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
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.
City Council approved an operating budget Thursday that raises taxes and cuts several city services in fiscal year 2014, but the plan avoids laying off cops and firefighters.
Democratic council members Roxanne Qualls, Chris Seelbach, Yvette Simpson, Pam Thomas and Wendell Young supported the budget, and Democrats P.G. Sittenfeld and Laure Quinlivan, independent Chris Smitherman and Republican Charlie Winburn voted in opposition.
As a result of the budget, 67 city employees will lose their jobs.
Human services funding, which goes toward programs that aid the city's homeless and poor, is hit particularly hard with a cut of $515,000 in the final budget plan. The reduced funding leaves about $1.1 million for human services agencies.
Josh Spring, executive director of the Greater Cincinnati Homeless Coalition, says the latest cuts add to what's been a decade of cuts for human services funding. Originally, human services funding made up about 1.5 percent of the city's operating budget. With the latest changes, human services funding makes up about 0.3 percent of the budget.
"The additional cuts are deep and will negatively affect many lives now and in the future," Spring says. "It's important City Council work to reduce these cuts and citizens support that in ensuing months."
The budget also cuts parks funding by $1 million — about $200,000 lower than originally proposed by City Manager Milton Dohoney.
The budget further trims several city services, including the city's health department, law department and recreation department.
Arts funding and subsidies for "heritage" events, such as parades, are completely eliminated.
Funding for several outside agencies is also being reduced or eliminated: the Port Authority, the African-American Chamber of Commerce, the Cincinnati USA Regional Chamber of Commerce, the Center for Closing the Health Gap, the Greater Cincinnati Energy Alliance and the Greater Cincinnati and Northern Kentucky Film Commission.
The budget is partly balanced with higher revenues. The property tax is being hiked from 4.6 mills to 5.7 mills in fiscal year 2014, or about $94 for every $100,000 in property value. Water rates will also increase by 5.5 percent starting in 2014.
The budget also invokes fees for several city services: a $75 fee for accepted Community Reinvestment Area residential tax abatement applications, a $25 late fee for late income tax filers, a $100 fee for fire plan reviews, an unspecified hazardous material cleanup fee, a 50-cent hike for admission into the Krohn Conservatory and an unspecified special events fee for city resources used for special events.
At a council meeting Thursday, Quinlivan, who voted against the budget, criticized other council members for not pursuing changes that would structurally balance the budget.
"I don't believe anybody's going to really address this problem," she said.
Quinlivan has long been an advocate for "rightsizing" the city's police and fire departments, which she says have scaled "out of control."
Seelbach defended the plan, claiming it will keep the city's books balanced while the city government waits for higher revenues from a growing local economy.
Still, the city has not passed a structurally balanced budget since 2001, which critics like Quinlivan say is irresponsible.
The public safety layoffs were avoided despite months
of threats from city officials that cops and firefighters would have to
be laid off if the city didn't semi-privatize its parking assets for $92 million upfront and annual payments afterward. That plan is now held up in court, and public safety layoffs were avoided anyway.
But the layoffs were avoided with steeper cuts in other areas of the budget, including reduced funding for outside agencies and a requirement of 10 furlough days for some city employees and council members. The changes also increased estimates for incoming revenues with $1 million that is supposed to be paid back to the city's tax increment financing fund.
Multiple council members blamed the budget problems on the state government, which has cut local government funding by about 50 percent during Gov. John Kasich's time in office ("Enemy of the State," issue of March 20). For Cincinnati, the cuts resulted in $21 million less for fiscal year 2014, or 60 percent of the $35 million budget gap originally estimated for the year.
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).
The biggest deficit plug will come from privatizing parking services, which the city manager’s office says will bring in $40 million in one-time revenue and additional revenue over 30 years as part of a long-term contract. About $21 million of the initial lump-sum payment will be used to close the 2013 budget deficit.
In the past, Councilman P.G. Sittenfeld voiced concerns about privatizing parking: “I’ll await more details, but it seems penny-wise and pound-foolish to forgo a steady revenue stream for a lump-sum payment. Cincinnati needs a structurally balanced budget and can’t keep relying on one-time sources. Places like Chicago and Indianapolis have seen their parking rates more than double following privatization — that’s a bad deal for citizens, and something we don’t need while we’re experiencing an urban renaissance.”
Another concern is whether the city’s current parking employees will be laid off if parking services are sold. Dohoney said the deal for privatization will require the winning bidder to interview all American Federation of State, County and Municipal Employees (AFSCME) workers. Full-time workers who do not join the winning bidder will be hired in other parts of the city government. “No AFSCME employee will be placed on the street if they are full-time as a result of this effort,” Dohoney claimed.
The rest of the deficit plug will come in cuts, cost shifting, savings, revenue, embedded growth and one-time sources. Among these, notable items include the elimination of the Mounted Patrol for the Cincinnati Police Department (CPD) and a $610,770 reduction in Human Services Funding. A few departments and programs, including the CPD, will face further minor cuts.
The city manager’s office claims the changes in the budget are necessary mostly due to changes at the state level. Specifically, the state government cut the Local Government Fund by 50 percent and eliminated the tangible personal property tax reimbursement and estate tax; altogether, losing these sources of revenue cost Cincinnati $22.2 million in the 2013 budget.
Facing the large deficit, Dohoney said he wanted to avoid across-the-board cuts and other major cuts to growth and investment programs: “You’re not competitive if that’s your approach.”
The budget also includes some spending increases. The Focus 52 Program will focus on redevelopment projects in Cincinnati’s 52 neighborhoods. If it’s successful, the new program will “grow the city’s revenue base, create new jobs and/or increase the population of the city,” according to the city manager’s office.
In other budget news, the city manager will also send out the Tentative Tax Budget proposal, which sets the millage rate for the operating property tax. That proposal seeks to raise the millage rate from 5.9 mills to 6.1 mills, which will provide an estimated $31 million in revenue, up from $23.5 million. For a $100,000 residential property, that means a tax hike of $46.
If Tuesday's election was supposed to be a strong message from social progressives, women and younger voters, Ohio Republicans are not getting it. Instead, they are continuing their pursuit of the heartbeat bill. That’s what Ohio Senate President Tom Niehaus told The Cincinnati Enquirer yesterday. At the time the heartbeat bill was originally suggested, it was called the most radical anti-abortion bill in the country. Yet Republicans, in cooperation with anti-abortion organizations, are pushing a version of the bill once again. Ohio Republicans have also shown interest in continuing their crusade against Planned Parenthood, according to Kellie Copeland, executive director of NARAL Pro-Choice Ohio.
Cincinnati’s budget proposal is coming later this month. Specifically, Vice Mayor Roxanne Qualls says it will arrive Nov. 26. City Manager Milton Dohoney Jr. and his budget team are currently working on a budget to close a $40 million general fund deficit. One idea that was suggested recently in a memo was privatizing parking services, but it faces skepticism from Councilman P.G. Sittenfeld. The budget will first go through Dohoney, then the mayor and then City Council. However, this calendar year’s budget will only cover six months, and then the city will transition into filing budgets based on fiscal years on July 1.
To match some of Obamacare’s requirements, Ohio officials are considering a hybrid approach to health care exchanges. The exchanges are federally regulated insurance markets. As part of Obamacare, states have the option of creating their own exchange programs, which have to be approved by the federal government; setting up a hybrid approach, which is what Ohio is looking into doing; or putting the responsibility on the federal government.
During the lame duck session, the Ohio legislature will take up legislation to regulate puppy mills and election reform. Regulations on puppy mills were previously covered by CityBeat when a group tried to get dog auctions banned in the state. Election reform could mean a lot of things. The current Republican-controlled legislature previously tried to restrict and limit in-person early voting before repealing its own rules. Ohio Secretary of State Jon Husted has also suggested “more strict” voter ID laws.
In other election news, an upset federal judge demanded Husted’s attorneys explain a last-minute directive that changed rules on provisional ballots. U.S. District Court Judge Algenon Marbley told the lawyers, “You have a lot of explaining to do.” The directive, which Husted sent out Nov. 2, shifted the burden of providing identification for provisional ballots from poll workers to voters. Voter advocates argued the directive was against Ohio law and would lead to more provisional ballots, which are ballots filed when a voter’s eligibility to vote is uncertain, being wrongly rejected. Husted and Republicans were heavily criticized for alleged attempts at voter suppression in the run-up to the election.
City Council approved a $750,000 tax break for the E.W. Scripps Company. As part of the deal, Scripps will hire for 125 new local jobs and retain 184 current employees.
The Wall Street Journal covered
Cincinnati’s “pie war” between Frisch’s and Busken Bakery.
CincyTech, a nonprofit venture organization, has invested $14.3 million since it began five years ago. Its investments, which focus on information technology and life sciences, have helped create more than 360 jobs, according to company officials.
As part of a national movement, Cincinnati-based Kroger will be making an effort to hire more military veterans.Republican Gov. John Kasich is focused on his re-election bid for 2014. When asked about whether he will run for president in 2016, Kasich said he has not made any announcements. The news came shortly after the Ohio Democratic Party began printing signs that say “Kasich... you’re next” on one side and “2014 can’t come soon enough” on the other.
Ohio Treasurer Josh Mandel won’t be leaving state politics any time soon. He says he’ll be running for re-election in 2014. Mandel is the Republican who led a failed bid for U.S. Senate against Democratic incumbent Sherrod Brown. His campaign was notorious for its dishonesty.
U.S. Sen. Rob Portman, an Ohio Republican, may take up running the National Republican Senatorial Committee in 2014. That would put him in charge of managing the Republican Party’s senate campaigns for the year. Republicans are expected to make gains in the U.S. Senate in 2014 because 20 Democratic seats will be up for grabs, in comparison to 13 Republican seats, and 12 of the Democratic seats are in swing or red states.
Democrats in the U.S. House of Representatives won the popular vote, but they ultimately lost the House. The culprit for the discrepancy seems to be politicized redistricting. In Ohio, the Republican-led committee redrew congressional district boundaries to give Republicans an advantage. The First Congressional District, which includes Cincinnati, was redrawn to include Republican-leaning Warren County, which slanted the district in favor of Republicans and diluted the say of Cincinnati’s Democratic-leaning urbanites. On this year’s ballot, Issue 2 attempted to tackle the redistricting issue, but Ohio voters overwhelmingly voted it down.
Some scientists are really excited by the discovery of “Super Earth.”
What doomed the Mayans? Climate change.
The Ohio Senate's budget plan for fiscal years 2014 and 2015 would restore about $717 million in education funding, but the gains wouldn't be enough to outweigh $1.8 billion in education cuts from the 2012-2013 budget, which was approved by the Republican-controlled Ohio legislature and signed into law by Gov. John Kasich in 2011.
The bill would also favor the state's property-wealthiest districts, which can already raise more money for local schools by leveraging their massive local property values.
About 85 percent of the wealthiest school districts will get funding increases, while 40 percent of the poorest rural districts receive no increases, according to Stephen Dyer, a former Democratic state representative and an education policy fellow at Innovation Ohio.
Dyer put the regressive breakdown in chart form in a blog post:
The chart shows the bottom one-third of school districts only get about 15 percent of the increases, while the top one-third are getting a vast majority of the increases.
Still, Dyer points out that the budget is increasing funding for urban, high-poverty areas, while rural areas are generally getting the smallest increases.
The budget would also include $250 million in one-time money for the Straight A Fund, which is supposed to entice innovation at schools around the state. When the program was first proposed in Kasich's budget plan, the Kasich administration asked for $300 million.
Even with the Straight A Fund, the funding increases wouldn't be enough to overcome $1.8 billion in cuts in the last biennium budget, which is a previous estimate from progressive think tanks Policy Matters Ohio and Innovation Ohio that includes tax reimbursements for tangible personal property and public utility property, federal stimulus funds and state aid to schools.
Many school districts have coped with the cuts through local tax levies, which Innovation Ohio previously compared to a $1.1 billion tax increase across the state.
In 2012, Cincinnati Public Schools was one of the many school districts to successfully pass a levy after dealing with years of cuts from multiple levels of government ("Battered But Not Broken," issue of Oct. 3).
The changes proposed by the Ohio legislature are the latest in a chain of attempts to reform the state's school funding formula, which has a history of legal and political problems.
Between 1997 and 2002, the Ohio Supreme Court issued four decisions that found the state's school funding formula unconstitutional because it relied too much on property taxes and failed to provide "a thorough and efficient system of common schools."
But 16 years later, critics argue the system still relies too much on property taxes. According to them, the reliance on property taxes drives inequality because property-wealthy areas can more easily leverage their high property values to fund good schools, while property-poor areas are generally left behind.
Kasich attempted to address the issues with his own rework of the education funding formula, but the rework was dismissed by the Ohio House and Senate — a victory for critics who deemed Kasich's plan regressive ("Smoke and Mirrors," issue of Feb. 20).
The Ohio legislature and Kasich must approve a budget plan by June 30.
of Mallory's staff obtained raises because they will be taking up the
former duties of Ryan Adcock, who left earlier in the month to help lead
a task force on infant mortality and will not be replaced.
The Cincinnati Enquirer reported the raises earlier today, but the story at first did not mention that the budgetary moves will ultimately save the city money. The "Enquirer exclusive" includes a "tell them what you think" section in which citizens can email the mayor's office and copy Enquirer editors. The story was later updated to include the overall savings, though The Enquirer posted a separate blog titled, "Mallory getting an earful on raises," which was a collection of angry emails to the mayor based on the original version of the story.
CityBeat acquired a memo written by Mallory that outlines the rest of the plan, which will produce savings: "I will not replace Ryan Adcock on my staff. Instead, I have divided his responsibilities among my remaining staff. In addition, I will not hire the two part-time staffers that I had considered hiring. The additional work in the office will be supplemented by unpaid interns.
"In addition, I have enacted internal savings in order to return $20,000 from my FY 2013 office budget to be used for the FY 2014 city budget. Finally, in preparation of the Mayor’s Office Budget for FY 2014, I am reducing my office budget by $33,000 for the remaining 5 months of my term."
spokesperson Jason Barron says the mayor will also not be replacing
staff that leaves from this point forward, which could produce more
savings down the line.
Shawn Butler, the mayor's director of community
affairs, was given an 11-percent raise; Barron, the mayor's
director of public affairs, was given a 16-percent raise; and Arlen
Herrell, the mayor's director of international affairs, was given a
20-percent raise. Adcock also obtained a 20-percent raise briefly before
leaving, which Barron described to CityBeat as a budgetary technicality.
Since Mallory is term-limited, Barron says the savings will only apply to Mallory's remaining five months. The mayor who replaces Mallory in December will decide whether to keep or rework Mallory's policies.Last year, Barron was paid $66,144 in regular pay, Butler was paid $71,349, Herrell was paid $59,961 and Adcock was paid $66,049, according to the city's payroll records. But Barron explained that those numbers were higher because last year happened to have an extra payday. Under normal circumstances, Barron is paid $62,740 a year, Butler is paid $67,760, Adcock was paid $62,740 and Herrell is paid $62,031.
Former Democratic city council member John Cranley is kicking off his 2013 mayoral campaign by getting involved in budget talks. In a public hearing at City Hall last week, Cranley tried to provide an alternative to privatizing the city’s parking assets, which City Manager Milton Dohoney has suggested to pay for $21 million of the city’s $34 million deficit.
“It’s not the citizen’s job to balance the budget, but let me make it very easy for you,” Cranley said. “You have $12 million in casino money that can be used but is currently being used on pet projects, like street sculptures. The parking meters themselves produce $7 million a year. That’s $19 million. And $5 million for garbage cans. That’s $24 million. You only need ($21 million) to cancel the parking privatization plan, so I got you $3 extra million to spare.”
In short, Cranley's alternative to parking privatization is using $12 million from casino revenue, $7 million from keeping parking meters under city ownership and $5 million saved from not purchasing trash carts.
So how viable are Cranley’s ideas? In a memo, Dohoney’s
office responded. The memo points out that casino revenue is currently
estimated at $7.2 million, not $12 million, and $1.3 million is already
included in the budget for Focus 52, a neighborhood redevelopment project. That leaves casino revenues $6.1 million short of what Cranley proposed.
Regarding parking meters, Dohoney’s office says revenue
from parking meters is restricted to fund “operations and maintenance in
the right-of-way.” The memo says City Council could authorize using the money to plug the deficit, but it would then have to find
alternatives for funding operations and maintenance.
Even the trash cart proposal doesn’t work. Not buying trash carts would only save $4.7 million, not $5 million. And the plan, which is part of the city’s effort to semi-automate trash collection, is in the general capital budget, not the general fund operating budget that’s being debated. The memo concludes, “If the trash carts are not purchased, the funds would not be available to close the gap because this is a capital budget expenditure and resources supporting the capital budget cannot be used in the operating budget.”
In other words, Cranley’s “very easy” budget plan isn’t just difficult; it’s a mix of inadequate and impossible. If CityBeat was PolitiFact, Cranley’s suggestions would probably get him a “Pants on Fire” label.
In response to the March 28 announcement that City Manager Milton Dohoney Jr. has begun implementing a plan that will lay off cops and firefighters, mayoral candidate John Cranley released his own budget plan that claims to avoid layoffs and the implementation of the city’s parking plan. But critics say Cranley’s budget is unworkable.
Cranley’s budget uses casino revenue, parking meter revenue and various cuts to raise nearly $33.8 million — more than the $25.8 million necessary to balance the budget without a parking plan.
Cranley’s critics have taken to social media to claim Cranley’s revenue projections are “fantasy.” They also claim the across-the-board budget cuts ignore the city’s priority-driven budgeting process, and there’s no certainty that such broad cuts can be carried out without laying off city employees.
Whether avoiding layoffs is possible through Cranley’s proposal remains unclear, even according to Cranley’s two-page budget plan, which reads, “We need to identify only roughly $26 million to cover the 2014 deficit and will reduce some of these cuts to ensure that there are no layoffs.”
Cranley says there is no certainty that the cuts could be carried out without any layoffs, but he says he would do everything he can to prevent personnel cuts: “I believe that people should take pay cuts. … If I cut the office of the council members’ staff, I can’t force an individual council member not to lay someone off, but I would certainly encourage them to reduce salaries as opposed to layoffs.”
In government budget terms, a 10-percent cut to any department is fairly large — particularly for Cincinnati’s operating budget, which uses 90 percent of its funds on personnel. In comparison, the cuts from the 2013 sequester, the across-the-board federal spending cuts that President Barack Obama and fellow Democrats say will lead to furloughs and layoffs around the nation, ranged between 2 percent and 7.9 percent, depending on the department.
The cuts make up one-third of Cranley’s proposal, while the rest of the money comes from casino and parking meter revenue. For his casino revenue numbers, Cranley cites Horseshoe
Casino General Manager Kevin Kline, who told City Council he
expects the casino to raise $21 million each year, but city officials
have said they only expect $10 million a year.
Cranley insists the extra $11 million will come to fruition. He says, “I would put my track record of being the chairman of the budget committee for eight years, which balanced budgets without layoffs, ahead of the people at the city that estimated the costs of the streetcar.”
Just in case, Cranley says his plan purposely overshoots the $25.8 million deficit to leave some leeway in carrying out cuts. But without the extra $11 million, Cranley’s plan would only raise about $22.8 million — $3 million short of filling the budget gap.
Jon Harmon, legislative director for Councilman Chris Seelbach’s office, says the city and state were originally expecting a lot more revenue from the state’s new casinos, but the legalization of racinos, which enabled racetrack gambling, has pushed revenue projections down.
In February, Ohio’s Office of Budget Management estimated the Horseshoe Casino will raise $75 million in tax revenue for the city, state and schools, down from a 2009 estimate of $111 million, after seeing disappointing returns from Ohio’s already-opened casinos. The local numbers reflect a statewide revision downward: In 2009, the state government estimated Ohio’s casinos would take in $1.9 billion a year, but that projection was changed to $957.7 million a year in February.
Even if Cincinnati’s Horseshoe Casino does much better than the state’s other casinos, the way casino revenue is collected and distributed by the state makes a $21 million windfall unlikely, according to Harmon. Before the state distributes casino revenue to cities, counties and schools based on preset proportions, the money is pooled together, which means all the casinos would have to hit original estimates for Cincinnati to get $21 million — an unlikely scenario, according to Harmon.
The other major revenue source in Cranley’s budget is $5.2 million in parking meter revenue, which the city manager’s office told CityBeat in February is usable for the general fund after months of insisting otherwise. Some of that money is already used in the general fund under current law, but the parking plan would remove that revenue altogether and replace it with new revenue. Cranley says his plan would forgo the parking plan and secure the $5.2 million in the general fund.
Among other cuts, Cranley’s proposal would eliminate some of the money that goes to software licensing. With the way the cut is outlined in Cranley’s two-paged budget proposal, it’s unclear whether it would hit all software licensing or just some of it, but Cranley says his plan is only reducing $531,554 of about $2.6 million, which he says still leaves a $1 million increase over 2012’s software licensing budget.
“I’m telling people what my priorities are: police, fire, parks, recreation, garbage collection, health department (and) human services,” he says. “I believe that elected officials should not be paying consultants from Denver to tell people in Cincinnati what their priorities are. I believe that elected officials should tell the voters what their priorities are.”
Cranley’s comments are critical of the the city’s priority-driven budgeting process, which ranked city programs based on feedback gathered through local surveys and meetings with Cincinnati residents.
With or without the parking plan, Cranley says the city is facing structural deficit problems. He says his plan permanently fixes those issues, while the parking plan would only eliminate the deficit for the next two fiscal years.
Cranley and Libertarian mayoral candidate Jim Berns oppose the city’s parking plan, while Vice Mayor Roxanne Qualls, another Democratic mayoral candidate, supports it.
The parking plan, which was approved by City Council on March 6, would lease the city’s parking assets to the Port of Greater Cincinnati Development Authority to help balance the deficit for the next two fiscal years and fund development projects, including a downtown grocery store (“Parking Stimulus,” issue of Feb. 27).
But the semi-privatization plan is being held up in court. Most recently, Hamilton County Judge Robert Winkler ordered a permanent restraining order on the plan pending a referendum effort. The extended injunction sparked criticism from city officials, who say delays will lead to fiscal and procedural problems.
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).