In its own memo released today, the city claims that the June 20 memo, which was first reported by WCPO yesterday, is outdated and makes a few technical errors.
The June 20 memo from Walker Parking Cosultants, a parking consultant hired by the city, found it will be 257 percent more expensive for the new private parking operator to run the city’s on-street parking services in comparison to what the city currently spends. It also concludes the city isn’t getting as much revenue as other cities got under their own parking leases.
“The on-street operating expenses shown in the model are projected to grow at a faster rate than operating revenues,” the June 20 memo claims. “The city should expect a private operator to run the parking system more cost effectively than the current operation, not less effectively. Therefore, revenues should be expected to increase at a rate faster than expenses, not slower.”
The memo’s numbers come through estimates provided by ParkCincy, the operating team set to take over the city’s parking meters, lots and garages following a decades-long lease agreement between the city and the Port Authority.
In particular, the memo highlights what it claims are extraordinary payments requested by Xerox under the deal: The private parking operator is asking for a $627,063 fee in 2013, putting about 14.6 percent of projected net operating income to management fees. That’s far higher than the typical 2.1 percent to 2.3 percent found in similar parking deals in other cities, according to the memo.
The city disputed the findings in its own memo this morning.
“The information that Walker used was from an early point in time; the deal was subsequently negotiated from that point to improve the deal,” wrote City Manager Milton Dohoney in his own memo. “For example, the profit margin used was based on different parking deals in other cities that are not the same as ours. As we know, the Cincinnati model is unique in many ways.”
One such trait: Cincinnati’s parking deal includes modernizing the city’s parking meters to accept credit cards and mobile payment.
The city cited a letter from the Port Authority sent to
City Solicitor John Curp during an email exchange on July 12, the same day the Port Authority was given the June 20 memo. The letter contradicted what Port Authority CEO Laura Brunner claims are inaccuracies.
“In its memo, Walker Consulting bases its comparisons on price, yet doesn’t qualify the information with what level of service capabilities are included in the price,” the Port Authority’s letter reads. “The Port Authority is basing its purchasing decisions on price, but also level of enhancement to the on-street system that mirrors the City’s desire to modernize these vital assets and position them to enhance economic development opportunities downtown and in City neighborhoods.”
Besides this “‘apples to oranges’ comparison,” the Port
Authority’s letter disputes many of the technical details behind
the June 20 memo, particularly questioning some of the measurements
used and comparisons that don’t account for differences between Cincinnati’s parking lease and other cities’ agreements. It also emphasizes that contracts with Xerox and other companies
are not finalized yet.
Much of the focus is now on why the June 20 memo was kept from City Council, the Port Authority and the public for nearly a month, given the memo’s controversial findings about a controversial deal.
“The city administration misled the public for months on the need for the deal, saying it was needed to avoid laying off cops and firefighters and then they don’t do it. Now it’s keeping vital information from the public and council. It’s a violation of the public trust of the highest order,” Democratic mayoral candidate John Cranley said in a statement. “I am urging the Port to reject this deal that is bad for the City.”
Cranley and other city officials, including several City Council candidates and council members P.G. Sittenfeld, Christopher Smitherman and Charlie Winburn, signed a letter to the Port Authority asking the city-funded agency to reject its agreement with Xerox.
The city manager’s office couldn’t be immediately reached for comment. This story will be updated if further comments become available.
The parking lease was finally signed by the city and Port Authority in June after months of political and court battles. The deal was signed even though a majority of City Council now opposes the lease after the city managed to balance its budget without the parking deal and without laying off cops and firefighters.
City Council approved the parking lease on March 6, more than three months before the June 20 memo was given to the city administration.
In return for the lease, Cincinnati is getting a $92 million lump sum and at least $3 million in annual payments, according to city estimates. The city plans to use that money to pay down future budget gaps and fund development projects, including the I-71/MLK Interchange.
Update: Clarified Port Authority didn’t receive the memo until July 12.
The recently passed state budget means cities and counties will get even less money from the state, according to a new report from progressive think tank Policy Matters Ohio.
The report looks at “three blows” of cuts to local governments: less direct aid, no money from a now-repealed estate tax and the beginning of the end of a state subsidy that supported local property taxes. The cuts add up to at least $720 million less over the next two years than cities and counties got in the past two years, the report finds.
It’s even less money when looking further back in Ohio’s history — specifically before Republican Gov. John Kasich took office.
“Local governments will see $1.5 billion less in tax revenues and state aid compared with” fiscal years 2010 and 2011, said Wendy Patton, the report’s author, in a statement. “Fiscal crisis will continue in many communities.”
Kasich and Republican legislators slashed local government funding in 2011 to help fix an $8 billion budget hole. But the latest state budget, which Kasich signed into law in June, was awash in extra revenues because of Ohio’s economic recovery — so much so that legislators passed $2.7 billion in tax cuts.
The Republican-controlled state government repealed the estate tax in the last budget, but some Democrats and local governments were hopeful at least some of the lost money could be restored this year.
Casino revenue was supposed to curtail some of the cuts, but Policy Matters concludes it’s not enough. Casino revenue has also consistently come under expectations: The state government in 2009 estimated Ohio’s casinos would take in $1.9 billion a year, but that projection was changed in February to roughly $1 billion a year.
For Cincinnati, the previous round of budget cuts cost the
city more than $22 million in revenues — nearly two-thirds of the
budget gap the city faced for fiscal year 2014. Although the city managed to avoid laying off cops and firefighters as a result, it still had to slash other city services and raise property taxes.
Some city and county officials are trying to persuade the state government to undo the cuts. In March, Cincinnati Councilman P.G. Sittenfeld gathered officials around the state to launch ProtectMyOhio.com, which lets citizens write directly to the state government about the cuts.
As Ohio debates the Medicaid expansion, a new study from Harvard researchers revealed access to Medicaid in Oregon led to better mental health outcomes and reduced financial strain, but no short-term gains were found in physical health outcomes.
The study, which was released Wednesday by The New England Journal of Medicine, had its most positive findings in mental health outcomes, with Medicaid recipients showing 30 percent lower rates of depression in comparison to people without health coverage. Medicaid recipients had a rate of depression of 21 percent, while those without coverage had a rate of 30 percent.
But the gains did not apply to physical health outcomes. When looking at cholesterol, blood pressure and blood sugar levels, there was no significant difference between Medicaid recipients and people without coverage. The three measures were chosen because they typically reveal better health results within two years and they're easy to obtain.
Still, the study doesn't rule out the possibility of long-term gains. The study found increased rates of diabetes detection and management, which could lead to better physical health outcomes in the future.
Medicaid enrollment also reduced financial strain, allowed patients to use more preventive services and nearly eliminated catastrophic out-of-pocket medical expenses, according to the study.
The study was conducted by looking at Medicaid recipients in Oregon, which enrolled 10,000 people into Medicaid out of nearly 90,000 applicants through a lottery approximately two years ago, giving researchers the first major randomized pool of Medicaid recipients to study.
A previous study from Harvard researchers, including the lead author of the Oregon study, found that Medicaid expansions improved mortality rates, coverage, access to care and self-reported health. That study looked at three states that expanded Medicaid and compared them to neighboring states that did not.
The Oregon study comes at a time when legislators are debating whether Ohio should use federal funds to expand its Medicaid program. Even though Republican Gov. John Kasich supports the expansion, Republican legislators say they're concerned the federal funds will eventually dry up, leaving the state to find a solution for hundreds of thousands of new Medicaid enrollees. Democrats are joining Kasich in supporting the expansion, with Ohio Senate Minority Leader Eric Kearney recently calling it a "no-brainer."
The Health Policy Institute of Ohio found the Medicaid expansion would insure nearly half a million Ohioans and save the state money in the next decade.
The budget bill that recently passed the Republican-controlled Ohio House would forgo the Medicaid expansion while leaving room to consider further Medicaid reforms down the line ("The Chastity Bunch," issue of April 24).
Gov. John Kasich’s school funding plan may not be so progressive after all. In his initial announcement, Kasich promised the program will be more progressive by raising funding to poorer schools, but this fact from StateImpact Ohio seems to contradict that claim: “Under the projections released by the state, a suburban district like Olentangy that has about $192,000 of property value per student would get a more than three-fold increase in state funding. Meanwhile, Noble Local, a small rural district with about $164,000 of property wealth per student sees no increase in state funding.” The Toledo Blade found Kasich’s education plan favors suburban schools. The Akron Beacon Journal pulled numbers that show rich, growing school districts will do fine under the plan. According to The Columbus Dispatch, 60 percent of Ohio schools will not see increases in funding from Kasich’s plan.
The Ohio Department of Transportation is now shying away from statutory guarantees for northern Ohio in the Ohio Turnpike plan. Originally, Kasich promised 90 percent of Ohio Turnpike funds will remain in northern Ohio, albeit with a fairly vague definition of northern Ohio. Now, even that vague 90 percent doesn’t seem to be sticking around. But the plan would still be a massive job-creating infrastructure initiative for the entire state. The Ohio Turnpike runs along northern Ohio, so changes to fees and the road affect people living north the most.
WLWT published a thinly veiled criticism of local teacher
salaries. The article pointed out Cincinnati Public Schools (CPS) pays
45 of its employees more than $100,000 a year.
Of those people, 42 are administrators and three are teachers. In
comparison, the highest paid Cleveland school teacher makes $86,000. The
article also glances over the fact CPS is “the number one urban-rated
school district in the state” to point out the school district is still
lacking in a few categories. As CPS Board President Eileen Reed points
out, a school district needs to attract better educators with higher
salaries if it wants to improve. Paying teachers less because the school
district is performing worse would only put schools in a downward
spiral as hiring standards drop alongside the quality of education.
County commissioners seem supportive of Kasich’s budget. Republican commissioners Chris Monzel and Greg Hartmann said the budget could be “revolutionary” by changing how county governments work. Democratic Commissioner Todd Portune highlighted the Medicaid expansion in the budget. As “revolutionary” as the budget could be, it’s not enough to make up for Ohio and Kasich’s troubled past.
Cincinnati Children’s Hospital was ranked the third best pediatric hospital in the United States by Parents magazine.
The Ohio-Kentucky-Indiana Regional Council of Governments is looking for comments on updating the region’s bike map. Anyone who wants a say should leave a comment here.
The upcoming Horseshoe Casino is partnering up with local hotels to offer a free shuttle service that will seamlessly carry visitors around town.
One courageous grandma stood up to an anti-gay pastor. During a sermon, the pastor outed a gay high school student and told everyone they would "work together to address this problem of homosexuality." At that point, the grandma snapped at the pastor, “There are a lot of problems here, and him being gay is not one of them.” She then apologized to the boy and walked out.
Music has a lot of effects on the brain. Here is an infographic that shows them.
Bonus science news: Earth-like planets could be closer than most people think.
The plan to lease Cincinnati’s parking assets to the Port of Greater Cincinnati Development Authority remains up in the air today after court rulings kept a court-mandated restraining order in place until at least March 15, when a hearing is scheduled at the Hamilton County Common Pleas Court.
The hearing on March 15 will establish whether the lawsuit should move forward and whether the restraining order will remain until the lawsuit is resolved. The latter poses a budgetary challenge to the city; if the restraining order is kept in place and opponents gather the signatures required for a November referendum on the parking plan, the city says it will have to make cuts before July to balance the budget for fiscal year 2014, which could result in layoffs.
“We’ve been very clear that, by state law, we need to have a balanced budget starting July 1, so we will need to do all things necessary at that point,” says Meg Olberding, city spokesperson.
The lawsuit was originally moved to federal courts on March 7 because it included complaints regarding civil rights. Plaintiffs removed the mention of civil rights, which then prompted Judge Michael Barrett to send the lawsuit back to the Hamilton County Common Pleas Court.
City Council approved the parking plan in a 5-4 vote on March 6, but the plan was almost immediately held up by a temporary restraining order from Hamilton County Common Pleas Judge Robert Winkler. The restraining order is meant to provide enough time to process a lawsuit filed by Curt Hartman, an attorney who represents the Coalition Opposed to Additional Spending and Taxes (COAST), on behalf of local activists who oppose the plan and argue it should be subject to referendum.
“If there was even five seconds without a temporary restraining order in place, the city’s going to sign that lease,” Chris Finney, another attorney that represents COAST, said in a public statement after the hearing with Barrett. “At that point, the city will argue that the case has moved and that the (referendum) petitions are void.”
The legal dispute is focused on City Council’s use of the emergency clause, which eliminates a 30-day waiting period on implementing laws but takes away the possibility of a referendum.
In an interview on March 7, Vice Mayor Roxanne Qualls, who voted for the parking plan, told CityBeat the dispute over emergency clauses is politically motivated: “I think it’s nothing but a political controversy that’s generated for political gain and for political purposes. Council passes many of its ordinances with emergency clauses. In fact, the other candidate for mayor himself consistently voted for emergency clauses.”
The other mayoral candidate Qualls is referring to is John Cranley, a former council member who opposes the parking plan and says he will support a referendum effort.
“Just because the emergency clause may be used too often doesn’t make it right,” says Cranley. “I never voted for an emergency clause when there was a stated grassroots effort to have a referendum on a vote that I was facing.”
CityBeat previously covered the parking plan in further detail here.
The Republican head of Hamilton County’s governing board outlined his own alternative for a 2013 budget on Monday, proposing an austere path forward after rejecting other budgets that would raise some taxes.
Board of County Commissioners President Greg Hartmann said his proposed budget would reduce the size of county government by 30 percent, compared to five years ago. He said he wants the board to approve a budget before the Thanksgiving holiday.
“It is a budget of austerity and investment in growth,” Hartmann said.
He added, “It is a structurally-balanced budget,” that doesn’t use one-time sources of cash to make up for shortfalls.
Hartmann’s proposed budget would cut the Sheriff’s Department by about $57,000 or 0.01 percent from 2012 levels; reduce the coroner’s appropriation by 3 percent or $99,000; cut economic development by 5 percent; cut 5 percent from adult criminal courts; and reduce subsidies to the Communications Center and Sheriff’s Department.
Hartmann stressed that it is important to fund public safety as fully as allowable in these tough economic times, as economic development is not possible without it.
Hartmann’s budget comes after commissioners rejected three proposals from County Administrator Christian Sigman.
Sigman proposed $18.7 million in cuts, which Hartmann’s budget maintained in addition to his own reductions.
Two of Sigman’s proposals involved increasing the sales tax to balance the budget.
Fellow Republican Commissioner Chris Monzel said he supports Hartmann’s efforts at austerity, but is working on his own budget proposal as well.
“An austerity budget is the way we’re going to go, and it’s going to be hard,” he said.
The board’s sole Democrat, Todd Portune, said he too is working on his own proposal that he had hoped to have prepared for the Nov. 5 meeting, but was still making tweaks and hoped to present it by the following week.
He hinted that the results of Election Day might impact how he crafts his budget proposal.
“Tomorrow’s results may have an impact as well on the budget that I present as it relates as well to those who are running for county seats,” Portune said. “We have in some cases two very different visions in terms of solutions.”
Both he and Hartmann are up for re-election. Portune is running against Libertarian Bob Frey. Neither candidate has a major party challenger.
Hartmann, who has actively campaigned for Republican presidential candidate Mitt Romney, had a joke in response to Portune’s waiting for the election results.
“I thought you were predicting Romney’s win would make the economy go on the right track,” Hartmann cracked. “I was thinking that’s what you were going to go with.”
Meet Roger Jeremy Ramundo, the man police shot and killed on July 24 after what’s now being called a “life or death struggle.” Police say they first tried to subdue Ramundo, who had a history of mental health problems. But when Ramundo fired his gun once, an officer retaliated by firing two fatal shots into Ramundo’s left back. For family members and colleagues, Ramundo’s death came as a shock; none of them seemed to expect that he could turn violent. Ramundo was diagnosed with bipolar disorder and generalized anxiety disorder, according to the health care worker who notified police that Ramundo left home with his licensed gun, but he had been refusing to take his medication for either illness at the time of his death.
Budget cuts to human services, parks and other areas could be retroactively reduced or eliminated with higher-than-projected revenues from the previous budget cycle, Vice Mayor Roxanne Qualls announced yesterday. When City Council passed the city’s operating budget in May, it had not yet received the full revenue numbers for the fiscal year that ended on June 30. With the full numbers expected to come in higher than originally projected, Council will be able to evaluate options for what and how much can be restored. Human services funding was cut by roughly one-third in the city budget, putting it at 0.3 percent of overall spending — far below the city’s historic goal of 1.5 percent.
Ohio Attorney General Mike DeWine won’t appeal the temporary restraining order that forces the state to recognize a Cincinnati same-sex couple on their death certificate, but DeWine says he’ll continue defending the state’s ban on gay marriage. Lisa Hackley, DeWine’s spokesperson, noted that such restraining orders are normally not susceptible to appeal. Hackley’s explanation contradicts an earlier report from The Cincinnati Enquirer that the order was going to be appealed. Meanwhile, FreedomOhio says it will try to put an amendment legalizing marriage equality on the November 2014 ballot, which CityBeat covered here when the group was still aiming for the 2013 ballot.
The I-71/MLK Interchange yesterday moved closer to its $107.7 million funding goal when Ohio’s Transportation Review Advisory Council gave preliminary approval to Gov. John Kasich’s transportation plan, which will use $3 billion raised through Ohio Turnpike revenues to fund infrastructure projects around the state.
The Ohio Supreme Court will review whether anti-gambling opponents of racinos have standing to sue. Among other issues, critics argue that Kasich’s legalization of video lottery terminals didn’t represent an actual extension of the Ohio Lottery, which is why the state claims it was allowed to legalize the gambling machines without voter approval. The state’s Supreme Court says it will decide the issue after it rules on a similar case involving privatized development agency JobsOhio.
Democrats are voicing uncertainty about whether Republicans will actually take up a Medicaid expansion bill in September. Republican legislators rejected the expansion in the state budget, but they’ve said they will take up the issue in the fall. The Health Policy Institute of Ohio found the expansion, which is funded mostly through federal funds from Obamacare, would insure half a million Ohioans and save the state money over the next decade.
Charter schools’ big challenge: finding space to house their facilities.
An Ohio gun group raised $12,000 to buy George Zimmerman a gun or security system.
Drivers, beware: Hackers could soon be crashing your cars.
Drinking coffee has been linked to a 50 percent lower risk of suicide.
Is the race for Ohio secretary of state already underway? Ohio Sen. Nina Turner, who is considering a run against Secretary of State Jon Husted in 2014, says she will introduce legislation to protect voters against Republican efforts to limit ballot access. She also criticized Husted for how he handled the 2012 election, which CityBeat covered here. Husted responded by asking Turner to “dial down political rhetoric.”
Build Our New Bridge Now, an organization dedicated to building the Brent Spence Bridge, says the best approach is private financing. The organization claims a public-private partnership is the only way to get the bridge built by 2018, rather than 2022. But critics are worried the partnership and private financing would lead to tolls.
The Hamilton County Board of Commissioners threw out
a Metropolitan Sewer District competitive bidding policy yesterday. The
policy, which was originally passed by City Council, was called unfair
and illegal by county commissioners due to apprenticeship requirements and rules that favor contractors within city limits. Councilman Chris Seelbach is now pushing for compromise for the rules.
Believe it or not, Cincinnati’s economy will continue outpacing the national economy this year, says Julie Heath, director of the University of Cincinnati’s Economics Center.
Three Cincinnati-area hospitals are among the best in the nation, according to new rankings from Healthgrades. The winners: Christ Hospital, Bethesda North Hospital and St. Elizabeth Healthcare-Edgewood.
Democrat David Mann, former Cincinnati mayor and congressman, may re-enter politics with an attempt at City Council.
In its 2013 State of Tobacco report, the American Lung Association gave Ohio an F for anti-smoking policies. The organization said the state is doing a poor job by relying exclusively on federal money for its $3.3 million anti-tobacco program. The Centers for Disease Control says Ohio should be spending $145 million.
The Air Force is gearing up for massive spending cuts currently set to kick in March. The cuts will likely affect Wright-Patterson Air Force Base.
Dennis Kucinich, who used to serve in the U.S. House of Representatives, will soon appear on Fox News as a regular contributor.
For anyone who’s ever been worried about getting attacked by a drone, there’s now a hoodie and scarf for that.
A new analysis suggests that tax revenue from Ohio’s new casinos will not be enough to make up for state spending cuts to cities and counties. The findings of the Oct. 1 analysis, by left-leaning Policy Matters Ohio, apply even to casinos and big cities that get extra casino tax revenue. They still lose twice in state aid what they get in new taxes, according to the report.
Overall, the analysis found that new casino revenue will provide $227 million a year to counties and cities. In total, state aid to counties and cities has been cut by about $1 billion. That means the tax revenue isn’t even one quarter of what cities and counties will need to make up for cuts.
The cuts also won’t be enough to make up for state cuts to schools. When casino plans propped up around the state, governments promised that revenue from casinos would be used to build up schools. However, state aid to K-12 education has been cut by $1.8 billion, and new tax revenue will only make up 0.5 to 1.5 percent of those cuts in most school districts, according to the Policy Matters report.
In 2013, Cincinnati will become the fourth Ohio city with a casino. Cleveland and Toledo have casinos, and a new casino opened in Columbus Oct. 8.
Currently, the system is set up so each casino is taxed at 33 percent of gross revenues. That revenue is split into many pieces with approximately 34 percent going to the school fund. Each city with a casino also gets an exclusive 5 percent of its casino’s revenue.
For Cincinnati, that means about $12.1 million in new annual tax revenue. But even with that revenue, Cincinnati will still be losing about $17.7 million in state funding, according to calculations from Policy Matters.
In past interviews, Rob Nichols, spokesperson for Gov. John Kasich, has repeatedly cited the constitutional requirement to balance Ohio’s budget to defend any state budget cuts: “The reality is we walked into an $8 billion budget deficit. We had to fix that.”
Cuts Hurt Ohio, a website showing cuts to state aid, was launched by Policy Matters earlier this year. That website found $2.88 billion in cuts to state aid with $1.8 billion in cuts to education and $1.08 billion in cuts to local governments. In Hamilton County, that translated to a $136 million cut to education and a $105 million cut to local government.
The report does caution that its findings are “necessarily tentative”: “Projected revenues have come down significantly since the 2009 campaign for the casino proposal, and the expected opening of numerous gambling facilities makes it hard to be sure what revenues will be. We estimate casino tax revenue based on several sources, including state agencies, casino operators, and former taxation department analyst Mike Sobul. Our numbers reflect a comparatively optimistic assessment.”
A vote on the 2013 Hamilton County budget is being delayed a week at the request of the sole Democrat on the Board of County Commissioners.
Commissioner Todd Portune asked Board President Greg Hartmann at a Monday staff meeting to push back the vote a week to address funding to juvenile courts and the county’s plan for future financial stability.
Hartmann, who earlier denied Portune’s request to issue securities to raise millions to balance the budget, agreed. He said it was important that all three commissioners agree on the budget.
Portune told reporters he wanted to see more funding for juvenile courts. The proposed budget would cut about $3 million from the juvenile court’s 2012 appropriation.
He said he also wants to see specific plans on how and where the county will invest in economic development. He and Hartmann disagree about whether that kind of planning belongs in a budget.
Hartmann had the proposal developed after commissioners rejected three plans from County Administrator Christian Sigman, two of which would have raised taxes. The $192 million budget under consideration cuts about $14 million from the 2012 appropriation levels without raising taxes.
The proposed budget makes a number of what Hartman calls “modest cuts” in almost every county department.
All three commissioners have stated that public safety funding is a priority. The Sheriff’s Department would see a small reduction of $27,033, bringing its budget to almost $57.5 million.
However, the department would also face an additional $4.3 million in expenses next year, giving incoming Sheriff Jim Neil an effectively reduced budget.
The Emergency Management Agency would get a nearly 40 percent increase in the proposed budget, up to $400,000.
The Board of Elections would see its budget slashed 36.2 percent to $6.9 million. However, its expenses would also be lower in 2013 because there is no presidential election as there was in 2012.
The proposed budget would bring the Department of Job and Family Services’ appropriation to $832,900 — a reduction of $10,360. However, that funding level is dictated by the State of Ohio and not the county.
The Hamilton County Prosecutor would also see a small increase of $37,597 intended to hold level its funding from 2012, as the department went over-budget. The prosecutor has the ability to sue the county over its budget appropriation, so the department typically maintains level funding.