The operating budget plan, which passed with an 8-1 vote, comes after months of city officials threatening to lay off cops and firefighters if the city did not approve a plan to lease Cincinnati's parking assets to the Port Authority, which city officials previously claimed was necessary to raise funds that would help balance the operating budget for two years and fund economic development projects. But the parking plan is currently being held up in court, and the public safety layoffs are being avoided anyway.
Last week, council members Roxanne Qualls and Chris Seelbach announced a budget motion that would avoid all fire layoffs and all but 25 police layoffs. The remaining 25 police layoffs are being undone through the budget motion approved today, which increases estimates for incoming revenues with $1 million that is supposed to be paid back to the city's tax increment financing fund.
Councilwoman Laure Quinlivan did not sign onto the plan, articulating concerns that the budget maneuver will make the deficit worse in 2015 and fail to structurally balance the budget.
Even with the motion, the overall operating budget plan would make cuts elsewhere and raise fees and property taxes. If the plan is approved, about 60 city employees are expected to lose their jobs in the next couple weeks.
The cuts swept through most of the city government, hitting parks, the arts, human services, parades, administrative budgets and outside agencies, among many other areas.
The operating budget portion of the property tax will also climb from 5.7 mills in 2014 to 6.1 mills in 2015, which comes out to an extra $34 for every $100,000 in property value. The latest property tax increase comes after City Council approved a hike in 2013, pushing the property tax from 4.6 mills in 2013 to 5.7 mills in 2014.
The plan would also raise fees for several city services, including fire plan reviews and admission into the Krohn Conservatory.
Multiple council members claimed the austerity was necessary because of the state government, which has cut local government funding by about 50 percent during Gov. John Kasich's time in office ("Enemy of the State," issue of March 20).
Still, Lea Eriksen, the city's budget director, previously pointed out Cincinnati has not passed a structurally balanced budget since 2001.
City Council will vote on the overall budget plan May 30. Council members Qualls, Seelbach, Pam Thomas, Wendell Young and Yvette Simpson are expected to vote in favor of the plan, giving it enough votes to pass City Council.
City Council will vote on a budget plan today that will include no public safety layoffs, but about 60 other public employees will likely be jobless as a result of the plan in a couple weeks. The budget proposal comes after months of city officials claiming public safety layoffs were unavoidable without the city's plan to lease its parking assets to the Port Authority. But the parking plan is now being held up in court, and the layoffs were avoided anyway.
CityBeat commentary: "Good News Reveals Budget Deception."
The Ohio Senate revealed a budget plan yesterday that made some major tax changes to the Ohio House proposal, but the budget will still effectively defund Planned Parenthood, fund anti-abortion crisis pregnancy centers and forgo the Medicaid expansion. The Ohio Senate plan passes on the Ohio House's 7-percent across-the-board income tax cut for all Ohioans and instead focuses on a 50-percent tax cut for small businesses. The bill also undid controversial language that forced public universities and colleges to decide between out-of-state tuition rates and providing out-of-state students with documents required for voting. CityBeat covered the conservative social policies in the Ohio House budget plan, which remain in the Ohio Senate bill, here.
Democratic gubernatorial candidate Ed FitzGerald came out in support of same-sex marriage in a May 17 interview with Outlook Columbus, putting him at odds with Republican opponent and incumbent Gov. John Kasich, who is running for re-election in 2014. Kasich previously implied support for same-sex civil unions in an interview with a local TV news station, but his spokesperson later walked back that support and reiterated the governor's opposition to same-sex civil unions and marriage. Same-sex marriage could be on the ballot in 2013 through FreedomOhio's efforts, which CityBeat covered in greater detail here.
Twenty were arrested yesterday during the Hamilton County Sheriff Department's sex offender compliance sweep.
A University of Cincinnati study found CPR training does little good, and most people do a lousy job at the life-saving technique.
Some Cincinnati businesses are taking more steps to protect their intellectual property rights in light of high rates of intellectual property theft in Asia.
The leader of the Cincinnati USA Regional Chamber of Commerce is set to leave.
A new study suggests humans began walking upright because of rock climbing.
The Ohio Senate is poised to introduce its own budget plan today, and it could forgo the Medicaid expansion and include measures to defund Planned Parenthood and fund anti-abortion crisis pregnancy centers. But how the Senate budget plan differs from the Ohio House version remains uncertain. CityBeat covered the House’s budget plan, which inspired controversy by taking a conservative turn on social issues, here.
The Legal Aid Society of Greater Cincinnati, with the help of WCPO, is hosting a “phone-a-thon” that will help enroll uninsured children into the Medicaid program. The event, which could reach up to 15,000 children in southwest Ohio, helps tackle awareness, one of the main issues governments have faced while trying to expand health care programs around the nation. Since the Legal Aid Society’s program began getting federal funding in 2009, Medicaid enrollment for children in southwest Ohio has increased by 12 percent, while the rest of the state has increased by 4 percent.
A majority of City Council is now backing the budget plan that would pull back some cuts to city parks and outside agencies
and avoid a majority of layoffs initially proposed by City Manager
Milton Dohoney, leading to only 25 police layoffs and no fire layoffs.
“The plans put forward by a council majority prioritize public safety
and essential services that keep all of our neighborhoods safe and
attack the blight that breeds crime,” Vice Mayor Roxanne Qualls said in a
statement. “Our plan also continues the city’s investment in projects
that will transform our neighborhoods through the Focus 52 fund. Despite
the budget challenges we face, we must do all we can to keep the city’s
momentum moving forward.”
CityBeat commentary on the developing city budget story: “Good News Reveals Budget Deception.”
The lawsuit over a pregnant teacher’s firing from her job at a Catholic school begins today with opening statements. The lawsuit claims the Catholic school violated anti-discrimination laws by firing the teacher after she became pregnant through artificial insemination. CityBeat covered another case of the Church firing a pregnant teacher here and a Catholic woman priest who is pushing to make the Vatican more inclusive here.
Hamilton County Prosecutor Joe Deters says five have been charged with cheating at the Horseshoe Casino, which carries a potential sentence of two years in prison.
Gas prices are back down in Ohio this week.
The Plain Dealer has an in-depth look at Democratic gubernatorial candidate Ed FitzGerald’s FBI career here.
A man died after a skydiving accident in southwest Ohio Sunday.
The Vatican let everyone know over the weekend that atheists are still going to Hell.
Popular Science has a list of the 10 coolest species discovered in 2012 here.
A group is ordaining Roman Catholic women priests despite Vatican opposition, and Debra Meyers will be Cincinnati's first woman to go through the ordination on May 25. Meyers told CityBeat the Association of Roman Catholic Women Priests' movement is about pressuring the Catholic Church to be more inclusive, including with women, LGBT individuals and other groups that may feel left out by the Church's current policies. The full Q&A with Meyers can be read here.
In the latest budget plan, Councilwoman Laure Quinlivan is asking all city employees, including cops and firefighters, to take eight furlough days, which she says would save enough money to prevent all layoffs. That plan follows a motion co-sponsored by council members Roxanne Qualls and Chris Seelbach, which would eliminate all fire layoffs and reduce police layoffs to 25.
Hamilton County commissioners voted to stop all sewer projects yesterday in opposition to the city's "responsible bidder" policy, which requires most contractors working with the Metropolitan Sewer District (MSD) to have apprenticeship programs. City Council, spearheaded by Seelbach, passed the measure to encourage more job training options for workers, but the county government says the measure is unfair and puts too much of a strain on businesses working with MSD. The issue will likely head to court.
Commentary: "Good News Reveals Budget Deception."
At last night's budget hearings, Councilman Charlie Winburn repeatedly brought up the city's so-called "credit cards," which are really procurement cards that are often used by the mayor to entertain and attract businesses to Cincinnati. Winburn says the use of the cards is outrageous when the city is considering laying off cops and firefighters, and Councilman Chris Smitherman says the system needs more controls. The cards are set up so they can only be used by city employees for certain services, and City Manager Milton Dohoney Jr. says the cards make the system more efficient, which means lower prices for the city.
A bill in the Ohio House revives the Medicaid expansion, which was previously opposed by Republicans as part of the budget process. Gov. John Kasich is one of the top Ohio Republicans who supports the expansion, but it's unclear how far the bill can move this time, considering many Republicans are still opposed. CityBeat covered the expansion, which would insure half a million Ohioans and save the state money in the next decade, in further detail here.
The Ohio General Assembly passed a bill
yesterday that would effectively ban Internet "sweepstakes" cafes,
which state officials say are prone to illegal gambling activity. State
Sen. Bill Seitz, a Cincinnati Republican, says the bill is a "shoot ‘em
and let God sort it out" approach because the bill generalizes against
all Internet cafes instead of imposing specific regulations that would
only target offenders. If Kasich signs the bill, it will become law.
The Ohio Public Interest Research Group, a nonprofit advocacy group, submitted 589 petitions to the Ohio Senate opposing a measure that would force Ohio's public universities to decide between $370 million in out-of-state tuition revenue and giving out-of-state students documents required for voting. The measure was originally sneaked into the Ohio House budget plan, but Senate officials are removing it from the budget bill and appear likely to take it up in a standalone bill. CityBeat covered the original measure here.
Greater Cincinnati home sales are continuing picking up. There 2,388 homes
sold in the region in April, up 22.65 percent from the year before —
even better than March's 13.5-percent year-over-year rise.
Researchers are now suggesting rubbing a certain kind dirt on wounds.
The White House announced today that Councilman Chris Seelbach has won the Harvey Milk Champion of Change award, which recognizes 10 community leaders around the nation each year for a commitment to equality and public service.
Seelbach, Cincinnati's first openly gay council member, won the award after he was nominated by the the Gay, Lesbian and Straight Education Network (GLSEN). He will officially receive the award at a ceremony at the White House on Wednesday.
"I am humbled and proud to be recognized by the White House for my efforts on City Council and extremely grateful to the people of Cincinnati for giving me the opportunity to effect positive change in our community. In order to create a city where more people want to live, work and raise a family, we must continue fighting to make sure all people feel welcomed, valued and respected," Seelbach said in a statement.
The award recognizes Seelbach's accomplishments, but it also shows Cincinnati's progress in the past few years.
During Seelbach's time in office, the city's police and fire departments created a LGBT liaison.
Most recently, Seelbach co-sponsored a motion that will help avert police and fire layoffs in the fiscal year 2014 budget plan. He also spearheaded "responsible bidder" changes that require bidders on most Metropolitan Sewer District projects to offer apprenticeship programs.
The Harvey Milk Champion of Change award is named after Harvey Milk, who became California's first openly gay elected official when he was elected to the San Francisco Board of Supervisors in 1977. He was assassinated on Nov. 10, 1978 — only 10 months after he was sworn into office.
Mayor Mark Mallory will deliver his operating budget proposal to City Council today after making changes to the city manager’s proposal, which hikes property taxes and lays off 201 city employees, including cops and firefighters. City Council will then be able to change and give final approval to the budget plan before June 1. Some of the cuts may hit parks the hardest, but city administration officials are cautioning that they did not recommend the specific cuts being outlined, and it’s up to the Cincinnati Parks Board to decide which areas the cuts will impact. The city planned to help balance its $35 million operating budget deficit with the parking plan, but that plan is currently being held up in court.
The Greater Cincinnati Homeless Coalition is speaking out against the settlement to sell the Anna Louise Inn to Western & Southern for $4 million. “What has been served today is not justice nor moral on the part of Western & Southern, and we will push for a day when Western Southern recognizes their wrong-doings, asks for forgiveness and turns to doing good,” said Josh Spring, executive of the Homeless Coalition, in a statement. The group is asking supporters of the Anna Louise Inn to meet at the Mt. Auburn Presbyterian Church Friday at 6 p.m. to discuss further action.
City Council is likely to keep its ability to call votes on different items in larger ordinances and motions after seemingly failing to get support from six elected council members. Councilwoman Yvette Simpson, who proposed the changes, says the power is confusing because there’s no hard standard set for what is separable, but Councilwoman Laure Quinlivan, who has used the power before and supports it, says the rule retains choice and flexibility. City Council is currently reviewing many of its procedural rules, according to Simpson.
Ohio’s third grade reading guarantee was reworked by the Ohio House in part to relax standards for teachers. Previously, the law mandated teachers providing reading guarantee services to have taught the subject for at least three years, which critics of the law previously called “impossible to meet.”
The Ohio House is slowing down with its Internet cafe moratorium bill while the Ohio Senate works on its bill that would effectively ban the businesses altogether. State officials, particularly Attorney General Mike DeWine, have warned that Internet cafes are prone to criminal activity, but supporters say the businesses are just providing a demanded service.
The National Transportation Safety Board is recommending states strengthen drunken driving standards from a blood-alcohol limit of 0.08 percent to 0.05 percent.
Here is the science behind hating nails on a chalkboard.
At a Budget and Finance Committee meeting today, City Council members grilled City Manager Milton Dohoney Jr. on how the city will fix the streetcar project’s $17.4 million budget gap and whether paying for the cost overrun to save the project is worth it.
Supporters of the streetcar pushed questions and comments that suggested the streetcar will provide the city with a large return on investment, which was supported by Dohoney’s testimony and previous studies from HDR, a consulting firm, and the University of Cincinnati (“Back on the Ballot,” issue of Jan. 23).
Opponents suggested the cost overruns were too much, and the project, which the city manager said now stands at an estimated $132 million to $133 million, is too expensive.
In a memo issued April 30, Dohoney recommended various capital funding sources to fix the streetcar budget gap, including a temporary reallocation of Music Hall renovation funds and money that would have otherwise gone to infrastructure projects around the Horseshoe Casino.
Dohoney clarified that funding for Music Hall is not being permanently pulled; instead, his recommendations would delay Music Hall funding until 2016, which is when the Music Hall project will need the funds, and use currently allocated funding on the streetcar project.
Dohoney added that Otto Budig, president of the Music Hall Revitalization Company, raised no concerns about the streetcar plan after it was explained to him.
Dohoney also clarified that his recommendations would not raise taxes.
A few council members, particularly Councilman Chris
Seelbach, asked whether the streetcar project could face future cost
overruns. Dohoney said it’s possible, based on the project’s scope.
“For major projects like this … there is usually an anticipation that something other than the exact plan may occur somewhere along the line,” Dohoney said.
For the streetcar project, there are a few remaining uncertainties. Dohoney said he doesn’t know for certain whether Messer
Construction, which responded to the city’s bid process with the lowest construction bid, is still willing
to contract with the city under the terms it previously offered. He said Messer officials have indicated they are still interested, but it remains an uncertainty until a contract is in place.
Another uncertainty is exactly how much laying down the tracks will cost. Dohoney said it won’t be possible to gauge the exact cost until Messer or any other company contracts with the city and begins actual work on the project.
But for those situations, Dohoney said the streetcar project has a $10 million contingency fund available, as required by the federal government.
Councilman Chris Smitherman, who opposes the streetcar project, asked whether there’s a funding ceiling that, if breached, would make Dohoney stop supporting the streetcar project. Dohoney said he could not provide a number without further thought and analysis. When Smitherman later asked if the streetcar should be built at any cost, Dohoney said no.
When asked what would happen if the project’s cost overruns were not covered, Dohoney said the project would effectively end.
Smitherman asked how the city administration can be pushing forward with the project, given the cost overruns: “How is the administration continuing to move forward with a project that without a vote of council is dead?”
Dohoney responded by saying the city administration does not have to stop by law until it is directed to do so by City Council.
Ending the project would come with its own costs of about $72 million, according to Dohoney: $19.7 million that was already spent, $14.2 million in close-out costs and $38.1 million in federal grants that would have to be returned to the federal government.
Dohoney said stopping would also make the federal government reluctant about working with Cincinnati in the future: “They’ve let us know they would not be pleased if we did it.”
The city administration is currently working with the federal government to obtain another $5 million that could be used for contingency or to undo some of the overrun fixes being looked at, but federal officials are waiting to see how the city government reacts to the current cost overrun problems before a decision is made, according to Dohoney.
Much of the City Council discussion focused on the streetcar’s merits,
particularly whether the first phase of the project, which would run
from The Banks to just north of Findlay Market, could be successful on its own. The
city plans to eventually expand the route to the University of
Cincinnati and hospitals uptown — a route originally part of the first phase of the streetcar project that was cut after Gov. John Kasich pulled $52 million in state-distributed federal funding in 2011.
“If the intent of the streetcar would only be to go from The Banks to just north of Findlay Market, then I never would have said it's a project worth doing,” Dohoney said. “The intention has always been to connect the two major employment centers of the city and go beyond that.”
But Dohoney later clarified that the first phase of the project would help invigorate hundreds of vacant lots and buildings in Over-the-Rhine, which he said would make that phase of the project a success by itself.
Some opponents of the streetcar have incorrectly attempted to tie the streetcar project to the city’s $35 million operating budget deficit, which will likely be closed in part by laying off cops, firefighters and other city employees. But the streetcar project’s funding comes from the capital budget, which can’t be used to balance the operating budget because of limits established in state law.
Councilman P.G. Sittenfeld is asking Cincinnatians to take part in the Greater Cincinnati Day of Fasting today and put off lunch to help support the Freestore Foodbank. Sittenfeld’s office said in a press release that the event will allow participants to “experience a small measure of the hunger that is a part of many people’s daily lives.” There will be a ceremony for the event at noon in Fountain Square, where participants will be able to donate to the Freestore Foodbank.
March was another decent month for jobs in Cincinnati, with the seasonally unadjusted unemployment rate dropping to 7.5 percent, down from a revised 7.9 percent in February and 8 percent in March 2012. Michael Jones, research director at the University of Cincinnati Economics Center, says most of the job growth is attributable to Cincinnati’s growing health care services, but manufacturing has also provided a local boon.
An anonymously posted video questions the legitimacy of some parking plan referendum petitions, but so far no formal challenges have been filed against the referendum effort. Even if somebody were to file a challenge, Hamilton County Board of Elections Chairman Tim Burke says it would required a lot — nearly 4,000 signatures — to halt a referendum: “Because they are so far over, there’s going to have to be more evidence by any petitioner that there are problems well beyond those five or six sights shown in the video.”
There is now a local effort to embrace the Cincinnati Preschool Promise, a private-public partnership that would get more local children in preschool. The current goal is to get 25 to 50 children in preschool in a pilot program this fall. Studies show preschool is one of the best investments that can be made for the economy in the long term. Local preschool services were recently cut as a consequence of federal sequestration, a series of across-the-board federal spending cuts that began March 1.
UC President Santa Ono is recommending the school freeze in-state tuition for the next school year — a measure the UC Board of Trustees will consider in June. Ono also said he will not take a salary increase or bonus for the next two years, and he is asking the school to sell the presidential condo and use the money to pay for scholarships.
While testifying to legislators reviewing his two-year budget request, State Treasurer Josh Mandel said his office has been targeted by cyberattacks, and the technology currently available to his department is not good enough to hold off the attacks.
Humana will hire 60 people for its customer service center in downtown.
Brain cells will control the power plants of the future.
In a press release, Mayor Mark Mallory proclaimed today Zips’ Cafe Day because the restaurant is finally adding bacon to its cheeseburger lineup.
The Democratic Party’s nominating committee announced who it’s supporting for City Council Friday: Greg Landsman, who heads the Strive Partnership and worked for former Gov. Ted Strickland; Shawn Butler, Mayor Mark Mallory’s director of community affairs; Michelle Dillingham, a community activist; and the six incumbents, which include Laure Quinlivan, Chris Seelbach, Yvette Simpson, P.G. Sittenfeld, Pam Thomas and Wendell Young. The nominations still have to be approved by the Cincinnati Democratic Committee.
Petitioners against the city’s parking plan are supposed to get their final tally on referendum today, but a new video shows at least some of the petitions may have been signed without a legitimate witness, which are needed to validate a signature. The Hamilton County Board of Elections announced Thursday that petitioners had met the necessary threshold of 8,522 signatures, but the video casts doubts on whether those signatures were legitimately gathered. The city wants to lease its parking assets to help balance the deficit for the next two years and fund development programs around the city (“Parking Stimulus,” issue of Feb. 27), but opponents worry higher parking rates and extended hours will harm the local economy. Here is the embedded video:
The Ohio Senate could restore Gov. John Kasich’s tax, school funding and Medicaid plans when it votes on the biennium budget for 2014 and 2015. Kasich’s tax and education funding plans were criticized by Democrats and progressive groups for favoring the wealthy, but the Medicaid expansion, which the Health Policy Institute of Ohio says would expand Medicaid coverage to 456,000 low-income Ohioans and save the state money, was mostly opposed by state Republicans. CityBeat covered Kasich’s budget in further detail here.
New polling from Quinnipiac University found a plurality of Ohio voters now support same-sex marriage rights — granting promising prospects to Freedom Ohio’s ballot initiative to legalize same-sex marriage in the state this year.
An audit on JobsOhio could take months, according to State Auditor Dave Yost’s office. Gov. John Kasich was initially resistant to a full audit, but Yost eventually won out, getting full access to JobsOhio’s financial records. JobsOhio is a privatized development agency that is meant to eventually replace the Ohio Department of Development.
In response to not getting a Democratic endorsement for his City Council campaign, Mike Moroski, who was fired from his job at Purcell Marian High School for supporting gay marriage, launched the Human Party.
Cincinnati received an “F” for business friendliness in the 2013 Thumbtack.com U.S. Small Business Friendliness Survey from the Ewing Marion Kauffman Foundation.
Embattled attorney Stan Chesley will no longer practice law in Ohio. Chesley, who has been criticized for alleged misconduct, was recently disbarred in Kentucky. He recently resigned from the University of Cincinnati Board of Trustees after being asked to in a letter from fellow board members.
Ohio gas prices are shooting back up.
PopSci has an infographic showing sharks should be much more scared of humans than humans should be afraid of sharks.
In a memo to the mayor and City Council members last night, City Manager Milton Dohoney Jr. revealed the streetcar is facing a $22.7 million shortfall because construction bids were way over budget. The memo says $5.3 million of that budget gap could be brought down through cuts, but fixing the rest requires $17.4 million in additional funds. The memo comes at a time the city is attempting to balance its operating budget by laying off cops and firefighters. But as John Deatrick explained when the city moved to hire him for the streetcar project, the streetcar is part of the capital budget, which is separate from the operating budget and can't be used to balance the operating budget because of legal and traditional constraints.
The budget bill heading to the Ohio House floor would ban comprehensive sex education, defund Planned Parenthood and fund crisis pregnancy centers that pro-choice groups consider "anti-choice." Citing "gateway sexual activity," the bill would open teachers to up to $5,000 in fines for explaining the use of condoms and other birth control to students, and it also bans the distribution of any birth control on school grounds. The bill takes its anti-contraceptive measures to promote an abstinence-only education program. Research has found abstinence-only programs to be generally ineffective, while birth control programs ultimately save money by avoiding costly pregnancies and sexually transmitted infection treatment.
Councilman Cecil Thomas is stepping down, and he will be replaced by his wife of 32 years, Pam Thomas. The appointment has raised questions about how council members are replaced upon resignation, but Thomas says he's just following the rules. Under the current system, designees appoint successors to council seats, but the designees give great weight to the incumbent's input.
JobsOhio repaid $8.4 million to Ohio yesterday — fulfilling a promise it made in March that it would fully repay the state for public funding received since it opened on July 5, 2011. The sum is much higher than the $1 million state officials originally said would go to the agency. JobsOhio's finances came under criticism after it was revealed that Gov. John Kasich was redirecting public funds to the agency, prompting a closer look from State Auditor Dave Yost. JobsOhio is a privatized development agency that Kasich and Republicans established to eventually replace the Ohio Department of Development.
In light of the Boston Marathon bombings, Flying Pig Marathon organizers are evaluating security measures, but they're not sure whether additional measures are needed just yet. The Flying Pig Marathon is expected to draw more than 20,000 participants on May 5 — close to the 23,000 who typically attend the Boston Marathon. Still, only about 150,000 spectators are expected at the Flying Pig Marathon, while about 500,000 typically spectate the Boston Marathon.
City Council is expected to vote today in support of expanding mobile food vending in the city and make the program, which is handled by 3CDC, permanent. The new mobile vending spots will be near nightlife areas in Over-the-Rhine and during the day at Washington Park.
TriHealth and Mercy Health are among the top 15 hospital systems in the United States, according to a new ranking from Truven Health Analytics.
When renewing its contract with Sedgwick Claims Management Services Inc., Kroger asked the company to move its center from Des Moines, Iowa, to Cincinnati, bringing an estimated 55 new jobs to the city.
New surgical tape works like a parasitic worm for extra stickiness.
For the first time, scientists are being allowed to study psychedelics for potential medical treatments.
The Federal Transit Administration (FTA) will allow Cincinnati to keep $44.9 million in federal grants for the $132.8 million streetcar project until midnight on Dec. 19 while the city reviews the costs of canceling or completing the project, Mayor John Cranley announced on Facebook on Friday.
The FTA's decision gives the city two weeks to assemble a team and conduct its audit, which a slim majority of City Council agreed to do on Wednesday when it put the streetcar project on pause.
Without the federal grants, the streetcar project would have lost one-third of its funding and presumably died, even if a majority of City Council decided it wants to continue with the project.
The city is currently working to hire KPMG, an audit, tax and advisory firm, for the audit, according to Jay Kincaid, Cranley's chief of staff.
Council members David Mann and Kevin Flynn in particular asked for the review before they make a final decision on the streetcar.
Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants.
Mann and Flynn were among a majority of council members who voiced distrust toward Deatrick's estimates, hence the need for an independent review.
But the review might not matter if Cranley decides to veto any ordinance continuing the streetcar project, which Kincaid said Cranley would do if he deems the project too costly following the audit.
A mayoral veto would require both Flynn and Mann to help provide a supermajority — six of nine council votes — to save the streetcar. That could prove a considerably higher hurdle than a simple majority of five council members.
Update: Added who the city plans to hire for the audit.
Cincinnati Parks Department Director Willie Carden, Mayor John Cranley's choice for city manager, has withdrawn from the nomination process, the mayor's office announced on Friday.
The mayor's office said it will keep Acting City Manager Scott Stiles in his current role while it launches a nationwide search for a permanent replacement.
"After consulting with my family, we have come to the personal, private decision that it is best for me to remain as the director of the Parks Department," Carden said in a statement. "John Cranley is going to be a great mayor and this is a difficult decision for me. But it’s simply about what is best for me and my family. As a personal matter, I would ask that you respect our family's privacy."
Carden's nomination initially drew wide praise from City Council, but it was snared in controversy after Carden said he will continue to live outside Cincinnati — a violation of the city charter. The Cincinnati Enquirer also uncovered an ethics probe that found Carden wrongfully took pay from both the city and the private Parks Foundation.
Councilman Chris Seelbach responded ambivalently to the news, praising both Carden and the decision to go through a national search.
"Although I would have supported Willie Carden as the permanent city manager, I'm glad to see we are now going to undertake the process we should have taken all along," Seelbach posted on Facebook.
When Cranley announced the nomination on Nov. 27, the Charter Committee, Cincinnati's unofficial third political party, criticized Cranley for not undertaking a transparent national search prior to his decision.
City Council's Rules and Audit Committee almost considered Carden's nomination on Tuesday, but the decision was delayed for a week to give council members time to interview Carden one-on-one and evaluate ordinances for the nomination.
Mayor John Cranley might veto an ordinance continuing the $132.8 million streetcar project, even if a majority of City Council wants the project to continue after its costs are reviewed through an independent audit, said Jay Kincaid, Cranley’s chief of staff, on Friday.
The decision means six of nine council members — a supermajority — might be required to overturn a mayoral veto and continue the streetcar project. With only two perceived swing votes on council, that could prove a considerably higher hurdle than a simple majority of five council members.
“Of course he reserves the right to veto the legislation,” Kincaid said.
If Cranley reviews the numbers and decides that the project is too costly, he will use the veto powers provided to him through the city charter, Kincaid explained.
Kincaid’s response came after CityBeat confirmed with City Solicitor John Curp that continuing the streetcar project would require a new ordinance that, in theory, could be vetoed by the mayor. City Council can overcome a mayoral veto with a supermajority, or six of nine total council votes.
When CityBeat talked to Kincaid the day before he confirmed Cranley’s willingness to veto, Kincaid speculated that Cranley would not veto legislation continuing the streetcar project.
“I have not talked to (Cranley) about it. I assume that he would let it go forward since he gave (Councilman) David Mann his word that he would give this time to review it, and he gave the same assurance to (Councilman) Kevin Flynn,” Kincaid previously said.
Five of nine council members on Wednesday agreed to allocate $1.25
million to indefinitely pause the streetcar project and pay
for an independent study that will gauge how much it will cost to
continue or permanently cancel the project.
Streetcar Project Executive John Deatrick previously warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grants that would be lost if the project were terminated.
Almost immediately, a majority of council voiced distrust toward Deatrick’s numbers. In a press conference following Deatrick’s presentation, Cranley called city officials in charge of the streetcar project “incompetent.”
Council members Flynn and Mann vocally opposed the streetcar project on the campaign trail. But both said they’ll make a final decision on the project once the cancellation and completion numbers are evaluated through an independent review.
Mann previously told CityBeat, “If they do hold up, that’s fairly persuasive.”
Flynn wouldn’t speculate on what stance he will take if the numbers stand to scrutiny. He said a pressing concern for him is how the city will pay for $3.4-$4.5 million in annual operating costs for the streetcar, which could hit an already-strained operating budget.
If Cranley vetoes an ordinance continuing the streetcar project, both Flynn and Mann would likely need to agree to continue — or at least overturn a mayoral veto — to keep the streetcar alive.
City officials estimate the review will take at least two weeks. Once the audit is finished, council members are expected to announce their final positions on continuing or canceling the project.
Update: Mayor John Cranley on Friday announced the federal government is giving Cincinnati until Dec. 19 to make a decision on the streetcar project. Read more here.
This story was updated to better explain that Jay Kincaid’s second direct quote came from a separate conversation on Thursday, the day before he announced Mayor John Cranley’s willingness to veto.
Streetcar Project Executive John Deatrick yesterday said only 11 streetcar workers are expected to lose their jobs following City Council’s pause of the $132.8 million project, far below the original estimate of 200 city officials gave on Monday. The remaining workers will be moved by contractors to other jobs or kept under ongoing utility work, which utility companies agreed to continue despite no longer qualifying for reimbursements from the city, according to Deatrick. He also said it’s “a wild guess” whether the number of layoffs will grow in the future.
Cincinnati should expect to return up to $44.9 million in federal grants funding nearly one-third of the streetcar project even though the project is only on “pause” as local officials weigh the costs of cancellation and completion, according to transportation experts who talked to The Cincinnati Enquirer. Without the federal grants, the project is effectively dead. The two swing votes on council — David Mann and Kevin Flynn — say they want to evaluate whether it would make financial sense to cancel the project this far into construction. Deatrick previously estimated the costs of cancellation could nearly reach the costs of completion after accounting for $32.8 million in sunk costs through November, $30.6-$47.6 million in close-out costs and $44.9 million in lost federal grants. But Mann and Flynn voiced distrust over the projections and called for an independent review.
Democrats and voter advocates claim Republican legislators are slowly rebuilding “voter suppression” laws that were the subject of referendum in 2012 before Republicans backed down. Democrats called on Gov. John Kasich to veto the bills. Among other measures, the bills would reduce the amount of in-person early voting days and restrict elected officials’ ability to to mail out unsolicited absentee ballot applications. Democrats claim the bills are meant to suppress voters. Republicans argue the measures help reduce “cheaters,” even though in-person voter fraud is very rare.
Chris Finney, a high-profile lawyer who is critical of local tax breaks for businesses, apologized for denying that he sought tax breaks for his law firm. Finney sought the tax breaks shortly after criticizing Cincinnati for granting a tax incentive package to convince Pure Romance to move from Loveland, Ohio, to downtown Cincinnati. Finney is the top legal crusader for the Coalition Opposed to Additional Spending and Taxes (COAST), a conservative group with a history of anti-gay causes.
Tea party group One Percent for Liberty nominated Mayor John Cranley as a “Defender of Liberty for 2013” for his work against the streetcar project and parking privatization plan. The group previously nominated various conservative politicians and activists from around the region. The award will be presented at COAST’s Christmas party.
Hundreds of schools and businesses in the Cincinnati area today closed in response to the developing winter storm.
St. Elizabeth Healthcare and TriHealth, two of the areas’ largest health systems, yesterday announced they’re teaming up to reduce costs, improve the patient experience and generate better health outcomes.
Attorney General Mike DeWine yesterday announced he will crack down on electronic raffle operations.
Nelson Mandela, a South African icon of peace, died yesterday. Mandela was a peaceful leader of the anti-apartheid movement who went on to become South Africa’s first black president. His consistent devotion to peace inspired similar peaceful protests around the world. The New York Times put together a great interactive featuring several correspondents who witnessed Mandela first-hand here.
U.S. unemployment fell to 7 percent in November, the lowest rate in five years.
Popular Science explains how to get rid of animal testing.
Only 11 streetcar workers are expected to lose their jobs following a City Council-approved pause of the $132.8 million project, according to Streetcar Project Executive John Deatrick.
The final number is far below the original estimate of 200 layoffs that city officials gave on Monday when council members asked about the effects of halting the streetcar project.
The remaining workers will be moved by contractors to
other jobs or kept under ongoing utility work, which utility companies
agreed to continue despite no longer qualifying for reimbursements from
the city, according to Deatrick.
Deatrick says it’s “a wild guess” whether the amount of layoffs will grow in the future.
“Our contractors have real heart,” he says.
The number is good financial news for the city. If 200 workers were laid off, Deatrick previously estimated that unemployment benefits would cost the city $419,000 for the month.
Still, the city administration on Wednesday warned that it could cost $2.56-$3.56 million to pause ongoing construction for the month. In comparison, Deatrick estimates that continuing construction at current speeds would cost $3 million.
A majority of council members dismissed the pause cost estimates as exaggerated when they voted to halt the project on Wednesday.
With the streetcar project on hold, council now plans to review how much it would cost to complete or cancel the project.
Deatrick on Nov. 21 warned the costs of completely canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.
But a majority of council members voiced distrust toward the estimates and called for an independent review.
Depending on the outcome of the cost analysis, Vice Mayor
David Mann and Councilman Kevin Flynn say they could change their minds
on canceling the streetcar project. Only one of them needs to do so to give streetcar supporters a majority on council.
City Council yesterday voted to allocate $1.25 million to pause the $132.8 million streetcar project and study how much it will cost to continue or cancel the project. The final 5-4 votes to pause came despite offers from private contributors to pay for the $250,000 study and construction for the one or two weeks necessary to carry out the cost analysis. The city administration warned council earlier in the day that pausing the project for one month could cost $2.56-$3.56 million, while previous estimates put continuing construction for the month at $3 million. After the cost study is finished, council members expect to make a final decision on whether to continue or cancel the project.
Meanwhile, Councilwoman Yvette Simpson filed a motion to draw up a city charter amendment that would task the city with completing the current streetcar project. If the charter amendment gets council approval, Cincinnatians would vote on the issue approximately 60 to 120 days afterward. But it’s unclear whether the $44.9 million in federal grants for the streetcar project would survive through the months; the federal government previously warned a delay could be grounds for pulling the money.
Commentary: “Atmosphere at City Hall Changes for the Worse.”
Following various cases of malfunctioning or disabled police cruiser cameras, various groups, including Councilman Chris Seelbach, are asking to get to the bottom of the issue. Police officials say old, deteriorating technology is to blame, but critics claim some officers are purposely tampering with the technology to avoid filming themselves during controversial moments in the line of duty. For both sides, getting the cameras working could be mutually beneficial; functioning cameras would allow police to clear their names but also show when officers make mistakes.
The University of Cincinnati asked Hamilton County judges to crack down on criminals targeting students on or near campus.
State Sen. Eric Kearney of Cincinnati says he won’t give up his Democratic candidacy for lieutenant governor despite $825,000 in unpaid state and federal taxes.
Republican State Sen. Bill Seitz of Cincinnati canceled a vote for a proposal that would greatly weaken Ohio’s renewable energy and efficiency standards. But he vowed to pursue a “three-pronged strategy to reform the current envirosocialist mandates,” including potential litigation. Environmental groups argued Seitz’s proposal would have effectively eliminated the state’s energy standards. According to a study from Ohio State University and the Ohio Advanced Energy Economy coalition, repealing the standards would increase Ohioans’ electricity bills by $3.65 billion over the next 12 years. CityBeat covered Seitz’s proposal in greater detail here.
The Republican-controlled Ohio legislature yesterday approved a bill that establishes a state panel to oversee Medicaid and recommend changes for the costly program. Republicans insist the measure isn’t about reducing benefits or eligibility for Medicaid; instead, they argue it’s about finding ways to cut growing health care costs without making such cuts. Gov. John Kasich must sign the bill for it to become law.
Months after rejecting Kasich’s proposal to do so, Ohio House leaders introduced a scaled-down measure that would slightly raise the oil and gas severance tax and cut income taxes. Unlike the governor’s previous proposal, the House plan seems to have support from the oil and gas industry.
Another Ohio House bill seeks to reintroduce prayer in public schools.
Ohioans are borrowing more to pay for college, but the debt load remains less than the national average.
Headline from The Cincinnati Enquirer: “CVG board votes to hire investigator for butt-dialed call.”
It seems Metropolitan Sewer District rates will increase by 6 percent.
Cincinnati could get three to six inches of snow tomorrow.
Robert Carr, a 49-year-old Cincinnati man, has been going into the homes of strangers and trying to claim them as his own. He’s now being held in the Hamilton County Justice Center on six felony charges for breaking into homes.
Ohio gas prices fell below $3 a gallon.
According to a study from the Library of Congress, 70 percent of America’s silent films are lost and a good portion of the remaining films are in poor condition.
City Council plans to vote today on 11 ordinances that would indefinitely pause the $132.8 million streetcar project while council members review and weigh the costs of cancellation versus the costs of completion. The measures are expected to pass. Because they each allocate at least $100,000 in funding, the ordinances are not susceptible to referendum. Although Mayor John Cranley repeatedly defended the “people’s sacred right of referendum” in opposition to the parking privatization plan while on the campaign trail, he now says he doesn’t want the city to be forced to continue spending on the streetcar project he adamantly opposes until November 2014, as would be required under a traditional referendum.
If a 1930 Ohio Supreme Court ruling applies, Cincinnati could be responsible for paying to move utility lines to accommodate for streetcar tracks, but the city might be able to charge some of those costs back to utility companies, according to a newly disclosed 2011 memo from a city attorney to former City Manager Milton Dohoney. The memo is the latest twist in the ongoing legal battle between Duke Energy and the city over who has to pay $15 million to move utility lines for the streetcar project. If the city loses the case, the cost of the project could climb from $132.8 million to $147.8 million. But it’s still unclear how much the 1930 case applies, given that the 1930 streetcar system was owned by a private company and the 2016 version would be owned by the city.
Editorial from The Cincinnati Enquirer: “Pausing streetcar same as killing it.”
Mayor Cranley and City Council agreed to delay a vote on Willie Carden’s nomination for city manager to give council members enough time to meet with the candidate one-on-one and “digest” ordinances for his nomination. The nomination of Carden, who currently heads the Parks Department, has been plagued by some controversy because of Carden’s decision to live outside Cincinnati, which violates the rules set by the city charter for the city manager, and recently uncovered ethics issues in which Carden wrongfully took pay from both the private Parks Foundation and city.
City Council also delayed voting on new rules for a week to give council members more time to analyze and discuss the rules. Until then, City Council will operate under the standard Robert's Rules of Order. One possible change to the rules would increase the time given to public speakers during committee meetings from two to three minutes.
Watch Councilman P.G. Sittenfeld outmaneuver Mayor Cranley here.
The Ohio Supreme Court yesterday unanimously dismissed a request to compel JobsOhio to disclose various documents. The court argued that state law passed by Republican legislators largely exempted JobsOhio from public record requests, which means the privatized development agency can keep most of its inner workings secret. Republicans argue the agency’s secretive, privatized nature is necessary to quickly establish business deals around the state, while Democrats claim the anti-transparency measures make it too difficult to hold JobsOhio accountable as it uses taxpayer dollars.
The addition of measures that would create state and county councils to help get people off Medicaid ruined some of the bipartisan efforts behind Medicaid overhaul legislation, but Republican legislators still intend to bring the legislation to an Ohio House vote today. Republicans argue the controversial amendments merely update the “framework” under which counties can streamline efforts to get people off public assistance programs. But Democrats say the last-minute measures might have unintended consequences, including one portion that might give the state council the ability to change — and potentially weaken — Medicaid eligibility requirements.
An Ohio Senate bill would revamp and reduce teacher evaluation requirements to make them less costly and burdensome for school districts. The current standards require an annual evaluation of any Ohio teacher rated below “accomplished” and, according to some school districts, create high costs and administrative burdens that outweigh the benefits.
For the second time in two weeks, Hamilton County Juvenile Court Judge Tracie Hunter left court in an ambulance after supposedly passing out in court. Hunter faces increasing pressure from higher courts to rule on long-stalled cases.
A 9-year-old boy who was abandoned by his adoptive parents in Butler County allegedly threatened to kill his adoptive family.
Here is how bars are using cutting-edge technology to make better drinks.
Mayor John Cranley and a majority of City Council appear ready to pause the $132.8 million streetcar project on Wednesday after moving forward yesterday with 11 ordinances that aren’t susceptible to referendum. The bills allocate $1.25 million to stop contracts tied to the project and hire expert consultants to study what it would cost to continue or suspend the project — information a majority of council plans to use to gauge whether the project should continue after the pause. Streetcar supporters planned to hold some sort of referendum on the pause ordinances, but Cranley, who previously spoke in favor of the “people’s sacred right of referendum,” now says that the city shouldn’t be required to continue spending on the project until voters make a final decision in November 2014, as would be required under a traditional referendum.
Meanwhile, the Federal Transit Administration yesterday announced it froze $44.9 million in federal grants for the streetcar until Cincinnati agrees to move ahead with the project. The decision shows Cranley and other opponents of the project were in the wrong when they claimed they could lobby the federal government to reallocate the grant money to other projects. But the decision should also come as little surprise to the new mayor and council, considering federal officials warned of the consequences of canceling the streetcar project on three separate occasions in the past six months.
The Haile U.S. Bank Foundation also joined the fray yesterday with an email to city officials plainly stating that the streetcar project’s cancellation “will definitely cause us to pause and reconsider whether the City can be a trusted partner” and endanger contributions to the carousel in Smale Riverfront Park, the shared-use kitchen at Findlay Market and the renovations of the Globe Building and Music Hall. The email also offered to pay for a study that would evaluate the costs of the streetcar project going forward. But Cranley brushed off the letter as a threat and argued the Haile U.S. Bank Foundation “can’t be a passive-aggressive dictator of legislative process.”
Although his nomination to the city manager spot was initially met with praise, some are beginning to raise questions about Willie Carden’s refusal to live in Cincinnati and his history, including an ethics probe that found he was wrongfully taking pay from both the city and private Parks Foundation. Councilman Chris Seelbach said he’s also worried about the process for Cranley’s pick, which didn’t involve a national search and never put any other candidates in front of council.
Democrats on the Hamilton County Board of Elections have asked state officials to investigate Republican Hamilton County Prosecutor Joe Deters for improperly voting.
Republican State Sen. Bill Seitz of Cincinnati plans to introduce on Wednesday a new version of his overhaul of the state’s renewable energy and efficiency requirements. The new version will dampen a plan that would have allowed Canadian hydroelectric power facilities to satisfy Ohio’s renewable energy requirements, but it will also allow decades-old hydro plants along the Ohio River to fulfill the requirement. Seitz and other supporters of the overhaul argue it’s necessary to make the requirements friendlier to businesses and consumers. But opponents of the bill, including businesses and environmentalists, argue it would effectively ruin Ohio’s energy requirements and, according to a study from the Ohio State University and the Ohio Advanced Energy Economy coalition, cost Ohioans $3.65 billion more on electricity bills over the next 12 years. CityBeat covered the proposal in greater detail here.
Ohio schools can now tap into a $12 million program to make their facilities safer through various new measures, including a radio system directly connected to emergency responders, cameras and intercoms. “Naturally, after Sandy Hook, I think we were all just extremely upset about that, and you want to be able to do something,” Republican State Sen. Gayle Manning told StateImpact Ohio.
A report found staff weren’t at fault for the high-profile prison suicides of Billy Slagle, whose case CityBeat covered in further detail here, and Ariel Castro, who held three women captive in his home for nearly a decade.
Popular Science argues Amazon’s plan for delivery drones isn’t realistic.
Mayor John Cranley and a majority of City Council appear ready to halt Cincinnati’s $132.8 million streetcar project on Wednesday — and voters might not get a final say on whether they approve of the pause.
In front of council are 11 ordinances totaling $1.25 million that would stop contracts tied to the streetcar project while the city hires expert consultants to review the costs of continuing or suspending the project.“I think cancellation is what we should do,” Cranley said at Monday’s council meeting. “But a majority of council wants to pause and ask questions.”
One immediate concern for supporters of the project: Because the ordinances appropriate funds, they are not susceptible to referendum.
Cranley repeatedly touted the “people’s sacred right of referendum” in opposition to the parking privatization plan while on the campaign trail, but he now argues the city shouldn’t be forced to continue spending on the streetcar project until voters make a final decision in November 2014, as would be required under a traditional referendum.
Cranley encouraged streetcar supporters to instead push a ballot initiative that doesn’t require the city to continue funding the project.
Councilman P.G. Sittenfeld, who supported a referendum on the parking plan, argued Cranley’s position was hypocritical.
“I don’t want to have the voters’ voice suppressed,” he said.
Sittenfeld on Nov. 26 announced that he’s voting to continue the streetcar project. He asked, “Are we going to have tens of millions of dollars of wasted money or something to show for it?”
In response to the concerns, Councilwoman Yvette Simpson, a streetcar supporter, said she will have her staff draw up a motion to place the streetcar project on the ballot.
But Councilman Chris Seelbach, who also supports the streetcar, countered that the ballot initiative would not matter if the project is paused and the federal government decides to effectively kill the streetcar by taking back $44.9 million in federal grants that are funding one-third of the project’s costs.
The Federal Transit Administration on Monday stated the grant money is already frozen pending a council decision to advance the project.
Simpson questioned whether the ordinances allocated enough money to pause the project. Messer Construction, Prus Construction and Delta Railroad (MPD) estimate they’ll need $590,000 to suspend work for a month. The ordinance halting MPD’s contract allocates only $100,000.
On top of the $1.25 million — or $1.74 million, if MPD’s estimate is counted — allocated to pause the project, the suspension would also force the city to pay for unemployment insurance as construction companies lay off 200 workers involved in the project. Streetcar Project Executive John Deatrick estimates that will cost $419,000 if workers are kept unemployed for a month.
So the city could pay nearly $2.16 million to pause the project for a month. In comparison, Deatrick says one month of construction would cost the city $3 million.
The pause costs would also come from the contingency fund for the streetcar project, according to Deatrick. The $7.4 million contingency fund is already counted as part of the $132.8 million project, but it could go unspent if the project continues without complications.
Deatrick on Nov. 21 warned the costs of canceling the streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.
(The issue of cancellation costs was first reported by CityBeat in October as a follow-up with city officials to a July story that outlined the top 10 misrepresentations surrounding the streetcar project.)Supporters of the streetcar project argue it’s necessary to spur economic development along the planned 3.6-mile loop in Over-the-Rhine and downtown. A 2007 study from consulting firm HDR, which was later validated by the University of Cincinnati, found the project would generate a 2.7-to-1 return on investment over 35 years.
Opponents argue the project is far too expensive and the wrong priority for Cincinnati.“I believe the progress of Cincinnati is going to continue,” Cranley said. “Our future is bullish and bright in downtown and Over-the-Rhine with or without the streetcar.”
A majority of City Council expects to vote in favor of the ordinances at its full meeting on Wednesday at 2 p.m. Council members who oppose the project plan to use the time-out to weigh the costs of cancellation versus the costs of completion.
Federal grants for the $132.8 million streetcar project are on hold
until City Council votes to continue the project, according to a Dec. 2 email from the Federal Transit Administration (FTA) to Cincinnati officials.
The decision means Cincinnati can no longer tap into $44.9 million in federal grants until Mayor John Cranley and a majority of the newly sworn-in City Council, both of which have shown opposition to the streetcar project, agree to continue with ongoing construction.
“As per our telephone conversation, early last week, the Administrator decided to restrict further access to the Federal project funds until the FTA received an affirmative signal from the city’s newly elected officials that the city intends to proceed with the project on the agreed-upon schedule,” wrote Marisol Simon, FTA regional administrator in Chicago. “This measure was taken to protect the taxpayer funds not yet drawn down by the city from being subject to a potential debt collection action.”
The FTA’s decision shows Cranley and other streetcar opponents were in the wrong when they insisted they could lobby the federal government to reallocate the money to other projects, such as the interchange at Interstate 71 and Martin Luther King Drive.
But the consequence should come as little surprise to elected officials. In two letters to former Mayor Mark Mallory and a phone conference with City Council, federal officials warned the city they would pull the funding if the streetcar project were canceled.
The news comes on the same day City Council plans to vote to pause the streetcar project as the costs of cancellation are weighed against the costs of continuing.
It also comes two days after streetcar builder CAF USA warned the city of substantial costs that would be incurred if the streetcar project were canceled.
Even if council only pauses the project, Streetcar Project Executive John Deatrick says the path forward is unknown because it’s unclear how the city will fund costs associated with a pause.
The costs would presumably come out of the project’s contingency
fund, according to Deatrick, but pulling money out of the contingency
fund for a delay or pause changes the scope of the project and could face federal resistance.
On Nov. 21, Deatrick said the costs of canceling the $132.8 million streetcar project could nearly reach the costs of completion after accounting for $32.8 million in estimated sunk costs through November, a potential range of $30.6-$47.6 million in close-out costs and up to $44.9 million in federal grant money that would be lost if the project were terminated.