A Sept. 27 report from the conservative Buckeye Institute echoes claims made by both sides in Cincinnati’s pension debate: A tea party-backed amendment, if approved by voters on Nov. 5, would reduce retirement benefits for new city employees by one-third. At the same time, the city’s unfunded pension liability might be three times what officials currently estimate.
The Buckeye Institute’s summary of the report vaguely supports the tea party-backed amendment and touts its benefits, but the details and findings in the report are much more mixed.
The tea party-backed amendment would privatize Cincinnati’s pension system so city employees hired after January 2014 would contribute to and manage individual retirement accounts, which would also be supported by a proportional match from the city. That’s a shift from the current system in which the city pools pension funds and manages the investments through an independent board. The idea is to move from a public plan and instead imitate a 401k plan that’s often seen in the private sector.
Opponents of the amendment say it would massively reduce city benefits and actually increase costs for the city — two issues that the Buckeye Institute’s report acknowledges as real possibilities.
Officials are also concerned that the city would be forced to pay into Social Security, which would impose additional costs, if the tea party-backed system isn’t exempt from the federal retirement program. The current pension system absolves the city government from paying into Social Security.
Supporters of the amendment say the drastic changes are necessary to help solve the city’s growing pension liability, which city officials put at $862 million.
The Buckeye Institute report argues that even the city estimates are too low. When pricing the city’s pension liabilities through fair market value — a measure widely embraced by economists — the unfunded costs actually stand at $2.57 billion. That puts the pension system at 35 percent funding, which means the city will have to make up the 65-percent hole with extra payments.
But the report also confirms a key claim for the amendment’s opposition: Future city employees would get about one-third less benefits under the tea party’s proposed system than they would under the current pension system.The benefit reductions should save Cincinnati $19.7 million a year, according to the report. But the savings estimate doesn’t consider cost-of-living adjustments, which the report says will rise for future employees and shrink savings over time. The estimate also assumes the tea party’s proposed system will be able to keep Cincinnati’s Social Security exemption, which city officials say is unlikely.
Despite the reductions, the Buckeye Institute claims the final benefits will be better than comparable 401k plans in the private sector, but the assumption hinges on the city meeting its full contribution to employees’ individual retirement accounts. The tea party amendment allows — but it doesn’t require — the city to contribute up to 9 percent of an employee’s salary to retirement accounts. The city contributes only 2 percent of payroll under the current system, which is already strained for costs.
The report also acknowledges that, if interpreted a certain way, the tea party amendment could force the city to pay for its unfunded pension liability in just 10 years, down from 30 years. Paying the liability that quickly could prove unmanageable for a city that hasn’t passed a structurally balanced budget since 2001.
The pension amendment is backed by tea party groups, some of which may reside outside of Cincinnati and Ohio. They argue the reform is necessary to stabilize the city-funded retirement system.
Meanwhile, Cincinnati for Pension Responsibility announced
its formation on Sept. 27 and promised to get voters to oppose a “risky
plan” that “could cost taxpayers millions.” Mayor Mark Mallory, all current council
members, the AFL-CIO, ProgressOhio and other groups have joined the opposition.
Opponents readily acknowledge the current system’s problems and unfunded liability, but they argue the city would be better off making reforms within the current system instead of adopting the tea party’s plan. Some of those reforms are expected to come before City Council in the next couple months.
Voters will make the final decision on the tea party’s pension amendment when it appears as Issue 4 on the Nov. 5 ballot.
CityBeat is participating in a City Council candidate forum on Oct. 5. Have any questions you would like to ask candidates? Submit them here.
State Auditor Dave Yost says he will investigate the potential conflicts of interest found by the Ohio Ethics Commission for nine of 22 top JobsOhio officials, including six of nine board members. For critics, the conflicts of interest add more concerns about JobsOhio, the privatized development agency that proposes tax breaks for businesses and has been mired in controversy ever since it was set up by Gov. John Kasich and Republicans to replace the Ohio Department of Development. Because the agency is privatized and deals with private businesses, many of its dealings are kept from the public under state law. Republicans argue the secrecy is necessary to allow JobsOhio to more quickly establish job-creating development deals, but Democrats say the secrecy makes it too difficult to hold JobsOhio accountable.
A state board approved nearly $3 billion in transportation projects proposed by Kasich, including work on the MLK/I-75 Interchange in Cincinnati that city and state officials say will create thousands of jobs in the region. The projects will require additional state and local money to be fully funded over the next few years.
In comparison to men, Ohio women have lower incomes, hold fewer leadership roles and disproportionately suffer from the state’s high infant mortality rate. The issues placed Ohio at No. 30 out of 50 states for women’s issues in a Sept. 25 report from the Center for American Progress (CAP). The report analyzed 36 indicators for women in the categories of economic security, leadership and health; it then graded the states and ranked them based on the grades. CAP, a left-leaning organization, is touting the report to support progressive policies that could help lift women out of such disparities, including the federally funded Medicaid expansion and an increase to minimum wages.Commentary: “Ohio legislator worried a same-sex marriage case will turn the country socialist, make him cry.”
Mayoral candidate John Cranley, who’s running against fellow Democrat and Vice Mayor Roxanne Qualls, says he doesn’t know if he can stop the parking plan if he’s elected. Cranley explained it will only be possible if the Greater Cincinnati Port Authority doesn’t set up contracts and sell bonds for the deal before the election. Under the parking plan, the city is leasing its parking meters, lots and garages to the Port Authority, which will then hire various private operators to manage the assets. Qualls supports the plan because it will raise money and resources to fund development projects and modernize the city’s parking services, but Cranley argues it cedes too much control over the city’s parking assets.
It turns out Toni Morrison’s The Bluest Eye won’t be removed from Ohio’s education guidelines. State Board of Education President Debe Terhar, a Cincinnati Republican, initially called the book “pornographic” and demanded its removal from the state guidelines, which led the American Civil Liberties Union of Ohio to criticize Terhar and ask her to reconsider her comments.
With the latest delay, small businesses won’t be able to enroll online for Obamacare’s marketplaces until November. Until then, small businesses will only be able to sign up by mail, fax or phone. The delay is the latest of a few setbacks for Obamacare, but the rest of the federally run online marketplaces will still launch on Oct. 1 as planned. CityBeat covered statewide efforts to promote and obstruct the marketplaces in further detail here.
Gov. Kasich is donating to charity more than $22,000 that he received in campaign contributions from an indicted man.
The city has begun work on a retail corridor that will start on Fourth Street and run north through Race Street. The corridor will take years to complete, but city officials say it will be different than previous failed plans.
The number of passengers whose trips originate at the Cincinnati/Northern Kentucky International Airport has increased for six straight months, according to airport officials.
Data-analysis company Dunnhumby is looking to invest in Cincinnati startups.
Cincinnati Children’s Hospital Medical Center landed federal money to test vaccines. The contract could prove the largest the hospital has ever obtained, according to The Business Courier.
Police in the Netherlands use trained rats to catch criminals.
Republican Rep. John Becker is pretty upset that a
terminally ill gay man has earned the right to die in peace, and now
it’s become a very real possibility that other gay Ohioans might also
get to die (and live) in peace. And, just like my brother, he’s kind of trying to
ruin the game for everyone just because he’s losing.
In July, Judge Timothy Black heard the case of Jim Obergefell and John Arthur, a long-term gay couple who flew to Maryland to marry at the beginning of the month because Arthur is terminally ill, in hospice care, and not expected to live much longer.
Obergefell and Arthur sued the state of Ohio for
discrimination in not recognizing their out-of-state gay marriage, legal
and recognized in Maryland, when other gay couples residing in states
recognizing same-sex marriages and subsequently moved to Ohio would have
their marriages treated as valid. And because Arthur is terminally ill, it's just as much for the emotional connection as it is for any kind of economic benefit.
Here's what Obergefell wrote in his original complaint (grab a tissue):
“Our legacy as a married couple is very important to John and me… in two or more generations our descendants will not know who we are. Married couples, often through research based on death records, have recognition for their special status forever. I want my descendants generations from now who research their history to learn that I loved and married John and that he loved and married me. They will know that they had gay ancestor who was proud and strong and in love.”
In his ruling, Black called the case “not complicated,” explaining that he’d allow the marriage to be legalized on Arthur’s death certificate because it was likely a constitutional violation that the state of Ohio treated lawful out-of-state same-sex marriages differently than lawful out-of-state same-sex marriages.
In September, he ruled to allow the marriage of another gay
couple — David Michener and William Herbert Ives — after Ives
unexpectedly passed away in late August. Although these aren't (yet) blanket rulings, they're being interpreted as monumental victories for supporters of marriage equality.
Becker, then, decided to do the political equivalent of my brother running to my mom and accusing me of cheating; he wrote U.S. Rep. Brad Wenstrup and called for Black to be impeached for “malfeasance and abuse of power,” which apparently made him really concerned about the “federal government’s ever growing propensity to violate state sovereignty.”
Unfortunately, though, U.S. District Court judges are
appointed for life, so since Becker’s claims against Judge Black are
totally unfounded, Black is free to continue to anger Becker and other people who don't approve of equality for gay couples.
Alphonse Gerhardstein, the attorney for both couples, calls Becker's response to the rulings "bullying."
"Federal judges are granted tenure for life for a reason. It's their job to enforce core principles even when the majority disagrees," he says. "Look at the Dred Scott case. I think most people would agree that's the worst case decision ever made by a judge, and even he didn't get impeached." (In case you forget, he's talking about Dred Scott v. Sandford, the landmark 1857 U.S. Supreme Court ruling that ruled black people weren't citizens.)
Things that actually can get a judge impeached, says Gerhardstein, are offenses like having sex with a criminal defendant or taking bribes.
On Wednesday, Sept. 25, the court added licensed funeral director Robert Grunn, who is responsible for registering deaths and providing personal information to the state on what should go on a death certificate, to the list of plaintiffs. Grunn currently serves same-sex couples when he signs death certificates, says the lawsuit, including those with marriages recognized outside the state of Ohio. The lawsuit, if successful, could require all funeral directors to recognize gay clients as married on death certificates if they were legally married in a different state.
Gerhardstein also says since accepting Arthur and Obergefell's case, he and his colleagues have received inquiries from between 30 to 50 other gay couples seeking legal recognitions of their out-of-state marriages. For now, he says, he and his firm are concentrating on cases specifically involving recognizing same-sex marriages on death certificates, although this litigation could (and probably will) lead to other blanket rulings on how same-sex marriages are recognized in Ohio.
Another hearing with Judge Black is scheduled for Dec. 18.
Out of three major categories, Ohio performed worst on leadership roles available to women, ranking No. 37 in the category with a “D” grade. CAP found only 16.7 percent of Ohio’s state-elected executive offices and 37.2 percent of managerial positions are held by women, even though women make up 52 percent of the state’s population.
The state performed slightly better in health outcomes for women and obtained a “C-” in the category. The report particularly criticized Ohio for its infant mortality rate of 7.7 deaths for every 1,000 infants — the fourth highest in the nation — and regulations and defunding measures in the recently passed state budget that make reproductive health services less accessible to women.
On economic issues, Ohio was relatively on par with the U.S. median and ranked No. 27 with a “C” grade. For every $1 a man makes, an Ohio woman makes 77 cents, which matches the national average. But the results are even worse for minorities: Black women make 66 cents for each dollar a man makes and Hispanic women make 64 cents.
Still, with 17.7 percent of Ohio women living in poverty, the state has the No. 19 highest poverty rate for women in the country. The statistics were again worse for minorities: About 36.4 percent of black women and 32.6 percent of Hispanic women in Ohio live in poverty.
The CAP report analyzed 36 indicators for women in the categories of economic security, leadership and health. It then graded the states and ranked them based on the grades.
Vermont topped the rankings with an “A,” and Oklahoma was at the very bottom with an “F.”
CAP, which is an admittedly left-leaning organization, is touting the report to support progressive policies that could help lift women out of such disparities, including the federally funded Medicaid expansion and an increase to minimum wages.
“While women have come a long way over the past few decades, much remains to be done to ensure that all women can have a fair shot at success,” said Anna Chu, one of the report’s authors, in a statement. “Today’s report shows that in many states, it is still difficult for women and their families to get ahead, instead of just getting by.”
CityBeat is participating in a City Council candidate forum on Oct. 5. Have any questions you would like to ask candidates? Submit them here.
Ohio legislators appear ready to weaken environmental and energy regulations after months of lobbying by Akron, Ohio-based utility company FirstEnergy. The utility company argues the regulations, particularly energy efficiency standards that require customers use less electricity, cost businesses and customers too much money. But environmental groups and other supporters of the rules say FirstEnergy is just looking out for its own self-interests while putting up a front of caring about others. A study by the Ohio State University and the Ohio Advanced Energy Economy coalition found eliminating the energy efficiency standards would cost Ohioans $3.65 billion more on electricity bills over the next 12 years. State Sen. Bill Seitz, who’s spearheading the regulation-weakening efforts, formally introduced his bill yesterday, and business groups say it’s a backdoor way to eliminate energy efficiency standards and the in-state renewable business by weakening them so much.
Meanwhile, Cincinnati on Tuesday announced it won a 2013 Green Power Leadership Award from the U.S. Environmental Protection Agency (EPA) because of local efforts to draw down dirty energy production and replace it with clean sources. The Cincinnati area currently produces nearly 408 million kilowatt-hours through green energy sources, which is enough to cancel out nearly 60,000 cars’ emissions and meet 14 percent of the community’s purchased electricity use, according to city officials. To commemorate the award, Mayor Mark Mallory unveiled a Green Power Community sign at the Cincinnati Zoo, which installed solar panels on its parking lot in 2011 and became one of the region’s leading clean energy producers.Raw health insurance premiums for Obamacare’s online marketplaces will be 16 percent lower than previously projected, according to the latest estimates from the nonpartisan Congressional Budget Office released less than one week before marketplaces open on Oct. 1. In Ohio, the average family of four making $50,000 a year will have to pay $282 a month after tax credits for the second cheapest “silver” plan, or $486 less than the plan would cost without tax credits. Under Obamacare, online marketplaces will allow consumers to compare and purchase subsidized health insurance plans in the individual market. The plans only apply to the individual market, which means the majority of Americans, who are currently getting insurance through an employer or public programs, will be under a different insurance system and won’t qualify for the online marketplaces’ tax subsidies. CityBeat covered outreach efforts for the online marketplaces — and Republican attempts to obstruct them — in further detail here.
Commentary: “Let Them Eat Nothing?”
The Charter Committee, Cincinnati’s unofficial third party, yesterday endorsed Roxanne Qualls for mayor. The endorsement comes as little surprise to most election-watchers, considering the Charter Committee has endorsed Qualls four times over the years.
The Cincinnati Enquirer is displeased it couldn’t cover a private mayoral debate between Qualls and ex-Councilman John Cranley because the group hosting the debate closed its doors to the public.
Ohio Democrats yesterday made their endorsements for 2014: Cuyahoga County Executive Ed FitzGerald for governor, former Hamilton County Commissioner David Pepper for attorney general, State Sen. Nina Turner for secretary of state, State Rep. Connie Pillich for state treasurer and Cuyahoga County Court of Common Pleas Judge John O’Donnell for the Ohio Supreme Court.
This infographic released by an anti-privatization group shows the negative impact of private prisons. CityBeat covered Ohio’s own privately owned prison and the problems it’s faced, including rising violence, in further detail here.
A federal grand jury charged a North Canton man for allegedly making illegal campaign contributions to U.S. Rep. Jim Renacci and Ohio Treasurer Josh Mandel. Both candidates returned the campaign contributions after they became public in stories published by the Toledo Blade and The New Republic.
A 43-year-old Hamilton man allegedly used a poison-laced knife to stab his brother-in-law.
A supposedly sexist gorilla is getting kicked out of the Dallas Zoo after 18 years.
Health insurance premiums for the Affordable Care Act’s (“Obamacare”) marketplaces will be 16 percent lower than previously projected, according to the latest estimates from the nonpartisan Congressional Budget Office.
The report, released on Wednesday by the U.S. Department of Health and Human Services (HHS), comes less than one week before online marketplaces are set to open on Oct. 1.
In Ohio, the average 27-year-old making $25,000 a year will have to pay $145 a month after tax credits for the second cheapest “silver” plan, the designation given to the middle-of-the-pack plans under Obamacare. Without tax credits, the second cheapest silver plan would cost the 27-year-old $212 a month.
Meanwhile, the average Ohio family of four making $50,000 a year will have to pay $282 a month after tax credits for the second cheapest silver plan, or $486 less than the plan would cost without tax credits.
Under Obamacare, online marketplaces will allow consumers to compare and purchase health insurance plans in the individual market. Participants with an annual income between 100 percent and 400 percent of the federal poverty level, or individuals making between $11,490 and $45,960, will also be eligible for tax subsidies, with the highest incomes getting the smallest subsidies and the lowest incomes getting the largest.
The plans only apply to the individual market, which means the majority of Americans, who are currently getting insurance through an employer or public programs, will be under a different insurance system and won’t qualify for the online marketplaces’ tax subsidies.
HHS estimates the average Ohioan will be able to choose between 46 different plans, excluding catastrophic options.
Some states will be less fortunate, with Alabamians in particular only having an average of seven plans to choose from.
The plans will be designated as bronze, silver, gold or platinum, with bronze covering less services but costing the least and platinum covering more services but costing the most.
The federal government was originally expecting states to set up most of the online marketplaces, but it’s had to carry some or the entire burden in 36 states, including Ohio, after state governments refused the full task.
Beating projections doesn’t necessarily make Obamacare a success. That’s why outreach campaigns plan to advertise the law’s benefits to Ohioans and others across the nation through March, after which enrollment will temporarily close until October 2014.
The outreach efforts are important to the law’s success because the federal government estimates it will need to enroll 2.7 million young adults out of the 7 million it expects to sign up overall. Otherwise, Americans who are older — and therefore less likely to be healthy — will fill up the marketplaces, exhaust health services and drive up costs.
At the same time, Republican legislators in Ohio and other states have put restrictions on some of the outreach efforts to avoid what Republicans call potential abuses and conflicts of interest. In Cincinnati, the state-level restrictions have blocked Cincinnati Children’s Hospital Medical Center from participating as a “navigator,” or a group that will help guide the uninsured and others through the enrollment process.
CityBeat covered the outreach efforts and Republican efforts to obstruct them in further detail here.
Update: Clarified metal-based classifications for different health care plans.
Cincinnati officials announced on Tuesday that the city had won a 2013 Green Power Leadership Award from the U.S. Environmental Protection Agency (EPA) because of local efforts to draw down dirty energy production and replace it with clean sources.
The Cincinnati area currently produces nearly 408 million kilowatt-hours through green energy sources, which is enough to cancel out nearly 60,000 cars’ emissions and meet 14 percent of the community’s purchased electricity use, according to city officials.
“EPA is pleased to recognize the Cincinnati, Ohio community with a Green Power Community of the Year award for its leadership and citizen engagement in dramatically increasing its use of green power,” said EPA Administrator Gina McCarthy in a statement. “We applaud Cincinnati’s residents, businesses and organizations for choosing green power that will help address climate change and support a clean energy future.”
To commemorate the award, Mayor Mark Mallory unveiled a Green Power Community sign at the Cincinnati Zoo, which installed solar panels on its parking lot in 2011 and became one of the region’s leading clean energy producers.
The Cincinnati Zoo’s project is one of the many developments that led advocacy group Environment Ohio to declare that Cincinnati could become the solar capital of the region.
Cincinnati also adopted an aggregation program in 2012, which supposedly allows residents and small businesses to get lower electricity prices through 100 percent green power.On June 14 and again on Sept. 1, the EPA ranked the Cincinnati area No. 6 in the nation for locally purchased green power. The June ranking made Cincinnati the first Green Power Community in Ohio and surrounding states.
The city administration says Cincinnati’s successes have pushed other cities, including Cleveland and Chicago, to pursue their own clean energy efforts.
In Ohio, state Republicans, led by State Sen. Bill Seitz of Cincinnati, appear ready to adopt looser environmental regulations after months of lobbying from Akron, Ohio-based utility company FirstEnergy.
Seitz is a member of the American Legislative Exchange Council, which is attempting to weaken energy and environmental regulations across the country.
A report from the Ohio State University and the Ohio Advanced Energy Economy found Seitz’s proposal would cost Ohioans $3.65 billion on electricity bills over the next 12 years.
Councilman Chris Seelbach last night helped a gunshot victim before the man was taken to the hospital. Seelbach posted on Facebook that he was watching The Voice with his partner, Craig Schultz, when they heard gun shots. They went to their window and saw a man walking across Melindy Alley. When Seelbach asked what happened, the man replied, “I was shot.” Seelbach then ran down and held his hand on the wound for 10 to 15 minutes before emergency services showed up. “We have a lot of work to do Cincinnati,” Seelbach wrote on Facebook. Police told The Cincinnati Enquirer the victim seemed to be chosen at random.
Pure Romance yesterday announced it will remain in Ohio and move to downtown Cincinnati despite a decision from Gov. John Kasich’s administration 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. The reason for Pure Romance’s decision: The city, which was pushing for Pure Romance despite the state’s refusal, upped its tax break offer from $353,204 over six years to $698,884 over 10 years. Kasich previously justified his administration’s refusal with claims that Pure Romance just didn’t fall into an industry that Ohio normally supports, such as logistics and energy. But Democrats argue the tax credits were only denied because of a prudish, conservative perspective toward Pure Romance’s product lineup.
City Council yesterday unanimously rejected restoring car allowances, paid work days and office budgets for the city government’s top earners, including the mayor, city manager and council members. Councilman Seelbach said he hopes the refusal sends “a signal to the administration that this Council is not interested in making the wealthy more wealthy or giving more executive perks to people who already make hundred-plus thousands of dollars.” The restorations were part of $6.7 million in budget restorations proposed by City Manager Milton Dohoney. The city administration previously argued the car allowances were necessary to maintain promises to hired city directors and keep the city competitive in terms of recruitment, but council members called the restorations out of touch.
The Cincinnati area’s jobless rate dropped from 6.9 percent in August 2012 to 6.7 percent in August this year as the economy added 11,500 jobs, more than the 3,000 required to keep up with annual population growth.
The former chief financial officer for local bus service Metro is receiving a $50,000 settlement from the agency after accusing her ex-employer of retaliating against her for raising concerns about issues including unethical behavior and theft. Metro says it’s not admitting to breaking the law and settled to avoid litigation.
Ohio House Democrats say state Republicans denied access to an empty hearing room for an announcement of legislation that would undo recently passed anti-abortion restrictions. But a spokesperson for the House Republican caucus said the speaker of the House did try to accommodate the announcement and called accusations of malicious intent “absurd.” The accusations come just one week after the state’s public broadcasting group pulled cameras from an internal meeting about abortion, supposedly because the hearing violated the rules. The legislation announced by Democrats yesterday undoes regulations and funding changes passed in the state budget that restrict abortion and defund family planning clinics, but the Democratic bill has little chance of passing the Republican-controlled legislature.
Ohioans will be able to pick from an average of 46 plans when new health insurance marketplaces launch on Oct. 1 under Obamacare, and the competition will push prices down, according to a new report. CityBeat covered Obamacare’s marketplaces and efforts to promote and obstruct them in further detail here.
Ohio lawmakers intend to pursue another ban on Internet cafes that would be insusceptible to referendum, even as petitioners gather signatures to get the original ban on the November 2014 ballot. State officials argue the ban is necessary because Internet cafes, which offer slot-machine-style games on computer terminals, are hubs of illegal gambling activity. But Internet cafe owners say what they offer isn’t gambling because customers always get something of value — phone or Internet time — in exchange for their money.
Ohio tea party groups can’t find candidates to challenge Republican incumbents.
The U.S. Senate unanimously confirmed the first openly gay U.S. appeals court judge.
The Cincinnati area is among the top 20 places for surgeons, according to consumer finance website ValuePenguin.
A graphic that’s gone viral calls Ohio the “nerdiest state.”
Insects apparently have personalities, and some love to explore.
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.
City Council’s Budget and Finance Committee on Tuesday unanimously stripped budget restorations that would have reinstated car allowances, paid work days and office budgets for the city government’s top earners, including the mayor, city manager and council members.
“It seems disingenuous that we would restore funding to the top earners in our city for car allowances and cost-saving days and also show, as we did last June, that we are willing to make sacrifices along with our employees,” Councilman Chris Seelbach said at the committee meeting. “When we ask people not to take a raise for five years or to not take a car allowance, it’s important for us to also make sacrifices.”
Seelbach added that he hopes City Council’s decision will send “a signal to the administration that this Council is not interested in making the wealthy more wealthy or giving more executive perks to people who already make hundred-plus thousands of dollars.”
The city previously eliminated some paid work days and car allowances as part of broader cuts to balance the city’s operating budget without laying off cops or firefighters. But City Manager Milton Dohoney on Sept. 15 asked council members to use higher-than-projected revenues to undo $6.7 million in cuts, including $26,640 in car allowances for city directors, $18,000 in council members’ office budgets and $26,200 in paid work days for council members and the mayor.
City spokesperson Meg Olberding told CityBeat on Friday that restoring the car allowances is a matter of basic fairness and keeping both the city’s word and competitiveness. She said the car allowances are typically part of compensation packages offered in other cities that compete with Cincinnati for recruitment. The allowances, she added, were also promised to city directors as part of their pay packages when they were first hired for the job.
But some council members, particularly Seelbach, called the restorations out of touch.
“I’m more concerned with the garbage worker who’s making barely enough to get by and would love to get a quarter-on-the-hour raise, much less a $5,000 car allowance,” Seelbach told CityBeat on Friday. “If someone wants to leave their position when they’re making $100,000-plus because we’re not going to give them a $5,000 car allowance, I’m convinced we can find someone just as capable, if not more capable, that would be thrilled with a $100,000-plus salary with no car allowance.”
The City Council motions passed on Tuesday remove the provisions for car allowances, paid work days and City Council office budgets but keep earlier proposals from council members, including restorations to human services funding and city parks.