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 email@example.com.
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 firstname.lastname@example.org.
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.
Ohio ranked No. 8 among states for solar jobs in 2013, with solar employment growing to 3,800 from 2,900 over the year, according to the Feb. 11 census report from the Solar Foundation.
Still, the state actually dropped five spots to No. 23 in per-capita rankings, which measure the amount of solar jobs relative to a state’s overall population.
The U.S. solar industry employed more than 142,000 Americans in November, representing an increase of nearly 24,000 over the year, according to the Solar Foundation. At nearly 20 percent growth, the solar sector grew more than 10 times faster than the overall economy, which on average increased employment by 1.9 percent.
Advocacy group Environment Ohio applauded the latest numbers.
“The sun is an unlimited energy source that could provide all of our energy without the air and water pollution associated with coal, oil and gas,” said Christian Adams, state associate at Environment Ohio, in a statement. “This report shows that the solar industry is putting people to work to meet a growing percentage of our energy needs with a pollution-free energy source that has no fuel costs.”
Environment Ohio praised Cincinnati in particular. In 2012, Cincinnati became the first major city in the nation to support 100 percent renewable energy through electric aggregation. Last year, City Council adopted a motion to put solar panels on one in five city rooftops by 2028 and develop new financing programs to support the goal.
In a 2012 report, Environment Ohio found Cincinnati could become the solar capital of the region and lead a boom of solar jobs.
Under a 2008 state law, utility companies must meet benchmarks that require them to get 12.5 percent of their electricity from renewable sources, such as wind, hydro, biomass and solar, and save 22 percent of electricity through new efficiency efforts by 2025.
A 2013 report from the Ohio State University and the Ohio Advanced Energy Economy found the law will save Ohioans $3.65 billion on their electricity bills between 2014 and 2025.
Pressured by Akron-based FirstEnergy and the ultra-conservative American Legislative Exchange Council, the Republican-controlled Ohio Senate is currently looking for ways to weaken the renewable energy and efficiency standards. The renewed effort comes after attempts to dismantle the law by State Sen. Bill Seitz, a Cincinnati Republican who often compare Ohio’s energy law to Stalinism, failed to gain support.
Meanwhile, Environment Ohio says the state should actually increase its standards to help combat global warming and boost renewable energy jobs.
The federal government reported slightly better numbers in January for Obamacare’s once-troubled online marketplaces, but Ohio and the nation still fall far short of key demographic goals.
For the first time since HealthCare.gov’s glitch-ridden rollout, the U.S. Department of Health and Human Services’ (HHS) numbers show the amount of new enrollees actually beat projections. About 1,146,100 signed up for Obamacare in January, slightly higher than the 1,059,900 previously projected by the Centers for Medicare and Medicaid Services.
More importantly, a small boost in young adults means 25 percent of 3.3 million enrollees across the nation and 21 percent of 60,000 Ohio enrollees were aged 18 to 34. That’s up 1 percentage point for the nation and 2 percentage points for Ohio.
The White House previously said 39 percent of enrollees need to be young adults, who tend to be healthier, to avoid driving up health care costs by filling the insurance pool with older, sicker people who typically use more resources.
HHS’ numbers only reflect people who signed up for a health plan, not people who paid for their first premium, which is widely considered the final crucial step to getting covered.
Nearly nine in 10 single, uninsured young adults could qualify for financial assistance through the health care law or free Medicaid, which expanded eligibility in Ohio through Obamacare, according to HHS.
With Cincinnati’s child poverty and economic mobility rates among the worst in the country, it’s clear the city’s poor can get stuck in a vicious cycle of poverty. Although the impoverished trend afflicts more than half of the city’s children, every level of government has in some way cut services to the poor. The end result: Many Cincinnati neighborhoods show little signs of progress as poor health and economic indicators pile up. Read CityBeat’s in-depth story here.
Following the adoption of community learning centers, Cincinnati Public Schools (CPS) continue receiving praise for establishing a workable model for educating low-income populations. Locally, independent data shows the model has pushed CPS further than the traditional approach to education, even though the school district continues struggling with impoverished demographics. A few hundred miles away, newly elected New York City Mayor Bill de Blasio says he will implement the Cincinnati model in the biggest city in the nation.
Hamilton County and Cincinnati are heading to court to decide who can set policy for Metropolitan Sewer District (MSD) projects. The conflict came to a head after Hamilton County commissioners deliberately halted federally mandated MSD projects to protest the city’s job training rules for contractors. The Republican-controlled county argues the rules favor unions, burden businesses and breach state law, but the city says the rules are perfectly legal and provide work opportunities for city workers.
Commentary: “Legalizing Marijuana Is Serious Business.”
With HealthCare.gov mostly fixed, CityBeat interviewed Trey Daly, who is leading the Ohio branch of an organization reaching out to the uninsured to get them enrolled in Obamacare.
University of Kentucky researchers found tolls would, at worst, reduce traffic on a new Brent Spence Bridge by 2 percent.
After raising concerns over teacher pay and missed classroom time, Republicans in the Ohio House delayed a vote on a bill that would add school calamity days. Gov. John Kasich called for the bill to help schools that have already exhausted their snow days during this winter’s harsh weather.
Ohio regulators fined Cincinnati’s Horseshoe Casino $75,000 for providing credit to early patrons without running the proper background checks.
Cincinnati-based Kroger faces a lawsuit claiming stores deceived customers by labeling chickens as humanely raised when the animals were brought up under standard commercial environments.
Cincinnati-based crowdfunding startup SoMoLend settled with Ohio over allegations that it sold unregistered securities and its founder misled investors. Candace Klein, the founder, resigned as CEO of the company in August.
Comcast intends to acquire Time Warner Cable, one of two major Internet providers in Cincinnati, through a $45 billion deal.
U.S. physicists pushed fusion energy closer to reality with a breakthrough formally announced yesterday.
Mayor John Cranley on Feb. 12 officially unveiled his plan for Cincinnati’s parking meters, lots and garages, providing the first clear option for the city’s parking system since the Greater Cincinnati Port Authority agreed to halt the previous plan.
The proposal seeks to effectively replace the previous administration’s parking privatization plan, which outsourced the city’s parking assets to the Port Authority and several private companies, and maintain local control of the city’s parking assets.
Here’s a breakdown of the plan and all its finer details.
What is Cranley’s parking plan?
It’s a plan for Cincinnati’s parking meters, lots and garages. More specifically, Cranley calls his proposal a “framework” that focuses on upgrading the city’s parking meters and keeps City Council’s control of parking rates and hours.
Cranley’s plan, based on a Feb. 7 memo from Walker Parking Consultants, achieves his goals in a few ways:
• The city would issue bonds, backed by future parking revenues, to upgrade all parking meters to accept credit card payments.
• The amount of enforcement officers under the city’s payroll would increase to 15, up from five, to provide greater coverage of the city’s parking meters. (Currently, a few areas, including major hubs like the University of Cincinnati and Over-the-Rhine, are effectively unenforced for two to five hours a day, according to Walker.)
• Neighborhood meter rates would go up by 25 cents to 75 cents an hour. Downtown rates would remain at $2 an hour.
• Sundays and holidays remain free.
Cranley says the underlying idea is to maintain a few key principles, particularly local control over rates and hours. He cautions Walker’s proposal, including expanded enforcement hours, could change with public input and as City Council puts together the final plan.
Does the plan let people use smartphones to pay for parking meters?
No. Cranley says the upgraded meters will support the technology, but it will be up to council to decide whether it’s enabled in the future.
Smartphone capability is a double-edged sword: It introduces its own set of costs, including shorter battery life for meters. It also allows customers to avoid under- and overpaying at parking meters, which decreases citation and meter revenues. But smartphone access also increases ease of use, which could lead to higher revenues by making it easier to pay.
The parking privatization plan promised to provide smartphone access at all parking meters. The previous administration and Port Authority championed the feature as key to increasing convenience and revenue.
OK, that explains the parking meters. What about the parking garages?
Cranley’s plan makes two changes to garages:
• The Port Authority would take over Fountain Square South Garage. The Port would be required to cover expenses for the garage, but any net revenue could be used on projects within the city.
• The city would issue bonds, backed by future parking revenues, to build a garage at 7th and Broadway streets.
Otherwise, things remain the same as today.
In other words, the city would be on the hook for parking garage repairs and upgrades, which Walker estimates would cost roughly $8 million in capital expenses over the next five years.
But the city would also continue directly receiving around $2 million per year in net revenue from parking garages, according to Walker.
Still, the city isn’t allowed under state law to use the revenue from parking garages for anything outside the parking system.
The parking privatization plan tried to do away with the restriction by putting the Port Authority in charge of garages. State law allows agencies like the Port to tap into garage revenues for other uses, such as development projects.
But without the previous administration’s plan, Cranley claims the Port Authority declined to take over more facilities beyond Fountain Square South
Garage. Given the rejection, Cranley says it’s up to council to figure out another way to leverage garage
revenues beyond putting them back in the parking system.
What does Cranley’s plan do about the thousands of parking tickets already owed to the city?
Nothing. By Cranley’s own admission, the city needs to do a better job collecting what it’s owed. But he says that’s something City Council will have to deal with in the future.
So why did Cranley oppose the parking privatization plan?
Cranley vehemently opposed giving up local control of the city’s parking assets. He warned that outsourcing meters to the Port Authority and private companies would create a for-profit incentive to ratchet up parking rates and enforcement.
The previous administration disputed Cranley’s warnings. They pointed out an advisory board, chaired by four Port Authority appointees and one city appointee, would need to unanimously agree on rate and hour changes, and the changes could be vetoed by the city manager.
Without any changes from the advisory board, the 30-year privatization plan hiked downtown parking meter rates by 25 cents every three years and neighborhood rates by 25 cents every six years. The plan also expanded enforcement hours to 8 a.m.-9 p.m. in Over-the-Rhine and parts of downtown.
Still, City Council would lose its control of rates and hours under the privatization plan. Cranley and other opponents argued the outsourcing scheme could insulate the parking system from public — and voter — input.
Cranley also opposed the privatization plan’s financial
Under the old deal, the city would receive a lump sum of $85 million and annual installments of $3 million, as long as required expenses, such as costly garage upgrades or repairs, were met.
In comparison, the city currently gets roughly $3 million in net revenue from parking meters and another $2 million in net revenue from parking garages. (As noted earlier, the parking garage revenue can only be used for parking expenses.)
Cranley characterizes the lump sum as “borrowing from the future” because it uses upfront money that could instead be taken in by the city as annual revenue.
Why does Cranley think his proposal is necessary?
It solidifies the death of the parking privatization plan. That’s important to begin the process of legally dismantling the previous plan.
The plan also increases net parking meter revenues from roughly $3 million to $6 million in the next budget year and more than $7 million per year within five years, according to Walker’s original estimates. (The estimates are likely too high because they assumed evening hours would expand around the University of Cincinnati, Short Vine in Corryville, Over-the-Rhine and downtown. But Cranley shelved the expansion of hours, with no estimates for how the changes will affect revenues.)
Since parking meter revenue, unlike garage revenue, can be used for non-parking expenses, the extra revenue could help plug the $20 million gap in the $370 million operating budget.
Why do some people oppose Cranley’s plan?
Some people supported the parking privatization plan. They saw the lump sum as a great opportunity to invest in development projects around the city. Without the lump sum, critics claim Cranley’s plan accepts all the pain of the previous plan — increased enforcement, rates and hours — for very little gain, even though the city would get more annual revenue and upgraded parking meters and garages.
Politics are also involved. After the contentious streetcar debate, there’s not much Cranley can do without some critics speaking out.
When will Cranley’s plan go into effect?
City Council first has to approve Cranley’s plan for it to
become law. Council will likely take up and debate the plan at the
Neighborhood Committee on Feb. 24 and set a more concrete timeline
This blog post will be regularly updated as more information becomes available. Latest update: Feb. 19.