City Manager Milton Dohoney Jr. gave his suggestions for fixing the streetcar budget gap Tuesday, and CityBeat analyzed the details here. The suggestion, which include temporarily using front-loaded Music Hall funds and pulling money from other capital projects, are capital budget items that can't be used to balance the city's $35 million operating budget deficit because of limits in state law, so if City Council approved the suggestions, the streetcar would not be saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget.
Ohio Senate Republicans seem unlikely to take up so-called "right to work" (RTW) legislation after it was proposed in the Ohio House. RTW legislation prevents unions and employers from making collective bargaining agreements that require union membership to be hired for a job, significantly weakening a union's leverage in negotiations by reducing membership. Since states began adopting the anti-union laws, union membership has dropped dramatically around the nation. Democrats, including gubernatorial candidate Ed FitzGerald, were quick to condemn the RTW bills and compare them to S.B. 5, a 2011 bill backed by Republican Gov. John Kasich and Ohio Republicans that would have limited collective bargaining powers for public employees and significantly reduced public sector unions' political power.
Hamilton County commissioners approved a county-wide collaborative between health and government agencies to help reduce the county's infant mortality rate, which has exceeded the national average for more than a decade. Funding for the program will come in part from the sale of Drake Hospital to UC Health.
With a 7-2 vote yesterday, City Council updated its "responsible bidder" ordinance, which requires job training from contractors working with the Metropolitan Sewer District, to close loopholes and include Greater Cincinnati Water Works projects. Councilman Chris Seelbach led the charge on the changes, which were opposed by council members Chris Smitherman and Charlie Winburn.
Ohio Senate Democrats are still pushing the Medicaid expansion, which the Health Policy Institute of Ohio found would insure 456,000 Ohioans and save the state money in the next decade. Ohio House Republicans effectively rejected the expansion with their budget bill, which the Ohio Senate is now reviewing. CityBeat covered the Ohio House budget bill in further detail here.
The state's Public Utilities Commissions of Ohio approved a 2.9 percent rate hike for Duke Energy, which will cost customers an average of $3.72 every month.
Concealed carry permits issued in Ohio nearly doubled in the first three months of the year, following a wave of mass shootings in the past year and talks of federal gun control legislation.
Real headline from The Cincinnati Enquirer: "How much skin is too much skin for teens at prom?"
A Pennsylvania woman who had been missing for 11 years turned herself in to authorities in Florida.
New research shows early American settlers at Jamestown, Va., ate each other.
City Manager Milton Dohoney Jr. released a memo yesterday detailing how the streetcar project's $17.4 million budget gap could be fixed by pulling funds from various capital projects and issuing more debt, upholding a promise he made at a contentious City Council meeting Monday.
The five-page memo says none of the proposed capital funding sources can be used to balance the city's $35 million operating budget deficit because of limits established in state law, which means the streetcar project is not being saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget.
"Neither Capital nor TIF funds can be used to help with the operating budget deficit that the City is facing," the memo reads. "They are separate sources of funds and by State Law, cannot be used for operating expenses like police and fire personnel."
At least $5.4 million would be temporarily pulled from the $10.6 million planned for the Music Hall renovation project, but the redirected Music Hall funds would eventually come back in capital budgets for fiscal years 2017, 2018 and 2019. City spokesperson Meg Olberding explained in an email that moving funds around would not hinder the Music Hall project.
"The use of $5.4 million of Funds set aside for Music Hall this year is money currently sitting in a fund for this year that will not be needed this year," she wrote. "Funds for Music Hall will not be needed until 2016, the agreed upon deadline for fundraising for the Music Hall renovation with the Music Hall Revitalization Company. Therefore, the City is still keeping its commitment to Music Hall, while also advancing the streetcar project."
About $6.5 million would be taken from infrastructure projects surrounding the Horseshoe Casino, including funds that would otherwise go to lighting the trees along Reading Road and a study that would look at adding a turn lane from Reading Road. The memo acknowledges the trade-off, but it also justifies the redirected spending: "However, since the Streetcar passes within two blocks of the Casino Site, it is a project within the Casino Area that both benefits the TIF District and the Casino."
The memo also recommends pulling $400,000 that was originally set for traffic signal replacement, which would be used for the traffic replacement component of the streetcar project.
Another $500,000 would come from funding currently set for water main relocation and replacement. The memo says the water main funding is simply Water Works' share: "Of the $21.7 million cost overrun for the Streetcar project, approximately $1 million was for water main relocation (and) replacement work. Water Works' share of this is $0.5 million."
The remaining $4.6 million would come from the city issuing general capital debt, which would be paid back through a small portion of the income tax that is established in the City Charter for permanent improvement purposes. The memo acknowledges this would cost other economic development and housing projects $340,000 a year over the next 20 years, but it claims the funding is justified because the streetcar project is a permanent improvement project.
The memo outlines other vague capital funding options that could be used to balance the budget, but Dohoney does not explicitly recommend them.
The memo also leaves open the possibility of future sources of funding, including $15 million that could be opened up if the city prevails in court against Duke Energy over who has to pay for moving utility lines to accommodate streetcar tracks — but this was money that was originally supposed to go to neighborhood development projects — and the sale of remaining city-owned land at the Blue Ash Airport.
City Council still has to consider and approve the memo's recommendations for them to become law.
Phil arranged the interview with the aging physician, for whom the Heimlich Maneuver is named. However, producer Pat Walters had to promise to exclude the voice of Phil’s estranged younger brother, Peter, from any subsequent broadcast.
Peter is a scathing critic of their father’s therapeutic claims for the Maneuver and more recent medical experiments.
Phil told Curmudgeon that he feared Walters would ask their father about the troubled family relationships. “Like any son, I’m somewhat protective of him,” Phil said. “He’s 93 . . . We don’t let just anybody come up and interview him.”
Peter told Curmudgeon that he was unaware of this bargain when he cooperated with Walters for the Radiolab story.
I have no trouble with Phil’s setting conditions for arranging the interview. My beef is with Radiolab. It could have refused. Similarly, I’m not going into Heimlich’s therapeutic theories and claims; I’m writing about Radiolab’s handling of the story.
I’m troubled by Radiolab’s willingness to silence an important critic and a source of its information in exchange for access to the elder Heimlich. Further, if Walters failed to tell Peter about his deal with Phil, that’s unethical, especially since Walters told Peter, “I want you to speak for yourself.”
Peter elaborated in a recent email to Curmudgeon: “I was first approached by Radiolab last August when they asked to interview me for broadcast. I wasn't informed that, five months earlier, they'd cut the censorship deal, so they obtained my interview under false pretenses. Further, in the following months, Radiolab producer Pat Walters took up hours of my time, encouraging me to provide him with information and documents. I only learned about the censorship deal a couple weeks ago, when the program disclosed it on their website. If I'd known that Radiolab was this underhanded, I wouldn't have given them a minute of my time -- and I'd encourage other sources to keep their distance.”
Over the years, Peter has dealt with lots of reporters. I asked, "Have you encountered this kind of deal before?"
Peter responded, “I've never heard of a deal like this . . . and how many other Radiolab stories have included deals like this?”
Radiolab’s website includes a link to the 25-minute program, including the interview with Heimlich. Radiolab’s website text says:
“In the 1970s, choking became national news: thousands were choking to death, leading to more accidental deaths than guns. Nobody knew what to do. Until a man named Henry Heimlich came along with a big idea. Since then, thousands and thousands — maybe even millions — have been rescued by the Heimlich maneuver. Yet the story of the man who invented it may not have such a happy ending.
“Producer Pat Walters wouldn't be here without the Heimlich maneuver — it saved his life when he was just 11 years old. And one day he started wondering - who was Heimlich, anyway? And how did he come up with his choking remedy? Pat had always kinda assumed Heimlich died in the mid-1800s. Not so. The man is very much alive: he's 93 years old, and calls Cincinnati, Ohio, home.”
Given the conflict of interest, letting choking survivor Walters do the interview was a mistake. Here are the guts of Radiolab’s online Producer’s Note:
“We made some minor changes to this story that do not alter the substance.
“(W)e removed the audio of Peter Heimlich, Henry Heimlich’s son, from the version now on the site. When we approached Henry’s other son Phil to arrange an interview with his father, one of Phil’s conditions was that we not air audio of Peter. We thought he’d waived that provision in a subsequent conversation but he contends he did not. So we are honoring the original request.”
The version available online begins with a light-hearted exchange among Radiolab personalities in their WNYC studio of New York Public Radio. The conversation between Walters and Henry Heimlich at Heimlich’s home maintains that chummy tone.
Then Walters shifts to controversies over Heimlich’s Maneuver to resuscitate drowning victims and other medical theories. Walters also interviews experts who disagree with Heimlich. When Walters lets Heimlich speak for himself, the physician accuses critics of jealousy and self-interest.
Walters lets the American Red Cross explain why it (quietly) abandoned decades of support for the Maneuver as the first response to choking and returned common backslaps.
“Nonsense,” Heimlich responded.
The Red Cross also abandoned Heimlich’s name for its maneuver. Now, it’s “abdominal thrusts.” Heimlich says abdominal thrusts are not the same as his Maneuver and he’s offended by the whole affair.
Peter — who provided emails from which I worked — continues to press Radiolab on its decision to erase his voice from its broadcast. Its latest response refers him to the program’s original online statements.
• Stunning, avoidable reporting mistakes followed the Boston Marathon bombing. They began when the New York Post said a Saudi man was hospitalized, under guard and might be a bomber. Days later, as the hunt ended, CNN said the captured younger suspect, Dzhokhar Tsarnaev, was driven away by police. CNN said Tsarnaev was not wounded or his wounds were so slight that no ambulance was required. Wrong. He left in an ambulance; his wounds were so serious that it was unclear when he would speak to interrogators or appear in court.
• Was there a gun battle after a Watertown resident saw the wounded man in his boat and called police? Some media say no gun was found or the 19-year-old didn’t shoot.
• Speaking of mistakes, Businessinsider.com described another blunder when reporters didn’t name sources or verify leaks. “According to a source at CNN, the network was the first to report that a suspect had been identified. Anchor John King sent in a report around 1 p.m. that a source ‘briefed’ on the investigation had told King a positive identification had been made. CNN Washington bureau chief Sam Feist approved that report, according to the source.
“According to the source, who was reviewing internal email logs, Fran Townsend was the first at the network to say that an arrest had been made. ‘As I think everyone knows, we really fucked up. No way around it,’ the source said.
“The source said that the network's email network went quiet for a 15-minute period shortly after the retraction — ‘so people [were] either being more cautious or getting yelled at.’
“Townsend's report came around the same time as other outlets, including the Associated Press and the Boston Globe, also reported an arrest, so it is not clear whether CNN was the first to make the mistake . . . Wednesday's false arrest reports also drew a scathing rebuke from the FBI, which urged the press ‘to exercise caution and attempt to verify information through appropriate official channels before reporting’."
This is shabby journalism. CNN went with a report attributed to someone who had been briefed by someone who knew something. No names. No identifiable links to investigation. Simply assertions. We could have waited until CNN verified or debunked the report but editors fear that hesitation can drive viewers to other, less scrupulous sources. At least Businessinsider.com appeared accurate in its use of its unnamed CNN sources.
• Social media — better called anti-social media in the aftermath of the marathon bombings - spread so much misinformation and falsely accused so many young men that the FBI had to release images of its suspects: the Tsarnaev brothers. It was the only way to protect wrongly accused men from vigilante justice, even though the suspects might be following the chase on their cellphones.
• London’s Daily Mail reported some inadvertent humor among the errors:
Boston’s Fox 4 scrolled across the bottom of the screen that the suspect sought in Watertown was “19-year-old Zooey Deschanel.” Alerted to her new and unwanted celebrity, Uproxx.com said, the 33-year-old star of the Fox sitcom, New Girl, tweeted, “Whoa! Epic closed captioning FAIL!”
Gawker.com said NBC anchor Brian Williams cut to New England Cable News for an update on the Watertown chase and listeners heard an unnamed reporter, “Oh, you’re not listening? Well, I don’t know shit.”
• It’s no surprise that Rupert Murdoch’s New York Post was unmatched for sheer bloodymindedness. Here’s the HuffingtonPost.com summary:
The Post said 12 people had died, when only three had; it said a Saudi man was a “suspect” in “custody” when he wasn't; and it splashed pictures of two young “BAG MEN” on its front page even though it did not know whether they were suspects. They were innocent. One was 17 years old; he told the Associated Press that he was “scared to go outside.” And that doesn’t include Post doctoring the photo of an injured spectator to hide her leg wound.
Rather than apologize, Murdoch blamed others outside the Post.
• Murdoch’s Post wasn’t alone in falsely accusing men of being bombers. The LA Times said “Reddit is apologizing for its role in fueling the social media witch hunts for the Boston bombings suspects. The social news website . . . became a place for amateur sleuths to gather and share their conspiracy theories and other ideas on who may have committed the crimes. The online witch hunts ended up dragging in several innocent people, including Sunil Tripathi, a 22-year-old Brown University student who went missing last month (and has since been found dead).
“After viewing the FBI's photos of the suspects Thursday, Redditors became convinced that Tripathi was one of the bombers, with countless posts gleefully pointing out the physical similarities between Tripathi and Suspect No. 2, who ended up being 19-year-old Dzhokhar Tsarnaev. The growing wave of suspicion surrounding Tripathi led his family to release a statement the next day saying they knew ‘unequivocally’ that their son was not involved.
“On Monday, Reddit General Manager Erik Martin posted a lengthy apology on the site, saying the crisis ‘showed the best and worst of Reddit's potential.’ He said the company, as well as several Reddit users and moderators, had apologized privately to Tripathi's family and wanted ‘to take this opportunity to apologize publicly for the pain they have had to endure. We all need to look at what happened and make sure that in the future we do everything we can to help and not hinder crisis situations,’ the post said. ‘Some of the activity on Reddit fueled online witch hunts and dangerous speculation which spiraled into very negative consequences for innocent parties. The Reddit staff and the millions of people on Reddit around the world deeply regret that this happened’."
Reddit said it does not allow personal information on the site in order to protect innocent people from being incorrectly identified and "disrupting or ruining their lives," according to the LA Times. "We hoped that the crowdsourced search for new information would not spark exactly this type of witch hunt. We were wrong," Reddit’s Martin continued. "The search for the bombers bore less resemblance to the types of vindictive Internet witch hunts our no-personal-information rule was originally written for, but the outcome was no different."
The LA Times added valuable context to what followed the bombings: they “were the first major terrorist attack on American soil in the age of Facebook, Twitter and Reddit. But the watershed moment for social media quickly spiraled out of control as legions of Web sleuths cast suspicion on the innocent, shared bad tips and heightened the sense of panic and paranoia.” The LA Times added that Boston police asked “overeager” Twitter users to limit what they posted because that overly detailed tweets could compromise officers' position and safety.
• Detroit Free Press editors published a detailed online illustration of how to make a pressure cooker bomb, like that reportedly used by the Boston bombers. When their brain fart passed, they took down the instructions and images. Of course, now, anyone can turn to Jimromenesko.com screen shot of the Detroit Free Press illustration . . .
• Newcomers to the Tri-State puzzle over the lifelong identification with high/prep school. When a Cincinnatian was involved in the emergency surgical response to the Boston Marathon bombings, the Enquirer noted he went to St. X. Only later did Our Sole Surviving Daily tell us he was graduated from UC’s medical school before going off to Boston for his surgical residency.
Two Ohio House Republicans are preparing to introduce so-called "right to work" (RTW) legislation, a deceptively named type of law that would ban collective bargaining agreements between unions and employers that require union membership to be hired at a job. Since states began adopting the anti-union laws, union membership has dropped dramatically. Democrats, including gubernatorial candidate Ed FitzGerald, were quick to condemn the bills, invoking 2011's voter rejection of S.B. 5, a bill backed by Gov. John Kasich and Ohio Republicans that would have limited collective bargaining rights for public employees and hindered public sector unions' political power.
The city released a memo yesterday outlining how the streetcar project's $17.4 million budget gap will be funded. The memo emphasizes that the capital funds being used for the streetcar project can't be used to balance the city's $35 million operating budget deficit because of state law, so the streetcar project is not being saved at the expense of cops, firefighters and other public employees being laid off to balance the operating budget. CityBeat will have a more thorough analysis of the memo shortly after this article is published.
The state auditor released an audit yesterday that shows the Ohio Department of Transportation could save $7.4 million in taxpayer money by mowing the lawn less often. "We need to cut back by mowing less," State Auditor Dave Yost said in a statement. "Sometimes, it’s the simplest solutions that have the greatest impact."
A Policy Matters Ohio survey confirmed Ohio schools are making cuts as a result of Kasich's education funding cuts. In total, 70 percent of schools slashed budgets for the 2012-2013 school year.
The mayor and city manager held a roundtable with the press yesterday explaining the merits of the city's plan to lease its parking assets to the Port Authority. The city officials made the same arguments heard before about how it would help balance the budget and bring economic development to the city, which CityBeat covered in further detail here.
If estimates are correct, this year's Flying Pig Marathon will bring $9.5 million into Greater Cincinnati's economy.
In light of grim drug addiction and overdose statistics recently released, Ohio Sen. Rob Portman says it's time to call the "war on drugs" something else. The most recent data found one Ohioan died of a drug overdose every five hours on average in 2011.
Next Tuesday is primary election day in Ohio, but there isn't much to vote on in southwest Ohio.
Steve Smith, who admitted to raping and killing a six-month-old in Mansfield, Ohio, will be executed by the state today, but his relatives insist he didn't do it.
Gladys, the unfortunately named gorilla at the Cincinnati Zoo, recently got a look at her new home.
Antimatter is the opposite of matter, but it's unclear whether it falls up or down.
A survey released April 29 found Ohio schools are making cutbacks in response to budget cuts previously approved by Republican Gov. John Kasich and the Republican-controlled Ohio legislature.
The 15-question survey from left-leaning Policy Matters Ohio, which received responses from 42 percent of the state’s K-12 school districts in 82 counties, found 70 percent of Ohio schools made cuts for the ongoing 2012-2013 school year, 82 percent cut positions, 84 percent reduced or froze compensation and 62 percent expect budget shortfalls next year if the state doesn’t increase funding.
“Long-term investment in education is the best way to build opportunity for Ohioans,” said Piet van Lier, education researcher at Policy Matters Ohio, in a statement. “Instead, Ohio’s cuts to school funding have forced schools to get rid of staff, reduce pay, cut materials and increase class sizes.”
The survey found the cuts have led to a reduction in
education quality, with 43 percent of Ohio schools reporting larger
class sizes, 23 percent reporting less course options, 57 percent
cutting materials, supplies, textbooks or equipment for the 2012-2013
school year and 22 percent reducing extracurricular activities or introducing pay-to-play for them.
Policy Matters and Innovation Ohio, another left-leaning think tank, previously found Kasich’s 2012-2013 budget slashed education funding by $1.8 billion.In his latest budget proposal, Kasich proposed increasing education funding, although in a way that disproportionately benefited wealthier school districts (“Smoke and Mirrors,” issue of Feb. 20). Since then, the Ohio House passed its own budget bill that rejects Kasich’s proposal and increases overall school funding in a more equitable way.
But Policy Matters says the increases aren’t enough. Its analysis found school funding is failing to keep up with inflation, with 2015 funding projected to fall $1.2 billion short of what funding would have looked like if it had kept up with 2006’s inflation-adjusted levels.
“Neither Gov. Kasich nor the Ohio House have adequately addressed the needs of Ohio’s schools in their budget proposals,” van Lier said in a statement. “The Senate must now lead the way in crafting a stronger, more predictable funding system for the next two years and beyond.”
Cincinnati Public Schools said state funding cuts were one reason the school district needed Cincinnati voters to approve a school levy in 2012 (“Battered But Not Broken,” issue of Oct. 3). The levy, known as Issue 42, passed in the November election.
Innovation Ohio previously found Kasich’s budget cuts have led to levies all around the state, effectively increasing local taxes by $1.3 billion since May 2011.
“By cutting taxes primarily for the wealthy at the state level, Gov. Kasich and the Republican-controlled legislature have merely pushed the need for tax increases down to the local level,” said Janetta King, president of Innovation Ohio, in a statement.
Kasich spokesperson Rob Nichols previously told CityBeat that the cuts were necessary to balance the budget, as required by state law. “The reality is we walked into an $8 billion budget deficit,” he said. “We had to fix that.”
City Manager Milton Dohoney Jr. defended the streetcar project at a special four-hour session of City Council yesterday, but the city manager did not reveal any specifics over how the project’s $17.4 million budget gap could be closed. Dohoney revealed the price of halting the project would be $72 million: the project has already cost the city $19.7 million, the city would have to spend another $14.2 million in close-out costs and another $38.1 million in federal grants would have to be returned to the federal government. Most of Dohoney’s presentation focused on the streetcar’s economic benefits, but opponents say the budget gap proves the streetcar project is unsustainable and its costs are too high.
The Cincinnati Enquirer identified the 17-year-old honors student at LaSalle High School who tried to commit suicide
in front of a classroom of 22 other students yesterday, even though parents asked press to provide privacy. The student remains
alive and in critical condition this morning. No other students were physically hurt, and classes are
resuming as normal. (Update: The student’s name was removed from this post upon the family’s request.)
The city is moving to sell Tower Place Mall for $1 to Brook Lane Holdings, an affiliate of JDL Warm Construction, so the construction company can pour $5 million into the defunct mall and convert it into a garage with street-level retail space. Financing the project at Pogue’s Garage, which is across the street from Tower Place Mall, is still being worked out now that the parking plan has been delayed by court battles and a referendum effort.
Cincinnati’s police and firefighter unions are filing a lawsuit over the city’s health care dependent audit. The city is asking employees to verify whether spouses and children are legitimately eligible for health care benefits by turning over documents such as marriage licenses, birth certificates and tax returns. The unions’ attorney told WVXU the unions are willing to provide the necessary documents, but he said they’re concerned the process is too intrusive and difficult.
Two firms are getting tax credits for creating jobs in the Greater Cincinnati area: 5Me, which creates manufacturing software, and Festo Americas, which specializes in factory and process automation. Altogether, the credits could create 312 jobs in the region.
A Democratic state senator hinted yesterday at letting voters decide whether Internet sweepstakes cafes should be allowed in Ohio. State officials, particularly Attorney General Mike DeWine, claim Internet cafes are hubs for criminal activity. The Ohio House already passed a measure that would effectively ban the cafes, but some are cautious of the ban as the Ohio Senate prepares to vote.
An intelligent headlight makes raindrops disappear.
Some people may prefer death to being saved by this terrifying robot snake.
Convening in packed City Council chambers today, Cincinnati officials discussed the costs and benefits of the streetcar project in light of a $17.4 million budget gap revealed by the city administration on April 16. City Manager Milton Dohoney Jr. said the project could and should be saved, but a minority of public speakers and some City Council members did not seem convinced.
To balance the budget
gap, Dohoney said the city would have to pull funds
from multiple sources. He said he will offer specifics in writing
tomorrow, which invoked verbal disappointment from officials who were expecting details at the meeting.
“I'm disappointed in this presentation,” said Councilman Chris Smitherman. “We're here today to hear how we're going to pay for it.”
The meeting, which was
called by Democratic Vice Mayor Roxanne Qualls shortly
after the budget shortfall was announced, covered a presentation from Dohoney, comments from public speakers and City Council
questions to Dohoney. Despite expectations prior to the meeting, no specifics were given for closing the budget gap even after extensive questioning.
Dohoney did reveal the price tag for halting the streetcar project: $72 million. According to Dohoney, the project has already cost the city $19.7 million, and the city would have to spend another $14.2 million in close-out costs. Another $38.1 million in federal grants would have to be returned to the federal government.
Dohoney added that terminating the project would also reduce faith in Cincinnati’s competitiveness and ability to take on big development projects.
The budget gap was originally $22.7 million, but the city administration identified $5.3 million in potential cuts. Dohoney said further cuts would “alter the scope” of the project and push it into a “danger zone.”
The budget gap is a result of construction bids coming in $26 million to $43 million over budget. The lowest bid from Messer Construction, which came in $26 million over budget, has already expired, but Dohoney said the company is still willing to work on the streetcar project.
The city could rework the request for proposal for construction bids, but Dohoney said city officials and third-party experts agreed it’s unlikely that would effectively lower costs.
Throughout the meeting, streetcar opponents argued that the cost of the project is too high and the budget shortfall is proof the program is unsustainable.
Most of Dohoney’s presentation focused on the streetcar’s purpose. He said the streetcar would help drive
economic and population growth, which would then bring in more tax revenue to
help balance the city’s operating budget. That would represent a turnaround for Cincinnati, which has been steadily losing population since the 1950s during a period that has
coincided with disinvestment, urban flight and the dissolution of
the city’s old streetcar system.
Throughout his presentation, Dohoney cited multiple examples and studies that found streetcars can help grow local economies. He said the city has not pursued the streetcar because “it’s a cool thing to do,” but because it follows the expert advice given to city officials about what’s necessary to compete with other cities.
Dohoney’s argument was previously supported by HDR, which the city hired to do an economic impact study in 2007. HDR found major benefits to connecting Over-the-Rhine and the Central Business District, including travel cost savings, increased mobility for low-income individuals and economic development that would spur rising property values. The HDR study was entirely supported and echoed by a follow-up assessment from the University of Cincinnati.
Some critics have argued that the study is outdated because it was conducted before Over-the-Rhine’s recent revitalization, but Dohoney said there are still several hundred vacant buildings in the area, particularly north of Liberty Street.
The project has faced continued opposition from Democratic mayoral candidate John Cranley, Republicans and the conservative Coalition Opposed to Additional Spending and Taxes (COAST). They say the project is too expensive and they’re skeptical of the economic growth being promised by city officials.
Opponents of the
streetcar have so far put the project on the ballot twice, but Cincinnati voters rejected the referendum efforts. Still, the streetcar may be on the ballot
again this year through the 2013 mayoral race between Democrats Cranley and Qualls (“Back
on the Ballot,”
issue of Jan. 23). Cranley opposes the streetcar, while Qualls supports it.
The streetcar project was originally supposed to receive $52 million in federal funds through the state government, but Republican Gov. John Kasich pulled the funds after he unseated Democratic Gov. Ted Strickland.
Beyond the financial cost, Dohoney pointed out Kasich’s decision raised concerns about the project’s feasibility among previous supporters, leading to more hurdles and delays. He said Duke Energy in particular began stalling efforts to move utility lines to accommodate for streetcar tracks because the company grew weary of the project’s prospects.
Duke’s reluctance led to a conflict with the city over who has to pay to move utility lines — a conflict Duke and the city agreed to resolve in court. While the court battles play out, the city set aside $15 million from the Blue Ash Airport deal to move utility lines, but city officials say they will get that money back if the courts side with the city.
The city originally expected $31 million in private funding for the streetcar project, but those expectations were dampened as a result of the Great Recession, which forced local companies to scale back private donations.
John Deatrick, the current project manager for The Banks, previously told CityBeat that it’s normal for large projects to deal with multiple hurdles. Deatrick, who the city wants to hire to manage the streetcar project, said, “Any time you try to build something — even out in the middle of a corn field — you’re going to have unexpected, unanticipated issues. ... These things happen, and that’s what project management is all about.”
Dohoney said the current phase of the streetcar project is only a starter line between Over-the-Rhine and Cincinnati’s business district, but city officials are already planning for a second line that would run up to the University of Cincinnati and hospitals in uptown. If Dohoney’s vision for the project were completed, streetcars would run on multiple lines all around the city, ranging from the Cincinnati Zoo to The Banks.
The streetcar budget debate comes amid another debate regarding a $35 million deficit in the city’s operating budget. Some streetcar opponents have tried to link the two issues, but the streetcar is funded through the capital budget, which cannot be used to balance the operating budget because of legal and traditional constraints.
City Hall will be hosting a meeting on the streetcar project at 6 p.m. today to figure out what the project’s options are now that it has a $17.4 million budget gap. The meeting was called by Vice Mayor Roxanne Qualls after City Manager Milton Dohoney Jr. explained in a memo that the project has a budget gap because construction bids came in $26 million to $43 million over budget.
State Sen. Bill Seitz, a Cincinnati Republican who chairs the the Senate Public Utilities Committee, says he wants to “modify,” not repeal, Ohio’s Clean Energy Law to have more clear-cut compliance standards. Environmentalists say they’re concerned Seitz will use the review as a front to water the law down, especially since electricity giant FirstEnergy is pushing against the law’s energy efficiency standards. CityBeat wrote more about the conflict between environmentalists and FirstEnergy here.
It’s one issue Ohio’s leading liberal and conservative think tanks apparently agree on: Ohio is not the “economic miracle” often touted by Gov. John Kasich. In the past year, job numbers for the state have been particularly weak, with public sector losses nearly making up for very weak private sector gains. The right-leaning Buckeye Institute for Public Policy Solutions says a complicated tax system is largely to blame for the stagnant job growth, while the left-leaning Policy Matters Ohio is mostly focusing on governments’ budget austerity.
A student allegedly shot himself in front of classmates at LaSalle High School today. Police say he is currently at a hospital, and there are currently no reports of anyone else being shot. As of 10:30 a.m., the situation was still developing.
After misleading media reports sent the public into a furor, Mayor Mark Mallory agreed to rescind salary raises
that were part of his office’s deficit-reducing budget plan. The plan
gave the mayor’s top aides raises to make up for an increased workload following staff reductions. Even with the raises, the plan
reduced the deficit by $33,000 during the mayor’s remaining time in
office — a fact originally omitted by The Cincinnati Enquirer.
Music Hall’s facelift is not happening just yet, even though approvals from City Council and the Music Hall Revitalization Company have already paved the way for Cincinnati Center City Development Corporation (3CDC) to begin renovations. As project manager, 3CDC will take four to six months to develop a budget, review designs and go over the legal and financial work necessary to start the project.Hamilton County is currently tracking to be $1.5 million over budget this year — a budget hole the Board of Commissioners hopes to plug by using the rainy day fund.
One section of the Ohio House budget bill would allow charter schools to enroll out-of-state students and charge them tuition. The policy could involve online schools, which were previously found to have poor results in a CityBeat report. The relaxed rules potentially add more controversy to a budget plan that’s already mired in criticism for defunding Planned Parenthood and forgoing the Medicaid expansion, which CityBeat covered in further detail here.Ohio gas prices are starting 9 cents down this week.
Bad news: The largest HIV vaccine study was shut down after patients contracted the AIDS virus more often than those who didn’t take it.
Mayor Mark Mallory announced in a memo today that he will not be following through with previously planned salary raises for his staff, citing poor morale in light of recent — but misleading — press coverage. But the rest of his budget plan will remain.
Mallory explained his reasoning in a statement: "I am rescinding the raises that I gave my staff and returning all salaries to the previous levels. Although the changes that I made in my office structure resulted in a saving of $66,000 to be used in next year’s budget, I realize that the perception has had a negative effect on the morale of other City Employees.
"I am the biggest promoter of the public servants who choose to work for the city, both on my staff and in all City Departments. I don’t want to see anyone lose their job. I have been successfully fighting to prevent layoffs throughout the recession. I supported the parking plan because it will ensure that no city employees lose their job. I plan to continue to fight for City Employees and to do everything that I can to minimize the reductions to our City Workforce. Every job that we save is a win for our community."
The announcement comes after a misleading report from The Cincinnati Enquirer sparked public outrage. The Enquirer's original report neglected to say that the overall budget plan would save the city $66,000 for the year and $33,000 during the mayor's remaining time in office. CityBeat covered Mallory's budget changes and The Enquirer's misleading report here.
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).