The MLK/I-71 Interchange project is supposed to be funded through the city’s parking plan, but mayoral candidate John Cranley, who opposes the parking plan and streetcar, says the city should instead use federal funding that was originally intended for the streetcar project.
Between 2010 and 2011, the streetcar project was awarded about $40 million in federal grants — nearly $25 million through
the Urban Circulator Grant, $4 million through the Congestion Mitigation
and Air Quality (CMAQ) Grant and nearly $11 million through TIGER 3.
The grants are highly competitive and allocated to certain
projects. In the case of Cincinnati, the grants were specifically
awarded to the streetcar after it was thoroughly vetted as a transit, not highway, project.
The Department of Transportation (DOT) website explains why the Urban Circulator Grant is only meant for transit projects like the streetcar: “Urban circulator systems such as streetcars and rubber-tire trolley lines provide a transportation option that connects urban destinations and foster the redevelopment of urban spaces into walkable mixed-use, high-density environments.”
The CMAQ Grant’s main goal is to fund projects that curtail congestion and pollution, with an emphasis on transit projects, according to the Federal Highway Administration. The website explains, “Eligible activities include transit improvements, travel demand management strategies, traffic flow improvements and public fleet conversions to cleaner fuels, among others.”
The DOT website says TIGER 3 money could go to a highway project, but one of the program’s goals is promoting “livability,” which is defined as, “Fostering livable communities through place-based policies and investments that increase transportation choices and access to transportation services for people in communities across the United States.” TIGER 3 is also described as highly competitive by the DOT, so only a few programs get a chance at the money.When asked about the grants’ limitations, Cranley said, “I believe … the speaker of the house, the senator, the congressman, the governor and the mayor could petition and get that changed. Just because that may have been the way they set the grants in the first place doesn’t mean they can’t change it.”
The parking plan would lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority and allocate a portion of the raised funds — $20 million — to the MLK/I-71 Interchange project, but the plan is currently being held up by a lawsuit seeking to enable a referendum.
The streetcar is one of the few issues in which Cranley and Vice Mayor Roxanne Qualls, a streetcar supporter who is also running for mayor, are in stark contrast (“Back on the Ballot,” issue of Jan. 23).
Cranley’s opponents recently accused him of originally supporting the streetcar when he was a council member through two 2008 City Council motions, but Cranley says those motions, which he co-sponsored, only asked the city administration to study the merits of a streetcar plan, not approve of it. Cranley voted no on the first streetcar resolution in October 2007 and the motion to actually build the streetcar in April 2008.
“I’ve never said that I’m against the (streetcar) concept in all circumstances,” Cranley says. “I wanted to know if there was a way that they could pay for it in a way that wouldn’t take away from what I thought were more important priorities.”
Ohioans might not give it much thought outside of paying the water bill, but better water infrastructure can make cities more efficient, healthier and cleaner. That’s why Green For All, a group that promotes clean energy initiatives, is now focusing on cleaner, greener water infrastructure.
A little-known green conference took place in Cincinnati Oct. 15-17. The Urban Water Sustainability Leadership Conference was in town on those three days, and it brought together leaders from around the U.S. to discuss sustainable water programs for cities. The conference mostly focused on policy ideas, success stories and challenges faced by modern water infrastructure.
For Green For All, attending the conference was about establishing one key element that isn’t often associated with water and sewer systems: jobs. Jeremy Hays, chief strategist for state and local initiatives at Green For All, says this was the focus for his organization.
Hays says it’s important for groups promoting better water infrastructure to include the jobs aspect of the equation. To Hays, while it’s certainly important for cities to establish cleaner and more efficient initiatives, it’s also important to get people back to work. He worries this side of water infrastructure policies are “often left out.”
He points to a report released by Green For All during last year’s conference. The report looked at how investing the $188.4 billion suggested by the Environmental Protection Agency (EPA) to manage rainwater and preserve water quality in the U.S. would translate into economic development and jobs: “We find that an investment of $188.4 billion spread equally over the next five years would generate $265.6 billion in economic activity and create close to 1.9 million jobs.”
To accomplish that robust growth and job development, the report claims infrastructure would have to mimic “natural solutions.” It would focus on green roofs, which are rooftop areas with planted vegetation; urban tree planting; rain gardens, which are areas that use vegetation to reduce storm water runoff; bioswales, which are shallow, vegetated depressions that catch rainwater and redirect it; constructed wetlands; permeable pavements, which are special pavements that allow water to pass through more easily; rainwater harvesting, which uses rain barrels and other storage devices to collect and recycle rainwater; and green alleys, which reduce paved or impervious surfaces with vegetation that reduces storm water runoff.
The report says constructing and maintaining these sorts of programs would produce massive growth, especially in comparison to other programs already supported by presidential candidates and the federal government: “Infrastructure investments create over 16 percent more jobs dollar-for-dollar than a payroll tax holiday, nearly 40 percent more jobs than an across-the-board tax cut, and over five times as many jobs as temporary business tax cuts.”
Hays says the jobs created also don’t have barriers that keep them inaccessible to what he calls “disadvantaged workers”: “A lot of these jobs that we’re focused on in infrastructure, especially green infrastructure, are much more accessible. They require some training and some skills, but not four years’ worth because it’s skills that you can get at a community college or even on the job.”
Beyond jobs, Green For All supports greener infrastructure due to its health benefits. Hays cited heat waves as one example. He says the extra plants and vegetation planted to support green infrastructure can help absorb heat that’s typically contained by cities.
Hays’ example has a lot of science to stand on. The extra heating effect in cities, known as the urban heat island effect, is caused because cities have more buildings and pavements that absorb and contain heat, more pollution that warms the air and fewer plants that enable evaporation and transpiration through a process called evapotranspiration. The EPA promotes green roofs in order to help combat the urban heat island effect.
Hays says green infrastructure also creates cleaner air because trees capture carbon dioxide and break it down to oxygen. The work of the extra trees can also help reduce global warming, although Hays cautions that the ultimate effect is probably “relatively small.”
But those are only some of the advantages Hays sees in green infrastructure. He says green infrastructure is more resilient against volatile weather events caused by global warming. With green infrastructure, storm water can be managed by systems that collect and actually utilize rainwater to harvest clean water. Even in a world without climate change, that storm water management also reduces water contamination by reducing sewer overflow caused by storm water floods, according to Hays.
However, green infrastructure is not without its problems. Hays acknowledges there are some problems with infrastructure systems that require more year-over-year maintenance: “The green and conventional approach is more cost effective over time, but the way you have to spend money is different. So we need to look at the way we finance infrastructure, and make sure we keep up with innovative technologies.”
Specifically, green infrastructure relies less on big capital investments and more on ongoing maintenance costs. Hays insists the green infrastructure saves money in the long term with efficiency and by making more use out of natural resources, and the Green For All report supports his claim. But it is more difficult to get a city or state legislator to support long-term funding than it is to get them to support big capital expenditures, Hays says.
Education is also a problem. To a lot of people, the green infrastructure on rooftops and other city areas might seem like “pocket parks,” says Hays. But these areas are nothing like parks; they are meant to absorb and collect rainwater. If the public isn’t educated properly, there could be some confusion as to why the supposed “pocket parks” are flooded so often. Providing that education is going to be another big challenge for public officials adopting green infrastructure, according to Hays.
So what, if anything, is Cincinnati doing to adopt these
technologies? In the past, city legislators have looked into rainwater
harvesting systems, but not much information is out there. On Thursday, CityBeat will talk to city officials to see how Cincinnati is moving forward.
Panelists including the parents of slain Florida teenager Trayvon Martin talked about reconciliation and turning personal suffering into power at the National and Racial Healing Town Hall at the Duke Energy Convention Center on Wednesday during the Children’s Defense Fund National Conference.
Tracy Martin, Trayvon’s father, broke down in tears as he told the story of how his son saved his life by dragging him out of their condo and calling 911 after Tracy had been badly burned in a grease fire.
“My child is my hero,” Tracy Martin said. “He saved my life. Not to be there to save his is troublesome to me.”
Trayvon Martin was shot and killed on Feb. 26 in Sanford, Fla. by neighborhood watch volunteer George Zimmerman.
Trayvon, who was black, was unarmed and shot by the white and Hispanic Zimmerman after Zimmerman pursued him in defiance of a request by a police dispatcher. Zimmerman claims the shooting was in self-defense.
Zimmerman is out on $1 million bail while awaiting trial on a charge of second degree murder.
“Nothing anyone can do will bring Trayvon back,” Tracy Martin said. “You have to take that negative and turn it into a positive. We chose to keep our son's name alive and not let his death be in vain.”
The town hall-style meeting was kicked off by poet and author Maya Angelou. She urged the hundreds of people in attendance, mostly young and black, to demand justice for Trayvon — referring to Zimmerman as “the brute” — but “that means we don’t become poisoned by hate.”
Angelou wasn’t the only one who urged against hate.
Black historian and civil rights activist Vincent Harding, who celebrated his 81st birthday on Wednesday, issued a challenge to the youth in attendance:
“Are you ready to fight for the healing of George Zimmerman and all the George Zimmermans of America? Are you up to that?” he asked.
“This country has no chance unless they are healed.”
The panel was made up of social activists, many of whom had lost friends and family to violence or bigotry, but whose pain prompted activism instead of retaliation — panelists such as The Rev. Ronald and Kim Odom, who lost a son to gun violence but volunteer in intervention and outreach programs; Clemmie Greenlee, a former prostitute and gang member who formed a peacemaking organization to work with gang members after her son was killed; and Ndume Olatushani, a former prisoner who was released in June after 19 years on death row after being falsely convicted of murdering a Tennessee shopkeeper.
The younger members of the audience were encouraged to ask questions after the panel presentation. Teenagers and young adults from as far as Tennessee, North Carolina and Minnesota asked questions about dismantling the system of racial oppression, overcoming odds stacked against young minorities and having society see past an old felony conviction.
The panelists all tried to offer encouragement, while urging the younger generation to continue to try to fight to make things better.
“When you look at the odds, it’s so horrific for a young minority American, you say ‘why even try, why even bother?’ ” said Benjamin Crump, a civil rights attorney who is representing Trayvon’s mother Sabryna Fulton. “But the reason you try and you bother, there is so many examples where we beat the odds every day and nobody even know about it or talked about it.”
“It goes back to you and saying, ‘I am going to make something of myself. I don’t care about the statistics, I don’t care about the odds.’ … You say, ‘well, if it’s one out of a million, I’m going to be that one.’”
Supporters of the $133 million streetcar project on Thursday night packed Mercantile Library and Fountain Square to start a two-week campaign that seeks to prevent the incoming mayor and City Council from canceling the ongoing project.
Turnout was particularly strong as supporters reached the 200-person capacity at Mercantile Library before the event started. Another 200 watched the event from the Jumbotron screen at Fountain Square, according to the event's organizers.
In attendance were several Over-the-Rhine business owners and residents; council members P.G. Sittenfeld, Chris Seelbach and Wendell Young; and several supporters of the project from around the city.
The goal of the event was to organize supporters and begin a lobbying campaign to convince the three perceived swing votes in the incoming council — Sittenfeld, David Mann and Kevin Flynn — to support continuing the project. All three have spoken against the streetcar in the past, but they told CityBeat they want to fully account for the project's cancellation costs, completion costs and potential return on investment before making a final decision.
Speakers urged supporters to contact the nine newly elected council members and raise awareness about the streetcar's benefits before Mayor-elect John Cranley, who opposes the streetcar project, and the new City Council take office in December.
Ryan Messer, a lead organizer of the effort to save the streetcar, spoke about the advantages of the streetcar project for much of the event. "This is a good economic tool that helps all of Cincinnati," he repeatedly stated.
Supporters have some empirical evidence to base their claims on. A 2007 study from consulting firm HDR found the streetcar project would generate a 2.7-to-1 return on investment over 35 years. The HDR study was later evaluated and supported by the University of Cincinnati.
Project executive John Deatrick acknowledges the 2007 study is now outdated and the city is working on updating the numbers. But he says the streetcar project is supposed to be viewed as an economic development vehicle, not just another transit option.
Supporters also warned of the potential costs of canceling the streetcar project. Hours before the gathering, Mayor Mark Mallory released a letter from the Federal Transit Administration that explicitly stated the city would lose nearly $41 million in federal grant dollars if the project were canceled, and another $4 million would be placed in the hands of Gov. John Kasich to do as he sees fit.
City spokesperson Meg Olberding previously told CityBeat that the city already spent about $2 million of the federal funds. If the project were canceled, she says the money would have to be repaid through the operating budget that funds police, firefighters and human services instead of the capital budget currently financing the streetcar project.
The operating budget has been structurally imbalanced since 2001, so adding millions in costs to it could force the city to cut services or raise taxes.
The FTA letter might already be playing an influence for at least one of the swing votes on City Council. On the elevator ride up to Mercantile Library, Sittenfeld told Seelbach and CityBeat, "I will say that today's news is a big gain in the pro-streetcar column."
Another threat for the city is potential litigation from contractors, subcontractors, taxpayers and Over-the-Rhine residents and businesses who invested in the project or along the streetcar line with the expectation that the project would be completed.
Litigation costs would also come out of the operating budget, according to Olberding.
"As a trial lawyer, this is actually appealing," said Democratic attorney Don Mooney. "For the city, not so much."
Supporters also outlined the potential damage that pulling from the project could do to the city's image, given that developers, businesses and the federal government have put their support and dollars toward the streetcar.
"Is Cincinnati that city that will dine you and wine you and leave you alone at the altar?" Young asked.
But if the lobbying effort, cancellation costs and threat of litigation aren't enough, supporters also presented one more option to save the streetcar: a ballot initiative. Mayor-elect John Cranley on Thursday told The Cincinnati Enquirer that he would be open to allowing some sort of streetcar referendum on the ballot.
The ultimate goal for supporters of the streetcar, beyond ensuring sustainable growth in the urban core, is to connect all of Cincinnati through a vast transit network, much like the streetcar lines that ran through Cincinnati before the city government dismantled the old system in the 1950s.
That provides little assurance to opponents of the streetcar project. Cranley and at least three hard-liners in the incoming City Council — Amy Murray, Charlie Winburn and Christopher Smitherman — claim the project is too expensive and the wrong priority for Cincinnati. Discussing more phases makes the project appear even costlier to opponents who are already concerned with costs.
In its comprehensive plan for 2040, the Ohio-Kentucky-Indiana Regional Council of Governments put the cost of various extensions — to the University of Cincinnati and surrounding hospitals, the Cincinnati Zoo, the Cincinnati Museum Center and the Broadway Commons area near the Horseshoe Casino — at more than $191 million, or $58 million more than the estimated cost for the current phase.
But if Cincinnati never completes the first phase of the streetcar project, supporters say it could be decades before other light rail options are considered.
Cincinnati's only remaining daily newspaper is considering moving its printing operation to Columbus and reducing the size of its print publication.
The corporate owners of The Enquirer and The Columbus Dispatch have signed a letter of intent to have the Cincinnati and Northern Kentucky editions of the local paper printed at The Dispatch's production facility. If the deal is finalized, the switch would occur in the final quarter of 2012.
The American Federation of State, County and Municipal Employees (AFSCME) claimed in a 2011 lawsuit that the city government isn’t meeting funding requirements. A Hamilton County Court of Common Pleas motion filed Jan. 4 and accepted Jan. 23 gives the city and AFSCME until April to settle the case out of court.
By law, Cincinnati is required to heed to the Cincinnati Retirement System (CRS) Board of Trustees when setting the percent of payroll the city must contribute to retirees. But the AFSCME lawsuit argues the city hasn’t been making contributions dictated by the board.
The lawsuit, which dates back to June 2011, cites minutes from a CRS Board of Trustees meeting on July 20, 2010 to show the board accepted a report from Cavanaugh Macdonald Consulting, LLC. The report asked the city to contribute 46.22 percent of payroll to retiree benefits — 12.32 percent to retiree health benefits and 33.9 percent to other CRS benefits — during the 2011 fiscal year.
Instead, the city biennial budget for 2011 and 2012 established a contribution rate of 17 percent — way below the recommended sum.
The AFSCME lawsuit alleges the low contributions reflect a
“longstanding pattern” from city government. It points to a 2002
report from the CRS Board of Trustees that found the city was not meeting requirements set by the board then, either.
The lawsuit asks for a court mandate requiring city government to find out how much it needs to contribute, establish a mechanism for collecting the amounts required and appropriate and contribute the required amounts.
City Solicitor John Curp says the debate is between long-term and short-term interests. On AFSCME’s side, the union wants to get as much from payroll contributions as possible for represented retirees, even if it means a short-term economic and budget shock for the city. On the city’s side, City Council is more interested in meeting long-term requirements for the pension fund, instead of keeping up with shifting annual numbers that could negatively impact the city economy and budget.
City government’s approach attempts to balance short-term and long-term needs with a long-term goal. It means the city pension is underfunded during some years, particularly when the economy is in a bad state. But it keeps rates steady, letting the city avoid sudden funding changes that would require spending cuts or tax hikes to keep the budget balanced.
By adopting a large short-term contribution rate, the city would likely hurt its budget in ways that would negatively affect city employees represented by AFSCME. If the city was forced to contribute 46.22 percent of payroll to CRS — up from 17 percent — it would probably be forced to cut spending elsewhere, which would lead to layoffs.
This story was updated on Jan. 25 at 12:40 p.m. to reflect comments from City Solicitor John Curp.
A rally in remembrance of those who have died in recent police shootings of unarmed black men drew as many as 300 downtown Tuesday evening. The rally was followed by a nearly three-hour march that made its way through downtown, Over-the-Rhine and the
West End before briefly shutting down I-75 as protesters streamed onto
The rally and march were in solidarity with Ferguson, Mo., where black 18-year-old Michael Brown was shot Aug. 9 by white Ferguson Police Officer Darren Wilson. Yesterday a grand jury in St. Louis County declined to indict Wilson, spurring civil unrest in the area and demonstrations in cities across the country. In Cincinnati, the march through downtown neighborhoods had echoes of the city’s past — civil unrest lasting days tore through the same communities in 2001 after unarmed black teenager Timothy Thomas was shot by white Cincinnati Police Officer Stephen Roach in OTR.
“Honestly, after the decision yesterday I was a bit numb,” said Curtis Webb, as he marched through downtown. “I even questioned whether I would come out tonight. I’m tired of hearing the talk. I’m more interested in seeing the walk about these situations. As a black man, I’m… I don’t know. I’m scared to be black. I don’t know how to say it. I’m always questioning, 'Am I doing the right thing? Do I look too dangerous? Are the police going to pull me over?' ”
Cincinnati’s demonstrations started with a rally at the Potter Stewart U.S. Courthouse on Fifth Street attended by State Senator-elect Cecil Thomas, State Rep. Alicia Reece, community organizer Rev. Damon Lynch III and Mayor John Cranley, among others.
At the initial gathering on the steps of the Potter Stewart U.S. Courthouse, Cranley highlighted the progress Cincinnati has made since 2001.
"Like all of you, I am deeply concerned about the loss of life and the events that are unfolding in Ferguson, Missouri," he said. "I can sympathize with all aspects of what the community is experiencing because Cincinnati has had similar tensions in the past. It wasn’t easy, and there were a lot of trial and errors, but we made progress."
“I spent 27 years in law enforcement, and not once did I fire my weapon to harm someone,” Cecil Thomas said. “And all of a sudden, we see so many officers so quick to pull their guns. How do you pull your gun on a 12-year-old when someone tells you it looks like he has a toy gun? We have to change the way we do our policing.”
Thomas was a peacemaker during the 2001 unrest, working with police, community groups and the city's Human Relations Commission to broker calm.
Many attendees at the initial rally joined in a meandering march that stopped traffic in many of the city’s major streets and passed just feet from the spot where Timothy Thomas was shot in 2001. However, the rally was much more peaceful than the days of unrest 13 years ago. About 20 police followed the march, blocking off streets and working to corral protesters. Organizers with the Cincinnati chapter of the National Action Network say the march was not part of their plans for the rally.
Tensions rose when protesters, after making their way down Ezzard Charles Drive in the West End, split off onto a highway on ramp onto the north-bound lane of I-75. Police had initially blocked the on ramp, but moved to the highway to block off traffic temporarily. After roughly five minutes, officers drove protesters off the highway with the threat of arrest. Eight protesters were arrested when they didn’t leave quickly enough. They are being held without bond at the Hamilton County Justice Center.
After leaving the highway, the march continued through the city for another hour, eventually dissipating at the Justice Center on Court and Main streets.
Joshua Davis, who helped lead the march, said the problems go beyond any specific case.
“I’m out here because I have nieces who are four, five, six years old and I want them to come up in a world where they don’t have to be afraid of the cops," he said. "There are many things cops can carry that don’t kill people. I’m out here not because I agree Mike Brown was innocent or guilty, or because the cop was guilty or innocent, but because black men are being killed daily.”
The march ended at the
Hamilton County Justice Center at about 8:30 p.m. Fifteen were arrested during the march, according to police.
UPDATE: A hearing for those arrested was held Wednesday at 12:30, according to the county clerk. Court records show some of the protesters have posted bond.
Today is the last day on the job for Cincinnati Police Chief Thomas Streicher Jr. During his rocky 12-year tenure, the department has endured rioting sparked by a police shooting, costly lawsuit settlements, oversight by a federal court and a police slowdown that precipitated a spike in crime.
Quite a record.
More bad news for Secretary of State Jon Husted. The Ohio Supreme Court told Husted his approved ballot language for Issue 2 contains “factual inaccuracies” and must be rewritten by the Ballot Board. Voters First previously contested the language as misleading to voters. If approved by voters, Issue 2 will put an independent citizens commission in charge of redistricting. Under the current system, state officials redraw borders, sometimes using the process for political advantage. In Cincinnati’s district, the Republican-controlled process redrew the district to include Warren County, giving the district more rural voters that tend to side with Republicans instead of urban voters that tend to side with Democrats. Voters First mocked the process with a graph showing how redistricting decisions can sometimes be made in 13 minutes with no questions asked. CityBeat covered the redistricting process here when Issue 2 was still in the petition process.
Ohio’s median income dropped last year, according to a new report from the U.S. Census Bureau. But rates of poverty and uninsured rates remained the same. Nationwide, uninsured rates dropped from 16.3 percent in 2010 to 15.7 percent in 2011, meaning 1.4 million people gained health coverage. Some of that is attributable to health-care reform passed by President Barack Obama.Former University of Cincinnati President Greg Williams is getting a pretty nice going-away present. The Board of Trustees approved a package for Williams that adds up to more than $1.2 million. It includes a bonus, retirement benefits, consulting fees, a year’s salary and a contract buyout. Williams abruptly left UC on Aug. 21, citing personal reasons.
Homeless shelters will cost more than expected, says 3CDC. The nonprofit group said it will cost about $40 million to build three homeless shelters and help finance others.
With the support of Democrats and Republicans, the Ohio legislature approved pension reforms yesterday. The reforms lower benefits, raise contributions requirements, increase the retirement eligibility age, establish new cost-of-living guidelines and set a new formula to calculate benefits, all for future retirees. For the most part, current retirees are not affected. Senate President Tom Niehaus, a Republican, said, “We know the changes are not popular, but they are necessary.” Before the changes, the system was losing $1 million a day, according to a statement from Rep. Robert Hagan, a Democrat.Sen. Sherrod Brown of Ohio is pushing against banks that take advantage of college students. In a letter to Higher One, Brown told the bank to rework its contracts with universities. Brown wrote in the letter, “Federal student aid programs should help students prepare for the future, not extract fee income from them.” He went on to ask the bank to redo its contracts so they are “consumer-friendly and consistent with reforms that Congress enacted for the credit card market.”
Ohio’s inspector general found ODJFS wrongly reimbursed organizations in central Ohio with federal stimulus funds when the organizations did not follow rules.
Vice President Joe Biden was in Dayton yesterday. During his speech, he spoke about the attack on the U.S. embassy in Libya, which led to the death of U.S. Ambassador Chris Stevens. Biden vowed justice will be served.
Presidential candidate Mitt Romney unleashed a big foreign policy gaffe yesterday when he politicized the attack on the U.S. embassy in Libya. The attack was revealed to cause the death of Stevens after Romney made his comments.
Math shows homeopathy, a trend in medicine, is implausible.
It’s one issue Ohio’s leading conservative and liberal think tanks seemingly agree on: The “economic miracle” often touted by Gov. John Kasich is not really happening.
The bleak economic news has been highlighted by recent reports from the right-leaning Buckeye Institute for Public Policy Solutions, which supports little government intervention in the economy, and the left-leaning Policy Matters Ohio, which focuses on policies that can benefit low- and middle-income Ohioans.
The March “Ohio by the Numbers” report from the Buckeye Institute did acknowledge that Ohio has a lower unemployment rate than the national average, but the report was particularly hard on Ohio’s lacking private sector job growth. It pointed out the state lost 16,800 private sector jobs in February, ranks No. 27 in the nation for private sector job growth since January 2010 and ranks No. 47 for private sector job growth since January 1990.
Policy Matters’ March report was similarly harsh: “Since the end of the recession, Ohio has added 133,700 jobs, growing at a rate of 2.7 percent. But that growth leveled off in the second half of 2012, and the reported zigzag of the last two months means that Ohio has only added 2,700 jobs over the past year, growing at a very weak 0.1 percent.”
The news may come as a surprise to those who have been reading seemingly positive job news in recent months. Policy Matters places the problem on the inherent volatility in job reports, which are based on household surveys: “This volatility should serve as an important reminder: Monthly numbers are preliminary and will likely be revised, so it is unwise to make too much over the month-to-month changes. Longer-term trends provide a more accurate gauge of the state’s economic health.”
While they agree on the problem, the two think tanks disagree on the causes and solutions.
Greg Lawson, policy analyst at the Buckeye Institute, says the biggest problem is Ohio’s tax system. In this area, he points out three major problems: higher income tax rates than other states, an unusual amount of municipalities in Ohio with income taxes and complicated filing for individuals and businesses.
“You find nowhere else in the entire country a situation in which someone has to file multiple income tax forms ... for different jurisdictions they work in,” he says, citing the different tax rates and credits someone working in multiple municipalities might have to deal with. “That creates a drag on the efficiency of being able to set up businesses.”
As far as tax cuts are concerned, another report from Policy Matters found a series of tax cuts passed by the Ohio General Assembly in 2005 had little impact on the state’s economic growth. The report found Ohio experienced job losses while the rest of the country grew, and not a single Ohio sector outpaced national performance. The report concluded, “State economies are complicated and there are many reasons why Ohio’s job growth is lagging. However, it is clear that the 2005 tax cuts did not bring about the promised job growth. There is no reason to think that further tax cuts will, either.”
Instead, Policy Matters has focused on austerity, which led to the public sector job cuts outlined in Policy Matters’ March report: “A private-sector gain of 16,900 jobs has been nearly erased by the 14,200 jobs lost in the public sector. Most of those public job losses happened at the local level.”
Indeed, federal sequestration has already caused some damage in Ohio, and local government funding cuts approved by Kasich have also forced local governments to cut back (“Enemy of the State,” issue of March 20).