City Council may vote today on the controversial plan to lease the city’s parking assets to fund economic development and temporarily balance the deficit. On Friday, Councilman Chris Seelbach put forward Plan S, which would redirect $7.5 million in casino revenues, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or increase the city's admissions tax by 2 percent. Previously, City Manager Milton Dohoney unveiled Plan B to the parking plan, which would lay off 344 employees, eliminate Human Services Funding and close pools and recreation centers, among other changes. In response, mayoral candidate John Cranley proposed his own plan, which would use casino revenue, parking meter revenue and cuts to “non-essential programs” to tame the deficit. Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years. The parking plan was unanimously approved by the Cincinnati Planning Commission Friday, and it appears five council members are ready to give the plan the go-ahead.
Members of Gov. John Kasich’s own party are beginning to show skepticism toward the governor’s budget proposal, which would expand the sales tax to apply to more services, increase the oil and gas severance tax and make more Ohioans eligible for Medicaid — mostly at the cost of the federal government. Republicans are likely to propose alternatives before a mid-April vote. In a Quinnipiac University poll, a majority of Ohioans approved of the Medicaid expansion but not Kasich’s tax plan. CityBeat covered Kasich’s budget plan in detail here.
Police are taking measures to prevent traffic problems at the Horseshoe Casino’s grand opening tonight. Meanwhile, Indiana casinos are preparing for downturns as the Horseshoe Casino promises a major alternative to tri-state gamblers. During the soft opening last week, Ohio’s casino regulator found the Horseshoe Casino would have to fix its security and surveillance before the grand opening. Previous studies found casinos bring job growth at the cost of crime, bankruptcy and even suicide, and a Dayton Daily News report also found the state’s casinos are falling short of job projections.
On Friday, the sequester, a series of across-the-board federal budget cuts, kicked in, and it could mean big funding reductions for Ohio’s schools. The blunt cuts are largely because Republicans refuse to negotiate with President Barack Obama and Democrats — to the point that Republicans don’t even know what the president is proposing.
The American Civil Liberties Union (ACLU) of Ohio is asking the state’s Department of Education to expand its seclusion room rules to apply to charter schools. Previous reports found seclusion rooms, which were originally intended to hold out-of-control kids until they calm down, have been largely used for convenience by educators, leading to stricter policies from the Ohio Department of Education. But the regulations currently apply only to traditional public schools, not charter schools.
Reminder: On top of putting everyone around you in danger, texting while driving will now result in a fine up to $150.
The Cincinnati Zoo has confirmed it has terrible taste in names with its choice for the new four-week-old gorilla: Gladys Stones. Still, the zoo does have that whole environmentally friendly thing going on. Maybe the pros outweigh the cons.
U.S. researchers are claiming they have “functionally cured” an HIV-infected infant after extensive treatments left the virus’s presence in blood at such low levels that it can no longer be detected by standard clinical tests.
Scientists are ostracizing what Popular Science calls the “world’s sexiest octopus.”
If you can watch BigDog, the four-legged robot, toss cinder blocks with ease and not fear the robot apocalypse, you’re not prepared.
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.
For the first time since inauguration, Ohio Gov. John Kasich has a positive approval rating, but a plurality of registered voters say Kasich doesn’t deserve a second term. The Quinnipac University poll attributed the increase in Kasich’s approval rating to “high levels of satisfaction among Ohio voters with life in the Buckeye State.” About 42 percent of respondents approved of Kasich, while 35 percent disapproved. About 42 percent said Kasich doesn’t deserve a second term, while 36 percent said he does. The poll surveyed 1,165 registered voters with a margin of error of 2.9 percent.
Last night, Cincinnati held its final public hearing on City Manager Milton Dohoney’s proposed budget. About 40 people spoke during the meeting, with many voicing concern about Media Bridges funding, which CityBeat recently covered here. The budget has also come under scrutiny due to its privatization of parking services, but Dohoney says the choice is privatization or 344 layoffs.
Cincinnati plans to bolster its green building incentives. City officials are trying to amend the city’s Leadership in Energy and Environmental Design (LEED) standards to encourage higher levels of investment in green projects. Since LEED standards were first approved in 2009, they have been criticized for only offering strong incentives for lower levels of certification. The amendment seeks to make the higher levels of certification more appealing.
University Hospital is being renamed to the University of Cincinnati Medical Center.
An “anti-immigrant bill” proposed by Cincinnati’s Ohio Sen. Bill Seitz is not being received well by Innovation Ohio. S.B. 323 seeks to limit workers’ compensation to illegal immigrants, but the Ohio policy research group is not sure that’s a legitimate problem. The organization is also worried the bill will impose a regulatory burden on the Ohio Bureau of Workers’ Compensation and Ohio’s workers without providing extra funds and training to carry out the regulations.
Ohio is improving in its battle against human trafficking. The state earned a “C” and it was labeled “most improved” in a new report from the Polaris Project. But one state legislator wants to go further by placing tougher standards on “johns” participating in the sex trade. CityBeat previously wrote about the human trafficking problem in Ohio here.
The Ohio Tax Credit Authority approved enough credits to help create about 500 jobs in Greater Cincinnati.
Michigan may have recently passed its anti-union “right-to-work” law, but Gov. Kasich does not share a similar interest.
Kasich will announce his changes to the Ohio Turnpike Thursday and Friday. The governor says his proposed changes will unlock “greater wealth,” but critics are worried Kasich is about to sell off a major public asset.
Ohio Secretary of State Jon Husted is still defending his decisions during the lead-up the election. Husted has now become infamous nationwide due to his pre-election record, which CityBeat wrote about here.Even Jesus would be jealous. Science can now turn human urine into brain cells.
Policy Matters Ohio released a report Monday that gives a hint of how federal sequestration, a series of across-the-board federal budget cuts that kicked in March 1, will affect Ohio. The impact of sequestration is already being felt in various areas, including education, housing and the environment.
In Cincinnati, the Cincinnati-Hamilton County Community Action Agency plans to carry out $1 million in cuts by dropping 200 kids from the Head Start program, which helps low-income families get their children into preschool and other early education programs.
Cuts will be spread out all around the state, leading to cuts in tax incentives for renewable energy and energy efficiency, reduced research programs at major universities and the elimination of military jet flyovers at certain events.
Wendy Patton, a senior project director at Policy Matters, says the cuts are only the beginning.
“We’re just seeing the tip of the iceberg now,” Patton says, citing cuts in Chillicothe that will force the Chillicothe Metropolitan Housing Authority to serve 47 less families through the housing voucher program. “We will see this kind of information come out across Ohio’s 88 counties as the months roll by.”
In February, the White House outlined how sequestration cuts will affect Ohio in its efforts to convince Congress to stop the cuts. The White House estimated about 26,000 civilian defense department employees would have to be furloughed, nearly $6.9 million in funding to clean air and water would have to be cut and 350 teacher and aide jobs would be put at risk, among other cuts.
Even the unemployed will be hurt through cuts to unemployment insurance benefits — bad news in an already weak economy. In Ohio, about $5.3 million in federal grant money going toward unemployment insurance will be cut in a way that particularly affects the long-term unemployed, according to Pew Charitable Trusts.
“We already have a problem with the long-term unemployed,” says Zach Schiller, research director at Policy Matters. “This just makes it worse for these folks.”
An analysis from The Washington Post found employers often discriminate against anyone who has been unemployed for a considerable time during the hiring process.
The George W. Bush Presidential Library denied a request by a Democratic super PAC for documents related to Sen. Rob Portman’s work in the George W. Bush administration. The library says it is not subject to the Freedom of Information Act and that all are welcome to see the documents in 2014. The super PAC, American Bridge 21st Century, has been researching GOP candidates as Mitt Romney moves closer to choosing a running mate.
“When you look at the roster of V.P. candidates, each of them is significantly flawed,” American Bridge senior adviser Ty Matsdorf said in a statement. “For Portman, it is his calamitous record on fiscal issues while working at the Bush White House. It shouldn’t be a shock that he is going to want to keep that under wraps for as long as possible, but unfortunately it’s pretty hard to hide a record as terrible as that.”
CNN is live blogging from the Supreme Court to see if there are any rulings on the health care law or immigration.
Gay pride celebrations took place in New York, Chicago and San Francisco over the weekend, and Obama organizers were there to recruit volunteers.
Spain formally asked for European aid for its banks.
The sea level is rising faster along the Atlantic Coast than other places in the world.
Facebook has created a new “find friends nearby” function that will allow users to see friends and people they don’t know who are at events or social gatherings. From some Facebook engineer’s comments on the story:
I built Find Friends Nearby with another engineer for a hackathon project. While it was originally called ‘Friendshake’, we settled on ‘Find Friends Nearby’ for launch (the URL was a little bit of a homage to the previous iteration).
For me, the ideal use case for this product is the one where when you’re out with a group of people whom you’ve recently met and want to stay in contact with. Facebook search might be effective, or sharing your vanity addresses or business cards, but this tool provides a really easy way to exchange contact information with multiple people with minimal friction.
President Barack Obama announced a new trade action against China during a Cincinnati campaign stop on Monday, where he also took the opportunity to attack Republican challenger Mitt Romney.
The U.S. filed the case at the World Trade Organization on Monday and claims that China offers “extensive subsidies” to native automakers and auto-parts producers.
The Chinese government filed its own complaint before the WTO on Monday, challenging tariffs the U.S. imposes on Chinese products ranging from steel to tires. The tariffs are meant to protect American manufacturers against what the U.S. government claims are unfair trade practices by China.
“(The U.S. action is) against illegal subsidies that encourage companies to ship auto part manufacturing jobs overseas,” Obama said before an estimated crowd of 4,500 at the Seasongood Pavilion in Eden Park. “These are subsidies that directly harm working men and women on the assembly lines in Ohio and Michigan and across the Midwest.”
“It’s not right, it’s against the rules, and we will not let it stand. American workers build better products than anyone. ‘Made in America’ means something. And when the playing field is level, America will always win.”
Obama went on to criticize his Republican challenger, saying Romney made his fortune in part by uprooting American jobs and shipping them to China. Obama accused Romney — who has criticized Obama’s foreign policy, saying the president apologizes for American interests — of talking the talk without being able to walk the walk.
The Romney campaign countered with an email after the rally, saying that Obama’s economic policies were hurting the private sector and harmed manufacturing.
“The President’s misguided, ineffective policies have hampered the private sector and allowed China to flaunt the rules while middle-class families suffer,” Romney campaign spokeswoman Amanda Henneberg wrote.
“As president, Mitt Romney will deliver a fresh start for manufacturers by promoting trade that works for America and fiscal policies that encourage investment, hiring and growth.”
The email pointed to reports from Bloomberg finding that manufacturing and production have shrunk recently.
Before the Obama rally several Ohio Republicans held a news conference behind a Romney campaign bus near Eden Park, where they focused more on the deficit than foreign trade.
U.S. Rep. Steve Chabot said it was “laughable” that Obama considers himself a budget hawk. He pointed to the decline in budget negotiations between the president and the Republican-controlled House of Representatives, saying Obama “walked away” from talks with Speaker John Boehner.
“Basically as president from that time last August until now, it’s been all politics,” Chabot said.
Chabot also attacked Obama on foreign policy, claiming the president has left Israel hanging in the Middle East and is not serious with Iran, who he says is on the brink of getting nuclear weapons.
The president in his speech said he did have a plan to reduce the federal deficit, and would reduce it by $4 trillion over the next 10 years without raising taxes on the middle class.
Monday’s visit to Cincinnati was Obama’s second of this campaign and his 12th trip to Ohio this year. Romney has visited the state 18 times during his campaign.
Obama was scheduled to fly to Columbus Monday afternoon for a campaign appearance there.
Strategies to End Homelessness on Wednesday released its first annual progress report detailing how the organization intends to reduce homelessness in Hamilton County by half from 2012 to 2017. That means reducing the county’s homeless population of more than 7,000 to roughly 3,500 in five years.
The plan doesn’t focus on providing shelter services to the needy; instead, Strategies to End Homelessness is advocating tactics that prevent homelessness entirely and attempt to permanently address the issue.
The main strategies, according to the report: prevention,
rapid rehousing that lasts six to 12 months, transitional housing for up
to 24 months and permanent supportive housing that targets the
chronically homeless and disabled.
For the organization, the goal is to reduce homelessness by using supportive services to get to the root of the issue, whether it’s joblessness, mental health problems or other causes, and ensure shelter services aren’t necessary in the first place.
“Of the various types of programs within our homeless services system, households served in prevention were least likely to become homeless within the next 24 months,” the report reads. “Among supportive housing programs, Rapid Rehousing programs cost less, serve households for significantly shorter periods of time, and have increased long-term success compared to other supportive housing program types.”
The cost savings get to the major argument repeatedly raised by homeless advocates: If society helps transition its homeless population to jobs and permanent housing, governments will see savings and new revenue as less money is put toward social services and the homeless become productive economic actors who pay taxes.
Prevention in particular had particularly strong financial results, according to the Strategies to End Homelessness report: “In 2012, the estimated average cost per person served in homelessness prevention was $787, which is 60 (percent) less than the estimated cost of $1,322 per person served in an emergency shelter.”
Meanwhile, permanent supportive housing topped the list of costs, coming in at an average of $6,049 per person.
Despite the ambitious goals and promising results, the group’s prevention program has run into some problems. The federal government never renewed temporary federal stimulus funding that was financing a bulk of the prevention program, which cut off a major source of money starting in July 2012. Strategies to End Homelessness managed to pick up funding later in the year through the federal Emergency Solutions Grant, but the financial support is much more modest, according to the report.
Still, Strategies to End Homelessness appears undeterred. The report claims 78 percent of shelter residents transitioned to housing in 2012. The organization intends to continue prioritizing its resources to achieve similar sustainable outcomes in the next few years.
Strategies to End Homelessness is a collaborative that pools local homeless agencies, including the Drop Inn Center, Lighthouse Youth Services and the Talbert House, to tackle homelessness with a less redundant, more unified strategy.
In 2009, City Council and Hamilton County commissioners approved the organization’s Homeless to Homes Plan to “ensure that homeless people receive high-quality emergency shelter with comprehensive services to assist them out of homelessness.”
But the plan has run into some recent problems. The permanent supportive housing facility proposed for Alaska Avenue in Avondale has been met with community resistance, which convinced City Council’s Budget and Finance Committee on Monday to place a two-week hold on the project while an independent mediator helps the two sides reach a compromise.
In Cincinnati, homelessness-reduction efforts have also obtained less local support in the past decade as City Council consistently fails to uphold its human services funding goal.
Republican vice presidential candidate Paul Ryan weighed in on the controversy over replacement National Football League referees in a Tuesday town hall-style meeting in Cincinnati, comparing the Obama administration to the substitute officials who cost his home-state Green Bay Packers a victory with their botched call Monday night.
“Give me a break. It is time to get the real refs,” Ryan said.
“And you know what, it reminds me of President Obama and the economy — if you can’t get it right, it’s time to get out. I half think that these refs work part time for the Obama administration in the budget office.”
Ryan was referencing a play that should have been called an interception for the Packers but instead allowed the Seattle Seahawks to score a game-winning touchdown on Monday Night Foodball. Replacement referees — some of whom may have been fired by the Lingerie Football League for incompetence — are filling in for unionized officials who are locked out.
The vice presidential candidate spoke inside a Byer Steel warehouse surrounded by piles of I-beams and rebar. A self-proclaimed Southern gospel rock band played before the event, occasionally pausing to talk up GOP presidential candidate Mitt Romney’s conservative credentials.
Much of Ryan’s prepared speech, as well as questions from participants in the town hall, focused on the economy, the deficit and the need for changes to entitlement programs.
Asked by an audience member how he would limit government and eliminate programs, Ryan said he and Romney would spur economic growth by lessening the tax burdens on small businesses, cut discretionary spending on government agencies and overhaul entitlement programs such as Medicare, Medicaid and Social Security.
Outside before the rally, protesters called for Ryan — whose House-passed budget made deeps cuts to many welfare and safety-net programs — to have more compassion for the poor.
Meanwhile an airplane sponsored by MoveOn.org carried a banner reading, “Romney: Believe in 55% of America?” referencing comments revealed in a recent video where Romney claimed 47 percent of Americans didn’t pay any income tax and viewed themselves as victims reliant on government so it wasn’t his job to worry about their votes.
“We’re here with several messages, including the immorality of the Ryan budget and how it will impact the vast majority of Americans negatively," said David Little with the liberal advocacy group ProgressOhio. “When a budget protects those with the most and negatively impacts those with the least, I would suggest that is immoral.”
Bentley Davis with the Alliance for Retired Americans said she was concerned about what Romney and Ryan’s plans for Medicare and Social Security would do to retirement security.
Ryan had proposed to keep Medicare the same for anybody already 55 and over, but give younger Americans the choice to get money to spend toward private insurance or stay in a Medicare-like program.
Inside the warehouse was a digital sign that ticked up the national debt, which was at $16 trillion and rising.
“Here is what our government, our Congressional Budget Office, is telling us our debt is in the future if we stay on the path that President Obama has kept us on, has put us on … the debt goes as high as two and a half times the size of our economy by the time my three kids are my age,” Ryan said.
The Obama campaign fired back in an email response, saying Ryan used misleading rhetoric to hide his own record and Republican plans to raise taxes on the middle class to fund tax cuts for wealthier Americans.
“The Romney-Ryan ticket has plenty of questions to answer about a failed record on manufacturing and job creation and their support for policies that will devastate middle class families by raising their taxes and shipping jobs overseas,” Obama for America – Ohio Press Secretary Jessica Kershaw wrote.
“These policies would take the growing manufacturing industry backward, not forward.”
For some in the audience, the economy was also on the forefront.
Steve Teal, 56, of West Chester, said he doesn't like the direction the country is going in.
"Just get the country back to work," Teal said. "I don't trust him (Obama). He doesn't stand up for America. He doesn't stand up for Americans."
CityBeat writer Stefane Kremer contributed to this report.
Ryan went from Cincinnati to an event with Romney in Dayton later on Tuesday.
A new report from left-leaning Policy Matters Ohio shows the impact of state budget cuts on individual counties. Statewide, more than $1 billion in tax reimbursements and the Local Government Fund was cut between the 2010-2011 budget, which was passed by Democratic Gov. Ted Strickland, and the 2012-2013 budget, which was passed by Republican Gov. John Kasich. Additionally, Ohio’s estate tax — a tax that affected only 8 percent of Ohioans, largely those at top income levels — was eliminated, killing off a crucial source of funding. Hamilton County, its jurisdiction, schools, services and levies lost $222.1 million. Health and human services lost $23.2 million. Children’s services lost $4.6 million, and the county children’s agency services “was sent into financial crisis.” In total, more than 5,000 local government jobs were lost in the area.
The Center for Closing the Health Gap is launching a campaign to raise awareness about food deserts in Cincinnati. Food deserts are areas, particularly neighborhoods, where full-service grocery stores aren’t readily available to residents. The campaign hopes to raise awareness and funding to combat the food deserts in the Cincinnati area. With a funding target of $15 million, the organization plans to help build smaller stores with close ties to the local communities.
A new study from Cincinnati Children’s Hospital resurfaced Greater Cincinnati’s nuclear weapons legacy. Between the 1950s and 1980s, residents of nearby farm communities were unaware they were being exposed to radioactive materials in the air, water and soil from a Cold War era nuclear weapons plant, located 18 miles northwest of Cincinnati. Apparently, the exposure has led to higher rates of systemic lupus in the area.
Greater Cincinnati’s economic recovery could be slowed or boosted by policy, but it will outpace the nation’s economic recovery, according to local economists. Still, the economists caution that there is a lot of uncertainty due to oil prices, the fiscal cliff — a series of tax hikes and budget cuts scheduled to be made at the start of 2013 if U.S. Congress doesn’t act — and the fiscal crisis in Europe.
Cincinnati’s small businesses are more upbeat about the economy. Eleven percent of local family firms expect the economy to improve, but whether that translates to business expansions remains to be seen.
CityLink Center is scheduled to open today. The initial plans for the facility sought to help the homeless with health services, overnight shelter, food, temporary housing and child care. At one point, the center’s opening was threatened due to legal challenges regarding zoning.
Hostess, maker of Twinkies, says it will close down three bakeries, including one in Cincinnati, due to a national strike. According to reports, union workers walked off the job after a new contract cut their wages and benefits. Hostess insists the factory shutdowns will not affect customers.
Top Cincinnati mortgage lenders saw double-digit increases between Sept. 1, 2011 and Aug. 30, 2012. The rise is yet another positive sign for the housing market, which collapsed during the latest financial crisis and recession.
The state agency in charge of higher education released a report highlighting 20 recommendations to improve degree completion in Ohio. Some of the recommendations from the Board of Regents: Adopt more uniform statewide rules regarding college completion and career readiness, push stronger collaboration and alignment in education from preschool through senior year in college, establish a new system of high school assessment to improve readiness for college, and improve flexibility. The board will attempt to turn the report into reality in cooperation with university and state officials.
Too much school choice may be a bad thing. A new study found Ohio’s varied education system, which offers vouchers for private schools and charter schools as alternatives to a traditional public school, may have passed “a point where choice actually becomes detrimental to overall academic performance.”
The Ohio Farm Bureau (OFB) issued an action alert on Saturday telling members to oppose privatizing the Ohio Turnpike. The Ohio state government, led by Kasich, is currently studying possible plans to privatize the turnpike. In a video, an OFB member argues the current turnpike management is fine.
There are still some undecided seats in the Ohio legislature from the Nov. 6 election.
Once again, a reminder not to drive on a sidewalk to avoid a school bus.
Former George W. Bush adviser Karen Hughes says she will “cut out” the tongue of Republican men making “Neanderthal comments” about rape.
A new way to fight bacteria: coat it with a thin layer of mucus.
Despite Gov. John Kasich’s claims to the contrary, the only miracle in Ohio’s economy might be how bad the state is doing compared to the rest of the nation.
The proof: Ohio’s economy was among just two states in the
nation that actually worsened during September through November compared to August through October, according
to the research department at the Federal Reserve Bank of Philadelphia.
Beyond Ohio’s borders, Alaska also worsened, two states remained stable and the rest of the nation moved in a generally positive direction.
In other words, while 46 states’ economies moved in a generally positive direction, Ohio actually got worse.
The measures come from the State Coincident Index issued by the Federal Reserve Bank of Philadelphia every month. The index combines several economic indicators to gauge the condition of each state’s economy. The research department then gauges whether the index improved or worsened after the latest month’s data is taken into account.
With the gubernatorial election now less than one year away, the sorry state of Ohio’s economy could prove a bad sign for Gov. Kasich’s re-election.
Kasich, a Republican, came into office as Ohio’s economy began dashing out of the Great Recession stronger than most of the nation — a trend Kasich took to calling the “Ohio miracle.”
Ed FitzGerald, Kasich’s likely Democratic challenger, has criticized the claim in the past few months as Ohio’s economy showed more signs of worsening despite Kasich’s promises that his policies would keep the state in the right direction.
One of those policies was privatizing Ohio’s development agency and effectively turning it into JobsOhio. In less than three years, the agency has been riddled in multiple scandals following accusations from Democrats that the JobsOhio board hosts various conflicts of interests and lacks transparency when recommending who should get state tax credits.
Kasich also pushed and approved an across-the-board income tax cut earlier in 2013 through the two-year state budget. But because the income tax cut came with a sales tax hike, left-leaning think tank Policy Matters Ohio found Kasich’s tax cut heavily favors the wealthy, which calls into question whether the tax cut will actually help Ohio’s middle class or economy.
For FitzGerald and other Democrats, the challenge is advocating a progressive agenda that stands in contrast to Kasich’s policies. Although they have plenty of criticisms, it remains unclear what Democrats could do if — as looks almost certain — Republicans continue to hold Ohio’s legislative chambers.
Then there’s the question of whether state policies matter much, if at all. Economists generally agree that state officials tend to dramatize the economic impact of their policies when much bigger factors are at play, particularly as globalization reshapes the national and global economies.
For now, one thing is clear: Kasich’s policies haven’t been enough to turn around Ohio’s sinking economy throughout the past three months.