City Council could use leftover revenue from the previous budget cycle and money from the parking lease to fund a disparity study that would gauge whether minority- and women-owned businesses should be favorably targeted by the city’s contracting policies.
“Once we conclude the parking lease agreement and see the results of the close-out of the last budget year, I believe there may be a majority (of Council) that would support funding a Croson study,” Vice Mayor Roxanne Qualls told CityBeat.
The disparity study — named a “Croson study” after a U.S. Supreme Court case — could cost between $500,000 and $1 million, according to city officials.
Qualls expects to see the final revenue numbers from the previous budget cycle sometime this week. The numbers are expected to come in higher than projected, which would give Council some leftover money to allocate for newer priorities, including a disparity study and human services funding.
Another potential funding source: the city’s parking lease agreement with the Greater Cincinnati Port Authority, which will take over Cincinnati’s parking meters, lots and garages and manage them through various private companies from around the nation.
The announcement comes shortly after minority inclusion
became a major issue in the 2013 mayoral race between Qualls, John
Cranley, Jim Berns and Sandra “Queen” Noble.
Cranley announced his minority inclusion plan, which includes a disparity study, on July 12.
Because of a 1989 Supreme Court ruling, city governments are unable to enact programs that favorably target minorities or women without first doing a disparity study that proves those groups are underrepresented.
The city’s last disparity study was done between 1999 and 2002. It found evidence of disparities but ultimately recommended race- and gender-neutral policies to avoid legal uncertainty that surrounded the issue at the time.
But since the city did away with its affirmative-action contracting policies in 1999, contract participation rates for minority-owned businesses dropped from a high of 22.4 percent in 1997 to a low of 2.7 percent in 2007. Participation among women-owned businesses remained relatively stable, hitting a high of 6 percent in 2005 and otherwise fluctuating between 0.9 percent and 3.8 percent from year to year.
Rochelle Thompson, head of the city’s Office of Contract Compliance, points out that classifying as a minority- or women-owned business is now voluntary, whereas it was mandated through the city’s policies in the 1990s. That, she argues, might be understating how many contracted businesses are truly minority- or women-owned.
Still, business leaders are calling on the city to do more. They claim minority-owned businesses are more likely to hire minorities, which could alleviate an unemployment rate that’s twice as high for them as it is for white Cincinnatians.
Qualls says City Council hasn’t pursued a disparity study until now because it was waiting for the full implementation of recommendations from OPEN Cincinnati, a task force established in 2009 after Mayor Mark Mallory and his administration were criticized for neglecting the city’s small business program. The resulting policies forced the city administration to be more transparent and accountable for the program’s established goals.
Thompson claims OPEN Cincinnati’s changes “breathed life” into the small business program, but none of the changes specifically targeted minority- and women-owned businesses. Instead, the program broadly favors and promotes small businesses, which Thompson calls the drivers of job and economic growth.
Republican vice presidential candidate Paul Ryan weighed in on the controversy over replacement National Football League referees in a Tuesday town hall-style meeting in Cincinnati, comparing the Obama administration to the substitute officials who cost his home-state Green Bay Packers a victory with their botched call Monday night.
“Give me a break. It is time to get the real refs,” Ryan said.
“And you know what, it reminds me of President Obama and the economy — if you can’t get it right, it’s time to get out. I half think that these refs work part time for the Obama administration in the budget office.”
Ryan was referencing a play that should have been called an interception for the Packers but instead allowed the Seattle Seahawks to score a game-winning touchdown on Monday Night Foodball. Replacement referees — some of whom may have been fired by the Lingerie Football League for incompetence — are filling in for unionized officials who are locked out.
The vice presidential candidate spoke inside a Byer Steel warehouse surrounded by piles of I-beams and rebar. A self-proclaimed Southern gospel rock band played before the event, occasionally pausing to talk up GOP presidential candidate Mitt Romney’s conservative credentials.
Much of Ryan’s prepared speech, as well as questions from participants in the town hall, focused on the economy, the deficit and the need for changes to entitlement programs.
Asked by an audience member how he would limit government and eliminate programs, Ryan said he and Romney would spur economic growth by lessening the tax burdens on small businesses, cut discretionary spending on government agencies and overhaul entitlement programs such as Medicare, Medicaid and Social Security.
Outside before the rally, protesters called for Ryan — whose House-passed budget made deeps cuts to many welfare and safety-net programs — to have more compassion for the poor.
Meanwhile an airplane sponsored by MoveOn.org carried a banner reading, “Romney: Believe in 55% of America?” referencing comments revealed in a recent video where Romney claimed 47 percent of Americans didn’t pay any income tax and viewed themselves as victims reliant on government so it wasn’t his job to worry about their votes.
“We’re here with several messages, including the immorality of the Ryan budget and how it will impact the vast majority of Americans negatively," said David Little with the liberal advocacy group ProgressOhio. “When a budget protects those with the most and negatively impacts those with the least, I would suggest that is immoral.”
Bentley Davis with the Alliance for Retired Americans said she was concerned about what Romney and Ryan’s plans for Medicare and Social Security would do to retirement security.
Ryan had proposed to keep Medicare the same for anybody already 55 and over, but give younger Americans the choice to get money to spend toward private insurance or stay in a Medicare-like program.
Inside the warehouse was a digital sign that ticked up the national debt, which was at $16 trillion and rising.
“Here is what our government, our Congressional Budget Office, is telling us our debt is in the future if we stay on the path that President Obama has kept us on, has put us on … the debt goes as high as two and a half times the size of our economy by the time my three kids are my age,” Ryan said.
The Obama campaign fired back in an email response, saying Ryan used misleading rhetoric to hide his own record and Republican plans to raise taxes on the middle class to fund tax cuts for wealthier Americans.
“The Romney-Ryan ticket has plenty of questions to answer about a failed record on manufacturing and job creation and their support for policies that will devastate middle class families by raising their taxes and shipping jobs overseas,” Obama for America – Ohio Press Secretary Jessica Kershaw wrote.
“These policies would take the growing manufacturing industry backward, not forward.”
For some in the audience, the economy was also on the forefront.
Steve Teal, 56, of West Chester, said he doesn't like the direction the country is going in.
"Just get the country back to work," Teal said. "I don't trust him (Obama). He doesn't stand up for America. He doesn't stand up for Americans."
CityBeat writer Stefane Kremer contributed to this report.
Ryan went from Cincinnati to an event with Romney in Dayton later on Tuesday.
The National Underground Railroad Freedom Center is suffering from a poor economy and continuing financial trouble.
The center announced today that they will be laying off 17 full-time employees, by the end of the year, leaving a staff of 47.
The museum will also no longer be open on Sundays.
Last year, the Freedom Center was caught up in a battle at City Hall when Councilman Chris Monzel attempted to redirect a proposal to give the center $800,000 to pay for speed humps.
At the time this sum was delivered, a $25 million debt remained for the $110 million construction of the center.
The museum has been criticized by state and local officials for requesting public funds after Freedom Center President Ed Rigaud said the center wouldn’t ask for additional public money to balance its books, even after projected and actual attendance numbers dropped dramatically.
Attendance at the center peaked in its first full year open in 2005 at just over 200,000. The numbers have been falling ever since.
For Christmas, the Freedom Center might want to ask for financial independence.
A prominent local anti-gay, right wing group sent a mass e-mail to supporters today seeking money to avoid a $150,000 deficit next year, which is close to what the group's president makes in salary.
The e-mail distributed by Sharonville-based Citizens for Community Values (CCV) states it's ready to “jump into 2011 with both feet!”
A City Council committee wants Cincinnati’s leadership to investigate whether workers in a Clifton Heights development project are being paid what they’re supposed to.
The Strategic Growth Committee on Wednesday passed a motion asking the city administration to report back on wage payments to workers on the U Square development. The project includes a parking garage as well as residential and commercial units.
Under Ohio law, workers on projects funded by cities must be paid a prevailing wage, which is equivalent to the wage earned by a union worker on a similar project.
The city only has money invested in the garage, and the state of Ohio recently ruled that workers on other parts don’t have to be paid prevailing wage.
Council members Wendell Young, Cecil Thomas and Laure Quinlivan produced a video in which they interviewed carpenters who said they were being paid less than the prevailing wage.
At issue is a letter from developer Towne Properties that says the company will pay all workers prevailing wage anyway. Arn Bortz with Towne Properties said his company cuts a check to subcontractors respecting that agreement, so if workers aren’t being paid the proper amount it’s their fault.
City Solicitor John Curp told members of the Strategic Growth Committee that under city and state law, the subcontractors are not required to pay workers a prevailing wage on parts of the project that are not getting public funding. He said the letter from the developer does not hold the weight as a legal contract.
Young, Thomas, Quinlivan and Councilman P.G. Sittenfeld all expressed the need to overhaul the way the city enters into development contracts to better protect workers.
However, City Manager Milton Dohoney hinted that overzealous requirements for high wages could chase off some development projects.
He said that a project like U Square is tied to the Clifton location because of its proximity to the University of Cincinnati, but the city can’t be too restrictive when it comes to businesses that could expand elsewhere.
Dohoney said the city also doesn’t currently have the manpower to do the kind of aggressive enforcement that the council members were asking for.
Councilman Young countered that he would like to see the city be as aggressive with enforcement as they are with making economic development deals.
“We want to change the rules of the game to make sure everyone is treated equal,” Young said.