohoney said the eviction notices should signify the deal to buy Tower Place is moving forward.
Dohoney appointed Captain Paul Humphries to the assistant chief position for the Cincinnati Police Department. Humphries has been on the force for 26 years, and he currently serves as the chief of staff to Chief James Craig.
Cincinnati’s Neighborhood Enhancement Program (NEP) is targeting Mt. Airy and Carthage. Starting March 1, police, businesses and civic groups will begin putting together accelerated revitalization and reinvestment plans for the communities. NEP emphasizes building code enforcement, crime, neighborhood cleanup and beautification.
Good news, everyone. Cincinnati is no longer the bedbug capital.
Bob Castellini, owner of the Reds, was named the region’s master entrepreneur by Northern Kentucky University.
The Ohio Department of Transportation released a website that has real-time traffic information.
Some people really suck at political slogans.
Oh, science. Apparently, particle physics could improve Netflix’s suggestions.
Pure Romance on Tuesday announced that it is moving to downtown Cincinnati despite a decision from Gov. John Kasich’s administration to not grant tax credits to the $100 million-plus company, which hosts private adult parties and sells sex toys, lotions and other “relationship enhancement” products.
Pure Romance will now move 60 jobs and its headquarters
from Loveland to downtown Cincinnati. It expects to create another 60
jobs in the process.
In a statement that thanked City Council and City Manager Milton Dohoney for their support, Pure Romance CEO Chris Cicchinelli cited downtown Cincinnati’s growth as a reason for remaining in Ohio.
“We look forward to playing an active role in the continued resurgence of this region’s urban core and know that Pure Romance professionals will add to the dynamic and exciting growth being enjoyed in downtown Cincinnati,” he said.
The move will receive support from the city government, which previously offered $353,000 in tax breaks to the company.
Pure Romance was originally considering moving to Kentucky after Ohio
refused to give the company tax credits.
Kasich and other Republican officials justified their refusal with claims that Pure Romance
just didn’t fall into an industry that Ohio normally supports, such as logistics and energy.
But Democrats, citing other companies that obtained tax credits despite not being within traditional industries, argue that Kasich’s administration only denied the tax request because of a prudish, conservative perspective toward Pure Romance’s product lineup, which includes sex toys.
Pure Romance is looking to move downtown by the end of the year, but the time frame hinges on ongoing lease negotiations.