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.But the deal did not come smoothly. Not only did Congress wait until the very last moment, but U.S. Speaker John Boehner used a naughty word. At a White House meeting, the Ohio politician shot at unfavorable comments from Democratic U.S. Sen. Harry Reid’s by telling Reid, “Go f— yourself.” In fact, Boehner actually used the naughty word twice! Reid replied, “What are you talking about?” Boehner once again said, “Go f— yourself.” Who knew U.S. Congress would turn out to be so much like high school?
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.
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.
Policy Matters Ohio is now pushing an earned income tax credit (EITC) that would benefit the state’s poor and middle class, including more than 822,000 working families. The plan could be a progressive replacement for Republican Gov. John Kasich’s proposed tax plan, which some reports claim disproportionately benefits the wealthy.
The EITC is a tax credit targeted at working people who have low to moderate income, particularly those with children. It is currently used by the federal government, 24 states and Washington, D.C.
The report from Policy Matters, a left-leaning policy research group, found a 10-percent EITC would cost about $184 million per year, producing an estimated $224 million in economic benefits, and a 20-percent EITC would cost about $367 million per year, producing an estimated $446 million in economic benefits.
If state legislators set aside Gov. John Kasich’s tax proposals, the state would be left with about $280.4 million in general revenue available for fiscal year 2014 and about $690.2 million available in fiscal year 2015, according to an analysis of Kasich’s budget bluebook. That would be more than enough money in fiscal year 2014 to pay for a 10-percent EITC, and even a 20-percent EITC would only eat up about half of available funds in fiscal year 2015.
Using a model from the nonpartisan Institute for Tax and Economic Policy, the Policy Matters report found a state EITC would benefit Ohioans making less than $51,000 per year. Under a 10-percent credit, qualifying families making less than $18,000 would get $190 on average, qualifying families making between $18,000 and $33,000 would get $323 on average and qualifying families making between $33,000 and $51,000 would get $149 on average, according to the report.
Under a 20-percent credit, benefits would be bumped up to $381 on average for qualifying families making less than $18,000 per year, $646 on average for qualifying families making between $18,000 and $33,000 and $298 for qualifying families making between $33,000 and $51,000, according to the report.
These benefits would then be spent in a way that helps families, local communities and small businesses, according to the Policy Matters report: “Families that claim the EITC use the refunds to pay for basic needs like housing, food, transportation and child care. These purchases stimulate local economies. A number of studies focusing on the economic impacts of the EITC find that small businesses and other taxes benefit from a cash infusion into the local economy.”
The report claims a state EITC would also result in a fairer tax system that better helps the state’s low- and middle-income earners, stronger incentives to work and better social and economic results for EITC recipients.
The Policy Matters report touts the federal EITC, which was created by former President Gerald Ford in 1975 and has been expanded by every presidential administration since, to support adopting a similar policy in the state: “The federal Earned Income Tax Credit does more than any other program to keep working families out of poverty. … (It) is lauded for its direct impact in keeping families with children above the poverty line, making work pay, and sending federal dollars to local communities.”
Anyone making $50,270 a year or less qualifies for the federal EITC. The tax credit is built so it particularly benefits families with children, and it “encourages families making at or near minimum wage to work more hours since the credit has a longer, more gradual phase-out range compared to other programs,” according to the Policy Matters report.
The report says the federal EITC has already benefited more than 950,000 Ohio families with an average refund of $2,238.
In previous analyses, Policy Matters found Kasich’s tax proposals disproportionately benefit the wealthy and actually raise taxes on the state’s poor and middle class (“Smoke and Mirrors,” issue of Feb. 20). But Kasich says his tax plan will cut taxes for “job creators,” particularly the state’s small businesses.
The governor’s tax proposals are facing bipartisan resistance, and the Republican-controlled Ohio House is currently considering setting the proposals aside while the rest of the budget is worked out, according to Gongwer.
In a press conference on March 14, local officials around the state, including Councilman P.G. Sittenfeld, suggested dropping income tax cuts and instead using the revenue to restore local government funding cuts, which have totaled $1.4 billion since Kasich took office.
Former Ohio governor Ted Strickland, who rose to the governorship with the help of the National Rifle Association, says gun rights and gun control can co-exist. The claim is in light of the massacre at Sandy Hook Elementary School in Newtown, Conn., which killed 20 children and six adults. Many have called for stricter gun control in light of the past year’s bouts of gun violence, but Republicans are typically opposed to such proposals. A recent poll from The Washington Post and ABC News found 59 percent of Americans support banning high-capacity ammunition clips, much like the ones used in the Newtown shooting. Another 52 percent back the ban of semi-automatic handguns.
Still, Gov. John Kasich isn’t changing his mind on the Second Amendment. He says he will sign a bill that allows guns in the Ohio Statehouse parking garage. The bill will also change the definition of an unloaded gun, allowing gun owners to carry loaded clips in their vehicles as long as they are in a separate compartment from the gun, and make concealed carry permits from other states easier to validate in Ohio.
Despite denials from city officials, mayoral candidate John Cranley and Councilman Chris Smitherman insist city government is trying to use the transit fund to fund the streetcar. But Mayor Mark Mallory in an op-ed for The Cincinnati Enquirer said it will not happen. Mallory said the dispute dates back to a lawsuit filed by Southwest Ohio Regional Transit Authority (SORTA), which runs the Metro bus system. The lawsuit demands transit funds be solely dedicated to SORTA.
Cincinnati’s U.S. Rep. Steve Chabot has vowed to continue trying to kill the streetcar. Even though voters have approved of the streetcar twice, Chabot, who also represents Warren County in district boundaries that were redrawn by Republicans, says he would rather focus federal funding on other projects, like the Brent Spence Bridge.
A conservative northern Kentucky lawmaker is supporting a bill that expands prisoners’ rights to DNA testing. The bill would allow a Cincinnati man to push for DNA testing that he claims will exonerate him of a 1987 rape and murder in Newport. Ky. Sen. John Schickel argued, “If DNA testing is good enough to send you to prison it should be good enough to get you out of prison.”
Cincinnati-based Fifth Third Bank bought another $100 million in stock from Credit Suisse International. The deal is part of a larger program to buy back 100 million shares.
Cincinnati State is in line to obtain $123,000 from the state government. The funding could create 51 new or expanded co-op jobs.
The United Way of Greater Cincinnati announced $50.7 million in investments for 2013, a slight increase from 2012. The increase will help boost funding to prepare children for kindergarten by 5 percent. It will also fund 288 programs at 146 agencies, with seven becoming new United Way agency partners.
The Prince Hall Shriners, which describes itself as “the world’s oldest African-American fraternal organization,” is returning to Cincinnati in 2015. The convention was in Cincinnati in 2011.
Duke Energy’s local management is being shaken up. Jim Henning will take over as president for Duke Energy Ohio and Kentucky.
Ohio Board of Regents Chancellor Jim Petro is retiring.
Did you know our solar system is sort of like a phoenix? It apparently rose from the cumulative ashes of countless stars, not one supernova.
In a 2-1 ruling today, the Hamilton County Court of Appeals reversed a lower court’s ruling and said the city’s plan to semi-privatize its parking assets is not subject to a referendum and may move forward.
But opponents are pushing for a stay on the ruling as they work on an appeal, which could put the case in front of the Ohio Supreme Court.
For the city, the ruling means it can potentially move forward with leasing parking meters and garages to the Greater Cincinnati Port Authority for a one-time payment of $92 million and an estimated $3 million in annual increments. The city originally planned to use the funds for development projects, including a downtown grocery store and the uptown interchange, and to help balance the city’s budget for the next two years.
But critics, including those who led the referendum efforts, are calling on the city to hold off on the lease. They argue the plan, which raises parking meter rates and expands meters’ operation hours, will hurt downtown business.
In a statement, City Manager Milton Dohoney praised the ruling, but he clarified that the city will not be able to allocate parking plan funds until potential appeals of today’s ruling are exhausted or called off.
“The City cannot commit the money in the parking plan until there is legal certainty around the funds. Once there is legal certainty, the Administration will look at the budget to determine if there are items that may need to be revisited and bring those before Members of City Council, as appropriate,” he said.
Jason Barron, spokesperson for Democratic Mayor Mark Mallory, says the city will now be able to re-evaluate current plans for the budget and other projects.
“Council will get a chance to look at the budget again and undo some of the stuff that they’ve done, but some of the cuts will definitely stay — that way we continue to move towards balance,” he says.
But first, the city must follow through with legal
processes to get Judge Robert Winkler’s original order on the parking
plan lifted, which will then allow the city and Port Authority to sign the lease.
Already, some council members are pushing back. Following the ruling, Democratic council members Chris Seelbach and Laure Quinlivan announced that they plan to introduce a motion that would repeal the parking plan.
But Barron says City Council would need six out of nine votes to overrule Mallory and other supporters of the parking plan, which he says is unlikely.
At today’s City Council meeting, Quinlivan and Seelbach were unable to introduce the motion, which has five signatures, because the motion requires six votes for immediate consideration and to overrule the mayor, who opposes a repeal. The motion also needs to be turned into an ordinance to actually repeal the parking plan.
In a statement, Democratic mayoral candidate John Cranley criticized the ruling and city. He said the plan should be subject to referendum: “This decision affects an entire generation and shouldn’t be made by people who are trying to spend a bunch of money right before an election, while leaving the bill for our kids to pay.”
Democratic Vice Mayor Roxanne Qualls, who is also running for mayor, praised the ruling in a statement.
“My goal is that proceeds from the parking proposal are used to put the city on a path to a structurally balanced budget by 2017,” she said.
Qualls said she will introduce a motion that calls on the city administration to draw up a plan that would use parking funds on “long-term investments that support long-term fiscal sustainability,” including neighborhood development, other capital projects, the city’s reserves and the city’s pension fund.
The ruling also allows the city to once again use emergency clauses, which the city claims eliminate a 30-day waiting period on implementing laws and make laws insusceptible to referendum.
Judges Penelope Cunningham and Patrick DeWine cited legal precedent and the context of the City Charter to rule the city may use emergency clauses to expedite the implementation of laws, including the parking plan.
“Importantly, charter provisions, like statutes and constitutions, must be read as a whole and in context,” the majority opinion read. “We are not permitted — as the common pleas court did, and Judge Dinkelacker’s dissent does — to look at the first sentence and disassociate it from the context of the entire section.”
Judge Patrick Dinkelacker dissented, claiming the other judges are applying the wrong Ohio Supreme Court cases to the ruling.
“In my view, the charter language is ambiguous and, therefore, we must liberally construe it in favor of permitting the people of Cincinnati to exercise their power of referendum,” Dinkelacker wrote in his dissent.
The parking plan leases the city’s parking meters and garages to the Port Authority, which will use a team of private operators from around the country — AEW Capital, Xerox, Denison Parking and Guggenheim — for operations, technology upgrades and enforcement.
The city originally argued the parking plan was necessary to help balance the budget without laying off cops and firefighters and pursue major development projects downtown.
Since then, the city used higher-than-expected revenues and cuts elsewhere, particularly to parks and human services funding, to balance the fiscal year 2014 budget without laying off public safety personnel.
City Council is also expected to vote today on an alternative funding plan to build a grocery store, luxury apartment tower and garage on Fourth and Race streets downtown. The project was originally attached to the parking plan.
Dohoney asked City Council in a statement to pursue the alternative plan today.
“We are asking Council to pass the development deal today so that the developers have the city’s commitment and can move ahead with their financing,” he said. “If we wait any longer on the parking deal, we put this deal at risk. With the housing capacity issue downtown and decade-long cry for a grocery store, we must move forward.”
CityBeat will update this story as more information becomes available.
Updated at 1:39 p.m.: Added comments from the city manager’s statement.
Updated at 2:00 p.m.: Added comments from Vice Mayor Roxanne Qualls’ statement.
Updated at 3:23 p.m.: Added results of City Council meeting.
Updated at 10:35 a.m. on June 13: Added latest news about appeal.
In its own memo released today, the city claims that the June 20 memo, which was first reported by WCPO yesterday, is outdated and makes a few technical errors.
The June 20 memo from Walker Parking Cosultants, a parking consultant hired by the city, found it will be 257 percent more expensive for the new private parking operator to run the city’s on-street parking services in comparison to what the city currently spends. It also concludes the city isn’t getting as much revenue as other cities got under their own parking leases.
“The on-street operating expenses shown in the model are projected to grow at a faster rate than operating revenues,” the June 20 memo claims. “The city should expect a private operator to run the parking system more cost effectively than the current operation, not less effectively. Therefore, revenues should be expected to increase at a rate faster than expenses, not slower.”
The memo’s numbers come through estimates provided by ParkCincy, the operating team set to take over the city’s parking meters, lots and garages following a decades-long lease agreement between the city and the Port Authority.
In particular, the memo highlights what it claims are extraordinary payments requested by Xerox under the deal: The private parking operator is asking for a $627,063 fee in 2013, putting about 14.6 percent of projected net operating income to management fees. That’s far higher than the typical 2.1 percent to 2.3 percent found in similar parking deals in other cities, according to the memo.
The city disputed the findings in its own memo this morning.
“The information that Walker used was from an early point in time; the deal was subsequently negotiated from that point to improve the deal,” wrote City Manager Milton Dohoney in his own memo. “For example, the profit margin used was based on different parking deals in other cities that are not the same as ours. As we know, the Cincinnati model is unique in many ways.”
One such trait: Cincinnati’s parking deal includes modernizing the city’s parking meters to accept credit cards and mobile payment.
The city cited a letter from the Port Authority sent to
City Solicitor John Curp during an email exchange on July 12, the same day the Port Authority was given the June 20 memo. The letter contradicted what Port Authority CEO Laura Brunner claims are inaccuracies.
“In its memo, Walker Consulting bases its comparisons on price, yet doesn’t qualify the information with what level of service capabilities are included in the price,” the Port Authority’s letter reads. “The Port Authority is basing its purchasing decisions on price, but also level of enhancement to the on-street system that mirrors the City’s desire to modernize these vital assets and position them to enhance economic development opportunities downtown and in City neighborhoods.”
Besides this “‘apples to oranges’ comparison,” the Port
Authority’s letter disputes many of the technical details behind
the June 20 memo, particularly questioning some of the measurements
used and comparisons that don’t account for differences between Cincinnati’s parking lease and other cities’ agreements. It also emphasizes that contracts with Xerox and other companies
are not finalized yet.
Much of the focus is now on why the June 20 memo was kept from City Council, the Port Authority and the public for nearly a month, given the memo’s controversial findings about a controversial deal.
“The city administration misled the public for months on the need for the deal, saying it was needed to avoid laying off cops and firefighters and then they don’t do it. Now it’s keeping vital information from the public and council. It’s a violation of the public trust of the highest order,” Democratic mayoral candidate John Cranley said in a statement. “I am urging the Port to reject this deal that is bad for the City.”
Cranley and other city officials, including several City Council candidates and council members P.G. Sittenfeld, Christopher Smitherman and Charlie Winburn, signed a letter to the Port Authority asking the city-funded agency to reject its agreement with Xerox.
The city manager’s office couldn’t be immediately reached for comment. This story will be updated if further comments become available.
The parking lease was finally signed by the city and Port Authority in June after months of political and court battles. The deal was signed even though a majority of City Council now opposes the lease after the city managed to balance its budget without the parking deal and without laying off cops and firefighters.
City Council approved the parking lease on March 6, more than three months before the June 20 memo was given to the city administration.
In return for the lease, Cincinnati is getting a $92 million lump sum and at least $3 million in annual payments, according to city estimates. The city plans to use that money to pay down future budget gaps and fund development projects, including the I-71/MLK Interchange.
Update: Clarified Port Authority didn’t receive the memo until July 12.
County Commissioner Todd Portune is proposing a 0.25 percent sales tax hike to stabilize the stadium fund and preserve the property tax rebate promised to voters in 1996. The Hamilton County Board of Commissioners will have to approve the hike before it becomes law. It would raise the county sales tax from 6.5 percent to 6.75 percent.
Portune, the lone Democrat on the three-man board, says the county got to this point after years of problems with the stadium fund’s solvency culminated into one of two options: either the sales tax goes up or the property tax rebate is rolled back. He claims the two options are the only way to keep the stadium fund stable.
Portune says the 0.25-percent increase on the sales tax will hurt low-income families less than rolling back the property tax rebate. He reasoned the impact of the property tax rollback would focus on Hamilton County residents, including low-income families, while any hike in the sales tax is spread out on anyone who spends money in Hamilton County, including visitors from around the Tristate area. He also pointed out that essentials like food and medicine are exempt from the sales tax, which gives some relief to anyone trying to make ends meet.
On support from other commissioners, Portune says Board President Greg Hartmann agreed either the rebate has to go or the sales tax has to go up, but Hartmann could not be reached by CityBeat for further comment. This story will be updated if comments become available.
Update (Nov. 29, 4:25 p.m.): Hartmann called CityBeat after this story was published. He says he has not made a final decision, but he echoed Portune's comments by saying the
“reality of the situation” demands choosing between a sales tax hike or property tax rollback. If the commissioners take the latter option, Hartmann says only a partial rollback will be necessary to draw enough funds. He also cautioned that any one-time sales and spending cuts will not be enough to stabilize the stadium fund in the long term.
Commissioner Chris Monzel says he would rather keep the stadium fund balanced for one year with short-term cuts, including a cut on further investments in The Banks development before raising taxes. After the year is up, Monzel says commissioners could see if revenue from the new Horseshoe Casino and a possible deal involving the University of Cincinnati using Paul Brown Stadium would be enough to sustain the stadium fund in the long term.
The property tax rebate and sales taxes are both generally
considered regressive, meaning they favor the wealthy more than the
poor. In simple terms, as income goes down, spending on goods and
services take bigger bites out of a person’s income. A sales tax makes
that disproportionate burden even larger.
One analysis from The Cincinnati Enquirer found the wealthy actually made more money from the property tax rebate than they were taxed by the half-cent sales tax raise that was initially meant to support the stadium fund.
For a previous story covering the stadium fund, Neil DeMause told CityBeat the stadium fund’s problems stem from the county government making a “terrible deal” with the Reds and Bengals. DeMause is a journalist who has chronicled his 15-year investigation of stadium deals in his book “Field of Schemes.”
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.
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.
Today is the end of the world. Whatever. Life sucks anyway.
Ohio’s unemployment rate dropped from 6.9 percent to 6.8 percent in November. Gains were concentrated in trade, transportation, and utilities, financial activities and educational and health services, with losses in construction, leisure and hospitality, government, professional and business services and information services. Overall, the state’s non-agricultural wage and salary employment increased by 1,600.
But could the recovery last? U.S. House Speaker John Boehner is now ditching efforts to avoid the fiscal cliff, a series of spending cuts and tax hikes set to kick in at the end of the year. Boehner could not get Republicans to vote on a tax hike for people making more than $1 million a year, which isn’t even enough to make President Barack Obama’s demand of increased taxes on anyone making more than $400,000. If the United States goes over the fiscal cliff, the spending cuts and tax hikes will likely devastate the economy. CityBeat wrote about U.S. Congress’ inability to focus on jobs here.
Ohio Gov. John Kasich finished the lame-duck session by signing 42 bills into law. The laws include loosened restrictions on gun control, an update to Ohio’s education rating system and $4.4 million in appropriations. The loosened gun control law in particular is getting criticized from Democrats in the wake of the Newtown, Conn., massacre. The law allows guns in the Ohio Statehouse garage, loosens concealed carry rules and changes the definition of an unloaded gun so gun owners can have loaded clips in cars as long as they are stored separately from guns. CityBeat wrote about the need for more gun control in this week’s commentary.
Hamilton County Prosecutor Joe Deters suggested arming teachers to avoid school shootings, but a considerable amount of research shows that doesn’t work. Cincinnati Police Chief James Craig says arming teachers is a bad idea: “Certainly we can look at other options, but when you talk about arming school teachers or a school administrator without the appropriate training, and training is not just going to a target range and being able to hit center mass. How do you deal with a crisis? We're talking about a place with children.” Craig is now pushing crisis training as a major initiative.
Meanwhile, Sen. Rob Portman says school shootings need a holistic approach. The Ohio Republican says he will consider further restrictions on guns and armed school officials.
It seems a housing recovery is well underway. Cincinnati home sales are showing no signs of a slowdown.
Cincinnati is getting six historic preservation tax credits from the state government. As part of the ninth round of the program, the Ohio Development Services Agency is giving the city credits for parts of Main Street, parts of East 12th Street, parts of East McMillan Street, Abington Flats, Eden Park Pump Station and Pendleton Apartments.
The U.S. Department of Education is looking into whether Ohio charter schools discriminate against students with disabilities. Overall, charter schools in the state enroll as many students with disabilities as traditional public schools, but students with disabilities are concentrated in a few charter schools.
A federal judge upheld Ohio’s exotic animal law, which restricts who can own the animals in the state.
Judith French, a Republican, will replace retiring Justice Evelyn Stratton on the Ohio Supreme Court. Gov. Kasich’s appointment of French keeps the court’s makeup of six Republicans and one Democrat.
Genetics is perfecting the Christmas tree.
From the Twilight Zone archives comes Arnold Schwarzenegger’s Christmas special.