Politicians and economists often talk favorably about simplifying the tax code, but a June 17 report from Policy Matters Ohio found Ohio’s tax code will remain complicated under the budget plan being discussed in the Ohio House and Senate.
Meanwhile, a spokesperson for House Republicans says reform will come through separate bills later this year.
The Policy Matters report, titled “Breaking Bad: Ohio tax breaks escape scrutiny,” found the state’s tax code will include 129 tax exemptions, deductions and credits if the Senate’s 2014-2015 budget is approved — one more tax break than the previous biennium. Altogether, the Ohio Department of Taxation estimates the tax breaks will cost Ohio nearly $8 billion in fiscal year 2015.
The Senate budget repealed two tax breaks, but it simultaneously added or expanded a dozen, according to the report. Among the additions was a 50-percent income tax deduction for business owners worth up to $375,000 of annual income, which Policy Matters says will largely benefit passive investors, one-man firms and partnerships that will not add jobs.
Policy Matters found 44 tax breaks have been eliminated since 2003 because of the elimination of corporate franchise and estate taxes. But in that time frame elected officials have added and expanded so many new tax breaks that there are now only nine less tax breaks than there were in 2003.
The report claims many of the tax breaks are wasteful. One example: An almost $20 million a year exemption for pollution-control equipment purchased by utility companies. The report says most of the purchases are already mandated by the state government, which means the state is effectively paying companies to follow the law and regulations.
The report ultimately calls for thorough, regular reviews of the state’s tax breaks.
“It is time for the General Assembly to scrutinize spending through the tax code as it does other state expenditures,” said Zach Schiller, report author and research director at Policy Matters Ohio, in a statement.
At the beginning of the 2014-2015 budget process, House Speaker William Batchelder (R-Medina) and Senate President Keith Faber (R-Celina) said one of their goals was to simplify the tax code. Mike Dittoe, spokesperson for Batchelder and Ohio House Republicans, says such reform will now be pursued in separate bills, probably later in the summer or fall.
“The budget is obviously a very labor-intensive process and there’s lots of moving parts,” he says. “A lot of members of the House and Senate just want to make sure that things get done right.”
Instead of simplifying the tax code in the budget, Republican legislators are focused on passing tax cuts. The House and Senate are currently working on reconciling their separate tax plans by merging and downsizing them. The joint plan is “likely to be unveiled in its entirety here over the next few days,” Dittoe says.
The House approved a 7-percent across-the-board income tax
cut in its budget plan. But the Senate cut the House’s tax proposal and
approved a tax deduction for business owners instead. Supporters say the tax cuts will spur the economy and create jobs, while opponents claim the plans are misguided and will fail to lift the lower and middle classes.
The Hamilton County Court of Appeals refused to delay enforcement of its earlier ruling on the city’s plan to lease its parking meters, lots and garages to the Greater Cincinnati Port Authority, which will allow the city administration to sign the lease as soon as a lower court rescinds its original injunction on the plan. Six out of nine City Council members say they want to repeal or rework the deal, but City Solicitor John Curp says Mayor Mark Mallory, who supports the plan, has the power to hold any repeal attempts until Nov. 30, which means he can effectively stop any repeal attempts until the end of his final term as mayor.
City Manager Milton Dohoney told City Council yesterday that the state government will not pay for the I-71/MLK Interchange
if the city doesn’t pick up some of the cost. Dohoney made the
statement when explaining how he would use the $92 million upfront money
from the parking plan. The interchange project has long been sought out by city and state officials to create jobs and better connect uptown businesses to the rest of the area and state.
State officials told The Cincinnati Enquirer the final budget plan may include downsized versions of the tax cut plans
in the Ohio House and Senate budget bills. The House bill
included a 7-percent across-the-board income tax cut, while the Senate bill included a 50-percent income tax deduction for business
owners worth up to $375,000 worth of income. Democrats have criticized the
across-the-board income tax cut for cutting taxes for the wealthy and the
business tax cut for giving a tax cut to passive
investors, single-person firms and partnerships that are unlikely to add
jobs. Republicans claim both tax cuts will spur the economy and create jobs.
Ohio ranked No. 46 out of the 50 states for job creation in the past year, according to an infographic from Pew Charitable Trusts. Both Ohio and Alaska increased their employment levels by 0.1 percent. The three states below Ohio and Alaska — Wisconsin, Maine and Wyoming — had a drop in employment ranging from 0.2 percent to 0.5 percent.
Ohio Secretary of State Jon Husted announced 8,229 new entities filed to do business in Ohio in May, up from 7,687 the year before.
StateImpact Ohio has an ongoing series about “value-added,” a state-sanctioned method of measuring teacher performance, here. The investigation has already raised questions about whether value-added is the “great equalizer” it was originally made out to be — or whether it largely benefits affluent school districts.
The Ohio Environmental Protection Agency awarded $5,690 to the Cincinnati Nature Center for its teacher training program Nature in the Classroom. The grant will help continue the program’s goals of training first through eighth grade teachers about local natural history, how to implement a science-based nature curriculum and how to engage students in exploring and investigating nature.
Controversial Cincinnati attorney Stan Chesley yesterday was suspended from arguing before the U.S. Supreme Court.
Kings Island and Cedar Point were among the top 15 most visited amusement parks in the nation in 2012 — after the obvious hotspots in California and Florida.
Google is launching balloon-based Internet in New Zealand.
Got questions for CityBeat about anything related to Cincinnati? Submit your questions here and we’ll try to get back to you in our first Answers Issue.
CityBeat is looking to talk to convicted drug offenders from Ohio for an upcoming cover story. If you’d like to participate or know anyone willing to participate, email email@example.com.
A new poll from the Health Foundation of Greater Cincinnati found a clear majority of Ohioans supports the Medicaid expansion.
The poll asked a random sample of 866 Ohioans, "Generally speaking, do you favor or oppose expanding Medicaid to provide health insurance to more low-income uninsured adults?" About 63 percent of respondents said they favor an expansion, with a margin of error of 3.3 percent.
The poll found a partisan divide on the issue: About 82 percent of Democrats support the expansion, while 55 percent of Republicans oppose it.
The question was part of the Ohio Health Issues Poll conducted between May 19 and June 2. The University of Cincinnati's Institute for Policy Research has conducted the poll for the Health Foundation each year since 2005.
"The Health Foundation supports the expansion of Medicaid in Ohio because we believe that it will have a positive impact on the health of uninsured Ohioans who will be newly covered by Medicaid," said Health Foundation CEO Jim Schwab in a statement. "We also believe that expansion of Medicaid will have a positive impact on Ohio’s economy. This positive impact was validated in an economic impact study that the Foundation helped underwrite earlier this year. The OHIP findings show that the majority of Ohioans also support the expansion."
Under the Affordable Care Act ("Obamacare"), states are asked to expand their Medicaid programs to 138 percent of the federal poverty level, or an annual income of about $15,856 for a single-person household and $32,499 for a family of four.
For the first three years, the federal government would pay for the entire expansion. Following that, the federal government would phase down its support for the expansion to 90 percent of the costs, where it would indefinitely remain.
Earlier this year, the Health Policy Institute of Ohio released an analysis that found the Medicaid expansion would insure nearly half a million Ohioans and save the state about $1.8 billion in the next decade.
Although Gov. John Kasich supports the expansion, his Republican colleagues, who control the Ohio House and Senate, have so far passed on the expansion in budget plans and legislation.
In an April interview with CityBeat, Michael Dittoe, spokesperson for Ohio House Republicans, said the proposed federal commitment to the Medicaid expansion is unprecedented, which, according to Dittoe, makes Republican legislators skeptical that the federal government can live up to such obligations in the long term.
Bipartisan legislation introduced this week in the Ohio House and Senate would reform the Medicaid program — supposedly in a way that lowers costs without cutting services. But the legislation wouldn't take up the Medicaid expansion.
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.
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In a 2-1 ruling announced today, the Hamilton County Court of Appeals reversed an injunction holding up the city’s plan to semi-privatize its parking assets, allowing the city to move on with the plan and continue the use of emergency clauses. The plan, which CityBeat covered in further detail here, will raise $92 million in upfront money and at least $3 million in annual increments for the city, which the city planned to use to help balance the city budget and pursue a slate of development projects, including a downtown grocery store. But critics argue the plan will lead to a spike in parking rates and goes too far in expanding operating hours for parking meters, which they say could hurt downtown business. CityBeat will have more on this story later today.
City Council will vote today on whether it will move on with using $12 million in urban renewal funds to build a downtown grocery store, luxury apartment tower and parking garage to replace Pogue’s Garage. The Budget and Finance Committee already approved the project in a 7-0 vote Monday. If the full session of City Council approves the project, construction could begin late this year or early 2014, which means likely completion in 2015 or 2016.
Gov. John Kasich was unclear on whether he’ll support anti-abortion measures passed by the Ohio House and Senate in their budget bills. The governor reiterated that he’s “pro-life,” but he said he’s not sure if the measures go too far. The budget bills would effectively defund Planned Parenthood, use federal funds for pro-abstinence, anti-abortion crisis pregnancy centers and allow the state health director to shut down abortion clinics by making it more difficult for them to get required transfer agreements with hospitals.
Cincinnati Children’s Hospital ranked No. 3 in a new U.S. News and World Report for pediatric hospitals. The hospital also ranked No. 1 for pediatric cancer care.
The Catholic Archdiocese of Columbus won’t reinstate a fired gay teacher. But while Catholic institutions continue pursuing conservative social policies, some groups are pushing for the Church to reform.
New research found hands-free technology doesn’t make driving safer.
A study from Duke University found video gamers really do see more and better.
Speaking at Bowling Green State University in northwestern Ohio yesterday, Gov. John Kasich was unclear on whether he’d use his line-item veto powers to remove anti-abortion provisions from a budget bill.
When asked about the issue by a student from the University of Toledo Medical Center, Kasich responded, “First of all, I’m pro-life.” He added, “We’ll have to see how this proceeds through the House and the Senate conference committee and have just got to wait and see how it goes, then I’ll make a decision as to whether I think it goes too far or doesn’t, but keep in mind that I’m pro-life.”
The Ohio House and Senate recently passed budget bills that would defund Planned Parenthood and fund anti-abortion crisis pregnancy centers with federal funds. The Ohio Senate, which goes second in the legislative budget process, also added a provision that could be used by the state health director to shut down abortion clinics.
Under the Ohio Senate budget’s new rules, abortion clinics would be unable to set transfer agreements with public hospitals, and established agreements could be revoked at any time and without cause by the state health director. At the same time, if a clinic can’t establish a transfer agreement, it could be shut down with no further explanation by the state health director.
The rules allow abortion clinics to set agreements with private hospitals, but abortion rights advocates argue that’s much more difficult because private hospitals tend to be religious.
State regulations already require transfer agreements between ambulatory surgical facilities, including abortion clinics, and hospitals, but the Ohio Senate budget encodes the regulations into law and adds further restrictions.
Transfer agreements are typically used to provide emergency or urgent care to patients with sudden complications.
Opponents of abortion rights, including Denise Leipold of Right to Life of Northeast Ohio, have praised the budget measures for promoting “chastity” and “abstinence.”
During budget hearings, several Republican legislators said Planned Parenthood is being defunded in part because it provides abortion services.
Planned Parenthood is legally forbidden from using public funds for abortions. It currently provides the services through private donations.
Kellie Copeland, executive director of NARAL Pro-Choice Ohio, criticized the budget bills and Kasich’s lack of clarity in a statement: “This appalling agenda is out of touch with Ohio values and we need Gov. Kasich to pledge to keep it from becoming law.”
The Ohio House and Senate must reconcile their budgets through conference committee before a final version reaches Kasich’s desk. At that point, Kasich could veto the entire bill, reject specific portions with his line-item veto powers or sign the bill in its entirety.
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City Council’s Budget and Finance Committee approved a development plan for Fourth and Race streets to build a downtown grocery store, a luxury apartment tower and a garage that will replace Pogue’s Garage. The project will cost $80 million, with the city paying
$12 million through a five-year forgivable loan and private financing paying for the remaining $68 million. The city’s loan is being financed through urban renewal
funds, which are generated through downtown taxes and can only be used
for capital investment projects downtown. The project was originally attached to the city’s plan to semi-privatize its parking assets, but the city administration says the urban renewal funds opened up after a hotel-convention center deal collapsed.
The city’s pension fund saw a return of 12 percent in fiscal year 2012, but the amount of money the city owes and should contribute to the pension fund continues to go up. The higher costs will likely force City Council to put more money toward the pension, which means less money for other services. City Council has underfunded the pension system by varying degrees since 2003 — a problem that was further exacerbated by the economic downturn of 2008, which cost the city’s pension fund $102 million. Consultants suggested City Council view the pension fund as “not being of good health” and make changes that would help make the pension fund more “robust” and less volatile.
As county and state officials move to investigate and potentially prosecute 39 “double voter” cases, local groups are pushing back with warnings that the investigations could cause a chilling effect among voters. Most of the cases cover voters who mailed in an absentee ballot then showed up to vote on Election Day. Although the voters voted twice, their votes were only counted once. Critics of the investigations, including Hamilton County Democrats, cite Ohio Revised Code Section 3509.09(B)(2), which says voters who show up to vote on Election Day after filing an absentee ballot should be given a provisional ballot. Hamilton County Republicans say they’re not prejudging anyone and just want an investigation.
Following a report that found Ohio’s juvenile correction facilities are among the worst in the nation for rape and other sexual assaults against incarcerated youths, the state is assigning assessors to the facilities to ensure proper protections and improvements are being put in place.
A derailed train hit a local electrical tower yesterday, temporarily shutting down power for part of the region.
Fatal collisions between cars and trains at public railroad crossings increased in 2012 to the highest level since 2008.
The former Terrace Plaza Hotel was sold, but it’s not clear what will come next for the building.
An experimental form of male birth control involves injecting gold into testes and zapping them with infrared light.
Another one of Saturn’s moons may contain an underground ocean.
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Even without the parking plan, the city passed a budget with no public safety layoffs and is moving forward with plans for the Uptown interchange project, a downtown grocery store, a new garage to replace Pogue’s Garage, Wasson Way and the Smale Riverfront Park. The turnaround has prompted some critics to question whether city officials were being honest when they cited a list of potential problems if the city failed to semi-privatize its parking assets to raise funds, but Mayor Mark Mallory and supporters say a lot changed between the time the threats were made and now, including tax revenues coming in at $4.5 million better than projected.
The Columbus Dispatch says Gov. John Kasich has found himself “playing defense” in the current budget cycle — a sharp contrast to the budget cycle in 2011. Both the Ohio House and Senate have greatly changed Kasich’s original budget plan. Instead of taking up Kasich on his plan to expand the sales tax while lowering the rate, cut income taxes by 20 percent across the board and cut small business taxes, the House approved a 7-percent across-the-board income tax cut and the Senate replaced the House plan with a tax cut aimed at small businesses. Both chambers also rejected the Kasich-backed, federally funded Medicaid expansion and the governor’s education funding plan.
Democratic Councilman Chris Seelbach says he was yelled and sworn at for several minutes by Democratic mayoral candidate John Cranley’s campaign manager following open questions about whether Cranley is still a Democrat. Cranley has long opposed the city’s streetcar project and parking plan, which have both received support from a majority of Democrats in City Council, and tacitly supports Amy Murray, a Republican City Council candidate.
Estimates for Cincinnati’s Horseshoe Casino improved last month, coming in at $2 million more than April’s estimates. The $20 million estimate is still nearly $2 million less than the casino received on opening month.
Former mayor Eugene Ruehlman died Saturday night at the age of 88.
Ohio gas prices remain at nearly $4 this week, above the national average.
The self-proclaimed “whistleblower” who leaked details about two NSA surveillance programs has revealed himself in Hong Kong.
Apparently Kings Island is open, and Adventure Express was evacuated due to a “mechanical problem.”
The latest design for skateboard wheels is a square.
Cold War-era radiation apparently has the answer for whether adults keep making new brain cells.
In a party line 23-10 vote today, the Republican-controlled Ohio Senate approved a $61 billion budget plan for fiscal years
2014 and 2015 that takes multiple measures against legal
abortions, aims to cut taxes for small businesses and partly restores education funding cut in the previous 2012-2013 budget.
The budget plan gives a large amount of attention to
social issues, particularly abortion. Most recently, the Ohio Senate added an amendment that could be used by the director of the Ohio Department of Health to close down abortion clinics.
The amendment bans abortion clinics from establishing transfer agreements with public hospitals, forcing the clinics to make such agreements with private hospitals,
which are often religious and could refuse to deal with abortion clinics. Under the amendment, if the clinics can’t reach a transfer agreement, the state health director is given the power to shut them down.
Abortion rights groups claim the amendment will likely be used to shut down abortion clinics or force them to dissolve their abortion services.
The bill also makes changes to family services funding that effectively defund Planned Parenthood, a family planning services provider that is often criticized by conservatives for offering abortion services, even though it does so exclusively through private donations.
The bill also redirects some federal Temporary Assistance for Needy Families funds to crisis pregnancy centers, which effectively act as the anti-abortion alternative to comprehensive family planning service providers like Planned Parenthood.
The changes continue a conservative push on social issues that began in the Ohio House budget (“The Chastity Bunch,” issue of April 24).
Supporters praise the bill for “protecting life” and promoting “chastity” and “abstinence,” but critics are pushing back.
“Today the Ohio Senate turned its back on the health care needs of Ohio’s women and paved the way for family planning centers and abortion clinics to be closed across the state. If Gov. (John) Kasich doesn’t remove these provisions from the budget, the unintended pregnancy rate will rise, cancer will go undetected and women who need abortion care will not have safe, legal facilities to turn to in some communities,” said Kellie Copeland, executive director of NARAL Pro-Choice Ohio, in a statement. “This budget will put the lives of thousands of Ohio women at risk if Gov. Kasich fails to line-item veto these dangerous measures.”The Ohio Senate plan also scraps Ohio House plans to cut income taxes for all Ohioans by 7 percent and instead aims to cut taxes for small businesses by 50 percent.
Republicans claim the tax cut will help small businesses, which they call the state’s “job creators.” But conservative and liberal groups have criticized the plan.
Given that, Zach Schiller, research director at Policy Matters, says the plan will do little for Ohio’s economy.
“The fastest growing small businesses are not making money because they’re investing heavily in their operations — in marketing, research and sales,” Schiller says. “So if they’re making anything, they’re investing it by and large in the business, so they’re not likely to be able to benefit very much from this.”
He adds, “Meanwhile, you’re going to have passive investors who have no role in adding employees and partners in law firms, architecture firms, accounting firms and other kinds of professional organizations who will personally benefit from this in a way that I think is unlikely to generate more employment.”
Instead of focusing on tax cuts, Schiller argues the state should be increasing direct investments, particularly in education and human services.
“This is bad policy, and many supporters are errantly pushing it under the guise of putting more money in the hands of ‘job-creators.’ But this is based on a flawed understanding of what creates jobs,” wrote Scott Drenkard of the Tax Foundation. “The businesses that actually create jobs are not small businesses or big businesses; they are businesses that are growing. And that type of business is virtually impossible to target with a tax incentive.”
The budget plan restores about $717 million in education funding, but that’s not enough to outweigh the $1.8 billion in education funding that was cut in the 2012-2013 budget, which Kasich and the Republican-controlled legislature approved in 2011.
The education funding increases will disproportionately favor the state’s property-wealthiest districts — effectively giving the biggest funding increases to school districts that can already afford to raise more money by leveraging high local property values.
The chart shows only 15 percent of funding increases will go to the property-poorest one-third of school districts, while a vast majority of the increases will go to the property-wealthiest one-third.
Health care advocates were also disappointed to see the Ohio Senate pass on a federally funded Medicaid expansion, which would allow anyone at or below 138 percent of the federal poverty level — $15,856 for a single-person household and $32,499 for a family of four — to enroll in the government-backed health care program.
Kasich proposed expanding Medicaid in his original budget plan (“Smoke and Mirrors,” issue of Feb. 20), but Ohio legislators are skeptical of the expansion’s consequences.
As part of the Affordable Care Act (“Obamacare”), the Medicaid expansion would be fully financed by the federal government for the first three years. After that, federal payments would be phased down to capture 90 percent of the expansion, where federal funding would permanently remain.
Republican legislators, backed by Republican State Treasurer Josh Mandel, are skeptical the federal government can afford the expansion. There’s no historical precedent for the federal government failing to meet its obligations to Medicaid, but Republican legislators argue there’s also no historical precedent for the federal government backing such large Medicaid expansions across the nation.
A Health Policy Institute of Ohio study found the Medicaid expansion would save the state $1.8 billion and insure nearly half a million Ohioans over the next decade.
The budget also fails to restore local government funding cuts that have been carried out during Kasich’s time in office. In comparison to fiscal years 2010 and 2011, local governments are receiving about 50 percent less aid from the state, leading to $22.2 million less funds for Cincinnati on an annual basis (“Enemy of the State,” issue of March 20).
When asked to explain the various cuts to education and local government funding in the 2012-2013 budget, Kasich spokesperson Rob Nichols told CityBeat in September 2012, “The reality is we walked into an $8 billion budget deficit. … We had to fix that.”
The Ohio legislature and Kasich must agree on a budget plan in time for a June 30 deadline.
Here at CityBeat, we cover a lot of budget hearings, and they can very easily wear us down with their partisan squabbles and monotonous focus on details that everyone will forget about in a week or so.
Right now, we're watching the Ohio Senate budget hearings, which have so far involved Democrats repeatedly bringing up amendments only to get them shot down by the Republican majority. Very repetitive, very boring.
Thankfully, the Internet has given us the chance to take what we like to call "cat breaks." This video — arguably the greatest thing in the entire Internet — is the latest example:
We encourage you to do the same while you're at work. If your employer ever questions the practice, just point him or her to the study that found looking at cute animals actually boosts productivity.