With a temporary boost to the federal food stamp program coming to an end this November, more than 1.8 million Ohioans — 16 percent of the state’s population — will receive significantly less food aid, according to an Aug. 2 report from the Center on Budget and Policy Priorities (CBPP).
The report calculates that the cut is the equivalent to taking away 21 meals per month for a family of four. After the cut, the food stamp program will provide each person with less than $1.40 per meal, according to CBPP’s calculations.
Citing research from the USDA that shows many low-income families still fail to meet basic standards for food security, CBPP says the cuts will hit families that arguably need more, not less, help: “Given this research and the growing awareness of the inadequacy of the current SNAP (Supplemental Nutrition Assistance Program) benefit allotments, we can reasonably assume that a reduction in SNAP benefit levels of this size will significantly increase the number of poor households that have difficulty affording adequate food this fall.”
Although the federal food stamp program has been cut before, it’s never been cut to this extent, according to CBPP. “There have been some cuts in specific states, but these cuts have not typically been as large or affected as many people as what will occur this November,” the report reads.
The reductions could also have a broader economic impact: Every $1 increase in food aid generates about $1.70 in economic activity, according to progressive think tank Policy Matters Ohio.
“Ohio’s foodbanks and hunger charities cannot respond to increasing hunger on their own,” said Lisa Hamler-Fugitt, executive director of the Ohio Association of Foodbanks, in a statement released by Policy Matters. “SNAP takes Ohioans out of our food pantry lines and puts them into grocery store checkout lines. It provides supplemental food to the most vulnerable among us. Now is not the time to further reduce this already modest assistance to struggling families.”
About 48 percent of Cincinnati children are in poverty, according to a 2011 study from the National Center for Children in Poverty. Despite that, city funding to human services that benefits low-income families has been cut throughout the past decade. CityBeat covered that issue in greater detail here.
The cut to the federal food stamp program kicks in automatically in November instead of the original April 2014 sunset date as a result of laws passed in 2010 by President Barack Obama and Congress. Obama and congressional Democrats are now urging legislation that would remedy the situation, but it’s unlikely anything will pass the gridlocked Congress.
Republicans are preparing a bill that would further cut the food stamp program, which they see as too generous and expensive. From Fox News: “Reps. Marlin Stutzman of Indiana and Kristi Noem of South Dakota, two Republicans who helped design the bill, said the legislation would find the savings by tightening eligibility standards and imposing new work requirements. It would also likely try to reduce the rolls by requiring drug testing and barring convicted murderers, rapists and pedophiles from receiving food stamps.”
For a full hour Thursday night, Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel continued their feisty fight for Ohio’s U.S. Senate seat. For the most part, the debate centered on the candidates’ records and personal attacks, with policy specifics spewing out in between.
Apparently, the barrage of attacks is not what the candidates had in mind before the debate started. Throughout the debate, both candidates asked for substance, not attacks. At one point, Brown said, “I appreciate this clash of ideas. That’s what this debate should be about.” At another point, Mandel said, “We need less attacking, and we need more policy ideas to put people back to work.”
These comments came well into the debate. By that time, Mandel had criticized Brown for “Washington speak” so many times that an exasperated Brown quipped, “I don’t get this. Every answer is about Washington speak.”
Brown also launched his own attacks, which focused on Mandel’s dishonesty on the campaign trail, which previously earned Mandel a “Pants on Fire” crown from Cleveland’s The Plain Dealer, and Mandel, who is also Ohio’s treasurer, missing state treasurer meetings to run for political office.
But Ohioans have seen enough of the attacks in the hundreds of campaign ads that have bombarded the state in the past year. Voters probably want to hear more about how each candidate will affect them, and the candidates gave enough details to get some idea of where each of them will go.
On economic issues, Brown established the key difference between the two candidates’ economic policies: Mandel, like most of his Republican colleagues, believes in the trickle-down theory. The economic theory says when the rich grow, they can create jobs by hiring more employees and expanding businesses. In other words, proponents of the theory believe the success of the rich “trickles down” to the middle class and poor through more job opportunities. Belief in this theory is also why most Republicans call the wealthy “job creators.” Under the trickle-down theory, the wealthy are deregulated and get tax cuts so it’s easier for them to create jobs.
On the other hand, Brown says he supports a middle-out approach, which focuses on policies that target the middle class. That is how sustainable employment and growth are attained, according to Brown. Under the middle-out approach, tax cuts and spending policies target the middle class, and the wealthy own a higher tax burden to support government programs.
Some economists, like left-leaning Nobel laureate Paul Krugman, say the trickle-down theory should have been put to rest with the financial crisis of 2008. After all, deregulation is now credited with being the primary cause of 2008’s economic crisis. In that context, more deregulation seems like a bad idea.
Still, Brown’s contrast to Mandel holds true. Brown has
repeatedly called for higher taxes on the rich. In the debate, he touted his
support for the auto bailout and once again mocked Mandel’s promise to not
raise any taxes. These are policies that do end up benefiting the middle class
more than the wealthy. The auto bailout in particular has been credited with
saving thousands of middle-class jobs.
On the other side, Mandel told debate watchers to go to his website and then offered some quick talking points: simplify the tax code, end Wall Street bailouts and use Ohio’s natural gas and oil resources “in a responsible way.” How Mandel wants to simplify the tax code is the issue. On his website, Mandel says he supports “a flatter, fairer income tax with only one or two brackets, eliminating almost all of the credits, exemptions and loopholes.” A study by five leading economists suggests a flat tax model would greatly benefit the wealthy and actually hurt the well-being of the middle class and poor. That matches with the trickle-down economic theory.
Another suggestion on Mandel’s website says, “Help job creators. Reduce capital gains and corporate taxes, and allow for a small business income deduction.” The small business portion would help some in the middle class, but an analysis from The Washington Post found 80 percent of capital gains incomes benefit 5 percent of Americans and half of all capital gains have gone to the top 0.1 percent of Americans. So a capital gains tax cut would, again, match the trickle-down economic theory.
What all this means is on economic issues the choice of candidates depends mostly on what economic theory a voter believes. Brown believes in focusing economic policies that target the middle class, while Mandel mostly supports policies that generally support what he calls “job creators” — or the wealthy.
On partisanship, both sides once again threw out different ideas. Although he was asked for three ideas, Brown only gave one: fix the filibuster. The filibuster is a U.S. Senate procedure that allows 41 out of 100 senators to indefinitely halt any laws. The only way to break the filibuster is by having a supermajority of 60 senators — a rarity in American politics. Brown said if this rule was removed, a lot more could get done in Congress.
Mandel had different ideas for stopping partisan gridlock in Washington, D.C. He touted his support for No Budget, No Pay, which would require members of Congress to pass a budget in order to get paid. He also expressed his support for term limits, saying lifelong politicians only add to the partisanship in Congress. Then, in a strange twist, Mandel’s last suggestion was to stop bailouts, which has nothing to do with partisanship or gridlock in Congress.
Then came Obamacare. Brown said he was “proud” of his vote and continued supporting the law, citing the millions of Americans it will insure. Meanwhile, Mandel responded to the Obamacare question by saying, “The federal government takeover of health care is not the answer.”
The fact of the matter is Obamacare is not a “government
takeover of health care.” Far from it. The plan doesn’t even have a public
option that would allow Americans to buy into a public, nonprofit insurance
pool — an idea that actually has majority support in the U.S. Instead,
Obamacare is a series of complicated reforms to the health insurance industry.
There are way too many reforms to list, but the most basic
effect of Obamacare is that more people will be insured. That’s right, in the
supposed “government takeover of health care,” insurance companies actually gain
more customers. That’s the whole point of the individual mandate and the many
subsidies in Obamacare that try to make insurance affordable for all Americans.
Mandel made another misleading claim when he said Obamacare “stole” from Medicare, with the implication that the cuts hurt seniors utilizing the program. It is true Obamacare cuts Medicare spending, but the cuts target waste and payments to hospitals and insurers. It does not directly cut benefits.
The one area with little disagreement also happened to be the one area with the most misleading: China. It’s not a new trend for politicians to attack China. The Asian country has become the scapegoat for all economic problems in the U.S. But in this election cycle, politicians have brandished a new line to attack China: currency manipulation. This, as Ohioans have likely heard dozens of times, is why jobs are leaving Ohio and why the amount of manufacturing jobs has dropped in the U.S. In fact, if politicians are taken at their word, it’s probably the entire reason the U.S. economy is in a bad spot.
In the Brown-Mandel debate, Brown repeatedly pointed to his currency manipulation bill, which he claims would put an end to Chinese currency manipulation. Mandel also made references to getting tough on China’s currency manipulation.
One problem: China is no longer manipulating its currency. There is no doubt China greatly massaged its currency in the past to gain an unfair advantage, but those days are over, says Joseph Gagnon, an economist focused on trade and currency manipulation. Gagnon argues the problem with currency manipulation is no longer a problem with China; it’s a problem with Malaysia, the Philippines, Singapore, South Korea, Switzerland and Saudi Arabia. If the U.S. wants to crack down on currency manipulation, those countries should be the targets, not China, he argues.
In other words, if currency manipulation is a problem, Mandel was right when he said that countries other than China need to be targeted. To Brown’s credit, his currency manipulation bill targets any country engaging in currency manipulation, not just China. The problem seems to be the misleading campaign rhetoric, not proposed policy.
The debate went on to cover many more issues. Just like the first debate, Brown typically took the liberal position and Mandel typically took the conservative position on social issues like gay rights and abortion. Both touted vague support for small businesses. Each candidate claimed to support military bases in Ohio, although Mandel specified he wants bases in Europe closed down to save money. As far as debates go, the contrast could not be any clearer, and the candidates disagreed on nearly every issue.
The final debate between the two U.S. Senate candidates will take place in Cincinnati on Oct. 25.
Food deserts are a big problem for many of Hamilton County’s impoverished families, but ongoing research suggests officials may be overlooking mobility when attempting to pinpoint neighborhoods that lack access to healthy foods.
University of Cincinnati professor Michael Widener is heading research that looks into how mobility can alter perceptions about food deserts. So far, his findings have suggested that some people may have access to healthy foods throughout their daily commute despite being classified as living in a food desert.
Widener explains the research is necessary to make identifying food deserts more accurate. “In previous work and when I was doing my dissertation, I was noticing how a lot of food desert research failed to take into account the dynamics of everyday urban life,” he says. The observation led Widener to incorporate those dynamics, particularly people’s movements throughout the day, to see how they impact people’s access to food.
Still, Widener cautions that his findings don’t dismiss the problems caused by food deserts: “Of course, there are a lot of assumptions being made, like are (these commuters) totally drained after work? The biggest (assumption) is of course that (someone has) a car.”
Widener says his findings could impact how public officials approach food desert policies. He points to potential stopgap measures, such as better access to public transportation, that could alleviate the pains of living in a food desert while a more permanent solution is put in place. Widener argues these policies could make financial sense: Considering how many potential costs a food desert can bring on a community, it might be cheaper for a city to build a bus route and encourage better ways to load groceries into buses. Widener knows these aren’t perfect solutions, but he thinks they could provide some aid in a bogged-down political climate that often results in sluggish policy changes.
There is a caveat: Widener acknowledges research has so far been inconsistent as to whether access to healthier food actually leads to healthier results. Eventually, he wants to research what actually causes healthier results and whether broader economic factors, such as poverty, play a more important role. That could give officials a clearer picture on which policies work and which don’t.
The first part of Widener’s research came out in a January paper that looked at auto commuters’ access to food, and the next part will look at public transportation’s impact. The research project is using local transportation data from The Ohio-Kentucky-Indiana Regional Council of Governments.
Food deserts are neighborhoods that lack access to fresh, healthy foods. In Hamilton County, many of the identified food deserts are in neighborhoods on the city’s west side, including Price Hill and Queensgate. Cincinnati’s food deserts are just one problem being addressed by Plan Cincinnati, the city’s first master plan in more than 20 years (“Core Future,” issue of Sept. 5).
Part of the parking plan proposed by City Manager Milton Dohoney Jr. on Feb. 19 (“City Manager Proposes Parking, Economic Development Plan,” issue of Feb. 20) would also build a modern grocery store with access to fresh fruits and vegetables in Downtown.
Two Ohio senators, including Senate Minority Leader Eric Kearney of Cincinnati, are pushing a bill that will require the state’s Bureau of Motor Vehicles to grant driver’s licenses to the children of illegal immigrants. The senators claim state BMV offices are inconsistently applying President Barack Obama’s Deferred Action for Childhood Arrivals program, which allows the children of illegal immigrants to remain in the country without fear of prosecution, but the Ohio Department of Public Safety says the issue is still under review. CityBeat originally broke the story after hearing of Ever Portillo’s experiences at a Columbus BMV office here, and a follow-up story covered the internal conflict at the BMV over the issue here.
Ohio officials have said the state has only put $1 million toward JobsOhio, but records recently acquired by The Columbus Dispatch show $5.3 million in funding has been directed to the program
so far, and the public investment could be as high as $9 million. State
officials said the funding is necessary because constitutional
challenges, which the Ohio Supreme Court recently agreed to take up,
have held up the program’s original source of funding — state liquor
profits. JobsOhio is a nonprofit company established with the support of
Gov. John Kasich that’s meant to attract investment and bring jobs to
the state. Kasich says he wants to replace the Ohio Department of Development with the nonprofit company in the future.
City Council’s Budget and Finance Committee approved a plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority in a 4-3 vote yesterday, but the plan will require five votes to become law in a final City Council vote tomorrow. The plan, which CityBeat previously covered, would lease the city’s parking assets to fund development projects, including a 30-story tower and a downtown grocery store, and help balance the deficit. The deal would produce a $92 million upfront payment, and the city projects that additional annual installments would generate more than $263 million throughout the lease’s duration. Critics are worried the city will give up too much control of its parking assets as part of the deal, and concerns about the city’s long-term deficits remain. The alternatives — plans B, C and S — would fix structural deficit problems, while the budget only helps balance the deficit for the next two fiscal years.
The company that will operate Cincinnati’s parking meters if the parking deal is approved by City Council had problems in the past, according to a tip received by multiple news outlets from Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. The issues surfaced years before Affiliated Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing. One of the issues is a 2007 audit, which found ACS mismanaged parking meters in Washington, D.C. Kevin Lightfoot, a spokesperson at Xerox, says the audit was based on “faulty information,” and a lot of the problems found were because the auditor improperly read parking meter screen displays.
An approved commitment by the Hamilton County Transportation Improvement District (HCTID) may ensure a rail service is ready for Cincinnati in time for the 2015 Major League Baseball All-Star Game. Hamilton County Commissioner Todd Portune is pushing for local and state governments to break down any barriers for Oasis Rail Transit, which will carry passengers from Downtown to Milford.
The Ohio Board of Education will decide between two candidates for state superintendent next week: acting Superintendent of Public Instruction Michael Sawyers or Dick Ross, Gov. John Kasich’s top education adviser.
After years of development and anticipation, Cincinnati’s Horseshoe Casino opened yesterday. The casino comes with the promise of jobs and economic development, but it also poses the risk of crime, bankruptcy and even suicide. State and local legislators are also looking forward to extra government revenue from the casino, even though casino revenue around the state has fallen short of projections. For Over-the-Rhine residents, the grand opening, which culminated in a fireworks display, was sort of like being in the middle of a thunderstorm.
Livability.com named Cincinnati the No. 10 spring break destination because of the Cincinnati Zoo, Botanical Garden, IKEA, Cincinnati Art Museum, the 21c Museum Hotel, Newport Aquarium and the Clifton Cultural Arts Center, among other places and family-friendly activities.
Science doesn’t want pregnant women to be capable of anything.
Here are two pictures of Venus from Saturn’s view.
Occupy Wall Street may have been onto something. A new report from left-leaning Center on Budget and Policy Priorities (CBPP) found Ohio’s income gap — the income difference between the rich and poor — is wide and growing.
Since the 1970s, the poorest 20 percent saw no change in real
income, the middle 20 percent gained 21.1 percent, the top 20 percent
gained 50.6 percent and the top 5 percent gained 85.1 percent.
In terms of real dollars, low-income and middle-income Ohioans have actually seen their income drop since the 1990s. The drop caused a “lost decade” for Ohio’s lower and middle classes, according to the report. The bottom 20 percent saw a 6.9 percent drop in real income from the late 1990s to the mid-2000s, while the middle 20 percent saw a 2.9 percent drop. Real incomes for the top 20 percent and top 5 percent remained the same.
The shifts have caused a startling difference in real income, which the report calculated by looking at real dollars after federal taxes and including the value of the Earned Income Tax Credit, housing subsidies and food stamps. The poorest 20 percent make on average about $20,500, and the middle 20 percent make on average about $58,100. Meanwhile, the top 5 percent make about $221,800 — 10.8 times as much as the bottom 20 percent and 3.8 times as much as the middle 20 percent.
Real dollars are a measurement used to gauge the value of money and income after inflation. If a family sees its income in real dollars drop, it means income increases, if they exist, are not keeping up with inflation.
The widening income gap is part of a nationwide trend. In comparison to other states, Ohio mostly did better than the national average. Ohio was not included in any of the six top 10 ranks for inequality, which ranked states for rises in inequality during different time periods. During the late 2000s, New Mexico, Arizona, California, Georgia and New York had the greatest gaps between the wealthiest and poorest. In the same time period, New Mexico, California, Georgia, Mississippi and Arizona had the biggest gaps between the wealthiest and middle.
Part of the cause for the widening gap is the recent recession, but the CBPP report found that the wealthiest have seen their incomes rise again in the recession’s aftermath, while middle and lower incomes have not. The report also blamed government policies — deregulation, trade liberalization, the weakening safety net, the lack of effective laws regarding collective bargaining and the declining real value of the minimum wage — and the expansion of investment incomes, which the CBPP says “primarily accrue to those at the top of the income structure.”
The report finished with some suggestions for states: raise minimum wage and index it for inflation, improve unemployment insurance systems, make state tax systems more progressive and strengthen safety nets.
Policy Matters Ohio, which pointed to the findings in a statement, says the report warrants action. “Poor and middle-income families are seeing their income fall in real dollars and relative to higher earners,” said Amy Hanauer, executive director of Policy Matters Ohio, in the statement. “When households already subsisting on less than $23,000 a year see their incomes drop, that means hunger, instability, poor school performance and worse. Ohio needs to do more to improve the lives of families in this state.”
A nonpartisan think tank that advocates for poor and working class families is urging that Ohio adopt its own version of the federal Earned Income Tax Credit (EITC).
The group, Policy Matters Ohio, said a state version of the federal tax credit, set at 10 percent, would divert just $210 million from Ohio’s coffers but would benefit 949,000 low-income working families across the state. Such a credit would provide families with an average of $221 each, which Policy Matters Ohio described as “modest but helpful.”
Currently 24 states and the District of Columbia have Earned Income Tax Credits, ranging from 3.5 percent to 50 percent of the federal credit.
“A state EITC program enables families to work and build assets while reducing the impact of regressive income tax changes,” said a statement released by Policy Matters Ohio.
“A state EITC makes sense because recent changes to the personal income tax have provided greater tax reductions for higher-income earners than they have for lower- and middle-income families,” the statement continued.
The federal EITC is a refundable tax credit for low- and medium-income individuals and couples, and is considered the nation’s largest poverty relief program. When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit.
To qualify for the EITC, a recipient must have earned income of $49,000 or less. The credit is worth significantly more for families with children and is refundable, which means families receive cash refunds above their tax liability.
Created in 1975, the federal EITC is aimed at helping lift families with children about the poverty level, along with offsetting the burden of Social Security taxes and maintaining an incentive for people to work.
In Ohio, 949,692 people currently claim the federal EITC. The credit generates $2.1 billion for state residents, and the average refund is $2,211.
Founded in 2000, Policy Matters Ohio is a nonprofit, nonpartisan policy research organization that seeks to create “a more prosperous, equitable, sustainable and inclusive Ohio,” through research and policy advocacy.
Based in Cleveland and Columbus, the organization is funded primarily through grants from groups like the Ford Foundation, the Sisters of Charity Foundation, the Center on Budget and Policy Priorities, the Corp. for Enterprise Development and others.
By now, most of you have heard there was another horrible mass shooting, this time in Newtown, Conn., that resulted in the death of 20 children and six adults. While everyone is hoping this is the last time the nation has to deal with an event of unspeakable horror, it is only a possibility if we agree to do something about it. That means remembering the heroes who risked their lives and, in some cases, died that day. That means not letting the media and public drop the issue, as has been the case in the past. That means looking at more than just gun control, including mental health services. The Washington Post analyzed what “meaningful” action on gun control would look like, and the newspaper also disproved the idea Switzerland and Israel are “gun-toting utopias.” President Barack Obama also spoke on the issue at a vigil Sunday, calling for the nation to do more to protect people, particularly children, from violence. The full speech can be watched here.
City Council approved its 2013 budget plan Friday. The budget relies on the privatization of city parking assets to help plug a $34 million deficit and avoid 344 layoffs. The budget also nixed the elimination of a tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities, and it continued funding the police department’s mounted unit. As a separate issue, City Council voted to increase the property tax by about 24 percent, reversing a move from conservatives in 2011. CityBeat wrote about budgets at all levels of government and how they affect jobs here.
Michelle Dillingham, who was an aide to former city councilman David Crowley, will seek Democratic support in a run for City Council. Dillingham promises to tackle “industry issues of mutual interest" to business and labor and “transportation funding, family-supporting wages and workforce development.”
At a recent public hearing, mayoral candidate John Cranley proposed a “very easy” plan for the city budget. Only problem: His plan doesn’t work. In an email, Cranley said he stands by his ideas, but he added he was working with limited information and his statements were part of a two-minute speech, which “requires brevity.” He also claimed there are cost-cutting measures that can be sought out without privatizing the city’s parking assets and gave modified versions of his ideas regarding casino and parking meter revenue.
Judge Robert Lyons, the Butler County judge who sealed the Miami rape flyer case, is standing by his decision.
The Greater Cincinnati area is near the top for private-sector growth.
Jedson Engineering is moving from Clermont County to downtown Cincinnati, thanks in part to an incentive package from City Council that includes a 45 percent tax credit based on employees earnings taxes over the next five years and a $300,000 grant for capital improvements. The company was a Business Courier Fast 55 finalist in 2008 and 2009 due to its high revenue growth.
Gov. John Kasich’s Ohio Turnpike plan is getting some support from Toledo Mayor Mike Bell, but others are weary. They fear the plan, which leverages the turnpike through bonds for state infrastructure projects, will move turnpike revenues out of northern Ohio. But Kasich vows to keep more than 90 percent of projects in northern Ohio.
Gas prices are still falling in Ohio.
U.S. House Speaker John Boehner is making some concessions in fiscal talks. In his latest budget, he proposed raising taxes on those who make more than $1 million a year.
One beagle can diagnose diseases by sniffing stool samples.
City Council’s Budget and Finance Committee today approved a
plan to lease Cincinnati’s parking assets to the Port of Greater
Cincinnati Development Authority in a 4-3 vote, but the plan will require five votes to become law in a final City Council vote on March 6.
Council members Roxanne Qualls, Yvette Simpson, Cecil Thomas and Wendell Young voted for the plan, and council members Chris Seelbach, Chris Smitherman and Charlie Winburn voted against it. Councilman P.G. Sittenfeld was absent, and Councilwoman Laure Quinlivan abstained, although she said she could vote yes if she sees more details about how the city will curb its long-term budget problems.
The plan, which CityBeat previously covered (“Parking Stimulus,” issue of Feb. 27), would lease the city’s parking assets to fund development projects, including a 30-story tower and a downtown grocery store, and help balance the deficit for the next two fiscal years. The deal would produce a $92 million upfront payment, and the city projects that additional annual installments would generate more than $263 million throughout the lease’s duration.
Before the vote, several City Council members said the parking plan would not solve Cincinnati’s structural deficit problems, but City Manager Milton Dohoney Jr. said the plan would help reduce the deficit by generating recurring revenues through long-term economic growth and development.
“The situation that we’re in requires that we accelerate
growth right now, not later,” he said. “If we do not do that, then we’re going to
have further negative ramifications to deal with.”
Still, Dohoney admitted the plan would not solve all the city’s budget woes — just like he has repeatedly said in the past. Even with the parking plan, the city projects a $10 million deficit in 2014, $15.5 million deficit in 2015 and $20 million deficit in 2016.
The council members insisted there are alternatives to the parking plan and Dohoney’s Plan B, which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes.
On March 1, Seelbach proposed Plan S, which would not lease the city’s parking assets to balance the budget and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.
On the same day as the hearings, Winburn, the sole Republican on City Council, proposed Plan C, which would reduce city employees’ salaries across the board — with exemptions for police, ﬁre, health, garbage, recreation, parks and road paving — and use casino and parking revenue to clear the deficit.
At the City Council hearings, Quinlivan listed a few other
possibilities, including sharing public safety services with other
local communities. She also advised the city to put together a long-term deficit reduction plan. “We don’t want to kick the can down the road any more,” she said.
Thomas suggested putting an earnings tax hike of 0.1 percent or 0.2 percent on the ballot. He said, “It would solve this (deficit) problem once and for all.”
Some council members also raised concerns about the release of bond documents, which will further detail the framework of the parking agreement. Dohoney and Laura Brunner, president of the Port Authority, said the bond documents have not been crafted because a lease agreement has to be approved by City Council first, but the documents will be made public once they are put together.
Before the final committee vote, Smitherman successfully
motioned to separate part of the parking plan from the budget, which opens the plan to referendum. The motion was in response to City Solicitor
John Curp, who said appropriation ordinances, or ordinances that are essentially budgets, aren’t subject to
referendum, according to state law.