It’s official: Gov. John Kasich won’t privatize the Ohio Turnpike. Instead, the Republican governor wants to increase tolls at the rate of inflation and issue bonds backed by the turnpike’s profits to raise an estimated $3 billion for infrastructure projects — more than 90 percent of which will be in northern Ohio, where the turnpike is located. To ease the short-term burden of the plan, tolls for local passenger trips using E-ZPasses will be frozen at current levels for 10 years. In a video unveiling the announcement, Kasich says the projects could generate an estimated 75,000 jobs. To most, the plan, which will require approval from the legislature, probably seems like a fairly liberal proposal: use a public asset to leverage revenue, then use the revenue on a large, statewide stimulus program. But Democrats are criticizing the plan because they say the toll hike will hurt individuals, families and businesses that use the Ohio Turnpike. Let the eye-rolling at blatant politicking begin!

City Council is getting ready to approve the budget today. The final plan has made a few tweaks to City Manager Milton Dohoney’s proposal. Parking privatization will remain, but the budget will provide a one-year stopgap in funding for Media Bridges. Previously, all of Media Bridges’ funding was being cut, which CityBeat wrote about here. The plan will also keep the mounted patrol unit, maintain income tax reciprocity and restore funding for human services and arts grants.

Will Cincinnati-based Kroger soon own Twinkies? It’s possible. The grocery store giant is considering buying Hostess brands in the aftermath of Hostess’ bankruptcy. CityBeat previously wrote about the Hostess bankruptcy here.

A study found a gap in Hamilton County’s housing stock. The report suggests the county doesn’t need any more housing than it already has; instead, it should build on current properties. The report also found vacant housing that isn’t for sale and serves no purpose has increased by 107 percent.

The Cincinnati/Northern Kentucky International Airport has unveiled a new master plan. It’s proposing $450 million in projects.

The Hamilton County recorder’s office will remain open on Fridays. The office was previously planning to close every Friday due to funding cuts, but restored funds have made staying open possible.

In its last session of the year, the Ohio Senate approved redistricting reform 32-1. The House could not take up the measure before the end of the lame-duck session, but the vast bipartisan support could be a good sign for next year’s legislative session. Redistricting is widely used by politicians to redraw district boundaries in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, effectively diluting Cincinnati’s Democratic-leaning urban vote in the district.

Ohio lost more residents than it gained last year, but the trend might be reversed by a growing economy. Economic improvements have already slowed down what Dayton Daily News calls an “exodus.”

A new Ohio law would increase the amount of auto insurance motorists are required to carry.

A drop in gas prices lowered U.S. consumer prices by 0.3 percent.

NASA discovered the largest river ever seen on another world. The river is on Titan, Saturn’s largest moon, and it is made up of hydrocarbons. The river is still unnamed, so I encourage everyone to email NASA to name the river the German Lopez River here.

Climate change isn’t just bad for humans. It will also hurt cuddly land mammals.

One of Cincinnati’s largest neighborhoods and business districts is adamantly against a proposed plan to lease the city’s parking systems.

A Dec. 7 letter to the mayor from Clifton Town Meeting President Peter Schneider calls the plan “baffling,” “short sighted” and “counter-intuitive.”

The city administration wants to lease all Cincinnati parking meters, garages and surface lots for 30 years in exchange for an upfront payment of at least $40 million and a share of the profits.

The city wants to use $21 million of the upfront payment to help close a $34 million hole in the upcoming budget.

Schneider writes that the proposal is bad for business, making it harder for customers to find cheap or free parking near retail areas like Clifton’s Ludlow Avenue corridor.

He also worried that a private operator would ratchet up the price for parking, making the facilities “unidirectional ATM’s (sic) benefiting a third party that provides minimal or no value to the citizens.”

Schneider also complains that Cincinnatians have not been given details of the deal or the opportunity to weigh in on it.

“It is unconscionable that the City administration would allow a similar plan (to the citizen-defeated red-light cameras) affecting parking meters and services be railroaded through City Hall without the appropriate sunshine and input of the populace,” he wrote.

He also compares the proposal to Hamilton County’s mishandling of the stadium deals, claiming that a similar long-term lease is unwise.

Schneider ends the letter by admitting that there are some aspects of outsourcing that could be beneficial, such as private management of surface lots or garages or maintenance, but the idea of privatizing everything goes too far.

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.

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.”

In hopes of quashing rumors, City Council on Wednesday passed a resolution promising not to use Metro bus money on the streetcar.

The Southwest Ohio Regional Transit authority had voted Tuesday on an agreement with the city that contained a provision saying money from the $42 million transit fund that pays for bus operation can’t be used on the streetcar.

The agreement needs to be signed by the city as well in order to release millions of dollars in federal grants to help fund the streetcar. The city has pledged to match those grants with local funds. SORTA wants to make sure the transit fund isn’t used for that purpose, but the city wants to have the freedom to use that money on any transportation project.

At least one council member questioned the necessity of passing the resolution.

Chris Seelbach said that nobody on council or in the city administration had proposed or would propose using transit money on the streetcar.

“I don’t understand why we would need a provision in any contract that would make us not be able to, when nobody’s proposing that we do it,” he said.

The resolution has no legal standing preventing council from later coming back and using transit funds for the streetcar, but Qualls said she hoped it put citizens’ minds at rest regarding their intentions.

Mayor Mark Mallory on Monday published an editorial in The Enquirer promising that the transit money wouldn’t be used for the streetcar.

He went further on Wednesday and said during council’s meeting that he as mayor would never approve the use of transit money for the operation of the streetcar.

Council also passed a one-month budget for SORTA, requiring that they come back next month to pass another one.

Councilman Chris Smitherman accused Mallory of trying to flex political muscle in the budget to strong-arm SORTA into taking out the provision disallowing the use of transit funds for the streetcar. He questioned the timing of passing a SORTA budget the day after the transit authority voted to prevent transit funds being used for the streetcar.

Councilman Charlie Winburn — council's sole Republican — walked out of a Budget Committee meeting in advance of the vote.

However Councilwoman Yvette Simpson said it made sense to pass the one-month budget because it forbid SORTA from using taxpayer money to sue the city.

City Solicitor John Curp said it was SORTA’s position in the lawsuit that it should be the one deciding how transit funds are used, not the city.

Ohio’s fracking boom might not be living up to the hype. The Ohio Department of Natural Resources originally estimated that 250 fracking wells would be built by the end of the year, but only 165 have been completed and 22 are currently being built. The disappointing results are being blamed on low natural gas prices and a backlog in work needed to connect wells to customers. Maybe the state’s claim had as much basis as Ohio Gov. John Kasich’s claim that the state’s fracking boom would be worth $1 trillion.

By killing the heartbeat bill and a bill that defunds Planned Parenthood, Ohio Senate President Tom Niehaus, a Republican, apparently declared a war on babies, according to anti-abortion groups. Niehaus is term-limited, so he will not be in the Ohio Senate in the next session, which begins next year. Incoming senate president Keith Faber already said the heartbeat bill could come up to vote in the next Senate session. CityBeat previously wrote about Ohio Republicans’ renewed anti-abortion agenda.

Between 2011 and 2012, Cincinnati had the 12th best economic performance in the United States, according to a Brookings Institute study. Out of the 76 metropolitan areas looked at, only Dallas; Knoxville, Tenn.; and Pittsburgh have recovered from the recession, and 20 areas lost more ground throughout the year.

The Greater Cincinnati Homeless Coalition is pushing the public to speak out against $610,770 in cuts to human services funding in Dohoney’s proposed budget. Mayor Mark Mallory and City Council have already agreed to continue 2013 funding at 2012 levels, but homeless advocates want to make sure the funding, which largely helps the homeless and low-income families, remains. The group is calling for supporters to attend City Council meetings on Dec. 5 at 1:15 p.m. at City Hall, Dec. 6 at 5:30 p.m. at City Hall and Dec. 10 at 5:30 p.m. at the Corryville Recreation Center.

It’s commonly said Cincinnati is Republican territory, but after the latest elections, that’s looking more and more false.

The University of Cincinnati is stepping up safety efforts around campus. The university held a summit to gather public feedback on possible improvements in light of recent incidents in and around campus. Beginning in January, UC will increase patrols by 30 percent.

Crime around Columbus’ Hollywood Casino has ticked up. Could Cincinnati face a similar fate when the Horseshoe Casino is up and running? A Washington Post analysis found casinos bring in jobs, but also bankruptcy, crime and even suicide.

Results equal funding. That’s the approach Gov. Kasich is taking to funding higher education, but Inside Higher Ed says the approach is part of “an emerging Republican approach to higher education policy, built largely around cost-cutting.” Kasich’s approach is meant to encourage better results by providing higher funds to schools with higher graduation rates, but schools with funding problems and lower graduation rates could have their problems exacerbated.

Josh Mandel, state treasurer and former Republican candidate for the U.S. Senate, insists his big loss in November does not make him a political has-been. Mandel will be pursuing a second term at the Ohio treasurer’s office in 2014. Mandel lost the Senate race despite getting massive amounts of funding from third parties — Democrats estimate $40 million — to support his campaign.

The auto industry is still chugging along with impressive numbers from November.

Gas prices moved down in Ohio this week.

One geneticist says people are getting dumber, but he doesn’t seem to have much to back his claims up.

Republican vice presidential candidate Paul Ryan weighed in on the controversy over replacement National Football League referees in a Tuesday town hall-style meeting in Cincinnati, comparing the Obama administration to the substitute officials who cost his home-state Green Bay Packers a victory with their botched call Monday night.

“Give me a break. It is time to get the real refs,” Ryan said. 

“And you know what, it reminds me of President Obama and the economy — if you can’t get it right, it’s time to get out. I half think that these refs work part time for the Obama administration in the budget office.”

Ryan was referencing a play that should have been called an interception for the Packers but instead allowed the Seattle Seahawks to score a game-winning touchdown on Monday Night Foodball. Replacement referees — some of whom may have been fired by the Lingerie Football League for incompetence — are filling in for unionized officials who are locked out.

The vice presidential candidate spoke inside a Byer Steel warehouse surrounded by piles of I-beams and rebar. A self-proclaimed Southern gospel rock band played before the event, occasionally pausing to talk up GOP presidential candidate Mitt Romney’s conservative credentials.

Much of Ryan’s prepared speech, as well as questions from participants in the town hall, focused on the economy, the deficit and the need for changes to entitlement programs.

Asked by an audience member how he would limit government and eliminate programs, Ryan said he and Romney would spur economic growth by lessening the tax burdens on small businesses, cut discretionary spending on government agencies and overhaul entitlement programs such as Medicare, Medicaid and Social Security.

Outside before the rally, protesters called for Ryan — whose House-passed budget made deeps cuts to many welfare and safety-net programs — to have more compassion for the poor. 

Meanwhile an airplane sponsored by MoveOn.org carried a banner reading, “Romney: Believe in 55% of America?” referencing comments revealed in a recent video where Romney claimed 47 percent of Americans didn’t pay any income tax and viewed themselves as victims reliant on government so it wasn’t his job to worry about their votes.

“We’re here with several messages, including the immorality of the Ryan budget and how it will impact the vast majority of Americans negatively," said David Little with the liberal advocacy group ProgressOhio. “When a budget protects those with the most and negatively impacts those with the least, I would suggest that is immoral.”

Bentley Davis with the Alliance for Retired Americans said she was concerned about what Romney and Ryan’s plans for Medicare and Social Security would do to retirement security.

Ryan had proposed to keep Medicare the same for anybody already 55 and over, but give younger Americans the choice to get money to spend toward private insurance or stay in a Medicare-like program.

Inside the warehouse was a digital sign that ticked up the national debt, which was at $16 trillion and rising.

“Here is what our government, our Congressional Budget Office, is telling us our debt is in the future if we stay on the path that President Obama has kept us on, has put us on … the debt goes as high as two and a half times the size of our economy by the time my three kids are my age,” Ryan said. 

The Obama campaign fired back in an email response, saying Ryan used misleading rhetoric to hide his own record and Republican plans to raise taxes on the middle class to fund tax cuts for wealthier Americans.

“The Romney-Ryan ticket has plenty of questions to answer about a failed record on manufacturing and job creation and their support for policies that will devastate middle class families by raising their taxes and shipping jobs overseas,” Obama for America – Ohio Press Secretary Jessica Kershaw wrote.

“These policies would take the growing manufacturing industry backward, not forward.”

For some in the audience, the economy was also on the forefront.

Steve Teal, 56, of West Chester, said he doesn't like the direction the country is going in.

"Just get the country back to work," Teal said. "I don't trust him (Obama). He doesn't stand up for America. He doesn't stand up for Americans."

CityBeat writer Stefane Kremer contributed to this report.

Ryan went from Cincinnati to an event with Romney in Dayton later on Tuesday.

City Council approved an operating budget Thursday that raises taxes and cuts several city services in fiscal year 2014, but the plan avoids laying off cops and firefighters.

Democratic council members Roxanne Qualls, Chris Seelbach, Yvette Simpson, Pam Thomas and Wendell Young supported the budget, and Democrats P.G. Sittenfeld and Laure Quinlivan, independent Chris Smitherman and Republican Charlie Winburn voted in opposition.

As a result of the budget, 67 city employees will lose their jobs.

Human services funding, which goes toward programs that aid the city's homeless and poor, is hit particularly hard with a cut of $515,000 in the final budget plan. The reduced funding leaves about $1.1 million for human services agencies.

Josh Spring, executive director of the Greater Cincinnati Homeless Coalition, says the latest cuts add to what's been a decade of cuts for human services funding. Originally, human services funding made up about 1.5 percent of the city's operating budget. With the latest changes, human services funding makes up about 0.3 percent of the budget.

"The additional cuts are deep and will negatively affect many lives now and in the future," Spring says. "It's important City Council work to reduce these cuts and citizens support that in ensuing months."

The budget also cuts parks funding by $1 million — about $200,000 lower than originally proposed by City Manager Milton Dohoney.

The budget further trims several city services, including the city's health department, law department and recreation department.

Arts funding and subsidies for "heritage" events, such as parades, are completely eliminated.

Funding for several outside agencies is also being reduced or eliminated: the Port Authority, the African-American Chamber of Commerce, the Cincinnati USA Regional Chamber of Commerce, the Center for Closing the Health Gap, the Greater Cincinnati Energy Alliance and the Greater Cincinnati and Northern Kentucky Film Commission.

The budget is partly balanced with higher revenues. The property tax is being hiked from 4.6 mills to 5.7 mills in fiscal year 2014, or about $94 for every $100,000 in property value. Water rates will also increase by 5.5 percent starting in 2014.

The budget also invokes fees for several city services: a $75 fee for accepted Community Reinvestment Area residential tax abatement applications, a $25 late fee for late income tax filers, a $100 fee for fire plan reviews, an unspecified hazardous material cleanup fee, a 50-cent hike for admission into the Krohn Conservatory and an unspecified special events fee for city resources used for special events.

At a council meeting Thursday, Quinlivan, who voted against the budget, criticized other council members for not pursuing changes that would structurally balance the budget.

"I don't believe anybody's going to really address this problem," she said.

Quinlivan has long been an advocate for "rightsizing" the city's police and fire departments, which she says have scaled "out of control."

Seelbach defended the plan, claiming it will keep the city's books balanced while the city government waits for higher revenues from a growing local economy.

Still, the city has not passed a structurally balanced budget since 2001, which critics like Quinlivan say is irresponsible.

The public safety layoffs were avoided despite months of threats from city officials that cops and firefighters would have to be laid off if the city didn't semi-privatize its parking assets for $92 million upfront and annual payments afterward. That plan is now held up in court, and public safety layoffs were avoided anyway.

But the layoffs were avoided with steeper cuts in other areas of the budget, including reduced funding for outside agencies and a requirement of 10 furlough days for some city employees and council members. The changes also increased estimates for incoming revenues with $1 million that is supposed to be paid back to the city's tax increment financing fund.

Multiple council members blamed the budget problems on the state government, which has cut local government funding by about 50 percent during Gov. John Kasich's time in office ("Enemy of the State," issue of March 20). For Cincinnati, the cuts resulted in $21 million less for fiscal year 2014, or 60 percent of the $35 million budget gap originally estimated for the year.

A budget plan proposed by two council members today would eliminate layoffs at the fire department and reduce the amount of police layoffs to 25, down from 49, by making cuts elsewhere, particularly by forcing city employees to take 10 furlough days in fiscal year 2014.

Council members Roxanne Qualls and Chris Seelbach are co-sponsoring the motion. If it's approved by City Council, the amount of city employee layoffs in the fiscal year 2014 budget would drop to 84, down from the original "Plan B" estimate of 344, by amending Mayor Mark Mallory's budget proposal, which was announced yesterday.

The news is being well received by public safety advocates, but it's also vindication for some of the city's harshest critics. Democratic mayoral candidate John Cranley previously said the city was acting like "the boy who cried wolf" by suggesting it had to lay off 344 city employees, including 80 firefighter and 189 police positions.

"In 2009, 2010, 2011 and 2012 … they threatened to lay off police and firefighters, and it never happened," Cranley previously told CityBeat.

But avoiding the layoffs comes with large cuts and shifted priorities elsewhere: Furlough days for supervisory and leadership personnel would be bumped up from five to 10 ($250,000 in savings), all council members would be asked to take 10 furlough days ($22,700), City Council's office budgets would be reduced ($18,000), the clerk of council's office budget would also be reduced ($46,000), the departments of community development and economic development would be merged ($171,000) and the account for firefighter's protective gear would be reduced ($100,000). In total, the cuts in the motion add up to $607,000.

The cuts would be in addition to larger cuts proposed by the city manager and mayor, which include reduced funding to parks, human services, parades and outside agencies.

The motion will be formally introduced at tonight's Budget and Finance Committee meeting, which will also act as a public hearing for budget issues. The hearing will begin at 6:30 p.m. at the Duke Energy Convention Center.

The layoff reductions come after the city manager and mayor spent a bulk of the past six months repeatedly warning that the city would have to carry out significant public safety layoffs if the city didn't lease its parking assets to the Port Authority. That plan would have opened up funds to help balance the budget for two years and pay for economic development projects, including a downtown grocery store ("Parking Stimulus," issue of Feb. 27).

But the parking plan is now held up in court, and the city is apparently able to avoid most of the layoffs despite the repeated warnings.

The city must enact a budget by May 31, which will give the city the required 30 days to implement the plan by fiscal year 2014, which begins July 1.

Happy new year! Yes, planet Earth made it through another year. Welcome to an “extra saucy” Morning News and Stuff.

U.S. Congress managed to narrowly avert the “fiscal cliff,” a series of tax hikes and spending cuts set to kick in at the beginning of 2013. If the fiscal cliff had not been prevented, economists and the Congressional Budget Office warned the United States would have plunged back into recession. The final deal keeps tax hikes for those making more than $450,000 a year, and most Americans will see their taxes increase as the payroll tax break passed with President Barack Obama’s stimulus package expires. It’s important to remember that the passing of a deal is not some show of bipartisan heroism; instead, it’s Congress barely preventing an entirely self-inflicted problem.

When Corrections Corporation of America’s (CCA) Lake Erie prison received an unfavorable audit, the Ohio Department of Rehabilitation and Correction reacted by cutting payments to CCA by $573,000. CityBeat covered the audit and its troubling findings here. CityBeat also covered private prisons in-depth here.

On the bright side, Ohio’s minimum wage went up, like it’s required to do so every year. Policy Matters Ohio says the increase will bring in $340 per year for 215,000 low-wage workers around the state. 

Cincinnati-based Kroger is looking mighty tempting this year. Stock-wise, anyway. I don’t think many people like grocery shopping.

A court ruled Ohio overcharged 270,000 businesses for workers’ compensation premiums and must repay them. The ruling could cost the state millions of dollars.

In case anyone was worried, the national standards Ohio adopted for schools do not ban The Catcher in the Rye. Book cliff averted.

Allstate is hiring in Ohio. I’m not sure why this is news, but it’s on multiple newspapers today, so there it is.

Gays are now marrying in Maryland. Is the apocalypse near?

Intel could be looking to revolutionize the cable industry by allowing people to subscribe to individual TV channels.

That’s not a medieval weapon; it’s a space rover! The new rovers planned by top universities and NASA could visit Mars’ moon Phobos or an asteroid. It’s, like, whatever.

Gov. John Kasich touted a rosy, progressive vision when announcing his education reform plan Jan. 31, but reality does not match the governor’s optimism. It’s true Kasich’s proposed 2014-2015 budget will not reduce school funding, but under the Kasich administration, local schools will still have a net loss in state funds.

The governor’s office released tentative budget numbers yesterday that show the Kasich plan will give Cincinnati Public Schools (CPS) $8.8 million more funding for the 2014 fiscal year. But that’s not enough to make up for the $39 million CPS will lose in the same fiscal year due to Kasich’s first budget, which was passed passed in 2011. Even with the new education plan, the net loss in the 2014 fiscal year is $30.2 million.

The problem is Kasich’s first budget had massive cuts for schools. The elimination of the tangible personal property reimbursements (TPP) hit CPS particularly hard, as CityBeat previously covered (“Battered But Not Broken,” issue of Oct. 3). In the Cut Hurts Ohio website, Innovation Ohio and Policy Matters Ohio estimated Kasich’s budget cuts resulted in $1.8 billion less funding for education statewide. In Hamilton County, the cuts led to $117 million less funding.

Kasich’s massive cuts didn’t even lead to lower taxes for many Ohioans. A report from Innovation Ohio found school districts and voters made up for the big education cuts with $487 million in new school levies. In 2012, Cincinnati voters approved a $51.5 million levy for CPS. The school levies are a direct increase on local income and property taxes, but they’re measures Ohioans clearly felt they had to take in the face of big state budget cuts.

For more analysis of Kasich’s budget, check out CityBeat’s other coverage:

• Kasich Tax Cut Favors Wealthy
  
• Governor’s Budget Ignores Troubled Past
• Kasich Budget Expands Medicaid, Cuts Taxes