An analysis released June 26 found Ohio’s top 1 percent would get the biggest breaks from the tax plan included in the final version of the two-year state budget, while the state’s poorest would pay more under the plan.
The analysis, conducted by the Institute on Taxation and Economic Policy for public policy think tank Policy Matters Ohio, shows the tax plan’s slew of tax cuts and hikes balance out to disproportionately favor the wealthy in terms of dollars and percents.
Meanwhile, the bottom 20 percent would pay about $12, or 0.1 percent, more in taxes. The second-lowest 20 percent would see their taxes go down by $5, rounded to 0 percent. The middle 20 percent would see a tax cut of $9, which is also rounded to 0 percent.
Policy Matters criticizes the tax plan, claiming the revenue should go to other programs, not tax cuts.
“Rather than approving a tax plan that will further shift Ohio’s tax load from the most affluent to low- and middle-income residents, we should direct those dollars into needed public services,” said Zach Schiller, Policy Matters Ohio research director, in a statement. “That includes restoring support for local governments and schools, and bolstering human services, from foodbanks to child care.”
Michael Dittoe, spokesperson for Ohio House Republicans, says the tax plan is supposed to provide an economic boost to almost everyone, not any specific group.
“The tax plan is going to provide an overall tax cut for nearly all Ohioans,” he says. “What this plan intends to do is not disproportionately favor the wealthy at all.”
The broad tax cuts, Republicans claim, should provide a boost to Ohio’s economy that will spur further job growth.
But Schiller argues the tax cut ultimately won’t create jobs: “A 21-percent cut that was approved in 2005 has not kept Ohio’s job market from underperforming that of the country as a whole during and after the last recession.”
The tax plan cuts income taxes for all Ohioans and particularly business owners, but it balances the cuts by hiking sales and property taxes.
Specifically, the budget cuts income taxes for all Ohioans by 10 percent over three years, gives business owners a 50-percent tax break on up to $250,000 of annual net income and creates a small earned income tax credit for low- and middle-income working Ohioans based on the federal credit.
To balance the cuts, the plan raises the sales tax from 5.5 percent to 5.75 percent, increases future property taxes by 12.5 percent and graduates the homestead tax exemption to be based on need, meaning the lowest-income seniors, disabled and widowed Ohioans will get the most out of the exemption in the future.
Most recently, the conference committee added two safeguards for low-income Ohioans: a credit that wipes out income-tax liability for Ohioans making $10,000 or less a year and another $20 credit for those making $30,000 or less a year.
The Policy Matters analysis doesn’t take into account the two changes to property taxes and several other, smaller changes to income and sales taxes, but the rest of the changes, including the conference committee’s recent adjustments, are considered.
The tax plan is part of the $62 billion state budget for fiscal years 2014 and 2015, which passed the Republican-controlled General Assembly today. It's expected Republican Gov. John Kasich will sign it into law this weekend.
Update: Budget bill passed by General Assembly.
Check out all of CityBeat’s state budget coverage:
• State Budget's Education Increases Fall Short of Past Funding
• State Budget Rejects Medicaid Expansion
• State Budget to Limit Access to Abortion
The budget bill currently working through the Republican-controlled Ohio legislature would cut taxes in a way that disproportionately favors the wealthy, according to a new analysis from Policy Matters Ohio, a left-leaning policy group.
The budget bill, which was passed the Republican-controlled Ohio House with a 61-35 vote on April 18, would cut state income taxes for all Ohioans by 7 percent. Policy Matters analyzed the result for each tax bracket: For the top 1 percent, the tax plan would cut $2,717 in taxes on average. For the middle 20 percent, it would amount to a $51 cut on average. For the bottom 20 percent, it would result in $3 on average.
The report explains the disproportionate gains are caused by the structure behind Ohio’s tax system: “Ohio has a graduated income tax, so people pay more on higher levels of earnings. Because of that, across-the-board tax cuts give much more money to the wealthiest Ohioans. This reinforces inequality and adds to the unfairness of the state and local tax system, which is weighted in favor of upper-income taxpayers when all state and local taxes are taken into account.”
Zach Schiller, research director at Policy Matters, says the Ohio House tax plan will also have little impact on Ohio’s economy.
“Since the 21-percent reduction in state income taxes approved in 2005, Ohio’s economy has underperformed the nation,” Schiller said in a statement. “There is little reason to believe that another round of income-tax cuts will produce a different result.”
Michael Dittoe, spokesperson for Speaker of the House William Batchelder and Ohio House Republicans, wrote in an email to CityBeat that there are still two months for the state government to finalize the details of the tax plan as it works through the Ohio legislature.
The budget bill still has to be approved by the Republican-controlled Ohio Senate. If changes are made to the Ohio House proposal, the Ohio Senate bill would have to be concurred by the Ohio House. It would then need to be signed by Republican Gov. John Kasich, who could line-item veto certain parts of the bill or veto the entire bill.
“It’s disappointing to see that Policy Matters Ohio would begrudge an income tax cut which will benefit all Ohioans,” Dittoe wrote in the email. “Of the seven citations in their report, ironically, five of them refer back to previous ‘studies’ issued by none other than Policy Matters Ohio. Before issuing a study of this magnitude, it may be wise for them to cite something other than themselves to make the report more credible.”
Policy Matter’s findings were gathered through the independent Institute on Taxation and Economic Policy, which plugs the numbers into its own model to gauge the impact of tax cuts on different income levels.
The resulting numbers do little to deflate concerns raised by Policy Matters about Kasich’s tax proposal, which was a much larger 20-percent across-the-board income tax cut. Policy Matters found Kasich’s tax plan also favored the wealthy, except the overall plan actually raised taxes on the state’s poorest because it included an expansion of the sales tax that the Ohio House rejected (“Smoke and Mirrors,” issue of Feb. 20).
Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel met once again Thursday night for a debate to see who is more qualified for Ohio’s U.S. Senate seat. The candidates were a bit less feisty in their final debate, but the substance behind their words was fairly similar to the past two debates.
Mandel spent a bit less time attacking Brown for “Washington speak,” and Brown spent a bit less time attacking Mandel for dishonesty. However, Mandel did spend a bit more time attacking Brown for being a “career politician,” and both candidates criticized each other for voting along party lines.
Some new details did emerge when Brown and Mandel discussed Social Security. Mandel clarified he would raise the eligibility age for Social Security and Medicare for those around his age — 35 — and younger. To justify the raise, he said life expectancy has grown since those laws were first put into place. He also claimed, “If we maintain the status quo, which is the way of Washington, there will be no Medicare or Social Security.”
Brown responded by saying he wouldn’t raise the eligibility age or reduce benefits, but he would increase the payroll tax cap.
In the case of Mandel’s proposal, there is some important context missing. While it’s true life expectancy has increased in the U.S., it has not increased at the same level for everyone. A 2008 study by the Congressional Budget Office found life expectancy is lagging for low-income individuals, while it’s steadily rising for the wealthiest Americans. A 2006 study published in the International Journal of Epidemiology had similar findings. These studies show increases in the average life expectancy may not be reflective of what’s actually happening within the poor and even middle class. In other words, raising the eligibility age to match the rise in life expectancy could disproportionately hurt the lower classes.
There are also some holes in gauging the eligibility age for entitlement programs with a rise in the average life expectancy. Social Security was enacted in 1935. Between the law passing and 2007, the U.S. child mortality rate dropped about 3.3 percent per year for children between the ages of one and four, according to a study from the U.S. Department of Health and Human Services. This large drop in child mortality rate could be exaggerating gains in life expectancy, which is an average that takes into account the age of deceased children.
Mandel’s implication that raising the eligibility age is the only way to keep Social Security solvent is also misleading. Currently, the payroll tax is set up so it only taxes the first $110,100 of everyone’s income. A Congressional Research Service study from 2010 found eliminating the cap would keep the Social Security Trust Funds solvent for the next 75 years. The downside is this would raise taxes for anyone making more than $110,100. Still, the fact eliminating the cap would extend the trust funds’ solvency shows there are other options, and it shows Brown’s idea of increasing the cap has some fiscal merit.
However, Mandel would not be able to take Brown’s approach because it would mean raising taxes, which Mandel vowed to not do under any circumstance when he signed lobbyist Grover Norquist’s anti-tax pledge.
For the final debate, Mandel and Brown followed similar paths as before and even recited some of the exact same lines. At this point, the candidates have painted clear contrasts. With three debates and a year of campaigning behind them, it’s now clear Brown is mostly the liberal, Democratic choice and Mandel is mostly the conservative, Republican choice.
Gov. John Kasich appointed a former Republican to a Public Utilities Commission of Ohio (PUCO) seat that must go to a Democrat or Independent, according to The Plain Dealer. M. Beth Trombold will finish her term as the assistant director in Kasich’s Ohio Development Services Agency in April, when she will then take up the PUCO position. The appointment immediately drew criticism from some Democrats. State Rep. Mike Foley of Cleveland called the appointment “another example of Kasich cronyism running rampant.”
A poll from Innovation Ohio, a left-leaning policy research group, found Kasich’s budget proposals aren’t popular with most Ohioans. The poll found 62 percent of Ohioans prefer prioritizing school funding over reducing the state income tax, while only 32 percent prefer tax reduction. When asked what Ohio lawmakers should prioritize in the coming months, 56 percent said job creation, 38 percent said school funding, 24 percent said keeping local property taxes low and 18 percent said cutting the state income tax.
A school superintendent from Warren County may face prosecution for misusing public resources after he wrote a letter to parents urging them to campaign against Kasich, reports Dayton Daily News. Franklin City Schools Superintendent Arnol Elam was apparently angry with Kasich’s new school funding formula, which did not increase funding for poor school districts like Franklin Cities, but did give increases to Springboro, Mason and Kings — the three wealthiest districts in Warren County. County Prosecutor David Fornshell said he will be investigating Elam for engaging in political activity with public resources.
Kasich will give his State of the State Tuesday. The speech is expected to focus on the governor’s budget and tax reform plans.
As part of an agreement with the city, Duke Energy is suing over the streetcar project, according to WLWT. The lawsuit is meant to settle who has to pay for moving utility lines to accommodate for the streetcar. CityBeat covered the agreement between the city and Duke here and how the streetcar will play a pivotal role in the 2013 mayor’s race here.
Thousands of people in Butler County, mainly students, are benefiting from Judge Robert Lyons’ criminal record seals, according to The Cincinnati Enquirer. Lyons’ practice of sealing cases came to light after he sealed the case for the Miami University student who posted a flyer on how to get away with rape. In the past five years, Lyons has sealed 2,945 cases — more than a third of the new misdemeanor cases filed.
Ohio’s casinos are falling far short of original revenue projections, according to The Columbus Dispatch. It’s uncertain why that’s the case, but some are pointing to Internet-sweepstakes cafes. Cincinnati’s Horseshoe Casino, which will open March 4, was spurred by the original projections.
StateImpact Ohio reports that many Ohio teachers are concerned with new teaching evaluation rules.
Two Cincinnati Republicans will begin reviewing the effects of legislation that deregulated phone companies in Ohio, reports Gongwer. State Rep. Peter Stautberg, who chairs the House Public Utilities Committee, and State Sen. Bill Seitz, who chairs the Senate Public Utilities Committee, will hear testimony from PUCO Tuesday.
Downtown’s Chiquita center has landed in bankruptcy, reports WCPO. The building lost its major tenant last year when Chiquita Brands relocated to Charlotte, N.C.
“Star Trek” is becoming reality. University of Cincinnati researchers are developing a tricorder device to help users monitor their own health, reports WVXU.
Are you worried about space rocks recently? Popular Science says NASA is concerned as well.
Ohio House Republicans are poised to reject the Medicaid expansion and the $500 million per year in federal funding that would come with it for the next two years — a move that has united Republican Gov. John Kasich, Ohio Democrats, mental health advocates and other health groups in opposition.
The Medicaid expansion is part of a measure in the Affordable Care Act (“Obamacare”) that encourages states to expand their Medicaid programs to include anyone at or below 138 percent of the federal poverty level with the use of federal funds. For the first three years, the federal government would pick up the entire tab for the expansion. After that, payments would be phased down over time so the federal government would be paying 90 percent of costs.
Ohio House Republicans oppose the measure because they say they’re worried federal funding will dry up in the future, even though there is no historical precedent of the federal government failing to pay its commitment to Medicaid.
Kasich’s proposal for the Medicaid expansion includes an automatic trigger that would immediately stop and retract the expansion if federal funding falls through, but Ohio Republicans previously voiced concerns in hearings that the trigger would hurt Ohioans who have become accustomed to government-provided health insurance without any plan to make up for the lost coverage.
A report from the Health Policy Institute of Ohio found the expansion would help insure 456,000 Ohioans by 2022 and save the state money in the next decade by producing economic growth and shifting health-care expenses from the state to the federal government.
For advocates of mental health and addiction treatments, Ohio House Republicans’ rejection of the Medicaid expansion and other budget items means mental health and addiction services will miss out on $627 million per year, according to a report from the Office of Health Transformation.
Ohio House Republicans’ budget plan would include $50 million more annual funding for mental health and addiction services, but that’s also not enough to make up for the $140 million in annual funds cut around the state since 2002 and the $17 million being cut over two years through the dissolution of the tangible personal property tax replacement funds.
Cheri Walter, chief executive officer of the Ohio Association of County Behavioral Health Authorities (OACBHA), says the Medicaid expansion is a great opportunity to emphasize mental health services around the state.“On the mental health side, ... sometimes it can take two or more years for someone to get a disability determination that makes them Medicaid eligible,” she says. “In addition to making more people Medicaid-eligible, it will speed up the process for many others.”
Walter says for addiction patients in particular, getting access to health services can be difficult because alcoholism and other forms of addiction are not technically disabilities. By including more income levels in the Medicaid program, less people will fall through the cracks, she says.
OACBHA was one of the many groups that rallied at the Ohio Statehouse Thursday in support of the Medicaid expansion. The crowd, which received support from Ohio Democrats and Kasich, was estimated to reach 2,500.
Until the U.S. Supreme Court ruling on Obamacare, the Medicaid expansion was required, but the court ruled that states must be allowed to opt in and out.
The Medicaid expansion was one of the few parts of Kasich’s budget plan that Democrats and progressives approved, while the two other major proposals in Kasich’s plan — school funding and a tax cut proposal — were criticized for disproportionately benefiting wealthy Ohioans (“Smoke and Mirrors,” issue of Feb. 20).
Meanwhile unemployment in Cincinnati dropped to 7.5 percent in August, down from 8.2 percent in July. Unemployment in Hamilton County dropped to 6.8 percent in August, down from 7.3 percent. The Greater Cincinnati’s jobless rate for the month was 6.7 percent, putting it below that of the state (7.2 percent) and the nation (8.1 percent).
Speaking of numbers, a new poll released today shows Obama leading Romney in Ohio – the third such poll in the last four days. The Quinnipiac University/CBS News/New York Times Swing State Poll shows Obama leading Romney 53 to 43 percent in Ohio, and by similar large margins in the battlegrounds of Florida and Pennsylvania.
The typically media-shy Republican Ohio Treasurer and Senate candidate Josh Mandel proposed three new rules for members of the U.S. Congress in a rare Tuesday news conference. He said he wants members of Congress to lose their pensions if they became lobbyists, be limited to 12 years in the House and Senate and not be paid if they failed to pass a budget. Mandel says his opponent, sitting Democratic Sen. Sherrod Brown, broke his promise to voters that he would only serve 12 years in Congress. Mandel himself promised to fill his entire term as state treasurer, but would leave halfway through if he wins the Senate race.
The governors of Ohio and Kentucky continue to move toward jointly supporting a financing study for a replacement of the functionally-obsolete Brent Spence Bridge, and both governors favor a bridge toll to fund construction. The Kentucky Legislature would have to approve a measure to allow tolling on the bridge.
Forty percent of Hamilton County’s septic systems are failing, and homeowners and utilities are arguing over who should foot the $242 million bill. The Enquirer has an analysis of the ongoing battle.
The Associated Press reports that Andy Williams, Emmy-winning TV host and “Moon River” crooner, has died.
The Enquirer is still doing all it can to keep the Lacheys relevant instead of letting them die off like all bad 90s trends like Furby and Hammer pants. The paper blogged that Lachey finished in the bottom three in the first week of the new Dancing with the Stars: All Stars.
Speaking of those replacement NFL refs, apparently some of them were fired by the Lingerie Football League for incompetence. Yes, there are totally unrelated pictures of women playing football.
Gov. John Kasich’s 2014-2015 budget plan is on the horizon, and it contains “sweeping tax reform,” according to Tim Keen, budget director for Kasich. Keen said the new plan will “result in a significant competitive improvement in our tax structure,” but it’s not sure how large tax cuts would be paid for. Some are already calling the plan the “re-election budget.” Expectations are Kasich’s administration will cut less than the previous budget, which greatly cut funding to local governments and education.
Chris Monzel is now in charge
of the Hamilton County Board of Commissioners. Monzel will serve as
president, while former president Greg Hartmann has stepped down to vice
president. Monzel says public safety will be his No. 1 concern.
City Council may vote today on a plan to build the first freestanding public restroom, and it may be coming at a lower cost. City Manager Milton Dohoney said last week that the restroom could cost $130,000 with $90,000 going to the actual restroom facility, but Councilman Seelbach says the city might be able to secure the facility for about $40,000.
Tomorrow, county commissioners may vote on policy regarding the Metropolitan Sewer District. Commissioners have been looking into ending a responsible bidder policy, which they say is bad for businesses. But Councilman Seelbach argues the policy ensures job training is part of multi-billion dollar sewer programs. Board President Monzel and Seelbach are working on a compromise the city and county can agree on.
The Hamilton County Board of Elections is prepared to refer five cases of potential voter fraud from the Nov. 6 election. The board is also investigating about two dozen more voters’ actions for potential criminal charges.
King’s Island is taking job applications for 4,000 full- and part-time positions.
Ohio may soon link teacher pay to quality. Gov. John Kasich says his funding plan for schools will “empower,” not require, schools to attach teacher compensation to student success. A previous study suggested the scheme, also known as “merit pay,” might be a good idea.
An economist says Ohio’s home sales will soon be soaring.
Debe Terhar will continue as the Board of Education president, with Tom Gunlock staying as vice president.
Equal rights for women everywhere could save the world, say two Stanford biologists. Apparently, giving women more rights makes it so they have less children, which biologists Paul R. and Anne Ehrlich say will stop humanity from overpopulating the world.
Ever wanted to eat like a caveman? I’m sure someone out there does. Well, here is how.
Republican state legislators are using the two-year state budget to pass sweeping anti-abortion measures — and they’re proud to admit it.
The goal is “to maintain the sanctity of human life,” says Michael Dittoe, spokesperson for Ohio House Republicans.
Most recently, the House-Senate conference committee, which put the final touches to the state budget, tacked on an amendment that requires doctors to perform an external ultrasound on a woman seeking an abortion and inform the woman if a heartbeat is detected. The doctor would also be required to explain the statistical probability of the woman carrying the fetus to birth.
The amendment came in addition to other anti-abortion measures in the budget that would reprioritize family services funding to effectively defund Planned Parenthood, increase funding for anti-abortion crisis pregnancy centers and impose regulations that the state health director could use to shut down abortion clinics.
Under the regulations, abortion clinics would be unable to set patient transfer agreements with public hospitals, and established agreements could be revoked by the state health director. At the same time, if a clinic doesn’t have a transfer agreement in place, the state health director could shut it down with no further cause.
The rules allow abortion clinics to set agreements with private hospitals, but abortion rights advocates argue that’s more difficult because private hospitals tend to be religious.
Abortion rights advocates are protesting the measures, labeling them an attack on women’s rights.
“If the governor and members of the Ohio General Assembly want to practice medicine, they should go to medical school,” said Kellie Copeland, executive director of NARAL Pro-Choice Ohio, in a statement. “We urge Gov. (John) Kasich to veto these dangerous provisions from the budget. Party politics has no place in a woman’s private health care decision. The time is now to stand up and lead, not in the interests of his party, but in the interests of the women and families he has been elected to lead.”
Dittoe insists Republicans are not attacking women with the measures: “The women in our caucus have introduced some of these proposals. It’s hard to say it’s a ‘war on women’ when you have women actually introducing the legislation. It’s certainly not about an attack on women; it’s about protecting human life.”
Abortion rights supporters rallied today in Columbus in a last-minute stand, calling on Kasich to line-item veto the measures — a move that would keep the rest of the budget in place but nullify the anti-abortion provisions.
Kasich has so far declined to clarify whether he will veto the anti-abortion measures, instead punting multiple reporters’ questions on the issue.
Much of the debate has focused on Planned Parenthood, which provides abortion services, sexually transmitted infection and cancer screening, pregnancy tests, birth control and various other health care services for men and women.
Supporters point out no public funds go to abortion services, which are entirely funded through private donations. Public funds are instead spent on Planned Parenthood’s other services.
Dittoe says that Republicans still take issue with the abortion services, and it’s the sole reason Planned Parenthood is losing funding.
“Members of the House who have issues with Planned Parenthood have only issues with the abortion services,” he says. “The rest of what Planned Parenthood provides, I imagine they have no issue with whatsoever.”
About 15 percent of Planned Parenthood of Greater Ohio’s budget comes from the family planning grants that are being reworked. Not all of that money is allocated by the state government; a bulk is also set by the federal government.
The anti-abortion changes will go into effect with the $62 billion state budget for fiscal years 2014 and 2015. Both chambers of the Republican-controlled General Assembly passed the budget today, and Kasich is expected to sign the bill into law this weekend.
Check out all of CityBeat’s state budget coverage:
• Report: State Budget Tax Plan Favors Wealthy
• State Budget's Education Increases Fall Short of Past Funding
• State Budget Rejects Medicaid Expansion
In-person early voting is underway in Ohio. Find your nearest polling booth here. Tomorrow is also the last day to register to vote.
A federal appeals court upheld the decision to allow in-person early voting for everyone during the three days prior to the election. The decision comes as a big win to President Barack Obama’s campaign, which filed a lawsuit to restore in-person early voting on the weekend and Monday before Election Day. Republicans in the state have repeatedly pushed against expanded early voting, citing racial politics and costs. Ohio Secretary of State Jon Husted said Friday he will decide what to do with the ruling after the weekend. The court ruling means Husted could close down all boards of election on the three days before Election day, eliminating early voting for everyone — including military voters. If Husted doesn’t act, individual county boards of election will decide whether to stay open or closed.
The Hamilton County Board of Commissioners is discussing the budget today. It has a few options, but all of them involve cuts.
A recently released audit by the Ohio Department of Rehabilitation and Corrections (ODRC) found the private prison sold to the Corrections Corporation of America (CCA) has some serious problems. The prison only met 66.7 percent of Ohio’s standards, and 47 violations were found. CCA says it’s working with ODRC to resolve the problems. The news mostly confirmed the findings of CityBeat’s in-depth look into private prisons.
Schools responded to the state auditor’s recent report that found five school districts were scrubbing data and the Ohio Department of Education did not have enough safeguards. The five school districts generally objected, saying they did not purposely alter any data provided to the state.
Humana will be hiring for 200 full-time jobs in Greater Cincinnati.
The University of Cincinnati is turning up its search for a new president this week. First up for consideration: Provost and Interim President Santa Ono.
The Associated Press says Cincinnati is a changed city thanks to recent development funding.
There will be a bar crawl to support the Anna Louise Inn on Oct. 13. The bar crawl, hosted by Ohioans United to Protect Abused Women, will last from 9 p.m. to 2 a.m. Tickets will be sold for $10 with all proceeds going to the Anna Louise Inn. Participating bars will be Milton's Prospect Hill Tavern, Neon's, The Drinkery, MOTR, JAPS and Arnold's Bar.
Mayor Mark Mallory challenged San Francisco’s mayor to a chili cook-off to benefit the city that wins the Reds-Giants playoffs. Mallory touted some fighting words in a statement announcing the friendly bet: “I sure hope San Francisco Chili is as good as Mayor Lee says it is, that way it raises lots of money for Cincinnati’s youth, after the Reds send the Giants packing in the first round.”
Meet the chair of the U.S. House Science Committee's panel on investigations and oversight. He says evolution and the big bang theory are “lies straight from the pit of Hell.”
City Manager Milton Dohoney Jr. released his operating budget plan for fiscal years 2014 and 2015 today. The plan makes lower-than-expected cuts to police, fire and other city departments to help balance the $35 million deficit in the operating budget for fiscal year 2014, but it would also effectively raise property taxes.
The City Charter allows the city to leverage 6.1 mills in property taxes, but City Council only approved the use of 5.7 mills for the operating budget in 2014, up from 4.6 mills in 2013. The budget plan would leverage the full 6.1 mills in 2015, effectively raising annual property taxes between 2014 and 2015 by $34 for every $100,000 in property value.
Water Works rates would also be reworked with a new pricing structure, which would add $3.11 to a Water Works customer’s bill each quarter.
The budget plan recommends laying off 66 employees in the Police Department, down from a previous estimate of 149. Fire personnel layoffs were also reduced to 71, down from 118. In other departments, 64 would be laid off.
The budget release estimates the fire layoffs would lead to an estimated 10 brownouts a day in which one truck in a firehouse would not run.
About $20.4 million of the fiscal year 2014 budget gap would be closed by cutting expenditures, while the rest would be closed with changes in revenue.
The budget release says the cuts are a result of the city’s parking plan falling through in light of a referendum effort and legal challenges: “While the Manager’s budget, with support from policy makers, has typically centered on strategies for growth to expand the local economy, this budget is constructed in light of the lack of revenue from the Parking Modernization and Lease, approved by the majority of City Council but held up in litigation.”
With the reduced layoffs, the city will save money by paying less in accrued leave and unemployment insurance. Previously, city officials estimated it would cost about $10 million to lay people off, but that number was reduced to $3.5 million in the revised budget plan.
The budget plan would also eliminate 17 vacant full-time positions in various departments and delay filling other vacant positions, which the budget release says would cause some strain: “These vacant position eliminations and prolonged position vacancies would further challenge departments that have already experienced significant funding and position reductions in prior budget years.”
The plan would also increase employees’ cost share for health care from 5 percent to 10 percent, reduce cost of living adjustments and force furloughs, which would span to executive and senior level management positions, including the city manager. The changes effectively add up to a 1.9 percent salary reduction, according to the budget release.
Other cuts in the budget were selected through the Priority-Driven Budgeting Process, which used surveys and public meetings to gauge what city programs are most important to local citizens. About $1.7 million would come from personnel and service reductions in the Health Department’s Community Health Environmental Inspections programs, the Law Department and the Department of Recreation. Another $1.5 million would be cut from funding to outside entities, including human services agencies, the Neighborhood Support Program, the Greater Cincinnati Chamber of Commerce and the African American Chamber of Commerce.
Furthermore, subsidies for “Heritage Events,” such as the Findlay Market Opening Day Parade and St. Patrick’s Day Parade, would be eliminated, along with all arts funding.
The budget plan would also eliminate various other services, including the Bush Recreation Center in Walnut Hills, the Office of Environmental Quality’s Energy Management program and the Cincinnati Police Department’s mounted patrol unit.
The budget plan includes a slew of new fees: a $75 fee for accepted Community Reinvestment Area residential tax abatement applications, a $25 late fee for late income tax filers, a $100 fee for fire plan reviews, an unspecified hazardous material cleanup fee, a 50-cent hike for admission into the Krohn Conservatory and an unspecified special events fee for city resources used for special events.
The budget plan would also use casino revenue: $9.1 million in 2013 and 2014 and $7.5 million in 2015.
The city was originally planning to lease its parking assets to the Greater Cincinnati Port Authority to help balance the operating budget and fund economic development projects (“Parking Stimulus,” issue of Feb. 27), but the plan will be on the November ballot this year if court challenges are successful.
But if the city is successful in court, the budget release claims many of the cuts could be undone by using revenue from the parking plan.
The city manager’s office says the budget must be approved by City Council and the mayor by June 1 to provide 30 days for the budget’s implementation in time for fiscal year 2014, which begins July 1.
Previously, the city could have used an emergency clause to eliminate a 30-day waiting period for implementing laws, but City Solicitor John Curp says the court challenges have effectively eliminated the power behind emergency clauses by making all laws, even laws passed with an emergency clause, susceptible to referendum within 30 days.
The operating budget is separate from the streetcar budget, which is also facing a $17.4 million budget shortfall. The streetcar is funded through the capital budget, which can’t be used to balance the operating budget because of budgeting limits established in state law.