Gov. John Kasich says he’s cutting everyone’s taxes in his 2014-2015 budget, but an analysis released Thursday found the plan is actually raising taxes for the poor and middle class. The Policy Matters Ohio report reveals the poorest Ohioans will see a tax increase of $63 from Kasich’s budget plan, while the top 1 percent will see a tax decrease of $10,369.
For the poorest Ohioans, the new tax burden comes through the sales tax. On average, the bottom 20 percent of the income ladder will have their income taxes reduced by $8, but the sales tax plan will actually increase their average sales tax burden by $71.
The middle 20 percent fares slightly better. Under the budget proposal, they will get
a $157 income tax cut on average, but their sales tax burden will go up by
$165 — meaning they'll end up paying $8 more in taxes.
The top 1 percent get the most out of Kasich’s tax plan.
Their income taxes will be reduced by a whopping $11,150. The top 1 percent
do see the highest sales tax increase at $781, but it’s nowhere near
enough to make up for the massive income tax cut.
Kasich says his budget is all about creating jobs and spurring the economy, but the regressive tax system defies economic research. A previous analysis from the Congressional Budget
Office (CBO), which measures the budgetary and economic impact of
federal policy, found
letting tax cuts expire on the wealthy would barely dent the economy. The same report also found the economy greatly benefits from tax and social welfare programs that
disproportionately benefit the lower and middle classes.
Another report from the Congressional Research Service (CRS) also concluded tax hikes on the rich would have negligible economic impact. The findings made national Republicans so angry that they pressured CRS to pull the report. CRS later re-released the study — except this time it had nicer language to appease politicians that can’t handle reality.
Kasich’s plan proposes cutting the state income tax by 20 percent across the board and lowering the sales tax from 5.5 percent to 5 percent. To pay for the cuts, the proposal broadens the sales tax so it applies to additional services — including cable TV services, coin-operated video games and admission to sports events and amusement parks — while keeping exemptions for education, health care, rent and residential utilities.
For more analysis of Kasich’s budget, check out CityBeat’s other coverage:
Council Member P.G. Sittenfeld is circulating a small business petition to stop Cincinnati from privatizing parking services. Sittenfeld threw his support behind the petition in a statement: “Individual citizens have made clear that they are overwhelmingly against outsourcing our parking system. Now we're going to show that small businesses feel the same way. I hope that when council sees that the small businesses that are the engine of our city are strongly against outsourcing our parking, we can then nix the proposal immediately.” The petition asks city officials “to find a smart, resourceful, sustainable alternative to address the budget situation.” City Manager Milton Dohoney says parking privatization is necessary to avoid laying off 344 city workers.
Gov. John Kasich’s expanded sales tax is going to hurt a lot of people. The tax is being expanded to apply to many items included in households’ monthly budgets, such as cable television, laundry services and haircuts. The revenue from the sales tax expansion will be used to cut the state income tax by 20 percent across the board, lower the sales tax from 5.5 percent to 5 percent and slightly boost county coffers.
City Council and local residents are not impressed with the USquare development. At a City Council meeting Tuesday, Vice Mayor Roxanne Qualls described the development: “I have to say that it is underwhelming. And that’s about the kindest thing I can say about it. And also really repeats, on many different levels, virtually all of the mistakes that have ever been made in the city and in neighborhoods when it comes to creating public spaces.” But architect Graham Kalbli said he’s excited about the plan: “Because we’ve taken a vacant strip of land and really made kind of a living room for the Clifton Heights community. We wanted to do that, that was one of our overriding goals.”
The Hamilton County Board of Elections is subpoenaing 19 voters who are suspected of voting twice in the November election. Most of the voters being investigated filed provisional ballots then showed up to vote on Election Day.
David Mann is officially running for City Council. The Democrat has served as a council member, mayor and congressman in the past.
Traffic congestion isn’t just bad for drivers; it’s also bad for the environment and economy. The Annual Urban Mobility Report from the Texas A&M Transportation Institute found traffic congestion cost Cincinnati $947 million in 2011 and produced an an extra 56 billion pounds of carbon dioxide nationwide.
Leslie Ghiz is taking the judge’s seat a little early. The former city council member was elected to the Hamilton County Common Pleas Court in November, but she was appointed to the seat early by Gov. John Kasich to replace Dennis Helmick, who retired at the end of 2012.
The magic of capitalism: Delta is already matching a low-cost carrier’s fares to Denver at the Cincinnati/Northern Kentucky International Airport.
The U.S. Postal Service is ending Saturday mail delivery starting Aug. 1. The Postal Service has been dealing with financial problems ever since a 2006 mandate from U.S. Congress forced the mail delivery agency to pre-fund health care benefits for future retirees. Riddled with gridlock, Congress has done nothing to help since the mandate was put in place. This will be the first time the Postal Service doesn’t deliver mail on Saturdays since 1863.
It’s unlikely zombies could be cured by love, but it’s possible they could be cured by science.
The next Michael Jordan has been discovered:
The Medicaid expansion would add more Ohioans to the state-federal health care program by raising the eligibility threshold to 138 percent of the federal poverty level, up from 90 percent. The budget summary claims the expansion makes financial sense for the state as long as the federal government picks up most of the tab. As part of Obamacare, the federal government takes all the costs for newly insured Medicaid recipients for the first three years. After that, the federal government’s share is brought down to 95 percent and ultimately phased down to 90 percent. If the federal government reneges on its promise to pay for the bulk of the share, Kasich’s budget has a trigger to wind down the Medicaid expansion.
The budget also proposes income and sales tax cuts, which would come with some trade-offs. The state income tax would be brought down by 20 percent across the board, and the sales tax would be cut from 5.5 percent to 5 percent. To balance the cuts, Kasich has proposed broadening the sales tax to include other “economic activity,” while keeping exemptions for education, health care, rent and residential utilities.
In another slew of tax changes, Kasich’s plan proposes revamping the oil and gas severance tax. It would eliminate the tax for “small, conventional natural gas producers,” but imposes a 4 percent tax for bigger oil and gas producers.
In the past, liberals have voiced opposition to tax cuts — instead favoring investments elsewhere. Policy Matters Ohio released its own budget proposals Jan. 31, which emphasized “education, health care and human services.” The plan would also increase the income tax for top earners.
City Council Member P.G. Sittenfeld released a statement criticizing Kasich’s budget for not using the extra revenue to scale back local government and education cuts enacted in the 2012-2013 budget: “At a time when local governments around the state are being forced to slash basic services, lay off safety personnel, raise taxes, and sell off assets just to stay afloat, it's out of touch for Gov. Kasich not to reverse his raid on our local government fund. We don’t pay taxes to pad the governor’s soundbites, we pay them to maintain our roads and keep cops on the street. This should not be a partisan issue. It's simply illogical governance to make the state look good while in the process hurting Ohio's cities.”
Between October and December, the U.S. economy unexpectedly shrank by 0.1 percent — the first contraction since 2009. The downturn was primarily caused by the threat of conservative fiscal policies, particularly defense spending cuts. Dropping business inventories also helped drag down the economy. Otherwise, consumer and business spending was actually strong.
Some Republicans want another go at reducing voting rights.
Rep. Mike Dovilla, chairman of the newly created House Policy &
Legislative Oversight Committee, says he wants to consider measures that
crack down on alleged voter fraud, including reduced voting
times and a photo ID requirement to vote. But in-person voter fraud is not a real problem. News21, a Carnegie-Knight investigative reporting project, found only 10 cases of in-person voting fraud in the United States between 2000 and 2012.
That’s not even one case of in-person fraud each year. The real reason
Republicans want to enact stricter voting measures is to hinder young, minority
voters that typically support Democrats. One study found 700,000 young, minority voters were excluded by photo ID laws in 2012.
A Policy Matters Ohio report found Ohio’s income tax hits the poor and middle class a lot harder than the wealthy. The numbers from the report: “The top 1 percent of non-elderly Ohio families by income, who earned at least $324,000 in 2010, on average pay 8.1 percent of their income in state and local income, property, sales and excise taxes. By contrast, the lowest fifth, who make less than $17,000, on average pay 11.6 percent. Families in the middle fifth of the income spectrum, who make between $31,000 and $49,000, on average pay 10.6 percent.”
Cincinnati is extending its contract with Southwest Ohio Regional Transit Authority (SORTA) for a month despite an ongoing conflict, but the supposed conflict is really much ado about nothing. SORTA wants the city to guarantee it won’t use the transit fund for the streetcar, but City Council has already passed a resolution saying it won’t and Mayor Mark Mallory has repeatedly stated he will not use the transit fund for the streetcar. Due to the mayor’s race, the streetcar will be facing another contentious year at the ballot box, which CityBeat covered in-depth here.
More than 60 percent of Greater Cincinnati entrepreneurs are expecting a net profit in 2013. Most of them also expect to hire part-time employees, according to a new survey from the Entrepreneurs’ Organization. The survey is another sign of rising confidence in the U.S. economy.
The Dayton Daily News reports manufacturing is driving economic growth in Ohio, to the benefit of more than half of the state’s counties.
When defending Ohio's charter school and voucher programs, conservatives often tout the magic of “school choice,” but a Policy Matters report found school choice may hurt education standards in the state.
Ed FitzGerald, a popular Democrat from Cuyahoga County, is gearing up to run for the governor's race in 2014.
Scientists have taught bacteria to eat electricity. The trick could eventually be used to turn microorganisms into a biofuel source.
Gov. John Kasich’s 2014-2015 budget plan is on the horizon, and it contains “sweeping tax reform,” according to Tim Keen, budget director for Kasich. Keen said the new plan will “result in a significant competitive improvement in our tax structure,” but it’s not sure how large tax cuts would be paid for. Some are already calling the plan the “re-election budget.” Expectations are Kasich’s administration will cut less than the previous budget, which greatly cut funding to local governments and education.
Chris Monzel is now in charge
of the Hamilton County Board of Commissioners. Monzel will serve as
president, while former president Greg Hartmann has stepped down to vice
president. Monzel says public safety will be his No. 1 concern.
City Council may vote today on a plan to build the first freestanding public restroom, and it may be coming at a lower cost. City Manager Milton Dohoney said last week that the restroom could cost $130,000 with $90,000 going to the actual restroom facility, but Councilman Seelbach says the city might be able to secure the facility for about $40,000.
Tomorrow, county commissioners may vote on policy regarding the Metropolitan Sewer District. Commissioners have been looking into ending a responsible bidder policy, which they say is bad for businesses. But Councilman Seelbach argues the policy ensures job training is part of multi-billion dollar sewer programs. Board President Monzel and Seelbach are working on a compromise the city and county can agree on.
The Hamilton County Board of Elections is prepared to refer five cases of potential voter fraud from the Nov. 6 election. The board is also investigating about two dozen more voters’ actions for potential criminal charges.
King’s Island is taking job applications for 4,000 full- and part-time positions.
Ohio may soon link teacher pay to quality. Gov. John Kasich says his funding plan for schools will “empower,” not require, schools to attach teacher compensation to student success. A previous study suggested the scheme, also known as “merit pay,” might be a good idea.
An economist says Ohio’s home sales will soon be soaring.
Debe Terhar will continue as the Board of Education president, with Tom Gunlock staying as vice president.
Equal rights for women everywhere could save the world, say two Stanford biologists. Apparently, giving women more rights makes it so they have less children, which biologists Paul R. and Anne Ehrlich say will stop humanity from overpopulating the world.
Ever wanted to eat like a caveman? I’m sure someone out there does. Well, here is how.
Metal detectors could come back to City Hall, but local legislators can’t do much more regarding local gun control. Still, Vice Mayor Roxanne Qualls and other City Council members will begin pushing for more federal regulations on guns starting today. President Barack Obama is already beginning to drum up support for more regulations on guns, including a ban on assault weapons and high-capacity ammunition clips. He also wants to close a loophole that allows people to buy firearms at gun shows without background checks. At the state level, a new bill loosening gun regulations in Ohio is facing criticism. The bill will make it easier to store firearms in cars and allows them for the first time in parking garages under the Ohio Statehouse and a nearby office tower. Gov. John Kasich said he will sign the bill.
The University of Cincinnati is launching a fundraising effort for the renovation of Nippert Stadium. The project could cost as much as $70 million. The university wants to offset as much of the cost as possible to build premium seating, with the possibility of 28 new luxury boxes and more than 1,400 premium seats being added. Goals could change based on demand and fundraising efforts.
A Cincinnati-based company and its top executive have pleaded guilty to circumventing Ohio’s competitive bid process. The actions cost Ohio taxpayers tens of thousands of dollars,
according to Ohio Attorney General Mike DeWine. The company circumvented
the competitive process by submitting multiple bids on road jobs under
different names, creating the illusion of competition.
Sen. Rand Paul of Kentucky, a possible candidate for the presidency in 2016, will headline a Hamilton County GOP event. He will be a featured speaker next month at the Northeast Hamilton County Republican Club's annual pancake breakfast.
The Cincinnati College Preparatory Academy failed to follow its own compensation policies, resulting in improper over-payments of $2,325, according to Ohio State Auditor Dave Yost.
Top state officials will begin pushing and outlining school safety efforts in the wake of the massacre at Sandy Hook Elementary School in Newtown, Conn.
State Impact Ohio has a fantastic infographic showing the growth of charter schools in Ohio. In the Cincinnati urban district, charter schools now host 6,642 students.
A new state policy will automatically refund businesses when they’ve overpaid their taxes. The first round of the policy will refund businesses in Ohio $13 million.
The animal takeover continues. Due to the effects of climate change, some animals are moving into cities.
Cincinnati City Council on Friday approved a budget that relies on parking privatization as a means to plug a $34 million budget deficit while also raising property taxes in 2014.
Mayor Mark Mallory opened up the council meeting with a moment of silent prayer for the 27 students and adults killed at an elementary school in Connecticut.
“I want us all to take a moment and put into perspective what we’re doing today,” he said.
Council voted to increase the property tax by about 24 percent, from 4.6 mills (a mill is equal to one-tenth of a cent) to 5.71 mills. That means Cincinnatians would pay an additional $34 for every $100,000 of their home’s value.
The vote reverses a move made last year by conservatives on council, who reduced property taxes.
Council also passed a budget that relies on $21 million from a proposed lease of the city’s parking facilities — a deal that is expected to be voted on in March. Of the proposals submitted to the city so far, Cincinnati stands to gain $100 million to $150 million in an upfront payment and a share of the profits over the 30-year lease.
“My concern about balancing this budget with a onetime revenue source by selling our parking system seems to be ill advised,” said Independent Councilman Chris Smitherman. “We don’t know how council will vote in March … but we have tied not only the budget to this one time revenue source, but we have also tied reciprocity.”
Council nixed a plan to eliminate tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities.
Though the budget doesn’t mention parking privatization, council hasn’t mentioned other options to close the budget deficit.
If opponents of parking privatization want to keep facilities under city control, they would have to come up with $21 million in revenue elsewhere or make $21 million in cuts.
Councilman P.G. Sittenfeld suggested using casino revenue, cutting travel expenses, downsizing the ratio of managers to workers, sharing services with nearby jurisdictions and downsizing the city’s fleet as ways to cut down the budget.
Councilwoman Laure Quinlivan, long an advocate of downsizing the police and fire departments, voted against the property tax increase in protest of what she said was bloated spending on departments that were outpacing population growth.
The budget also requires Cincinnati to accept police and fire recruit classes in 2014, regardless of whether the city gets a federal grant to fund the classes.
The budget also restores the Cincinnati Police Department’s mounted patrol, which patrols downtown on horseback. The city will use $105,000 from off-duty detail fees from businesses that hire off-duty officers. Council also voted to start charging those businesses an extra $1.64 on top of the off-duty pay.
Council also voted to shift $50,000 for repairs and upgrades to the Contemporary Arts Center to pay for maintenance and beautification at Washington Park, which is operated by 3CDC.
Activists gathered on Thursday outside of the West Chester office of U.S. House Speaker John Boehner, asking the House’s top official to look at reducing military spending when coming up with a budget.
The group of nearly two dozen — which included nuns, a veteran, a retiree advocate, a small businessman and progressive activists — held signs reading, “It is time for Nation Building in the United States. Cut Massive Pentagon Budget Now!” and “End Tax Breaks for Richest 2%.”
“We’re here today in front of Speaker of the House John Boehner’s West Chester office to drive home the fact that we believe that over 50 percent of the budget magically, this elephant in the House, has failed to be discussed as we discuss taking away services that provide human needs,” said David Little of Progress Ohio.
“Any discussion that fails to address excesses in that budget is failing the American people.”
Little added that it was possible to support the troops and veterans without spending billions on pointless wars.
Butler County attorney and Navy veteran Bruce Carter said the military can be more efficient in what he called the changing mission.
“When you refuse to have a discussion on over half of the budget, that’s like trying to tell the Bengals to win a game without going over the 50 yard line,” he said.
The group had a letter to deliver to Boehner, which contained what they called a statement of principles.
“We believe in a holistic approach to the budget crisis, and in order to protect the middle-class, cuts to the Pentagon need to be at the forefront,” the letter states. “We understand that Pentagon cuts are a controversial issue, however, Pentagon cuts in the sequester do not threaten our national security.”
The letter suggests that some of the money currently being spent on the Defense Department goes to providing services for veterans.
The military accounted for about 52 percent — or $600 billion — of discretionary spending in fiscal year 2011.
In contrast, education, training and social services collectively made up 9 percent of the budget.
The group of four activists weren’t allowed into Boehner’s office, but a young staffer met them outside. He said that the speaker thought everything should be on the table when it came to budget cuts.
Redistricting reform may have died in front of voters, but will the state legislature pick up the pieces? Ohio Sen. Keith Faber, a Republican, and Ohio Sen. Nina Turner, a Democrat, say a deal is close. The senators say the task force in charge of finding a way to reform the state’s redistricting system could release a report later this week, and a public hearing is scheduled for next week. The congressional redistricting process has scrutiny for decades as politicians have redrawn districts for political gain. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County. The change was enough to dilute Cincinnati’s Democratic-leaning urban core, shifting the district from politically mixed to safely Republican.
A group in favor of President Barack Obama is taking the federal fight over taxes to a local level. Ohio Action Now is planning a Friday rally in front of U.S. Rep. Steve Chabot’s office demanding that he accept tax hikes on individuals making more than $250,000. Chabot, who represents Cincinnati’s congressional district, and other Republicans oppose the plan because it taxes what they like to call “job creators.” However, research has shown taxing the wealthy is economically better than taxing the lower and middle classes. The International Monetary Fund also found in an extensive study that spending cuts hurt economies a lot, but tax hikes barely make a negative impact. U.S. Sen. Sherrod Brown, an Ohio Democrat, is also criticizing Republicans for not accepting Obama’s tax proposal.
Hamilton County commissioners did not agree to raise the sales tax; instead, they will reduce the property tax rollback. For residential property owners, the tax hike adds $35 per $100,000 of a home’s valuation. Commissioners say either a reduction in the rollback or a sales tax hike is necessary to balance the county stadium fund, which has undergone problems ever since the county made a bad deal with the Reds and Bengals. None of the current commissioners were in office when the original stadium deal was made.
The city of Cincinnati and a city union have reached a deal on privatizing parking services. The American Federation of State, County and Municipal Employees (AFSCME) agreed not to oppose the plan after the city promised not to lay off union employees. As part of parking privatization, 25 union members will lose their current jobs, but they’ll be transitioned into other city jobs. City Manager Milton Dohoney insists parking privatization is necessary in his budget plan if the city wants to avoid 344 layoffs. The public will be able to weigh in on the budget proposal today at 6 p.m. at City Hall and Dec. 10 at 6 p.m. at Corryville Recreation Center.
Cincinnati City Council approved a resolution asking the state government for local control of fracking operations. But the resolution has no legal weight, so the state will retain control. Fracking has been criticized by environmentalists who see it as a possible cause of air pollution and water contamination. Critics also want to know what’s in the chemicals used during the fracking process, but, under state law, companies are not forced to fully disclose such information.
Ohio Gov. John Kasich and Kentucky Gov. Steve Beshear will meet Dec. 12 in Covington to discuss a study funding the Brent Spence Bridge overhaul. Some, including Greater Cincinnati’s Port Authority, have pushed for tolls to help fund the bridge project, but northern Kentucky lawmakers are strongly against the idea. The bridge, which links downtown Cincinnati and Covington, has been under heavy scrutiny due to deteriorating conditions and over-capacity.
The city of Cincinnati and web-based SoMoLend are partnering to provide crowd funding to the city’s small businesses and startups. The partnership, which was approved by the Small Business Advisory Committee, is meant to encourage job and economic growth.
The Ohio Senate will rework a bill that revamps the school report card system. The bill seeks to enforce tougher standards on schools to put more pressure on improvement, but some Democrats have voiced concerns the new standards are too tough as the state replaces old standardized tests. A very early simulation from May showed Cincinnati Public Schools dropping from the second-best rating of “Effective” under the current system to a D-, with 23 schools flunking and Walnut Hills High School retaining its top mark with an A.
The Ohio House passed a bill banning Internet sweepstakes cafes, but it’s unsure whether the Ohio Senate will follow suit. State officials say the cafes are ripe for criminal activity.
More Ohioans are seeking help for gambling problems.
A bill seeking to curb duplicate lawsuits over on-the-job asbestos exposure has cleared the Ohio Senate. Proponents say the bill stops double-dipping from victims, but opponents say it will make legitimate claims all the more difficult.
The Ohio Supreme Court declared the Ohio Department of Natural Resources (ODNR) to be in contempt for not following a court order requiring the state agency to compensate 87 landowners in Mercer County for flood damage. As a result, ODNR must complete appraisals within 90 days and file all appropriation cases within 120 days.
We’re all going to die... eventually. Someday, the Milky Way will collide with the Andromeda Galaxy, and scientists want help in finding out more about the galaxy.
It was the first opportunity council members had to publicly question the budget’s architects. The proposed budget would cover the first half of 2013. The city is switching over to a fiscal year starting in July.
Many council members expressed concern over the plan to use $21 million from a proposed 30-year lease of the city’s parking meters, garages and lots to help close a $34 million budget deficit.
“It seems like … the city budget wins, but the citizens are losing,” said Councilman P.G. Sittenfeld.
City Manager Milton Dohoney said the parking facilities net Cincinnati about $7 million a year. That would equal out to about $210 million over 30 years.
Sittenfeld called into question the wisdom of leasing the facilities for an estimated $50 million and taking half of the profit, for an earnings of about $150 million over 30 years.
Other council members expressed concern that whoever leased the parking would hike rates, something Councilman Cecil Thomas dismissed.
“The market would dictate the rates that are charged,” he said.
Dohoney said a combination of cuts, savings, revenue, projected growth and one-time funding sources helped eliminate the $34 million deficit. He said a budget containing only cuts would result in the layoff of 344 city workers.
A slide show provided by the city showed that 802 positions had been cut since 2000.
Dohoney advocated eliminating the property tax rollback promised as part of the deal to build two new sports stadiums in 1996. He said it would bring in about $9 million a year. However council has had little appetite to allow any increase in taxes as the city recovers from the Great Recession. Property taxes make up about 6 percent of the budget fund used to pay most of the city's operating expenses.
The cuts proposed in the 2013 budget include eliminating
support for public access company Media Bridges, the Downtown and
Neighborhood Gateways Program, Juvenile Firesetter Program and Arts
It would also eliminate the Cincinnati Police Department’s Mounted Patrol, which covers downtown on horseback. Dohoney said that would allow Cincinnati Police Chief James Craig to redeploy those nine officers elsewhere. Dohoney said Craig had asked for a new recruit class of 50, but Dohoney requested 30. He said the additional nine from the horse patrol would bring that closer to 40.
Dohoney said he was also allowing 10 additional recruits to cover patrols of University Hospital, which is no longer going to use University of Cincinnati police starting Jan. 1.
He said the police department would also look for ways to save money by increasing the involvement of civilian members who could do things like take reports of non-injury car accidents.
Councilwoman Laure Quinlivan asked if the budgeteers had considered restructuring the police force to save money. She has long been a proponent of “right-sizing” the police and fire forces, saying staffing levels remain at a high while the city’s population is shrinking.
The proposed budget also includes investments in business groups that promote economic development, like the Port Authority, Greater Cincinnati Partnership, Film Commission and African American Chamber of Commerce.
Councilman Chris Seelbach praised Dohoney and his budget team, saying he saw Cincinnati as being better off than it had been six years ago. But he also said he’d like to see the administration focus on people who are barely getting by instead of businesses and developers.
“There is a focus on helping people make more money that are already making a lot of money,” Seelbach said. “Helping people that aren’t paying a lot of taxes still pay very little.”
Cincinnatians can weigh in on the budget in a public hearing Thursday evening at 6 p.m.