When Ohio’s minimum wage automatically increases by 10 cents to $7.95 per hour at the start of 2014, roughly 330,000 workers will receive raises across the state, according to an analysis from the Economic Policy Institute (EPI).
That could be good news for all of Ohio: EPI found the minimum wage increase will benefit the rest of the state through nearly $39 million in economic impact and 300 new full-time jobs.
“Ohio workers and the Ohio economy will both benefit from this raise for our lowest-paid neighbors,” said Amy Hanauer, executive director of left-leaning think tank Policy Matters Ohio, in a statement. “The employees who benefit will turn around and spend money in our communities, stimulating growth here.”
The automatic increase is a result of a constitutional amendment approved by Ohio voters in 2006 that hiked the minimum wage to $6.85 per hour and pegged it to rises in the cost of living.
Ohio isn’t alone in the increase, however. Policy Matters estimates 10 other states — Arizona, Colorado, Florida, Montana, Missouri, Nevada, Oregon, Vermont, Washington and New Jersey — automatically increase their minimum wages each year to keep up with inflation.
The nationwide minimum wage hikes “will generate over $619 million in new economic activity and support creation of 4,600 new full-time jobs as businesses expand to meet increased consumer demand,” according to Policy Matters.
The projections come at a time progressives are working on the national stage to increase the federal minimum wage, which, at $7.25 per hour, is becoming increasingly irrelevant as Congress fails to keep up with many states’ minimum wage expansions.
President Barack Obama’s Fair Minimum Wage Law would raise the federal minimum wage to $10.10 per hour by 2015 and — perhaps most importantly — ensure the minimum wage increases each year to keep up with the cost of living. The left-leaning National Employment Law Project estimates the hike would help 30 million Americans and help grow the economy.
Opponents argue a minimum wage increase, especially one as
rapid as Obama’s proposal, would burden businesses with considerably
higher labor costs. They argue companies would drop
employees or raise prices to cope with higher expenses.
Advocates typically tout a minimum wage hike as a matter of basic fairness. They claim the federal minimum wage would be $10.55 per hour today if it kept up with inflation.
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).
A new report from the state auditor found Cincinnati Public Schools (CPS) and Winton Woods City Schools were manipulating attendance data for the 2011-2012 school year, but the report seems to lay much of the blame on state policy, not just irresponsible school districts.
CPS and Winton Woods were cited among nine school districts by State Auditor Dave Yost for improperly withdrawing students from enrollment. More than 70 other schools had errors in their attendance reporting, but they were not found to be purposely manipulating — or “scrubbing” — attendance data.
The report largely focused on flaws in state policy that enable bad attendance reporting — particularly a single “count week” in October that encourages school districts to boost attendance during that one week and no other time in the school year.
“Kids count every day, all year long,” Yost said in a statement. “They deserve better than what we're giving them — Ohio's current system for measuring attendance and performance is obsolete and in too many places, filled with error and bad information and even outright fraud. It's amazing that it works at all, and sometimes, it doesn't.”
As a solution, Yost is calling on legislators to change school funding so it’s based on year-long attendance reporting.
The report also made 12 other recommendations, including increased oversight and monitoring, more programs for at-risk students, better training, use of automated data reporting, more accessibility to pertinent information for the Ohio Department of Education and clearer rules.
Winton Woods was one of the few schools to self-report issues to the auditor. Jim Smith, interim superintendent of Winton Woods, admits the school made mistakes and will make adjustments. But he says most of the issues were explained away as errors, not intentional data manipulation. Only four of the 15 issues couldn’t be reasonably explained, according to Smith.
Smith says the Education Management Information System (EMIS), which is used to report attendance data, is problematic for highly mobile
students, particularly in urban school districts. He argues the system
is too complicated and difficult to use for tracking such students.
In a Feb. 8 press release, Winton Woods claimed the reporting issues were related to confusion regarding expelled students, poor record keeping and a lack of well-defined procedures and reporting systems.
In an emailed statement, CPS Superintendent Mary Ronan wrote the school district made mistakes, but internal audits did not find evidence of data manipulation or scrubbing. She linked the errors to confusing state policy and issues with highly mobile students.
School attendance data is one of many ways states measure school performance, as required by the No Child Left Behind Act of 2001.
Update (Feb. 12, 10:29 a.m.): Originally, this story did not include comments from CPS. It was updated to reflect comments CityBeat obtained after publishing.
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.”
An infographic from Pew Charitable Trusts shows Ohio ranked No. 46 out of all the states for job creation in the past year, beating only Wisconsin, Maine and Wyoming and tying with Alaska.
Between April 2012 and April this year, Ohio added 4,400 jobs — a 0.1-percent increase in the state's employment.
The three states below Ohio and Alaska — Wisconsin, Maine and Wyoming — had a drop in employment ranging from 0.2 percent to 0.5 percent.
North Dakota topped the rankings with 15,900 new jobs — a 3.7-percent increase in employment — largely driven by the state's ongoing oil and gas boom.
The statistics coincide with previous warnings from liberal and conservative think tanks about the state's economy, signifying that Ohio is not undergoing the "economic miracle" that Gov. John Kasich and other state officials often tout.
Here is the full infographic, which uses job data from the Bureau of Labor Statistics:
Update (1:57 p.m.): Clarified that Ohio tied, not beat, Alaska.
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.”
The news comes at a time when FreedomOhio is stepping up its efforts to get an amendment legalizing same-sex marriage in Ohio on the 2013 ballot.
This article originally credited Equality Ohio for the amendment. The
amendment push is being led by FreedomOhio, a different pro-gay
The campaign for Freedom to Marry Ohio, the amendment that would legalize same-sex marriage, previously touted an economic study that showed Ohio could bring in $100-126 million of economic growth within three years of legalizing same-sex marriage and sustain 1,160-1,450 Ohio jobs. In Hamilton County, same-sex marriage legalization would bring in $8.3 million. However, the study did not take into account a phenomenon dubbed “marriage tourism,” which involves same-sex couples visiting a state mostly to get married; so it’s possible the economic impact could be even greater than the study suggests.The study also found that more than 9,800 out of more than 19,600 same-sex marriage couples in Ohio would marry within three years if it was legal, and nearly 900 out of nearly 1,800 in Hamilton County would marry within three years. New York City Mayor Michael Bloomberg previously touted same-sex marriage legalization for its economic boost to his city. He said it had produced $259 million in economic growth in New York City.
Local subscribers to Time Warner and Insight cable woke up today without access to WLWT-TV (Channel 5) after the station and companies failed to reach a new retransmission agreement. Instead, the cable companies offered Channel 2 from NBC affiliate Terre Haute, Ind. The Enquirer is all over the story, reporting that Todd Dykes and Lisa Cooney in the morning were replaced by someone named Dada Winklepleck in Wabash Valley, Ind. Don’t worry: 30 Rock will still be on your new local Indiana station. Visit mywabashvalley.com for further details about additional programming. Or you can just hook up an antennae and get WLWT in hi-def for free.
Anyone in the market for a school building? Cincinnati Public Schools is adding four closed buildings to a for-sale list in an attempt to raise the capital necessary to complete an overhaul of its in-use buildings as part of its Facilities Master Plan. The new buildings on the list are Central Fairmount, Kirby Road, North Fairmount and Old Shroder schools.
Ohio brought in $23.5 million during the first seven weeks of legalized gambling in the state.
Mitt Romney says he’s not hiding anything in his offshore accounts. The proof: He doesn’t even know where they are, so they’re technically hidden from him, too.
Barack Obama is in Iowa apparently setting up an issue on which to debate Romney later this fall. Obama is pitching an extension of the Bush-era tax cuts for households earning less than $250,000, while Romney wants to extend them for rich people, too.
The FDA went against the advice of an expert panel, deciding not to require mandatory training for doctors prescribing long-acting narcotic painkillers that can lead to addiction.
Three-hundred-square-foot apartments in New York City? Mayor Michael Bloomberg asked developers yesterday to try to make them work.
City planners envision a future in which the young, the cash-poor and empty nesters flock to such small dwellings — each not much bigger than a dorm room. In a pricey real estate market where about one-third of renter households spend more than half their income on rent, it could make housing more affordable.
Droughts in 18 states have made the price of corn go up, and the soybeans are hurting a little bit, too.
Sitting less adds two years to U.S. life expectancy.
A new study found that babies are healthier when there are dogs in their homes.
The Major League Baseball All-Star Game will take place tonight in Kansas City. The Reds’ Joey Votto is a starter, while Jay Bruce and Aroldis Chapman are also likely to play.
Gov. John Kasich touted a rosy, progressive vision when announcing his education reform plan Jan. 31, but reality does not match the governor’s optimism. It’s true Kasich’s proposed 2014-2015 budget
will not reduce school funding, but under the Kasich administration,
local schools will still have a net loss in state funds.
The governor’s office released tentative budget numbers yesterday that show the Kasich plan will give Cincinnati Public Schools (CPS) $8.8 million more funding for the 2014 fiscal year. But that’s not enough to make up for the $39 million CPS will lose in the same fiscal year due to Kasich’s first budget, which was passed passed in 2011. Even with the new education plan, the net loss in the 2014 fiscal year is $30.2 million.
The problem is Kasich’s first budget had massive cuts for schools. The elimination of the tangible personal
property reimbursements (TPP) hit CPS particularly hard, as CityBeat previously covered (“Battered But Not Broken,”
issue of Oct. 3). In the Cut Hurts Ohio website, Innovation Ohio and Policy Matters Ohio estimated Kasich’s budget cuts resulted in $1.8 billion less funding for
education statewide. In Hamilton County, the cuts led to
$117 million less funding.
Kasich’s massive cuts didn’t even lead to lower taxes for many Ohioans. A report from Innovation Ohio found school districts and voters made up for the big education cuts with $487 million in new school levies. In 2012, Cincinnati voters approved a $51.5 million levy for CPS. The school levies are a direct increase on local income and property taxes, but they’re measures Ohioans clearly felt they had to take in the face of big state budget cuts.
For more analysis of Kasich’s budget, check out CityBeat’s other coverage:
The rollback saves property owners $70 in taxes for every $100,000 of valuation. For the next two years they will be paying an extra $35 per $100,000 of their home’s value.
The money will be used to balance the stadium fund, which faces a $7 million deficit. The rollback reduction is expected to raise about $10 million. The board voted 2-1 for the proposal, with sole Democrat Todd Portune dissenting.
“The property tax rollback measure that has been advanced so far buys us only one year, and next year we will be doing the same thing we are doing today,” Portune said.
Portune favored raising the sales tax by 0.25 cents — to 6.75 — per dollar, which would have raised more than $30 million over 10 years. His proposal, which failed to receive any support, would have expired after the 10 years and gone up for review annually after the first five.
Portune said his proposal was more equitable. He said reducing the property tax rollback was going to affect only Hamilton County residential property owners, whereas a sales tax increase would affect everyone who spends money in the county, including visitors from neighboring Kentucky and Indiana.
Portune billed the tax increase as a long-term solution that would raise more than was needed currently but would keep the fund stable in years to come.
Board President Greg Hartmann, who authored the rollback reduction proposal, called Portune’s plan “a bridge too far.” He said it was too large of a tax increase and not a targeted approach to solve the deficit problem. He said he didn’t trust future commissions to allow the tax increase to expire.
Hartmann called the property tax rollback reduction flexible, scalable, clean, immediate and certain.
Commissioner Chris Monzel, who provided the deciding vote, said he didn’t like either and had to go against his principles with either choice.
“No way I walk out of this without breaking a promise. No way I walk out of this winning,” he said.
Monzel said he hopes that savings from the Affordable Care Act would allow the county to lower its property tax rates to make up for the rollback reduction.
Monzel also introduced a successful proposal that will include an annual review of the tax budget to make sure property taxes don’t change, a provision requiring parking revenue from The Banks to be used to develop The Banks and a directive for the county administrator to work with Cincinnati’s professional sports teams on concessions they can make to help out with the stadium funding burden.