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.
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).
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.
The Republican head of Hamilton County’s governing board outlined his own alternative for a 2013 budget on Monday, proposing an austere path forward after rejecting other budgets that would raise some taxes.
Board of County Commissioners President Greg Hartmann said his proposed budget would reduce the size of county government by 30 percent, compared to five years ago. He said he wants the board to approve a budget before the Thanksgiving holiday.
“It is a budget of austerity and investment in growth,” Hartmann said.
He added, “It is a structurally-balanced budget,” that doesn’t use one-time sources of cash to make up for shortfalls.
Hartmann’s proposed budget would cut the Sheriff’s Department by about $57,000 or 0.01 percent from 2012 levels; reduce the coroner’s appropriation by 3 percent or $99,000; cut economic development by 5 percent; cut 5 percent from adult criminal courts; and reduce subsidies to the Communications Center and Sheriff’s Department.
Hartmann stressed that it is important to fund public safety as fully as allowable in these tough economic times, as economic development is not possible without it.
Hartmann’s budget comes after commissioners rejected three proposals from County Administrator Christian Sigman.
Sigman proposed $18.7 million in cuts, which Hartmann’s budget maintained in addition to his own reductions.
Two of Sigman’s proposals involved increasing the sales tax to balance the budget.
Fellow Republican Commissioner Chris Monzel said he supports Hartmann’s efforts at austerity, but is working on his own budget proposal as well.
“An austerity budget is the way we’re going to go, and it’s going to be hard,” he said.
The board’s sole Democrat, Todd Portune, said he too is working on his own proposal that he had hoped to have prepared for the Nov. 5 meeting, but was still making tweaks and hoped to present it by the following week.
He hinted that the results of Election Day might impact how he crafts his budget proposal.
“Tomorrow’s results may have an impact as well on the budget that I present as it relates as well to those who are running for county seats,” Portune said. “We have in some cases two very different visions in terms of solutions.”
Both he and Hartmann are up for re-election. Portune is running against Libertarian Bob Frey. Neither candidate has a major party challenger.
Hartmann, who has actively campaigned for Republican presidential candidate Mitt Romney, had a joke in response to Portune’s waiting for the election results.
“I thought you were predicting Romney’s win would make the economy go on the right track,” Hartmann cracked. “I was thinking that’s what you were going to go with.”
Cincinnati may have a deficit estimated to be between $34 million and $40 million, but that didn't stop City Council from voting 6-2 Thursday to approve a $23,000 raise and one-time $35,000 bonus for City Manager Milton Dohoney, the highest-paid city employee. The raise brings his salary up from $232,000 to $255,000. Council members Chris Seelbach and Chris Smitherman voted against the raise. P.G. Sittenfeld also opposed the raise and bonus, but he missed the vote because he was out of town for personal reasons. If City Council balances the budget for the next year and fires someone making $58,000 or less to help do so, the raise and one-time bonus could have meant one person’s job.
City Council also voted 8-0 to encourage the U.S. Department of Agriculture to enforce mandatory labeling of all genetically engineered (GE) food. Alison Auciello, Ohio-based organizer for Food & Water Watch, praised the move in a statement: “Genetically engineered foods are potentially unsafe, and consumers should have the right to decide for themselves if they want to eat GE foods. It took regulation to get food processors to label ingredients and nutrition facts on labels, and now we’re calling for federal lawmakers to require the labeling of GE food.”
Ohio’s unemployment rate was 6.9 percent in October, down from 7.1 percent in September, according to the Ohio Department of Jobs and Family Services. The numbers were mostly positive with the amount of unemployed dropping by 10,000 and the amount of employed rising by 13,900. The civilian labor force also grew, although it was still below Oct. 2011 levels. Most gains were seen in service-providing industries, professional and business services and government. In comparison, the federal unemployment rate ticked up to 7.9 percent in October, up from 7.8 percent in September.
The Anna Louise Inn won another zoning appeal yesterday. The victory upheld a conditional use permit for the Inn, which will allow Cincinnati Union Bethel, which owns the Inn, to carry on with $13 million renovations. Western & Southern has vowed to appeal the ruling.
Income inequality in Ohio is wide and growing. A new study found the gap between the rich and poor is widening, with the lower and middle classes actually losing real income since the 1990s.
After Thanksgiving, the Cincinnati Zoo team will be studying penguins off the coast of Chile.
Cincinnati-based Procter & Gamble is having no part in the good unemployment news. The company announced another round of job cuts as part of a large restructuring program. It’s unclear how the cuts will impact Cincinnati.
Hostess, maker of Twinkies, is going out of business. The company blamed a workers’ strike for the move, but Hostess has been having problems for a long time. The company has already filed for bankruptcy twice this decade.
The Ohio Board of Regents launched OhioMeansSuccess.org, a website meant to place students on a path to college and a successful career.
Russia can get pretty hardcore. While herding sheep, one grandmother fended off and killed a wolf with an axe.
The U.S. Navy is retiring its mine-sweeping dolphins and replacing them with robots.
The city of Cincinnati and its largest city employees union have reached a deal regarding the privatization of the city’s parking assets. Under the deal’s terms, the city will give raises and not lay off anyone for three years, but only if the city’s parking assets are privatized. However, the head of a Clifton community group is still not happy with the privatization plan. He says the plan is bad for business because it limits the amount of affordable parking in the area. But would laying off 344 city employees be better for business?
The identity of the Miami University student who put up
the infamous “Top Ten Ways to Get Away with Rape” flier may soon be revealed. The Ohio Supreme Court
will decide by Dec. 14 whether the case should be unsealed and open to public view. Robert Lyons, the Butler County part-time judge who sealed the case, has faced scrutiny in the past few months for conflicts of interest regarding drinking-and-driving cases.
Revenue from casinos in Toledo and Cleveland is dropping. The numbers paint a bad picture for Cincinnati and Hamilton County officials expecting budget problems to be solved by casino revenue.
A proposal mandating drug testing for welfare recipients in Ohio resurfaced last week. Republican legislators claim the requirement will save the state money, but a similar proposal in Florida added to budget woes as the state was forced to pay for drug tests.
Ohio’s ultra-wealthy population is growing. About 1,330 Ohioans are worth $30 million or more, an increase of 2 percent since 2011, according to a report from Wealth-X. The news could shape Gov. John Kasich’s plan to cut the income tax using revenue from a higher oil-and-gas severance tax, perhaps encouraging state officials to make the cut more progressive.
Gov. Kasich is ending the practice of giving so many tax credits to keep businesses in Ohio. The move could potentially cost the state jobs as businesses move to other areas with bigger, better incentives, but state officials and the business community don’t seem too worried for now.
If the Ohio government agencies were forced to cut their budgets by 10 percent, the results would not be pretty. The Ohio Department of Rehabilitation and Correction would have to close prisons, and the Ohio Department of Natural Resources would have a tougher time enforcing new regulations on fracking.
Ohio’s exotic animal law is facing a challenge in federal court today. Exotic animal owners claim the law violates their First Amendment and property rights by forcing them to join private associations and give up their animals without compensation. They also do not like the provision that requires microchips be implanted into the animals. The Humane Society of the United States is defending the law, which was passed after a man released 56 exotic animals and killed himself in 2011.
An Ohio court said a business tax on fuel sales must be used on road projects.
Ohio gas prices are still dropping.
The cure for leukemia could be a modified version of the AIDS virus.
As part of an effort supporting a state earned income tax credit (EITC), Policy Matters Ohio unveiled an interactive map today that shows the potential benefits to taxpayers in different counties.
For Hamilton County, about 19 percent of tax-filing households would qualify for the program. A 10-percent EITC would return about $15.6 million to households in Hamilton County, or about $225 on average for each qualifying filer. A 20-percent EITC would return about $31.2 million to Hamilton County, with each qualifying filer getting about $451 on average.
EITC is a tax credit that goes to working families, typically favoring low- and middle-income earners with children. It is already used by the federal government and several states to progressively reward employment.
Since then, Ohio House Republicans have rejected most of Kasich's tax proposals, instead downsizing the plan to a 7-percent across-the-board tax cut with no sales tax expansion.
Here is the interactive map, courtesy of Policy Matters:
The Ohio Rights Group could be asking voters to legalize medical marijuana and industrial hemp statewide in 2013 or 2014. The Coalition for a Drug-Free Greater Cincinnati says drug approval should be up to the Food and Drug Administration (FDA), but that may not matter because polls so far shows medical marijuana getting widespread approval from Ohio voters. The Ohio Rights Group argues its amendment would help Ohioans by opening up better health treatments and boosting the economy. Whether that will be enough to land the issue on the ballot remains to be seen.
Mayor Mark Mallory revised the city manager’s budget plan
to carry out less layoffs but more cuts to outside spending and
recreation centers. Mallory's changes will restore 18 firefighter
positions, 17 police positions, three inspector positions at the Health
Department and two positions at the Law Department, reducing the total
layoffs to 161, with 49 of those being police positions and 53 being
firefighter positions. But it will come with more cuts to third-party
agencies, including the Greater Cincinnati Port Authority, the Center
for Closing the Health Gap and Cincinnati USA Regional Chamber of
Commerce, and two closed recreation centers. The plan will also use
about $500,000 in recently discovered revenue. Mallory said the layoffs and cuts have to be made in part because of multiple outside factors, including reduced state funding and courts holding up the city's parking plan.
The first hearing on the city's fiscal year 2014 budget proposals will be tonight at the Duke Energy Convention Center at 6:30 p.m. The public will be asked to give feedback on the budget plan put forward by the city manager and mayor, which would lay off 161 city employees, including cops and firefighters, to help balance the city's $35 million operating budget deficit.
CityBeat editorial: "Cincinnati's 1 Percent."
The Ohio Department of Transportation has raised its estimated price for the MLK/I-71 Interchange project by about $10 million to $30 million after meetings with business owners in Cincinnati's uptown area. It's so far unclear how the project's costs will be divided between the city, state and federal governments. Originally, Cincinnati was looking to pay for its share of the project through its plan to lease the city's parking assets, but that plan is being held up in court.
City Council approved a resolution yesterday supporting a statewide ban on injection wells used to dispose wastewater during the hydraulic fracturing — "fracking" — process, a drilling process that injects millions of gallons of water underground to unlock natural gas and oil reserves. The injection wells are a vital part of a fracking boom that has helped revitalize economies in Ohio and other states and could help combat climate change, but environmentalists and health advocates are concerned about the unintended consequences the wells could have on nearby water sources ("Boom, Bust or Both?" in issue of June 6, 2012).
The Ohio House approved changes to the state's third grade reading requirement that will relax standards teachers must meet to provide reading instruction and tutoring services for young students. The current law requires teachers to have taught reading for at least three years, but the bill approved by the Ohio House would eliminate that requirement.
The Hamilton County Board of Elections sent two more voter fraud cases to the prosecutor, but the question remains whether the dozens of people who filed provisional ballots and absentee ballots are actually in the wrong — an issue that will be ultimately decided by Ohio Secretary of State Jon Husted.
Ohioans, including CityBeat’s most dazzling staff member, apparently enjoy swearing.
Before the IRS harassed tea party groups, it harassed gay rights groups.
No further explanation necessary: "Police: Man used grenade to rob Hamilton bank."
Scientists have created the first cloned human embryo.
A new laser scanner can detect someone watching you from a kilometer away.
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.
A vote on the 2013 Hamilton County budget is being delayed a week at the request of the sole Democrat on the Board of County Commissioners.
Commissioner Todd Portune asked Board President Greg Hartmann at a Monday staff meeting to push back the vote a week to address funding to juvenile courts and the county’s plan for future financial stability.
Hartmann, who earlier denied Portune’s request to issue securities to raise millions to balance the budget, agreed. He said it was important that all three commissioners agree on the budget.
Portune told reporters he wanted to see more funding for juvenile courts. The proposed budget would cut about $3 million from the juvenile court’s 2012 appropriation.
He said he also wants to see specific plans on how and where the county will invest in economic development. He and Hartmann disagree about whether that kind of planning belongs in a budget.
Hartmann had the proposal developed after commissioners rejected three plans from County Administrator Christian Sigman, two of which would have raised taxes. The $192 million budget under consideration cuts about $14 million from the 2012 appropriation levels without raising taxes.
The proposed budget makes a number of what Hartman calls “modest cuts” in almost every county department.
All three commissioners have stated that public safety funding is a priority. The Sheriff’s Department would see a small reduction of $27,033, bringing its budget to almost $57.5 million.
However, the department would also face an additional $4.3 million in expenses next year, giving incoming Sheriff Jim Neil an effectively reduced budget.
The Emergency Management Agency would get a nearly 40 percent increase in the proposed budget, up to $400,000.
The Board of Elections would see its budget slashed 36.2 percent to $6.9 million. However, its expenses would also be lower in 2013 because there is no presidential election as there was in 2012.
The proposed budget would bring the Department of Job and Family Services’ appropriation to $832,900 — a reduction of $10,360. However, that funding level is dictated by the State of Ohio and not the county.
The Hamilton County Prosecutor would also see a small increase of $37,597 intended to hold level its funding from 2012, as the department went over-budget. The prosecutor has the ability to sue the county over its budget appropriation, so the department typically maintains level funding.