Income inequality vastly grew in Ohio and other states between 1979 and 2011, but Ohio actually fared better than most other states, according to a Feb. 19 report from the Economic Policy Institute and the Economic Analysis and Research Network (EARN).
Ohio’s top 1 percent saw their inflation-adjusted income grow by roughly 70 percent between 1979 and 2011, according to Policy Matters Ohio’s analysis of the report. During the same time period, the bottom 99 percent actually saw their income drop by nearly 8 percent.
Still, Ohio’s income gap isn’t as bad as states like New York and Connecticut, where the top 1 percent make roughly 40 times as much as the bottom 99 percent.
In Ohio, the top 1 percent’s average income in 2011 was 18.1 times greater than the 99 percent’s average income, below the U.S. average of 24.4.
The findings show a trend reversal in incomes in Ohio and the rest of the nation. Between the late 1920s and mid-1970s, the income gap generally narrowed. It wasn’t until the 1970s that the wealthiest began outpacing the rest of the country.
“The levels of inequality we are seeing across the country provide more proof that the economy is not working for the vast majority of Americans and has not for decades,” Keystone Research Center economist Mark Price said in a statement. “It is unconscionable that most of America’s families have shared in so little of the country’s prosperity over the last several decades.”
Economists on both sides of the political spectrum blame various issues for rising income inequality, including the rise of globalization, poorly structured trade treaties, the loss of manufacturing jobs, the inflation-adjusted fall of the minimum wage, the United States’ weak social safety net and the stagnant economy.
In Cincinnati, the effects of income inequality are felt on a neighborhood level. While some local neighborhoods fall below a median family income of $20,000 per year, various neighborhoods’ median family incomes top $100,000 per year.
The massive income gap correlates with the city’s 20-year disparity in neighborhood life expectancies. In impoverished neighborhoods like Lower Price Hill, residents can expect to live to their mid-60s. In wealthy neighborhoods like Mount Adams, the average life expectancy is in the mid-80s.
Given the results, some advocates say it’s time to adopt a new nationwide approach to the economy.
“It’s clear that policies were set to favor the one percent and those policies can, and should, be changed,” EARN Director Doug Hall said in a statement. “In order to have widespread income growth, bold policies need to be enacted to increase the minimum wage, create low levels of unemployment, and strengthen the rights of workers to organize.”
City Council watered down Mayor John Cranley’s parking plan to
just two proposals: upgrading parking meters and increased enforcement. Council and public opposition ultimately proved too much for increasing neighborhood rates and expanded evening hours at major hubs. The changes
mean less revenue for the city but reduced parking costs for
residents. Still, with the parking plan changing almost daily, it’s
unclear whether the current iteration will be the final proposal that
the Neighborhood Committee and City Council ultimately pass.
Commentary: “County Should Accept Responsible Bidder Law.”
Cranley yesterday announced he’s partnering with Dayton Mayor Nan Whaley to get a share of $1.3 billion in federal funds that would help attract manufacturing. The two cities will compete as one community for the federal Investing in Manufacturing Communities Partnership. The competition’s 12 winners will each receive part of the $1.3 billion pot. Even if Cincinnati and Dayton don’t win, Cranley said the competition will at least get them thinking about working together as a community for manufacturing jobs.
The Republican-controlled Ohio legislature yesterday approved controversial election bills that reduce the state’s early voting period by one week and restrict counties’ abilities to mail out unsolicited absentee ballot applications. Democrats say the measures are meant to suppress voters, but Republicans argue the changes are supposed to set uniform standards across the state. At least one top Ohio Republican previously admitted the measures were supposed to suppress voters, particularly “the urban — read African-American — voter-turnout machine.” Gov. John Kasich is now the only person that stands between the bill becoming law.
The city plans to undertake a pothole-fixing blitz in March.
The Greater Cincinnati Port Authority will begin its 14-neighborhood rehabilitation plan in Evanston, where the agency will target about 100 properties.
With a “virtual online menu” and access to vocational education in the seventh grade, Gov. Kasich says he wants to get Ohio students planning their careers much earlier.
The Ohio House approved a plan that will give schools four more calamity days — more popularly known as “snow days” — for the current school year. The bill now heads to the Ohio Senate and Kasich.
U.S. Sen Sherrod Brown wants to close a loophole in Medicare that costs seniors thousands of dollars in unexpected medical bills.
Quinnipiac University’s most recent poll found Ohioans would choose Hillary Clinton over Kasich and other Republicans for president.
Whooping cough appears to be evolving in response to its firstname.lastname@example.org.
Cincinnati and Hamilton County’s infant mortality rates dropped to record lows in 2013, but the city and county’s rates of infant deaths remain far above the national average. Over the past five years, the city’s infant mortality rate hit 12.4 deaths per 1,000 live births and the county’s rate reached 9.9 deaths per 1,000 live births. In comparison, the national average in 2011 was 6.1 deaths per 1,000 live births. Cradle Cincinnati, a collaborative initiative formed in 2013, pointed to three possible factors to explain the troubling rates: short time between pregnancies, maternal smoking during pregnancy and poor sleeping habits, including deaths that could be easily prevented by ensuring a baby sleeps alone, on his or her back and in a crib.
Councilman Christopher Smitherman yesterday proposed fixes for Cincinnati’s ailing pension system, and the proposal includes a hit to city retirees’ benefits. Unique to Smitherman’s plan is a new $100 million commitment to help shore up the city’s unfunded liability of $870 million, but Smitherman could not say where council would get that much money. Otherwise, the proposal would freeze cost of living increases in the system for three years and reduce future cost of living increases from a 3 percent compounded rate to a 2 percent fixed rate, among other changes. Smitherman hopes to get up-or-down votes on his plan within the next two weeks, even if it requires splitting the plan into multiple parts.
State Sen. Bill Seitz plans to renew his efforts in the Ohio legislature to dismantle the state’s renewable energy and efficiency mandates. Seitz says “devastating testimony” in support of his bill should invigorate a push for his plan. But the testimony will apparently be based off a flawed industry-financed report released yesterday. A separate study, based on an economic model from the Ohio State University, found Ohio’s energy standards will save Ohioans $3.65 billion on their electricity bills between 2014 and 2025.
Cincinnati plans to begin marketing an 18-acre plot of land in Lower Price Hill to bring 400 jobs to the struggling neighborhood. After the city finishes environmental remediation this month, it hopes to put the property on the market. CityBeat previously covered some of Lower Price Hill’s struggles with poverty in further detail here.
The gubernatorial race between Republican Gov. John Kasich and Democratic challenger Ed FitzGerald tightened from seven points in November to five points this month, according to a new Quinnipiac University poll. But the survey did not include Libertarian candidate Charlie Earl as a choice — an omission that could work to Kasich’s favor in the polling results.
Gay families are being excluded from Obamacare benefits in Ohio and other states in which same-sex marriage is not recognized. That means Ohio’s gay families can’t get financial benefits going to traditional families to help them get covered. President Barack Obama’s administration says it’s aware of the issue, but it doesn’t plan a fix until next year.
Some Ohio lawmakers want an investigation into Kasich’s administration after documents showed his administration planning to work with oil and gas companies to promote fracking in state parks and forests. Fracking is a drilling technique in which millions of gallons of water, sand and chemicals are pumped underground to unlock oil and gas reserves. CityBeat covered fracking and the controversy surrounding it in further detail here.
Bad news: A Chinese firm won’t bring an $80 million project to the Cincinnati area after all.
An Ohio driver rescued a kitten found frozen on the road.
A parasite commonly found in cats can now be found in arctic beluga whales. Scientists say melting ice barriers — a symptom of climate change — explains the pathogen’s increased email@example.com.
Cincinnati and Hamilton County saw infant mortality rates drop to the lowest on record in 2013, but the city and county’s rates for infant deaths remained far above the national average, according to a report released Tuesday by advocacy group Cradle Cincinnati.
In 2013, the city saw 53 babies die before their first birthday, or 9.9 deaths per 1,000 live births. Throughout the county, the deaths of 95 babies put the rate at 8.9 deaths per 1,000 live births.
But in the past five years, the city’s infant mortality rate hit 12.4 deaths per 1,000 live births and the county’s rate reached 9.9 deaths per 1,000 live births.
Even worse, black families in Hamilton County were twice as likely as white families to have a baby die before his or her first birthday.
In comparison, the national average for infant mortalities was 6.1 deaths per 1,000 live births in 2011.
To help reduce the region’s high infant mortality rates, Cradle Cincinnati points to a few potential targets:
• Short pregnancy spacing, meaning 18 months or fewer between births, can lead to premature birth. It was associated with 33 percent of the county’s infant mortalities last year.
• Maternal smoking during pregnancy can lead to premature birth and birth defects. It was associated with 15 percent of the county’s infant mortalities last year.
• The local rate of sleep-related infant deaths in Hamilton County is triple the national average. Many of these deaths could be prevented by ensuring a baby sleeps alone, on his or her back and in a crib, Cradle Cincinnati found.Cincinnati’s high rate of infant mortalities are one of the many factors that help explain the city’s disparities in life expectancies, according to Cincinnati Health Department officials.
A CityBeat analysis of U.S. Census Bureau and Cincinnati Health Department data also tied neighborhood life expectancies to income levels. The strong correlation could suggest a connection between poverty and earlier death.
Through the Cradle Cincinnati initiative established last year, local officials hope to put an end to the disturbing trends.
“We are cautiously optimistic that these numbers are going down, but we still have a very long way to go,” said Hamilton County Commissioner Todd Portune, founder and co-chair of Cradle Cincinnati, in a statement. “We cannot rest until every child born in Hamilton County lives to see his or her first birthday.”
Cradle Cincinnati’s full report:
Gov. John Kasich’s administration in 2012 privately discussed a public relations campaign to help bring fracking to three state parks. The plan was apparently abandoned. But ProgressOhio, which released documents showing the discussions, says the plan highlights a trend in the Kasich administration of looking out for business interests first. Fracking is a drilling technique in which millions of gallons of water, sand and chemicals are pumped underground to unlock oil and gas reserves. In the past couple years, the technique has been credited with bringing about a natural gas production boom in much of the United States, including Ohio. But environmentalists worry the poorly regulated practice contaminates air and water. CityBeat covered fracking in greater detail here.
Mayor John Cranley and Enroll America today plan to announce a partnership to get people enrolled in Obamacare. The goal is to fill the insurance pool with healthier, younger enrollees, many of whom qualify for financial assistance through HealthCare.gov, to help keep costs down. CityBeat previously interviewed Trey Daly, Ohio director of Enroll America, about the outreach efforts here.
The two Republicans in charge of City Council’s Budget and Finance Committee want to know why the city decertified a flood levee surrounding Lunken Airport, instead of bringing it up to federal standards, without consulting City Council. The decertification forced property owners around the airport to buy costly flood insurance. City officials say they made the decision because the city did not have the $20-$100 million it would cost to bring the levee up to standards.
The W. Va. chemical spill cost Greater Cincinnati Water Works about $26,000 in treatment chemicals, or about 11 cents per customer.
Getting ex-prisoners enrolled in Medicaid as they are released could save Ohio nearly $18 million this year, according to state officials.
Duke Energy plans to sell 13 power plants, including 11 in Ohio. The company says the move is necessary because of the state’s increasingly unpredictable regulatory environment for electricity generators. Last week, the Public Utilities Commission of Ohio rejected Duke’s request for a $729 million rate increase.
With algorithms now capable of breaking CAPTCHA 90 percent of the time, companies might need to find other anti-spam firstname.lastname@example.org.
A coalition between Equality Ohio and other major LGBT groups on Friday officially declared it will not support a 2014 ballot initiative that would legalize same-sex marriage in the state. Instead, the coalition plans to continue education efforts and place the issue on the ballot in 2016. But FreedomOhio, the LGBT group currently leading the 2014 ballot initiative, plans to put the issue on the ballot this year with or without support from other groups. CityBeat covered the issue and conflict in further detail here.
The group heading Commons at Alaska, a permanent supportive housing project in Avondale, plans to hold monthly “good neighbor” meetings to address local concerns about the facility. The first meeting is scheduled at the Church of the Living God, located at 434 Forest Avenue, on Feb. 25 at 6 p.m. Some Avondale residents have lobbied against the facility out of fears it would weaken public safety, but a study of similar facilities in Columbus found areas with permanent supportive housing facilities saw the same or lower crime increases as demographically comparable areas. In January, a supermajority of City Council rejected Councilman Christopher Smitherman’s proposal to rescind the city’s support for the Avondale project.
Gov. John Kasich’s income tax proposal would disproportionately benefit Ohio’s wealthiest, an analysis from Policy Matters Ohio and the Institute on Taxation and Economic Policy found. Specifically, the proposal would on average cut taxes by $2 for the bottom 20 percent of Ohioans, $48 for the middle 20 percent and $2,515 for the top 1 percent. The proposal is typical for Ohio Republicans: They regularly push to lower taxes for the wealthy, even though research, including from the nonpartisan Congressional Research Service, finds tax cuts for the wealthy aren’t correlated with higher economic growth.
Mayor John Cranley says he wants Catholic Health Partners to locate its planned headquarters in Bond Hill.
A new Ohio law uncovered more than 250 high-volume dog breeders that previously went unregulated in the state. The new regulations aim to weed out bad, unsafe environments for high-volume dog breeding, but some animal advocates argue the rules don’t go far enough. CityBeat covered the new law in further detail here.
Democratic gubernatorial candidate Ed FitzGerald could face a longshot primary challenger in May. But the challenger, Larry Ealy of the Dayton area, still needs his signatures confirmed by the secretary of state to officially get on the ballot.Former Gov. Ted Strickland could run against U.S. Sen. Rob Portman in 2016, according to The Plain Dealer. Strickland cautioned it’s not an official announcement, but it’s not something he’s ruled out, either.
A bill that would make the Ohio Board of Education an
all-elected body appears to have died in the Ohio legislature.
Currently, the governor appoints nearly half of the board’s members. Some legislators argue the governor’s appointments make the body too political.
Science says white noise can help some people email@example.com.
The group heading a supportive housing project in Avondale on Friday announced it will initiate monthly "good neighbor" meetings to address local concerns, with the first meeting scheduled at the Church of the Living God, located at 434 Forest Ave., on Feb. 25 at 6 p.m.
National Church Residences (NCR) says the meetings will help "set the highest property, safety, and conduct standards" for the 90-unit Commons at Alaska facility, which will aid chronically homeless, disabled and low-income individuals.
"National Church Residences is excited to become part of the revitalization of the Avondale neighborhood," said Amy Rosenthal, senior project leader for NCR, in a statement. "Through this series of meetings, we look forward to sitting down with our neighbors and answering their questions about our organization and in particular the planned apartment community."
The meetings should help address some Avondale residents' concerns about the project. Although several opponents of the facility say their opposition is not rooted in a not-in-my-backyard attitude that follows so many supportive housing projects, critics consistently argue the housing facility will attract a dangerous crowd that would worsen public safety in the neighborhood.
Critics' claims actually contradict some of the research done on supportive housing. A study conducted for similar facilities in Columbus found areas with permanent supportive housing facilities saw the same or lower crime increases as demographically comparable areas.
Still, the controversy eventually reached City Council after Councilman Christopher Smitherman proposed pulling the city's support for state tax credits funding the project. In January, council rejected Smitherman's proposal and voted to continue supporting the project. (It's questionable whether a different council decision would have made any difference, since the group already received state tax credits last June.)
By several economic indicators, Cincinnati's worst-off certainly need more support. About 34 percent of the overall population and more than half of the city's children live in poverty, according to U.S. Census Bureau data.
Correction: This story originally claimed the facility would house 99 apartments, based on a previous estimate. The amount of apartments was actually reduced to 90 through negotiations. We apologize for the error.
Gov. John Kasich's income tax proposal would disproportionately favor Ohio's wealthiest, an analysis from Policy Matters Ohio and the Institute on Taxation and Economic Policy found.
Specifically, the proposal would on average cut taxes by $2 for the bottom 20 percent of Ohioans, $48 for the middle 20 percent and $2,515 for the top 1 percent.
The proposal "may allow low-income Ohioans to buy a slice of pizza a year, on average," Policy Matters claims. "Middle-income Ohioans could purchase a cheap pizza maker. For the state's most affluent taxpayers, on average it would cover round-trip airfare for two to Italy, with some money left over to pay the hotel bill and buy some real Italian pizza."
Under the model, Kasich's proposal would cut Ohio's income tax rates across the board by 7 percent. The goal is to bring Ohio's top tax rate, which kicks in only for income above $208,500, under 5 percent, as the governor previously proposed.
Although a plurality of Americans oppose tax cuts for the wealthy, Kasich and other Republicans consistently push the tax cuts to help what they call "job creators." In the most recent state budget, Kasich and Republican legislators approved another series of across-the-board tax cuts that disproportionately benefited the state's wealthiest.
In the aftermath, economic indicators from conservative, liberal and nonpartisan analysts show Ohio's economy is consistently among the worst performers in the country.
The story is typical for Ohio: In 2005, the state cut income taxes across the board by 21 percent. Since then, Policy Matters found Ohio to be one of just a dozen states that actually lost jobs.
Other research backs up Policy Matters' findings. In a report analyzing tax cuts for the nation's wealthiest, the Congressional Research Service (CRS) found tax cuts for the wealthy aren't correlated with increased economic growth.
"There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth. Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth," CRS concluded. "However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution."
Meanwhile, Cincinnati's poorest continue to struggle in a vicious cycle of poverty that consumes about 34 percent of the city's population and more than half of the city's children. CityBeat covered poverty and its effects on Cincinnati in greater detail here.
State Rep. Peter Beck, a Republican from Mason, now faces 69 felony counts
and increasing pressure to resign. Beck is accused of helping mislead
investors into putting hundreds of thousands of dollars into an
insolvent West Chester startup company and putting some of the funds
from the company into his own campaign. Beck says he's innocent, but
that hasn't stopped top Ohio Republicans from calling for him to resign
to avoid a potential scandal and losing a seat in the Ohio legislature.
Ohio ranked No. 8 in the nation for solar jobs in 2013, with solar employment growing by roughly 31 percent over the year, according to the latest census from the Solar Foundation. The report found that U.S. solar jobs grew 10 times faster than overall employment across the country. Environment Ohio applauded the numbers, praising Cincinnati in particular for its own solar-friendly efforts. But the Republican-controlled Ohio Senate is looking into ways to weaken or undo the law that makes many solar projects possible across the state. A report from the Ohio State University and the Ohio Advanced Energy Economy indicates that repealing the law could end up costing Ohioans $3.65 billion on their electricity bills between 2014 and 2025.
The federal government reported slightly better enrollment numbers in January for Obamacare's once-troubled website, but Ohio and the nation still fell short of key demographic roles previously perpetuated by the federal government. Specifically, monthly enrollment actually beat projections for the first time since HealthCare.gov launched. But the cumulative amount of young adults signing up through January only reached 25 percent in the country and 21 percent in Ohio — far below the 39 percent goal the White House previously deemed necessary to avoid filling the insurance pool with older, less healthy enrollees who tend to use more resources and drive up costs.
With Obamacare's online marketplaces mostly fixed, some groups are now doubling efforts to get the uninsured, particularly young adults, enrolled. CityBeat interviewed Trey Daly, Ohio state director of one of those groups, here.
Republican Attorney General Mike DeWine rejected a Democrat-backed petition that would create a statewide ballot initiative for a Voter Bill of Rights, but proponents of the initiative say they'll come back with tweaked language. In a statement, DeWine said the proposal ran afoul of federal law in two places. Even if DeWine approved the language from a legal standpoint, supporters would still need to gather roughly 385,000 valid signatures before a July deadline to get the issue on the ballot in November. CityBeat covered the Voter Bill of Rights in greater detail here.
Following the large amount of charter school closures last year, State Auditor Dave Yost is launching an investigation into three Ohio charter school sponsors and the Ohio Department of Education.
The Cincinnati area could get 2 inches of snow.
A Ky. auditor says the former finance director of Covington stole nearly $800,000.
Hamilton County Auditor Dusty Rhodes posted pictures of downtown Cincinnati circa 1968 here.
Sam Adams is pouring millions into a Cincinnati brewery.
Grizzly bears could offer a better solution for weight loss.
Watch Dale Hansen, a Texas sports anchor, take on the NFL and Michael Sam’s anti-gay haters:
Following county commissioner’s Feb. 12 meeting, the dispute between Cincinnati and Hamilton County over contracting rules for Metropolitan Sewer District (MSD) projects appears to be heading to court.
The court battle comes after the county dismissed multiple concessions from the city and put MSD’s revamp of the local sewer system on hold in protest of the city’s rules. With a federal mandate looming, both sides agree a resolution is needed soon to avoid costly fines from the federal government.
For many across the city and county, the conflict is understandably confusing. The debate has often been mired down by biased media reports and political talking points that obfuscate the issue. Jargon referencing “responsible bidder,” “local hire,” “local preference,” unions, apprenticeship programs, a pre-apprenticeship fund and contractors make it even more difficult to grasp what is going on.
Cutting through the politics, here is what the responsible bidder rules actually do and why the city and county seem incapable of compromise.
What is responsible bidder?
It’s a city ordinance that essentially forces MSD contractors to adopt job training measures known as apprenticeship programs and pay for a pre-apprenticeship fund. By requiring the training options, the city hopes workers will be able to improve their skills and successfully transition to other jobs once their MSD work is finished.
Apprenticeship programs take workers through extensive on-the-job and classroom-based training in which they can hone their skills in a specific craft, such as electrical or plumbing work. Because workers get paid for their work while participating in an apprenticeship, the programs are typically characterized as an “earn-while-you-learn” model.
The pre-apprenticeship fund will put money toward programs that will teach newcomers basic skills, such as math and reading, so they can eventually move up to an apprenticeship program.
The rules don’t apply to every MSD contractor. Contracts worth less than $400,000, which make up roughly half of MSD’s sewer revamp, are exempted.
What about local hire and local preference?
Those are ordinances separate from responsible bidder that give preference to Cincinnati-based businesses. They try to keep MSD contracts within local companies.
What’s the conflict about?
The conflict is between Cincinnati and Hamilton County, which jointly run MSD. The Democrat-controlled city supports the rules, while the Republican-controlled county opposes them.
The city and county also dispute which governing body can set policy for MSD. Under a 1968 agreement, the county owns and funds MSD, and the city operates and maintains it. City Council argues the agreement allows the city to set policy for MSD, but the county disagrees. Both sides acknowledge the set-up is far from ideal.
So, did the city’s rules halt MSD projects?
No. Nothing in the city’s ordinances forces MSD projects to stop. County commissioners singlehandedly halted MSD projects in protest of the city’s rules. If it were up to the city, work would continue today.
Why are these projects so important?
By federal decree, the city needs to revamp the sewer system to bring it up to environmentally safe standards. The project will cost $3.2 billion over 15-20 years, making it one of the most expensive in the city’s history.
If the city and county don’t carry on with the revamp soon, the federal government will begin issuing fines. By some guesses, the fines could begin rolling in by the end of the year.
Why does a majority of City Council support responsible bidder?
Councilman Chris Seelbach, the Democrat who championed the rules, says they will boost local employment and create more job training options for the city’s struggling workforce.
Other Democrats on council agree, although some, like Councilman P.G. Sittenfeld, believe the ordinance is “imperfect.”
Does responsible bidder benefit workers?
Some research suggests it would.
The left-leaning Center for American Progress (CAP) in a December report argued apprenticeship programs provide an opportunity to revitalize the U.S. workforce.
“By 2020, America is projected to experience a shortage of 3 million workers with associate’s degrees or higher and 5 million workers with technical certificates and credentials,” the report claimed. “Compounding our inadequate workforce development system, research shows that employers are now spending less on training than they have in the past. At the same time, industry surveys show that a lack of qualified workers is a top concern for many employers.”
Citing a 2012 study from Mathematica Policy Research, CAP estimated apprenticeship programs alone can boost a worker’s lifetime earnings and benefits by more than $300,000. Over 36 years of employment, that’s an average gain of nearly $8,400 a year.
Why do county commissioners oppose the rules?
In terms of policy, county commissioners say the responsible bidder rules favor unions and burden businesses.
On a legal basis, the county argues the city’s responsible bidder rules conflict with state law and the local hire and preference rules enforce unconstitutional geographic preferences.
Does responsible bidder actually favor unions?
Since unions tend to offer better and more apprenticeship programs, yes.
But the rules don’t exclude non-union businesses from participating. For example, Ohio Valley Associated Builders and Contractors maintains some non-union apprenticeship programs that would qualify under the law.
Still, most of the union favoritism debate centered around a regulation the city actually offered to give up. Specifically, under current rules employers are only eligible to contract with MSD if they have apprenticeship programs that have graduated at least one person a year for the past five years. In October, Seelbach offered to strip the mandate and replace it with an incentive program. The county seemed unmoved by the proposal.
What about businesses? Does responsible bidder burden them?
By requiring businesses to adopt apprenticeship programs and put 10 cents for each hour of labor into a pre-apprenticeship fund, the law certainly places more regulations on businesses. Whether the requirements are a burden is subjective.
John Morris, president of the Ohio Valley Associated Builders and Contractors and an opponent of the law, told CityBeat the pre-apprenticeship fund’s requirement will increase business costs by $2-3 million over 15-20 years.
Citing MSD estimates for the cost of labor, Rob Richardson, regional manager of the Laborers’ International Union of North America, said the fund will cost businesses $1.5 million.
Even if someone accepts Morris’ estimate, the requirement adds up to at most 0.1 percent of the $3.2 billion project.
More broadly, some supporters of the city’s rules question whether placing a burden on businesses is innately a bad thing. The basic point of government regulations is to make the economy and businesses work better for the public. In that sense, regulations are always going to burden businesses to some extent.
For example, financial regulations burden big banks and financial institutions. But many Americans agree the regulations are necessary to avoid another financial crisis like the one that plunged the country into the Great Recession.
Still, critics argue the extra regulations would increase the cost of business, and the impact could ultimately be felt by MSD ratepayers.
Why don’t the city and county just compromise?
They kind of tried, but it seems the philosophical split between Hamilton County Republicans and Cincinnati Democrats is too strong to reach a substantial agreement.
The city, for example, has offered multiple concessions to the county. In May, City Council modified the law to ease some requirements and add an exemption for contracts worth less than $400,000, which covers half of the contracts involved in MSD’s sewer revamp. In October, Seelbach offered to replace a strict mandate with a looser incentive program. Seelbach also told CityBeat on Feb. 6 that he would consider raising the contract exemption from $400,000 to $750,000.
In return, the county rejected the concessions and instead offered to establish aspirational inclusion goals and some funding for local job training programs — as long as the city repealed its rules altogether.
Which side would win the court battle?
It’s hard to say. Both sides — and their lawyers — seem pretty confident about their legal standing.
So what’s next?
At the current rate, it looks like the city and county are heading to court. Whether the process involves a full-on legal battle or mediation between the city and county’s lawyers remains uncertain, but it’s clear something will eventually have to give.
This blog post will be regularly updated as the situation develops.