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by German Lopez 10.12.2012
Posted In: News, Economy, Education at 10:58 AM | Permalink | Comments (0)
 
 
2012 report

Cincinnati No. 10 out of 12 Similar Cities

Report finds Cincinnati strong on housing opportunities and job growth, weak on migration

A new report has some sobering notes for Cincinnatians. Overall, the city ranked No. 10 out of 12 similar cities in the report’s rankings, with the city doing well in housing opportunities and job growth but not so well in other categories. The No. 10 spot is the same rank Cincinnati held in the 2010 report.

The report, which was put together by Agenda 360 and Vision 2015, compares Cincinnati to other cities in a series of economic indicators. The cities compared were Cincinnati; Austin, Texas; Charlotte, N.C.; Cleveland; Columbus; Denver; Indianapolis, Ind.; Minneapolis, Minn.; Pittsburgh; Raleigh, N.C.; and St. Louis.

First, the good news: Cincinnati has an unemployment rate lower than the national average, at 7.2 percent. As far as job growth, total jobs, per-person income and average annual wage goes, Cincinnati ranked No. 6. Cincinnati was also No. 5 in poverty ranks — meaning the city had the fifth least people below 200 percent of the federal poverty level among the 12 cities measured. For the most part, Cincinnati moved up in these ranks since 2010.

When it comes to housing opportunities, Cincinnati claimed the No. 2 spot, only losing to Indianapolis. That was a bump up from the No. 3 spot in 2010.

The bad news: Cincinnati didn’t do well in almost every other category. In terms of educational attainment — meaning the percent of the population 25 years or older who have a bachelor’s degree or higher — Cincinnati was No. 9, with 29.3 percent having a bachelor's degree or higher in 2010. That was a slight improvement from the No. 10 rank in the previous report, which found 28.5 percent had a bachelor's degree or higher in 2009.

Cincinnati did poorly in net migration as well. The city was No. 10 in that category, only beating out St. Louis and Cleveland. The silver lining is the city actually gained 1,861 people in 2009 — an improvement from losing 1,526 people in 2008.

Cincinnati also seems to have an age problem. The city tied with Pittsburgh for the No. 10 spot with only 60.2 percent of the 2011 population made up of people between the ages of 20 and 64. The report also says the city has too many old people, an age group that tends to work less, provide less tax revenue and use more government and health services. Cincinnati ranked No. 8 in terms of “Old Age Dependency,” with 20.4 percent of the city made up of people aged 65 and older in 2011.

However, the report does have a positive note through all the numbers: “In fact, our current pace of growth, especially in the people indicators, exceeds many of our competitors and if this pace continues, our rank could be much improved by our next report.”

 
 
by German Lopez 04.26.2013
Posted In: News, Economy at 03:34 PM | Permalink | Comments (0)
 
 
cover-kasich-2

Ohio Is No ‘Economic Miracle’

Liberal, conservative think tanks warn of bad signs in state’s economy

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).

 
 
by German Lopez 10.15.2012
Posted In: News, 2012 Election, Bailout, Economy, Budget at 01:29 PM | Permalink | Comments (1)
 
 
josh_mandel headshot

Brown, Mandel Clash in Feisty Debate

U.S. Senate candidates argue over records, economy, social policy

In the first of three debates for Ohio’s seat in the U.S. Senate, Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel agreed on little and clashed on a lot. Each candidate mostly focused on the opposing candidate's record, but the debate today did move to substantial differences in policy at some points.

The debate started with opening statements from a noticeably feisty Brown, who criticized Mandel for calling his vote for the auto bailout “un-American.” On the other side of the aisle, Mandel began his opening statement with a joke about shaving before he turns 36. The joke was the last time either of the men spoke with a light heart.

The candidates blasted each other mostly for their records. Mandel touted Ohio's and the nation’s higher unemployment rate since Brown took office in 2006, energy prices and the U.S. debt. He also said the Senate had not passed a budget in three years, although Congress has actually passed budget resolutions in that time.

Brown fired back with claims Mandel had filled the state treasurer’s office with cronies. He also criticized Mandel for running for four different political offices in seven years. In his closing statement, Brown said Mandel is “too concerned about running for his next job” to be trusted.

On substance, Brown and Mandel criticized just about everything about each other. Brown claimed Mandel signed away his “right to think” by agreeing to lobbyist Grover Norquist’s pledge to not raise taxes while in office. He said the pledge makes it so if Mandel does take office, he’ll never be able to close tax loopholes for big corporations.

Mandel defended the pledge by saying, “I’m proud to stand for lower taxes in our state and lower taxes in our country.” He added, “I will do everything I can to advocate for lower taxes across the board for the middle class and job creators as well.”

The term “job creators” is typically used in politics to reference wealthy Americans, who Republicans claim create jobs through the theory of trickle-down economics. The economic theory states that wealthy Americans will hire more lower-class Americans if they have more money and freedom, essentially creating a trickle-down effect on wealth from the rich to the poor. Although Republicans still tout the theory, some economists, including Nobel Prize winner Paul Krugman, say the financial crisis of 2008 and the deregulation that led to it prove trickle-down economics do not work.

The candidates also debated their positions on the auto bailout. Mandel said he would not have voted for the auto bailout if he was in the Senate in 2009. In his defense, he cited the experience of Delphi workers, who lost part of their pensions as part of the deal auto companies made with workers after the federal bailout. Mandel then said, “I’m not a bailout senator. He’s the bailout senator.”

Brown responded by saying, “These are real jobs and real people.” He then cited examples of people helped by the growing auto industry. Brown’s arguments are backed by economic data, which has repeatedly credited the growing auto industry for the nation’s growing economy. In the first quarter of 2012, the auto industry was credited for half of the nation’s economic growth.

When he was asked about higher education, Brown established the key difference between the candidates in terms of economic policy. Brown said his policies in favor of government investment in higher education are about supporting the middle class to create growth that starts in the middle and spreads out, while Mandel supports tax cuts that emphasize a trickle-down approach. Mandel did not deny the claims, and instead blamed Brown’s policies for the high unemployment rate and debt issues.

The men continued to show similar contrasts on the budget, taxes and economy throughout the entire debate, but there seemed to be some common ground regarding energy independence. When the topic came to hydraulic fracturing — or “fracking” — Brown said becoming energy independent would have to involve all possible energy sources. In substance, Mandel agreed, although he also praised fracking regulations recently passed by the Ohio legislature and Gov. John Kasich.

As far as energy issues go, the agreement stopped there. When Brown was asked about President Barack Obama's alleged “war on coal,” Brown said there was no war on coal and claimed there are more coal jobs and coal produced in Ohio than there were five years ago. Mandel disagreed and claimed there is a war on coal. He added if Obama is the general in the war on coal, Brown is Obama's lieutenant.” Brown previously supported federal regulations on mercury that some in the coal industry, including the Ohio Coal Association, claim will force coal-fired power plants to shut down. The regulations go into effect in 2015.

On abortion, Mandel proudly claimed he was pro-life, while Brown said, “Unlike Josh Mandel, I trust Ohio women to make their own health care decisions.” Brown also criticized Mandel for not establishing exceptions for rape, incest and the health of the mother in his anti-abortion stance.

Many more issues, from term limits to Middle Eastern culture, were covered in the debate. The candidates drew sharp contrasts in all these areas with Brown typically holding the liberal position and Mandel typically holding the conservative position. But despite the feisty language and deep policy contrasts, when the debate ended, the candidates smiled, shook hands and patted each other on the back. They will meet again in Columbus on Thursday and Cincinnati on Oct. 25.

 
 
by German Lopez 09.12.2012
Posted In: Government, News, Economy, Spending at 01:44 PM | Permalink | Comments (0)
 
 
randall meyer

Inspector General: ODJFS Wrongly Reimbursed Companies

Hired organizations did not properly comply with federal stimulus requirements

Ohio’s inspector general released a report today criticizing the Ohio Department of Job and Family Services (ODJFS) for improperly reimbursing federal stimulus funds to hired organizations that did not follow rules.

In a statement, Inspector General Randall Meyer’s office said ODJFS “failed to adequately oversee federal grant funds applied to the Constructing Futures jobs training initiative for Central Ohio.”

The report released by Meyer’s office today, which focused on stimulus programs in central Ohio, outlined a few instances of ODJFS failing to oversee proper standards. In total, the department, which was put in charge of carrying out job training funds in Ohio from the stimulus package President Barack Obama signed into law in 2009, wrongly reimbursed companies it hired for $51,700.81.

In central Ohio, ODJFS hired two organizations to carry out the job training program, or Workforce Investment Act: Associated Builders and Contractors, Inc. (ABC) and Construction Trades Networks (CTN). At ABC, the inspector general found limited problems with faulty reimbursements involving a newspaper subscription, travel and mileage totaling less than $100. The money was not accounted for as a questionable cost since it was so small.

However, at CTN, the faulty reimbursements piled up. The organization was reimbursed $560.61 for phone calls made prior to being hired as part of the federal grant. It was also reimbursed $1,613.62 for its invoices, even though documentation was not provided to link phone calls as necessary to the grant program.

Under the federal stimulus rules, CTN was required to provide 25 percent of its own funds for the program. CTN planned on using $91,800 of in-kind funds — payment that isn’t cash — by paying for trainee wages. The organization paid $60,927.70 by the end of the grant period, and the organization was reimbursed for $49,526.64 by ODJFS, even though the charges were supposed to be carried by CTN. The inspector general requested CTN give the money back to ODJFS.

When the inspector general contacted the organization to explain the findings, CTN attributed the requests for faulty reimbursements to confusion caused by multiple administrative changes at ODJFS.

“In addition, monitoring visits by ODJFS were not conducted until after the grant period expired, even though the partnerships were told the visits would occur as grant activities were underway,” the report said.

Meyer’s office concluded ODJFS should review the questioned costs, work to keep consistent guidelines through administrative changes and monitor grant funds during the grant period.

The full inspector general report can be found here.

A report was released for northwestern Ohio was released on May 10, and it also found wrongdoing. It can be found here. A report for stimulus programs in southwestern Ohio will be released later.

ODJFS could not be immediately provide comment on the report. This story will be updated if comments become available.

UPDATE (3:28 P.M.): Benjamin Johnson, spokesperson for ODJFS, provided a comment shortly after this story was published.

“As the report mentions, these were expenditures by local entities, not by the Ohio Department of Jobs and Family Services, he says. We appreciate the inspector general bringing this to our attention, and we'll work to resolve the matter.”

 
 
by German Lopez 02.26.2013
Posted In: Budget, News, Governor, Economy at 04:20 PM | Permalink | Comments (0)
 
 
cover-kasich-2

Kasich Cuts Local Government Funding Again

Previous cuts helped cause Cincinnati budget deficit

A new Policy Matters Ohio report found local government funding has been reduced by $1.4 billion since Gov. John Kasich took office, leading to a nearly 50-percent reduction in state funding.

The report found local government funding dropped from nearly $3 billion in the 2010 and 2011 fiscal years — the years budgeted by former Gov. Ted Strickland — to about $2.2 billion in the 2012 and 2013 fiscal years — the first two years budgeted by Kasich. The governor’s most recent budget proposal would ensure the continuation of the downward slide, with local government funding dropping down to slightly more than $1.5 billion in the 2014 and 2015 fiscal years, according to the report.

Policy Matters concluded new revenue from the state’s casinos and an expanded sales tax would not be enough to outweigh cuts in the Local Government Fund, utility tax reimbursements, tangible personal property reimbursements and the termination of the estate tax. By itself, the estate tax, which was phased out at the beginning of 2013, would have provided $625.3 million to local governments in the 2014-2015 budget, but it was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich.

The governor’s office has repeatedly argued that the cuts in Kasich’s first budget were necessary to help balance an $8 billion budget deficit, but the Policy Matters report says improving economic conditions have removed a need for further local government funding cuts: “To encourage growth we need good schools, reliable public safety and emergency services and strong communities. During hard times, state and local policy led to cuts. But further cuts in appropriations for local government are not helping communities. Curtailing local control of local revenues will complicate recovery – as the economy improves, it is time to restore the fiscal partnership between state and community.”

When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year.

CityBeat previously covered Kasich’s 2014-2015 budget proposal and how it affects taxpayers, schools and Medicaid recipients (“Smoke and Mirrors,” issue of Feb. 20).

 
 
by German Lopez 03.04.2013
Posted In: Privatization, News, Parking, Budget, Economy at 12:28 PM | Permalink | Comments (0)
 
 
downtown grocery

Parking Meter Company's Past Problems Resurface

Before Xerox buyout, audit found ACS improperly managed parking meters

The company that would operate Cincinnati’s parking meters if the city passes its controversial parking plan this week was mired with audited problems and complaints in the past. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing.

A 2007 audit found ACS had failed to take care and keep track of parking meters it operated in Washington, D.C. The audit claimed 35 percent of parking meters listed in ACS’s inventory were missing, about 16 percent of the remaining meters were completely inoperative and 65 percent had problems that ranged from defacing to improper height and stability. ACS also failed to fix meters within the 72-hour period mandated by its contract, according to the audit.

For some residents, the broken meters led to unfair tickets, with 6,888 tickets, or nearly 1 percent of parking meter tickets, being improperly issued at unfixed meters, according to the audit. The audit also found a 903-percent increase in overall parking meter complaints under the privatization contract with ACS.

The audit also questioned the financial gains for Washington, D.C., which had to pay $8.8 million, or 33.4 percent, more under privatization than projected trends under public management.

The bad audit wasn’t enough for Washington, D.C., to cut its contract with ACS, which still manages the city’s parking meters today.

The audit was among a few other problems tipped to multiple media outlets by Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. In 2007, ACS was accused of bribing police officers in Edmonton, Canada, but a judge ruled in favor of ACS, stating there wasn’t sufficient evidence. In 2010, the Securities Exchange Commission (SEC) charged ACS with backdating and falsely disclosing stock options between 1996 and 2005, and ACS consented to a permanent injunction without admitting or denying the charges.

All the discovered problems occurred before 2010, when Xerox bought ACS.

Kevin Lightfoot, a spokesperson at Xerox, says the audit’s findings were based on faulty information.” He says Xerox and the District of Columbia Department of Transportation found ACS had saved Washington, D.C., money. He also claims the auditor had misunderstood the parking meters screen displays, which he says led to the improper identification of inoperative or malfunctioning meters.

CityBeat previously covered the parking proposal, which would lease the city’s parking assets to fund deficit reduction and economic development, in detail. Mayor Mark Mallory and Vice Mayor Roxanne Qualls have endorsed the plan, and it’s currently expected to have the five votes necessary to pass a possible City Council vote today.

On Friday, Councilman Chris Seelbach revealed Plan S, an alternative proposal that would not lease the city’s parking assets and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.

City Manager Milton Dohoney Jr. also put forward his “Plan B,” which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit.

Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years.

 
 
by German Lopez 08.12.2013
Posted In: News, Business, Economy at 09:55 AM | Permalink | Comments (0)
 
 
somolend

City to Cut Ties with SoMoLend

Local startup accused of fraud by state

The city of Cincinnati is suspending its relationship with SoMoLend, the local startup that the city partnered with in December to connect small businesses and startups to $400,000 in loans.

The broken partnership comes in response to accusations of fraud from the Ohio Division of Securities that have forced SoMoLend to stop giving out loans in the state and could lead to the business’s shutdown.

City spokesperson Meg Olberding told CityBeat in an email that although the city partnered with SoMoLend in December, it has yet to give out any loans through the crowdfunding incubator.

The Ohio Division of Securities says SoMoLend failed to gather the proper federal and state licenses for a peer-to-peer lending business and falsely inflated its performance and financing figures.

SoMoLend gained local and national recognition for supposedly helping foster startup and small businesses by linking them to loans through crowdfunding — a particularly promising proposition given the state of the economy and research from the National Bureau of Economic Research that shows startups are the best drivers for economic and job growth.

But with the extent of the charges, it’s questionable whether SoMoLend had any success to begin with.

Candace Klein, CEO of SoMoLend, told The Cincinnati Enquirer on Sunday that the company is currently in talks with the state. She stressed that the Ohio Division of Securities won’t issue a final order against SoMoLend until after a hearing scheduled for October.

SoMoLend, which stands for Social Mobile Local Lending, was founded in 2011. The business’s specialty is using crowdfunding tactics to connect small businesses and startups with lenders. It then packages the loans to sell them as notes and charges a fee or commission for its services.

 
 
by Kevin Osborne 02.20.2012
 
 
mitt-romney.widea

Dems, Unions Protest Romney Visit

As Mitt Romney gets ready to attend a $2,500 a plate fundraiser at downtown’s Great American Tower, the local Democratic Party chairman says the presidential hopeful’s economic plan “would do nothing to create jobs now.”

Hamilton County Democratic Party Chairman Tim Burke released a statement this afternoon describing why he believes a Romney presidency would be disastrous for middle-class Americans.


Meanwhile, a group of community leaders led a protest outside of the East Fourth Street office building as attendees arrived for the fundraiser. The protest was organized by the Service Employees International Union (SEIU) District 1199, which represents more than 30,000 health-care and social service workers across Ohio, Kentucky and West Virginia.

“Mitt Romney holding $2,500 per person fundraiser at the Great American Tower is a perfect example of exactly who he is and who he represents,” said Becky Williams, SEIU’s district president, in a prepared statement. “While Romney is hobnobbing on the rooftop with his wealthy donors hosted by American Financial Group, ordinary Ohioans are struggling to find work and provide for their families.”

The co-host for the fundraiser is S. Craig Lindner, co-president and director of American Financial Group Inc., whose total compensation in 2010 totaled $8.3 million, according to Forbes magazine.

“Nothing Mitt Romney says can change the fact that he spent his career as a corporate buyout specialist who put profits over people and lined his pockets by outsourcing jobs, closing down plants and laying off workers,” Burke said.

“His 59-point economic plan would do nothing to create jobs now, fix America’s economy or help struggling homeowners avoid foreclosure. His tax plan would benefit the ultra-wealthy and do nothing to help middle-class families in Greater Cincinnati,” Burke added.

In preparation for Romney’s visit today, the Democratic National Committee pointed out that the investment firm once led by the candidate, Bain Capital, rejected a government offer to invest in General Motors (GM) during the 2008 financial crisis.

Romney has said on the campaign trail that he opposed the government bailout of U.S. automakers because the private market would have provided loans so GM and Chrysler Corp. could go through managed bankruptcy. But sources told The New York Times that Bain turned down an offer to help GM at the time.

“To go through the bankruptcy process, both companies needed billions of dollars in financing, money that auto executives and government officials who were involved with Mr. Obama’s auto task force say was not available at a time when the credit markets had dried up,” the article stated.

It added, “The only entity that could provide the $80 billion needed, they say, was the federal government. No private companies would come to the industry’s aid, and the only path through bankruptcy would have been Chapter 7 liquidation, not the more orderly Chapter 11 reorganization, these people said.”

 
 
by German Lopez 12.05.2012
Posted In: News, Government, Economy at 12:03 PM | Permalink | Comments (0)
 
 
city-somolend partnership

City Partnership to Support Small Businesses, Startups

Cincinnati to work with SoMoLend in lending plan

The city of Cincinnati will be pairing up with a web-based lending platform to help out small businesses and startups. With the approval of the Small Business Advisory Committee, the city and SoMoLend will give up to $400,000 in loans to stimulate economic growth and job creation.

The partnership will aid small businesses and startups through crowd funding, which connects multiple potential lenders so no single investor, including the city government, is carrying the a bulk of the burden. Since crowd funding gets more investors involved, it can also raise more money for promising startups and small businesses.

Businesses will be picked through SoMoLend’s typical application process, which emphasizes startups and small businesses. Successful applicants usually have 15 or fewer employees, meet a few standards regarding business and personal finances and prove they actually need a commercial loan. In the past, businesses have raised as much as $1 million in loans with SoMoLend.

Applicants will also have to go through the city’s application process. The city government will look at how many jobs are created, what’s the capital investment involved, how much the city will give relative to private lenders and other similar metrics.

Even as the economy recovers, small businesses and startups are having a tough time getting loans in comparison to bigger businesses. So the focus on small businesses and startups is in part to bring beneficial fairness to the system, says Meg Olberding, city spokesperson. “Access to capital at all levels has to happen. And the city government feels like small businesses are key to growth in our local economy.”

The partnership’s focus on startups is economically sound. Governments and politicians love to herald small businesses as the drivers of economic growth, but studies suggest startups are more deserving of the praise. A paper from the National Bureau of Economic Research found that young small businesses, or startups, are the key drivers to economic and job growth. 

As for why SoMoLend was picked over other platforms, Olberding says location and history played a role: “It’s a local small business, so it’s … demonstrating what we’re talking about. It’s also a demonstrated success in terms of bringing viable businesses to the market.”

The partnership is part of an ongoing effort to spur small businesses and startups in Cincinnati. SBAC was created in 2012 to pave a clearer, better path that encourages such businesses in the city. SBAC reviewed, gave feedback and approved the new partnership earlier today.

Councilwoman Yvette Simpson, head of SBAC, praised the partnership in a statement: “I am excited that the SBAC approved the city’s new partnership with SoMoLend today. By making city lending more efficient and expanding the network of small businesses receiving city assistance, this new partnership fits well into the SBAC’s goal of making Cincinnati a better place for small business.”

 
 
by German Lopez 03.14.2013
Posted In: News, Economy, Budget, Governor at 12:14 PM | Permalink | Comments (0)
 
 
p.g. sittenfeld.nar

Sittenfeld to Kasich: Restore Local Government Funding

Report found state has cut local government funding by nearly 50 percent since 2010

With the support of local officials from around the state, Cincinnati Councilman P.G. Sittenfeld is launching a website called ProtectMyOhio.com to organize efforts to restore local government funding cut during Gov. John Kasich’s time in office.

Speaking during a phone conference today, Sittenfeld, Dayton Commissioner and mayoral candidate Nan Whaley, Columbus Councilman Zach Klein and Toledo Councilman and mayoral candidate Joe McNamara described how state funding cuts have forced cities and counties to cut services.

“What we’re really trying to do today is speak up and sound the alarm about the governor’s ongoing raid on the Local Government Fund,” Sittenfeld said. “Over the last four years, the governor has taken away $3 billion in local government funding. This year alone, municipalities across Ohio are going to receive nearly $1 billion less than they previously would have.”

He added, “This is the exact same money that cities, villages and townships used to keep cops in the street, staff our fire departments, fix the potholes and some of the other basic services that citizens rightly expect and the local governments are the ones responsible for delivering.”

In the past, the Kasich administration has argued the cuts were necessary. When previously asked about cuts to education and other state funding, Rob Nichols, Kasich’s spokesperson, told CityBeat, “The reality is we walked into an $8 billion budget deficit. … We had to fix that.”

But the 2014-2015 budget is not under the fiscal pressures Kasich experienced when he took office, and the governor is pursuing $1.4 billion in tax cuts over the next three years, which he argues will help spur small businesses around the state. During the phone conference, local officials said the revenue going to tax cuts would be better used to return funds to local governments. 

Sittenfeld says the cuts have left Cincinnati with $12 million less per year. “That is the difference between us having our first police recruit class in nearly six years versus not having it,” he said. “It’s the difference between enduring dangerous fire engine brownouts versus not having to do so.”

Klein, who represented Columbus in the call, said the cuts have amounted to nearly $30 million for his city, which he said is enough money to help renovate nearly all the city’s recreation centers, parks and pools.

“No one is spared,” Klein said. “Everyone is getting cut across the state, and every neighborhood — no matter if you’re in a small village or in a large city like Columbus, Cleveland, Toledo or Dayton — (is) at some level feeling the effects of the cuts, whether it’s actual cuts in services or what could be investments in neighborhoods.”

Klein said the cuts, which have been carried out by a Republican governor and Republican-controlled legislature, contradict values espoused by national Republicans. At the federal level, Republicans typically argue that states should be given more say in running programs like Medicaid, but Ohio Republicans don’t seem to share an interest in passing money down to more local governments, according to Klein.

Some state officials have previously argued that it’s not the state’s responsibility to take care of local governments, but Sittenfeld says it’s unfair to not give money back to the cities: “Cincinnati is a major economic engine for the entire state. We’re sending a lot of money to Columbus, so I think it’s fair to say we would like some of that money back. John Kasich doesn’t have to fill the potholes, and John Kasich doesn’t have to put a cop on the street.”

Whaley, who represented Dayton in the call, said, “There’s a county perspective on this as well. The counties would certainly say that the unfunded mandates that the state legislature brings down daily are covered by those local government funds. While (state officials) keep on making rules for the counties to administer services and make those efforts, it’s pretty disingenuous to say that (county officials) don’t get a share of the income.” 

A Policy Matters Ohio report found the state has cut $1.4 billion from local government funding — nearly half of total funding — during Kasich’s time as governor. The report pinned much of that drop on the estate tax, which was phased out at the beginning of 2013 and would have provided $625.3 million to local governments in the 2014-2015 budget. The estate tax was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich.

Cincinnati had structural deficit problems before Kasich took office, but local officials argue the state’s cut have made matters worse. When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year.

Kasich’s office did not return CityBeat’s phone calls for this story.

Kasich’s latest budget proposal has also been criticized by Republicans and Democrats for tax cuts and education funding plans that benefit the wealthy and expanding Medicaid (“Smoke and Mirrors,” issue of Feb. 20).

 
 

 

 

 
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