Despite promising to
move on after he failed to cancel the $132.8 million streetcar
project, Mayor John Cranley continues criticizing the
project in interviews and social media.
Most recently, Cranley appeared on Local 12’s Newsmakers program and threatened
to eventually replace the Southwest Ohio Regional Transit Authority (SORTA)
board, which manages local Metro bus services, in response to board members’
defunct offer to take up streetcar operating costs. (City Council sets SORTA
appointments, not the mayor.)
“The fact is they were
willing to cannibalize bus service,” Cranley said,
contrary to SORTA’s insistence that their offer would not have affected bus
services. “I just felt that was a huge violation of what SORTA is supposed to
be about and what Metro is supposed to be about and what public transportation
is supposed to be about.”
Throughout the 24-minute
interview, Cranley referenced the
streetcar project when discussing the city’s parking meters and other subjects
— a continuation of repetitive anti-streetcar tactics Cranley
deployed on the campaign trail and in mayoral debates against former Vice Mayor
“I think the project is
wasteful and not worth the investment,” Cranley said
when asked about the project. “I think we would have been better off making the
hard decision to cut bait.”
Still, Cranley later added, “Obviously, since the supermajority of
council went against my wishes, I have to respect the process. So I’m not going
to try to sabotage the streetcar.”
The interview also
follows comments on social media. After the former head of the Cincinnati Art
Museum criticized the streetcar, Cranley tweeted on Dec. 27, “(N)ow some Orwellian commentators
will say art director not ‘progressive.’”
The continued anti-streetcar rhetoric comes despite promises to move on that Cranley made after Councilman Kevin Flynn announced he would provide the final vote needed to veto-proof City Council’s decision to continue the streetcar project.
“As I tell my son when he doesn’t get his way, it’s time to move on,” Cranley
said on Dec. 19.
heated rhetoric is nothing new in his campaign against the streetcar project.
After the Nov. 5
election, Cranley told The Cincinnati Enquirer
the streetcar debate “is over.” Cranley’s comments
marked a high level of confidence after voters elected a mayor and council
supermajority that seemingly opposed the streetcar project, but his statement
to The Enquirer proved to be wrong after Council Members Flynn, David
Mann and P.G. Sittenfeld decided to continue the
Cranley also called city officials “incompetent” after
they projected that canceling the streetcar project would cost nearly as much as
completing it. Once again, Cranley’s comments proved
to be wrong — an independent audit found city officials were largely correct in
their assessment — but still showed the level of confident, heated rhetoric
that follows the mayor’s campaign against the streetcar project.
At the very least, Cranley’s rhetoric proves that while the policy debate over the streetcar is over for now, the public discussion is not. The question is whether the messaging will work as the project moves forward and the streetcar becomes a reality of Cincinnati.
If it were not for Republican-approved cuts to state aid for local governments, Cincinnati might not face an operating budget gap in 2015. The city has lost roughly $26 million in annual state aid since 2010, according to city officials, while the budget gap for 2015 is estimated at nearly $21 million. The reduction in state aid helps explain why Cincinnati continues dealing with budget gaps after years of council-approved spending cuts and tax hikes. Still, some council members argue Democratic council members should stop blaming Republican Gov. John Kasich and the Republican-controlled Ohio legislature for the city's problems and face the reality of reduced revenues.
Heads of the Cincinnati Police Department yesterday explained the local increase in homicides to City Council's Law and Public Safety Committee. Police officials said gang-related activity, particularly activity related to the Mexican drug cartel that controls the heroin trade, is to blame for the spike in crime in Over-the-Rhine, downtown and the west side of Cincinnati. In particular, it appears disruptions in criminal organizations and their territories led to turf wars and other violent acts. Police also cautioned, "Most of the homicides are personal crimes between two known victims. Very rarely are they random in nature."
The Democratic primary election for governor heated up yesterday after Hamilton County Commissioner Todd Portune called Cuyahoga County Executive Ed FitzGerald's commitment to blacks "appalling" in an email obtained by The Cincinnati Enquirer. Prominent Democrats at the state and local level responded to the criticisms as more evidence Portune shouldn't continue to run and threaten Democrats' chances of a clean gubernatorial campaign. Portune announced his intention to run last week, despite calls from top Democrats to stay out of the race.
The weather also slowed down streetcar construction.
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Cincinnati might not be facing an operating budget gap in 2015 if it were not for Republican-approved cuts to state aid for local governments.
Following cuts approved by Republican Gov. John Kasich and the Republican-controlled Ohio legislature, Cincinnati officials estimate the city is getting $26 million less in state funding in 2015 than the city did in 2010.
At the same time, the city is facing a $21 million operating budget gap in 2015.
The reduction in state aid helps explain why the local budget gap remains after several years of council-approved spending cuts and tax hikes.
“It sounds like the city is doing a good job,” said Democratic Councilman Chris Seelbach at Monday’s Budget and Finance Committee meeting. “Where we’re seeing these obstacles is these outside sources.”
Independent Councilman Christopher Smitherman countered that the cuts to the local government fund and the elimination of the estate tax, both of which drove the reduction in state aid, have been known since 2011 and 2012.
“Public policy makers have, in my opinion, continued to make decisions as if those public policy decisions from the governor’s chair or from the state … weren’t in play,” Smitherman said. “This is not new information.”
Republican Councilman Charlie Winburn agreed. He said it’s time to stop blaming the governor for the city’s problems and face the reality of reduced revenues.
Still, Winburn acknowledged he would be willing to meet with state officials to bring more revenue back to Cincinnati.
“Maybe Republicans will be willing to meet with a Republican like me and see if we can bring some money back to Cincinnati,” Winburn said.
Republicans at the state level passed cuts to the local government fund as a way to balance the 2012-2013 budget, which faced a projected gap of nearly $8 billion in 2011. They then approved the elimination of the estate tax — often labeled the “death tax” by opponents — in 2012.
But with Ohio’s economy slowly recovering from the Great Recession, the state budget looks to be in much better shape. The 2012-2013 budget ended with a $2 billion surplus because of higher-than-expected revenues.
Ohio Democrats point to the surplus as evidence the Republican-controlled state government could undo the $1 billion in cuts to local government funding. They argue the cuts have hurt local governments and forced cities to slash basic services, including public safety.
City Council yesterday decided Cincinnati will get a streetcar after all. After securing the six votes necessary to overturn a mayoral veto, Mayor John Cranley conceded that the $132.8 million streetcar project will restart following a two-week pause. It was a surprising journey for the project, which largely seemed like the underdog ever since the new mayor and council took office earlier in the month. In the end, the project gained its sixth vote from Councilman Kevin Flynn after the philanthropic Haile Foundation signed onto contributing $900,000 a year for 10 years to help underwrite part of the streetcar’s annual operating costs.
Advocacy group FreedomOhio yesterday announced it has enough signatures to place same-sex marriage on Ohio’s 2014 ballot. The group declined to tell Cleveland.com exactly how many signatures it had collected so far, but the organization says it’s aiming to collect 1 million before the July filing deadline. At the same time, FreedomOhio released a poll that found Ohioans are still split on the issue of same-sex marriage. But the poll also found that a good majority of Ohioans support FreedomOhio’s gay marriage legalization amendment, which provides exemptions for religious groups.
Gov. John Kasich yesterday signed a bipartisan Medicaid overhaul bill that seeks to control costs by establishing an oversight commission and a target for spending growth. The legislation also sets a focus on health care outcomes to ensure quality standards in the government-run program. Both parties pursued the bill to tamp down on health care costs that have been taking up more of the state’s budget in the past few years.
A new report from the state attorney general’s office found nearly half the businesses who received state aid in 2012 did not fulfill their end of the deal in terms of producing new jobs and other promises.
Ohio’s unemployment rate dropped to 7.4 percent in November, down from 7.5 percent the month before. But the number was well above the 6.8 percent rate from November 2012, indicating a decline in job growth in the past year.
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Miami University is the second most efficient university in the nation in terms of delivering a good education for relatively low cost, according to a study from U.S. News and World Report.
Cincinnati’s housing market marked 29 consecutive months of increased sales last month with a 5-percent rise. The measure indicates the local economy is recovering after the Great Recession crippled housing markets around the nation.
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After today, Morning News and Stuff will take a vacation until Dec. 26. Happy holidays!
But hours before City Council expects to make a decision, it's unclear whether the legislative body has the six votes necessary to overcome Mayor John Cranley's veto and restart construction for the streetcar project.
The deciding vote will most likely come from Charterite Kevin Flynn, who says he's working behind the scenes with undisclosed private entities to get the streetcar's operating costs off the city's books. If that deal pulls through, Flynn would provide the sixth vote to keep going.
The project already has five votes in favor: Democrats David Mann, Chris Seelbach, Yvette Simpson, P.G. Sittenfeld and Wendell Young.
Three council members have long opposed the project: Republicans Amy Murray and Charlie Winburn and Independent Christopher Smitherman.
It's a big financial decision for the city.
If the city goes forward with the project, it would cost $53.9-$68.9 million, depending on whether the city convinces courts Duke Energy should pay for $15 million in utility costs, according to an audit from consulting firm KPMG.
If the city cancels, it will incur $16.3-$46.1 million in additional close-out costs, the same audit found. But it will get nothing for those tens of millions spent and could face costly litigation in the future.
Council expects to make a final decision at Thursday's 2 p.m. meeting. Follow @germanrlopez on Twitter for live updates.
The city would save just $7.8-$52.6 million in capital costs if it takes on tens of millions in additional expenditures to cancel the $132.8 million streetcar project, an independent audit revealed yesterday. The news appeared to throw another potential lifeline for the streetcar, which can now claim a five-member majority of supporters on City Council. But with Mayor John Cranley's veto threat, council will likely need six votes to continue the project. Council expects to make a decision today, prior to a Friday deadline for federal grants funding roughly one-third of the project.
Some city leaders are trying to ensure all of Cincinnati's 3- and 4-year-olds attend quality preschool programs through Cincinnati’s Preschool Promise. Citing swaths of studies and data, Greg Landsman, executive director of the education-focused Strive Partnership, says the policy could reach all corners of the city and hugely benefit the city’s economy in the long term. But supporters of the proposal first must find a means to fund it, which Landsman says will likely require some sort of voter-approved tax hike in 2014. Before the Preschool Promise campaign gets there, Landsman vows supporters will heavily engage the community to gather feedback and determine the scope of the proposal.
City Council yesterday unanimously approved $20 million in capital funding for the $106 million uptown interchange project, which will allow the project to move forward with the state and Ohio-Kentucky-Indiana Regional Council of Governments filling the rest of the funding gap. The capital allocation means property taxes will remain higher than they would without the project, as revealed at Monday's Budget and Finance Committee. Mayor Cranley and council members argue the cost is worth it because, as a study from the University of Cincinnati's Economics Center previously found, the project will generate thousands of jobs and other economic gains in the uptown area.
Commentary: "Anti-Streetcar Logic Should Stop Uptown Interchange Project."
The Democratic majority on City Council yesterday dismissed legislation that would have repealed controversial bidding requirements for Metropolitan Sewer District (MSD) projects. Council's decision could put Cincinnati and Hamilton County on a collision course over rules governing a federally mandated revamp of the city's inadequate sewer system. A majority of council members support the bidding requirements as a way to foster local jobs and local job training, while opposing county officials say the rules favor unions and impose a huge burden on MSD contractors. Councilman Chris Seelbach says he's working with Hamilton County Commissioner Greg Hartmann to get both parties in mediation talks and end a county-enforced hold on sewer projects before the federal government begins enforcing its mandate.
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Seventeen non-U.S. citizens allegedly cast illegal ballots in Ohio's 2012 general election, according to Ohio Secretary of State Jon Husted.
Two Democrats in the Ohio Senate proposed legislation that would allow same-sex couples to file joint tax returns. But Republicans control both chambers of the Ohio legislature, so it's unlikely the bill will pass.
Four Ohio libraries, including the Public Library of Cincinnati and Hamilton County, are collaborating to preserve historical documents, photographs and more.
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City Council on Wednesday dismissed legislation that would have repealed controversial contracting rules for Metropolitan Sewer District (MSD) projects.
Council's decision could put Cincinnati and Hamilton County on a collision course over rules governing a federally mandated revamp of the city's sewer system. The city and county jointly manage MSD.
Democrats David Mann, Chris Seelbach, Yvette Simpson, P.G. Sittenfeld and Wendell Young voted to move the repeal ordinance back to committee. Republicans Amy Murray and Charlie Winburn, Charterite Kevin Flynn and Independent Christopher Smitherman voted to keep the ordinance in front of council.
Hamilton County commissioners previously halted most
of the $3.2 billion, 15-year sewer revamp in protest of the city's
"responsible bidder" law. As long as the hold remains in place, the city and county risk violating a federal mandate to revamp Cincinnati's inadequate sewer system.
The city rules require contractors to follow stricter standards for apprenticeship programs, which unionized and nonunion businesses use to train workers in crafts, such as electrical work or plumbing. The rules also ask contractors to put 10 cents for each hour of labor into a pre-apprenticeship fund that will help train newcomers in different crafts.
Supporters of the law claim it will foster local jobs and local job training. Opponents claim the law favors unions and places a costly burden on MSD contractors.
city already gave various concessions to resolve its conflict with the county, including
exemptions for small businesses and contracts worth less than $400,000. But the county has so far refused to budge.
Smitherman, who opposes the law, argued the issue will end up in court and the city will lose.
"What was passed on May 1 is not constitutional," he said.
But the city's law department says the law is legal and could be defended in court.
Seelbach, who spearheaded the law, said he's in talks with Hamilton County Commissioner Greg Hartmann to bring both parties into mediation and resolve the conflict.
"I'm asking for some more time," he said.
Cincinnati would save just $7.8-$52.6 million in capital costs if it incurs tens of millions in additional expenditures to cancel the $132.8 million streetcar project, according to an audit from consulting firm KPMG released Wednesday.
By showing the potentially high costs of cancellation, the numbers could throw a lifeline to the streetcar project just one day before City Council decides whether to restart construction or permanently halt the project.
But Mayor John Cranley appears undeterred in his commitment to cancel the streetcar project. By accounting for the annual costs to operate the streetcar, Cranley estimates the city will actually save $102 million if it cancels the project.
The city already spent roughly $34 million on the project, according to the audit. Cancellation would add $16.3-$46.1 million in close-out costs, bringing the total costs of cancellation and money spent so far to $50.3-$80.1 million.
Completing the project would add $68.9 million in costs, after deducting $40.9 million in remaining federal grants, the audit found.
But the completion estimate assumes the city will need to pay $15 million in utility work — a cost that is currently being debated in court. If the city wins its case against Duke Energy, the utility company would be required to pay the $15 million and bring down the total completion costs to $53.9 million.
The audit also put the costs of operating the streetcar at $3.13-$3.54 million a year, lower than the previous $3.4-$4.5 million estimate. After revenues from fares, sponsorships and other sources, the city would need to pay $1.88-$2.44 million to operate the streetcar, according to the audit.
The reduced estimate for operating costs could become particularly important in deciding the project's fate as private contributors attempt to get the cost off the city's operating budget.
Delaying the streetcar project while KPMG conducted its audit also added $1.7-$2.8 million in costs, according to the audit. The city allocated another $250,000 to pay KPMG for its work.
The audit did not account for the potential costs of litigation if contractors and investors along the planned streetcar line sue the city to recoup costs.
City Council paused the streetcar project on Dec. 4 to obtain the cost estimates of completion, cancellation and annual operations. The full body of council will decide whether to restart the project on Thursday, before a Friday deadline set by the Federal Transit Administration for federal grants.
Read the full audit:
This post was updated at 12:59 p.m. with more information and details.
More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) plan to develop a private-public partnership to pay for the streetcar’s operating costs, according to Eric Avner, vice president of the philanthropic Haile Foundation. If the people cited by Avner put money behind their support, they could get streetcar operating costs off the city’s books and pave the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office earlier this month. Although Cranley called SORTA’s offer “woefully insufficient” earlier in the day, Councilman Kevin Flynn, one of two swing votes on council, said the idea could turn into a viable option if the business and philanthropic community provided more assurances.
Other streetcar news:
• City Council will hold public hearings on the streetcar today at 1:30 p.m., with a vote to decide the project’s fate expected tomorrow.
• Speaking about the streetcar project, Vice Mayor David Mann told The Business Courier, “I’m awfully close to saying let’s go for it.”
• The Federal Transit Administration might prefer to deal with SORTA over Mayor Cranley if the streetcar is completed.
Cincinnati’s projected operating budget gap for fiscal year 2015 is $16 million, which means City Council will need to find new revenue or cuts to balance the budget by July. Although a majority of council members promise to structurally balance the budget in the next few years, a minority say it will be more difficult than most expect without hiking taxes or cutting police and firefighters.
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More than a dozen business and philanthropic entities support the Southwest Ohio Regional Transit Authority’s (SORTA) offer to develop a private-public partnership to fund the streetcar’s operating costs, Eric Avner, vice president of the Haile Foundation, told CityBeat on Tuesday.
If enough private contributors agree to finance the streetcar’s operating costs, they could address a major concern raised by streetcar opponents and provide the clearest path forward for the $132.8 million streetcar project since the new mayor and City Council took office early this month.
The Haile Foundation already contributed $1 million to an operating reserve fund for the streetcar, but Avner cautions that his organization’s donation is only the beginning, given all the other entities interested in moving the streetcar forward.
Avner says 14 other business and philanthropic leaders supported the SORTA concept in person or through writing in time for SORTA’s board of trustees meeting on Tuesday. Among other community leaders, Avner cites Otto Budig, Cathy Crain of Cincinnati State, William Portman of the University of Cincinnati, Jeannie Golliher of the Cincinnati Development Fund, Rick Greiwe of Greiwe Development and Jack and Peg Wyant of Grandin Properties.
In a letter to SORTA, the Haile Foundation offers to recruit and financially establish a commission of community leaders that will work with the agency to create an operating and revenue plan that will require no funds from the city of Cincinnati. The letter also promises to leverage the initial $1 million investment to secure additional contributors and build a fund that would pay for a full year of operating costs.
Mayor John Cranley called SORTA’s offer “woefully
insufficient” in a press conference on Tuesday. Cranley said the city will need financial assurances far above the Haile
Foundation’s $1 million to cover $3.4-$4.5 million in annual operating costs for the streetcar over 30 years.
Councilman Kevin Flynn, one of two potential swing votes
on City Council, agreed with Cranley’s assessment, but he said the proposal could become a viable option if the city receives more
assurances from SORTA and private entities that show the groups are serious in their offer.
SORTA already agreed to help operate the streetcar if the
project is completed, but its decision to take up the operating costs shows
an additional commitment to the project.
The agency claims bus services will not be impacted by its increased commitment to the streetcar.
City Council expects to vote on Thursday on whether to restart the streetcar project. Council paused the project on Dec. 4 while the city audits the project’s completion, cancellation and operating costs.
Read the Haile Foundation’s full letter below: