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:
Gov. John Kasich’s school funding plan may not be so progressive after all. In his initial announcement, Kasich promised the program will be more progressive by raising funding to poorer schools, but this fact from StateImpact Ohio seems to contradict that claim: “Under the projections released by the state, a suburban district like Olentangy that has about $192,000 of property value per student would get a more than three-fold increase in state funding. Meanwhile, Noble Local, a small rural district with about $164,000 of property wealth per student sees no increase in state funding.” The Toledo Blade found Kasich’s education plan favors suburban schools. The Akron Beacon Journal pulled numbers that show rich, growing school districts will do fine under the plan. According to The Columbus Dispatch, 60 percent of Ohio schools will not see increases in funding from Kasich’s plan.
The Ohio Department of Transportation is now shying away from statutory guarantees for northern Ohio in the Ohio Turnpike plan. Originally, Kasich promised 90 percent of Ohio Turnpike funds will remain in northern Ohio, albeit with a fairly vague definition of northern Ohio. Now, even that vague 90 percent doesn’t seem to be sticking around. But the plan would still be a massive job-creating infrastructure initiative for the entire state. The Ohio Turnpike runs along northern Ohio, so changes to fees and the road affect people living north the most.
WLWT published a thinly veiled criticism of local teacher
salaries. The article pointed out Cincinnati Public Schools (CPS) pays
45 of its employees more than $100,000 a year.
Of those people, 42 are administrators and three are teachers. In
comparison, the highest paid Cleveland school teacher makes $86,000. The
article also glances over the fact CPS is “the number one urban-rated
school district in the state” to point out the school district is still
lacking in a few categories. As CPS Board President Eileen Reed points
out, a school district needs to attract better educators with higher
salaries if it wants to improve. Paying teachers less because the school
district is performing worse would only put schools in a downward
spiral as hiring standards drop alongside the quality of education.
County commissioners seem supportive of Kasich’s budget. Republican commissioners Chris Monzel and Greg Hartmann said the budget could be “revolutionary” by changing how county governments work. Democratic Commissioner Todd Portune highlighted the Medicaid expansion in the budget. As “revolutionary” as the budget could be, it’s not enough to make up for Ohio and Kasich’s troubled past.
Cincinnati Children’s Hospital was ranked the third best pediatric hospital in the United States by Parents magazine.
The Ohio-Kentucky-Indiana Regional Council of Governments is looking for comments on updating the region’s bike map. Anyone who wants a say should leave a comment here.
The upcoming Horseshoe Casino is partnering up with local hotels to offer a free shuttle service that will seamlessly carry visitors around town.
One courageous grandma stood up to an anti-gay pastor. During a sermon, the pastor outed a gay high school student and told everyone they would "work together to address this problem of homosexuality." At that point, the grandma snapped at the pastor, “There are a lot of problems here, and him being gay is not one of them.” She then apologized to the boy and walked out.
Music has a lot of effects on the brain. Here is an infographic that shows them.
Bonus science news: Earth-like planets could be closer than most people think.
New casino revenue numbers are well below 2009 estimates. State officials previously estimated Ohio’s casinos would bring in $1.9 billion a year once they were built and functional, but the latest state budget cuts that prediction by half. The new estimates are due to competition with racinos and lower-than-expected performance at casinos that are already up and running.
Gov. John Kasich announced his 2014-2015 budget, unveiling a few pleasant and unpleasant surprises for progressives. As part of the budget, Ohio is going ahead with expanding Medicaid to meet Obamacare’s financial incentives, despite Kasich’s past criticism of the national health care program. But the budget also directs higher revenues to cutting taxes, instead of making up for past spending cuts enacted by Kasich.
A Miami University fraternity’s $10 million lawsuit has been dismissed. The lawsuit accused the university of “malice, hatred and ill will” for the suspension of Phi Kappa Tau after it had a fireworks battle with another fraternity. The battle led to police discovering marijuana inside the fraternity.
Looks like Ohioans are returning to school. Some universities, including Miami, have seen a spike in the number of applications recently, despite Ohio having fewer high school graduates in the past few years. The spike is likely due to out-of-state recruiting.
City Council will vote tomorrow on whether to provide tax breaks for neighborhood projects in Walnut Hills and Linwood. The projects are focused on buildings that are apparently uninhabitable, according to the developer.
PNC Bank is set to announce a “major gift” to Smale Riverfront Park. The gift would continue a stream of private contributions to the park. Last year, Procter & Gamble donated $1 million to fund the P&G Vibrant Playscape.
Cincinnati’s tree fee will not change this year. The tree fee is paid by homeowners so the city can take care of trees in public rights of way.
Cincinnati was awarded the Audrey Nelson Community Development Achievement Award from the National Community Development Association for contributing to the renovations of the Villages at Roll Hill.
An unhappy defendant punched his own lawyer in court.
The 3-D print revolution has taken an unexpected turn: Scientists can now print human embryonic cells. The researchers hope to use the cells as ink for printed organs and tissues.
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.”
Speaking in front of Ohio school administrators Thursday, Gov. John Kasich unveiled a surprisingly progressive-sounding education reform plan that seeks to diminish school funding inequality, but it also expands Ohio’s flawed voucher program.
Kasich said the plan will not cut any school district’s funding, but it will work to reduce gaps between the wealthy and poor. Currently, the poorest school district can get $700 to $800 per pupil for 20 mills of property taxes, while the wealthiest districts can get as much as $14,000 per pupil. The plan will eliminate much of that gap, according to Kasich.
Kasich’s plan will open up extra funding for students with severe disabilities and students who need to learn English, on top of a $300 million “innovation fund” that will reward schools with grants for initiatives that improve learning and teaching.
The plan will also expand the state’s voucher program to provide private school tuition for any family below 200 percent of the federal poverty level — about $46,000 for a family of four. The vouchers, which will become available in the fall, will be worth up to $4,250 a year. Parents will be allowed to choose between participating voucher schools.
But the expansion of “school choice” through more vouchers may not be a good thing. A previous Policy Matters Ohio report found expanded school choice can have negative effects on education, including worse results for students and teachers.
Kasich justified his proposals by claiming, “The Lord is watching us as we make an effort to give our children the knowledge that they want in order to be successful and to pursue their God-given destinies.”
He also said the program is fully funded, which was made possible by extra revenue gained from Ohio’s economic rebound.
On judging his proposals, Kasich said, “We need to think about this not in isolation. We need to think about this over the course of the last couple years.”
Taking the governor at his request, his administration actually signed off on education cuts in the past couple years. Cuts Hurt Ohio, a website that tracks budget cuts enacted by Kasich, shows funding to education was cut statewide by $1.8 billion. For Hamilton County, $117 million in education funding was cut.
Kasich also helped push a few education initiatives through the Ohio legislature. During the press conference, he cited his Third-Grade Reading Guarantee, which forces schools to hold back students who aren’t “proficient” in reading. Kasich also pointed to the new school report cards, which use an A-to-F grading system to give more transparency to parents and enforce higher standards for schools.
The plan will require approval from the Ohio legislature to become law. It also may face scrutiny from courts; the Ohio Supreme Court has repeatedly ruled the state's school funding system relies too much on local property taxes.
Vice Mayor Roxanne Qualls is asking the city administration to complete construction of the streetcar in time for the 2015 Major League Baseball All-Star Game, which will be hosted in Cincinnati. A letter from Qualls to City Manager Milton Dohoney and Mayor Mark Mallory explains her reasoning: “This may present a challenge, but it is one I am sure the administration is capable of meeting. The streetcar will serve a critical role in efficiently and effectively moving visitors to and from Great American Ballpark and allowing them to conveniently visit other venues such as Fountain Square, Horseshoe Casino, Over-the-Rhine, Washington Park, etc.” CityBeat covered the streetcar’s delays and how the project relates to the 2013 mayor’s race here.
Gov. John Kasich will reveal his plan for funding Ohio schools today. The plan is expected to include a $300 million “innovation fund” to support school initiatives that improve teaching and learning. In a previous interview, Rob Nichols, Kasich’s spokesperson, explained the troubles of establishing a plan: “Many governors have tried before. Many states have been sued over their formulas. It’s something we have to take our time with and get it done right.”
City Council passed a resolution urging Kasich to expand Medicaid. Qualls explained the need for the resolution: “Expanding Medicaid will create a net savings to the state over time, allow the City’s health department to improve access to health services at lower costs, and most importantly, provide health care coverage for thousands of Cincinnati residents who need it most.” A study from the Health Policy Institute of Ohio found a Medicaid expansion would save the state money for the first few years. Previous studies also found correlations between improved health results in states and a Medicaid expansion, and a study from the Arkansas Department of Human Services claimed Arkansas would save $378 million by 2025 with the Medicaid expansion.
A new report found poverty is increasing in Ohio. About one in six Ohioans are below the federal poverty line, according to the Ohio Association of Community Action Agencies report.
About $100 million in development downtown is kicking off today. City officials and business leaders are gathering for the groundbreaking this morning of a lot at Fifth and Race streets that has idled for nearly 30 years. The lot will host the new four-story headquarters for DunnhumbyUSA.
Kasich says Ohio will continue taking Ky. jobs in the future. The rough words are Kasich's interesting approach to encouraging Ky. legislators to support the Brent Spence Bridge project.
Ohio Attorney General Mike DeWine issued a scam alert telling businesses to be wary of emails claiming to be from the Federal Trade Commission or FTC.
Miami University broke its application record.
A Wright State professor saved Cincinnati-based Kroger more than $170 million with his work on more accurate pharmaceutical predictions. The professor, Xinhui Zhang, is now one of the six finalists worldwide for the Franz Edelman Award.
Ohioans now have a phone number to report cases of child abuse or neglect: 855-O-H-CHILD, or 855-642-4453. Reports can be anonymous.
Humanity is one step closer to the inevitable robot apocalypse. GE's hospital robot can sort scalpels, sterilize tools and prepare operating rooms for surgery.
Ohio Democrats are moving to sue the state if it continues blocking access to texts from State Board of Education President Debe Terhar, a Republican from Cincinnati. The school board leader has been facing criticism for making a Facebook post that compared President Barack Obama to Adolf Hitler. The post was a picture with the caption, “Never forget what this tyrant said: ‘To conquer a nation, first disarm its citizens.’ — Adolf Hitler.” There is no historical evidence Hitler made that quote.
Despite ongoing litigation questioning its constitutionality, JobsOhio intends to move ahead with plans to sell liquor-backed bonds. The Supreme Court agreed to take up ProgressOhio’s challenge of JobsOhio last week. JobsOhio is a nonprofit private agency set up by Gov. John Kasich to drive economic growth, but bipartisan questions have surrounded its legality and constitutionality since its conception.
Hamilton County Board of Commissioners President Chris Monzel wants to change the county’s mission statement. His proposed changes would remove references to equity and add conservative language about the county government living within its means. The county is already required to balance its budget.
Ohio State University expects to save nearly $1 million a year due to wind power. The university signed a 20-year agreement in October to buy 50 megawatts annually from Blue Creek Wind Farm, the state’s largest commercial wind farm.
The city of Cincinnati is tearing down hundreds of blighted houses. The demolitions, which are being funded by a grant, are meant to make neighborhoods safer.
A Cleveland man was the first to benefit from a law that expedites payouts to those who were wrongfully imprisoned. After being imprisoned for 16 years, Darrell Houston will receive a partial judgment of nearly $380,000.
The Ohio Department of Transportation is looking at removing 34 positions. One of the potentially affected jobs is a counselor position that helped apprehend a man suspected of kidnapping two teenaged girls.
Ohio may soon require the replacement of old license plates.
The Ohio Tax Credit Authority is assisting eleven companies in investing more than $51 million across Ohio. In Hamilton County, Jedson Engineering will spend an additional $2.8 million to create 30 full-time jobs.
StateImpact Ohio has an in-depth look at Nate DeRolph, one of the leaders in school funding equality.
A new gun shoots criminals with DNA tags, which lets cops return to a suspect during less confrontational times. The guns will be particularly useful during riots, when attempting an arrest can result in injuries.
It’s Martin Luther King Jr. Day. On this day, it’s worth re-watching his I Have a Dream speech.
Local governments are hopeful they won’t see big budget cuts in Gov. John Kasich’s 2014-2015 budget.
Townships, municipalities and counties were economically hit by big
cuts in the last budget. The local government cuts added up to $1
billion on a state level, and Hamilton County shared $105 million — more
than 10 percent — of the cuts, according to Cuts Hurt Ohio. Education saw $1.8 billion in cuts statewide, with Hamilton County taking $117 million of those cuts.
Gov. Kasich announced that his state of the state address will take place in Lima, Ohio. Kasich’s speech last year was labeled “bizarre” by outlets like The Hill. During the speech, Kasich imitated a person with severe Parkinson's disorder and called Californians “wackadoodles.”
Union Terminal is falling apart. Cincinnati Museum Center executives say they need nearly $180 million for repairs. The damages are largely due to how the building was constructed. Its design lets moisture get behind bricks, which then causes supporting steel beams to rust.
The judge in the Miami University rape flier case gave a deposition Jan. 15. The document outlines Judge Robert Lyons’ reasoning for letting the rape flier case go: “What I remember about him is that there was certainly concern about his, say, his mental health and there were grounds stated on the record for the necessity of sealing the record. It had to do with his — probably as I recall, more so mental well-being than anything else.”
Former governor Ted Strickland is tired of raising campaign money, but that didn’t stop him from joining City Council candidate Greg Landsman Friday. Landsman was Strickland’s field director for his congressional campaign, and when Strickland was governor, Landsman was director of the Governor’s Office of Faith-Based and Community Initiatives.
Rumor has it the Carew Tower will be going residential, but the owners are denying it all. The denial letter, which assured current tenants they won’t be kicked out, makes reference to a “softness in the general downtown office market.”
The Greater Cincinnati Foundation made $1.3 million in grants. The grants will help a variety of businesses and groups. A $225,000 grant will go to Cincinnati USA Regional Chamber’s Minority Business Accelerator, which helps local businesses owned by minorities.
Garbage collection will be delayed by a day this week due to Martin Luther King Jr. Day.
Will the first neanderthal in 30,000 years be given birth by a human mother? A Harvard geneticist says he’s close to making it possible.
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.
Former Ohio governor Ted Strickland will not run for governor in 2014. In a statement released today, the Democrat who previously served four years as governor did not give a reason for why he won’t run. But he did promise his wife and him will “continue to be politically active private citizens.” Strickland also touted his accomplishments as governor, including energy, health care, social services and property tax reform. In September, Strickland faced criticism from the left for pushing for the Democratic platform to include a mention of God and a proclamation that Jerusalem is the capital of Israel. The platform amendment contradicts decades of U.S. foreign policy.
Hamilton County wants an efficiency review of the Metropolitan Sewer District. Republican Commissioner Chris Monzel ordered the review. He says he expects “things at the Metropolitan Sewer District are being managed and operated in a highly efficient and effective manner,” but he wants to make sure. MSD is currently taking part in a multi-billion dollar, federally mandated upgraded system. CityBeat wrote about MSD’s green initiatives here.
Findlay Market might soon host Cincinnati’s first freestanding restroom. If it goes well, it could be the start of a much bigger city-wide project, and freestanding restrooms will be built all around downtown and Over-the-Rhine. The test facility is being touted by Councilman Chris Seelbach and other city officials as they seek to provide better access to restrooms throughout the city.
Rep. Peter Beck, a Republican from Mason, is facing a possible ethics investigation from the Ohio House of Representatives. The controversy was prompted by a recently filed lawsuit, which alleges Beck participated in a fraud that cheated investors out of more than $1.2 million.
Some local educators are supporting the use of seclusion rooms in Ohio. The rooms, which are enclosed spaces used to calm or restrain children who become violent, have come under criticism after an investigation from StateImpact Ohio and The Columbus Dispatch found the rooms were being abused for the convenience of staff. Ohio does not currently regulate the use of seclusion rooms, but that is likely to change in an upcoming Ohio Board of Education meeting.
On the bright side, Ohio has the 10th best education laws, according to a study from StudentsFirst. Overall, Ohio got a C-, making it one of the 12 states to get a B or C. No state received an A. StateImpact Ohio has more on the grade here. State officials probably understand how I felt when I dropped out of a college history class because the professor was too strict of a grader. Then again, state education systems are probably more important than Colonial History 101.
The Blue Wisp, home of the greatest spinach-and-artichoke dip in the universe, is looking to renegotiate its lease. Over the holidays, restaurant hero and Blue Wisp manager Ed Felson told customers his jazz-themed restaurant and club is having financial problems.
The most emailed phrase while committing fraud at work is “cover up.”
One major problem with prolonged space missions: Humans become lazy and sleepy. It seems like being an astronaut isn’t different from any other job. Who can we rely on when aliens finally invade?