by German Lopez
Posted In: News
at 07:13 PM | Permalink
Ohio ranks No. 3 for massive subsidy deals with corporations
is No. 3 in the nation for “megadeals” — massive government subsidies to
corporations that are meant to encourage in-state job creation — but a
new report found many of the deals rarely produce the kind of jobs initially
touted by public officials. In the Good Jobs First report
released on June 19, Ohio tied with Texas as No. 3 for megadeals,
which Good Jobs First defines as subsidies worth $75 million
or more. Michigan topped the list with 29 deals, followed by New York
with 23.In the Cincinnati area, local and state agencies agreed to pay $196.4 million to Convergys in 2003 and $121 million to General Electric in 2009 to keep and create jobs in the area. It’s
no secret the deal with Convergys went sour for Cincinnati. In December 2011,
the company, which provides outsourced call center services, agreed to pay a $14 million reimbursement to the city because the company’s
downtown employment fell below 1,450 — the number of jobs required under
the initial deal. The reimbursement deal also calls for the company to pay an additional $5 million if its downtown employment falls below 500 before 2020.The
Good Jobs First report finds this kind of failure is not exclusive to
the Convergys megadeal or Cincinnati; instead, the report argues that
megadeals are expensive and often fail to live up to
their high costs, some of the deals involve little if any new job
creation,” said Good Jobs First executive director Greg LeRoy in a
statement. “Some are instances of job blackmail, in which a company
threatens to move and gets paid to stay put. Others involve interstate
job piracy, in which a company gets subsidies to move existing jobs
across a state border, sometimes within the same metropolitan area.” For
the jobs that are kept and created, states and cities end up paying
$456,000 on average, with the cheapest deals costing less than $25,000
per job and the most expensive costing more than $7 million per job. The
report finds the number of megadeals per year has doubled since 2008,
on top of getting more expensive in the past three decades. Each
megadeal averaged at about $157 million in the 1980s, eventually rising
to $325 million in the 2000s. The average cost dropped to $260 million
in the 2010s, reflecting the price of deals made in the aftermath of the
Great Recession, which strapped city and state budgets.“These
subsidy awards are getting out of control,” said Philip Mattera,
research director of Good Jobs First and principal author of the report,
in a statement. “Huge packages that used to be reserved for ‘trophy’
projects creating large numbers of jobs are now being given away more
the report aims to increase transparency for such subsidies, reflecting
an ongoing goal for Good Jobs First. To do this, the organization has
set up a database (www.subsidytracker.org) that anyone can visit to track past, present and future subsidy deals.But
the report claims much of this work should already be done by the
Governmental Accounting Standards Board (GASB), which “has been
long-negligent in failing to promulgate regulations for how state and
local governments should account for tax-based economic development
expenditures,” according to a policy sidebar from LeRoy. “If GASB were
to finally promulgate such regulations — covering both programs and
deals — taxpayers would have standardized, comparable statistics about
megadeals and could better weigh their costs and benefits.”
by German Lopez
Council to rework "responsible bidder" ordinance
Cincinnati and Hamilton County today announced a compromise that will end the county's funding hold on sewer projects, allowing the projects to move forward. As a condition, the city will have to rework and repeal the controversial laws that incited county commissioners into approving the hold in the first place.As part of the deal, Commissioner Chris Monzel will ask the Hamilton County Board of Commissioners to immediately repeal a hold on Metropolitan Sewer District (MSD) projects.On the city's side, Councilman Chris Seelbach will ask City Council to immediately repeal so-called "local hire" and "local preference" rules, which require a certain percentage of contractors' workforce be local residents.The city, county and their partners will then work on changing the city's responsible bidder ordinance before new rules are officially implemented on Aug. 1.In May, City Council modified the responsible bidder ordinance originally passed in June 2012. The changes were supposed to trigger in August, but the compromise may alter those changes altogether. Under the current language, the ordinance forces MSD contractors to establish specifically accredited apprenticeship programs and put money — based on labor costs — toward a pre-apprenticeship fund.The city argued the programs will help create local jobs and train local workers, but the county criticized the rules for supposedly favoring unions and imposing extra costs on MSD projects.Meanwhile, MSD is facing pressure from the federal government to comply with a mandate to retrofit and replace Cincinnati's sewers. MSD estimates the project will cost $3.2 billion over 15 to 20 years, making it one of the largest infrastructure projects in Cincinnati's history.But the project was effectively halted by the county commissioners' funding hold, which forced the city and county to hastily work out a compromise.CityBeat covered the county-city conflict in further detail here.
by German Lopez
Ohio unemployment unchanged in May, budget overhauls taxes, streetcar vote Monday
Ohio’s unemployment rate was 7 percent in May, unchanged
from April and down from 7.3 percent in May 2012, according to Bureau of
Labor Statistics data released today by the Ohio Department of Job and Family Services.
Although the number of unemployed increased by 5,000 between April and May, the number of
employed also increased by 32,100, keeping the rate relatively stable.
Most sectors tracked in the report, including government, gained jobs.
The final version of the state budget would cut income taxes and create a state-based earned income tax credit,
but it would also hike the sales tax and make changes to property taxes
that effectively increase rates. Republican state legislators rolled
out the tax plan yesterday as a compromise between the Ohio House and
Senate plans. The final version looks a lot more like Gov. John Kasich’s
original tax proposal, which left-leaning Policy Matters Ohio criticized for favoring the wealthy. The budget must be signed by Kasich by June 30.
City Council is expected to vote on the streetcar project’s $17.4 million budget gap on Monday. The gap is a result of construction bids coming in much higher than expected, and solving it would involve making cuts for a slew of capital programs,
including infrastructure projects around the Horseshoe Casino. The cuts
will all come from the capital budget, which can’t be used to fund
operating budget expenses like police and fire because of limits established in
Three days after City Manager Milton Dohoney signed an
agreement leasing the city’s parking meters, lots and garages to the
Greater Cincinnati Port Authority, the Port Authority still hadn’t signed the lease, and it remains unclear when the agency plans to do so. City spokesperson Meg Olberding told CityBeat
she’s confident the Port Authority will sign the lease. But the delays
have raised questions about whether there truly will be local control
over the city’s parking assets through the Port Authority, given that
the agency is already going against the wills and assumptions of the
city government by failing to sign the lease.
City Councilman Chris Seelbach announced on Twitter
that he and Hamilton County Commissioner Chris Monzel will release a
joint statement on the city’s “responsible bidder” ordinance later today. The city
and county have been clashing over the ordinance, with county
commissioners most recently putting a hold on all Metropolitan Sewer
District projects. CityBeat covered the conflict in greater detail here.
Federal data released this week shows Ohio has some of the weakest gun laws and, as a result, is a top source for guns for crimes committed in other states.
Construction is expected to cause some downtown ramp closures and restrictions next week, so prepare for delays or a change in commute.
A Japanese scientist may have to grow his human organs in pigs.
The world’s first 3-D printed battery is as small as a grain of sand.
by German Lopez
Posted In: News
at 11:38 AM | Permalink
State has added 4,400 jobs in past year
An infographic from Pew Charitable Trusts shows Ohio ranked No. 46 out of all the states for job creation in the past year, beating only Wisconsin, Maine and Wyoming and tying with Alaska.Between April 2012 and April this year, Ohio added 4,400 jobs — a 0.1-percent increase in the state's employment.The three states below Ohio and Alaska — Wisconsin, Maine and Wyoming — had a drop in employment ranging from 0.2 percent to 0.5 percent.North Dakota topped the rankings with 15,900 new jobs — a 3.7-percent increase in employment — largely driven by the state's ongoing oil and gas boom.The statistics coincide with previous warnings from liberal and conservative think tanks about the state's economy, signifying that Ohio is not undergoing the "economic miracle" that Gov. John Kasich and other state officials often tout.Here is the full infographic, which uses job data from the Bureau of Labor Statistics:Update (1:57 p.m.): Clarified that Ohio tied, not beat, Alaska.
0 Comments · Wednesday, June 12, 2013
City Council’s Budget and Finance
Committee on June 10 approved development plans for Fourth and Race
streets to build a downtown grocery store, a luxury apartment tower and a
parking garage to replace Pogue’s Garage.
by German Lopez
Downtown grocery advances, city pension in trouble, county to investigate “double voters”
Got questions for CityBeat about, well, anything? Submit them here, and we’ll try to get back to you in our first Answers Issue.City Council’s Budget and Finance Committee approved a development plan for Fourth and Race streets to build a downtown grocery store, a luxury apartment tower and a garage that will replace Pogue’s Garage. The project will cost $80 million, with the city paying
$12 million through a five-year forgivable loan and private financing paying for the remaining $68 million. The city’s loan is being financed through urban renewal
funds, which are generated through downtown taxes and can only be used
for capital investment projects downtown. The project was originally attached to the city’s plan to semi-privatize its parking assets, but the city administration says the urban renewal funds opened up after a hotel-convention center deal collapsed.
The city’s pension fund saw a return of 12 percent in
fiscal year 2012, but the amount of money the city owes and should
contribute to the pension fund continues to go up.
The higher costs will likely force City Council to put more money
toward the pension, which means less money for other services. City Council has underfunded the pension system by varying
degrees since 2003 — a problem that was further exacerbated by the
economic downturn of 2008, which cost the city’s pension fund $102
million. Consultants suggested City Council view the pension fund
as “not being of good health” and make changes that would help make the
pension fund more “robust” and less volatile.As county and state officials move to investigate and potentially prosecute 39 “double voter” cases, local groups are pushing back with warnings that the investigations could cause a chilling effect among voters. Most of the cases cover voters who mailed in an absentee
ballot then showed up to vote on Election Day. Although the voters voted
twice, their votes were only counted once. Critics of the investigations, including Hamilton County Democrats, cite Ohio Revised Code Section 3509.09(B)(2),
which says voters who show up to vote on Election Day after filing an
absentee ballot should be given a provisional ballot. Hamilton County
Republicans say they’re not prejudging anyone and just want an
Following a report that found Ohio’s juvenile correction facilities are among the worst in the nation for rape and other sexual assaults against incarcerated youths, the state is assigning assessors to the facilities to ensure proper protections and improvements are being put in place.The Greater Cincinnati Port Authority is looking to expand its coverage to better market the region. The Port Authority’s plans call for enlisting 18 counties across Ohio, Indiana and Kentucky.
A derailed train hit a local electrical tower yesterday, temporarily shutting down power for part of the region.
Fatal collisions between cars and trains at public railroad crossings increased in 2012 to the highest level since 2008.
The former Terrace Plaza Hotel was sold, but it’s not clear what will come next for the building.An experimental form of male birth control involves injecting gold into testes and zapping them with infrared light.
Another one of Saturn’s moons may contain an underground ocean.
by German Lopez
Group ordains woman priests, Quinlivan suggests budget plan, county halts sewer projects
A group is ordaining Roman Catholic women priests despite Vatican opposition, and Debra Meyers will be Cincinnati's first woman to go through the ordination on May 25. Meyers told CityBeat the Association of Roman Catholic Women Priests' movement is about pressuring the Catholic Church to be more inclusive, including with women, LGBT individuals and other groups that may feel left out by the Church's current policies. The full Q&A with Meyers can be read here.In the latest budget plan, Councilwoman Laure Quinlivan is asking all city employees, including cops and firefighters, to take eight furlough days, which she says would save enough money to prevent all layoffs. That plan follows a motion co-sponsored by council members Roxanne Qualls and Chris Seelbach, which would eliminate all fire layoffs and reduce police layoffs to 25.Hamilton County commissioners voted to stop all sewer projects yesterday in opposition to the city's "responsible bidder" policy, which requires most contractors working with the Metropolitan Sewer District (MSD) to have apprenticeship programs. City Council, spearheaded by Seelbach, passed the measure to encourage more job training options for workers, but the county government says the measure is unfair and puts too much of a strain on businesses working with MSD. The issue will likely head to court.Commentary: "Good News Reveals Budget Deception."At last night's budget hearings, Councilman Charlie Winburn repeatedly brought up the city's so-called "credit cards," which are really procurement cards that are often used by the mayor to entertain and attract businesses to Cincinnati. Winburn says the use of the cards is outrageous when the city is considering laying off cops and firefighters, and Councilman Chris Smitherman says the system needs more controls. The cards are set up so they can only be used by city employees for certain services, and City Manager Milton Dohoney Jr. says the cards make the system more efficient, which means lower prices for the city.A bill in the Ohio House revives the Medicaid expansion, which was previously opposed by Republicans as part of the budget process. Gov. John Kasich is one of the top Ohio Republicans who supports the expansion, but it's unclear how far the bill can move this time, considering many Republicans are still opposed. CityBeat
covered the expansion, which would insure half a million Ohioans and
save the state money in the next decade, in further detail here.The Ohio General Assembly passed a bill
yesterday that would effectively ban Internet "sweepstakes" cafes,
which state officials say are prone to illegal gambling activity. State
Sen. Bill Seitz, a Cincinnati Republican, says the bill is a "shoot ‘em
and let God sort it out" approach because the bill generalizes against
all Internet cafes instead of imposing specific regulations that would
only target offenders. If Kasich signs the bill, it will become law.The Ohio Public Interest Research Group, a nonprofit advocacy group, submitted 589 petitions to the Ohio Senate opposing a measure that would force Ohio's public universities to decide between $370 million in out-of-state tuition revenue and giving out-of-state students documents required for voting. The measure was originally sneaked into the Ohio House budget plan, but Senate officials are removing it from the budget bill and appear likely to take it up in a standalone bill. CityBeat covered the original measure here.Greater Cincinnati home sales are continuing picking up. There 2,388 homes
sold in the region in April, up 22.65 percent from the year before —
even better than March's 13.5-percent year-over-year rise.Researchers are now suggesting rubbing a certain kind dirt on wounds.
1 Comment · Wednesday, May 22, 2013
Two council members are proposing a budget plan that would eliminate fire layoffs and reduce police layoffs to 25 by making cuts elsewhere.
by German Lopez
Local job numbers improve, housing supply lags behind demand, The Banks gets price tag
Local job numbers continued their positive trend
in April, with Cincinnati’s unemployment rate dropping to 6.9 percent
and the rest of the region following suit. Michael Jones, research
director at the University of Cincinnati Economics Center, attributed
the job gains to improvements in manufacturing and continued growth in
health care jobs. Still, the public sector continued to lag behind the
private sector — a trend Jones says could change in the coming months as
government budgets are adjusted to match higher tax revenues resulting
from the recovering economy.
Downtown’s population growth slowed last year as available housing failed to match demand,
according to Downtown Cincinnati Inc.’s annual report. In the past few
years, the city has pursued multiple actions to meet demand,
particularly through public-private partnerships. Most recently, City
Council approved leasing the city’s parking assets to raise funds that
would help build 300 luxury apartments, but that plan is currently being held up in court.
The second phase of The Banks riverfront project will cost $62 million,
according to the report from Downtown Cincinnati Inc. That’s smaller
than the first phase, which cost $90 million. The second phase of the
project is expected to begin this fall, and it should bring 300
apartments and 60,000 square feet of street-level retail space to the
area by the end of 2015. The Banks also plans to build a $45 million
hotel, which is also expected to be complete in 2015. The funding for the projects is
coming through multiple public-private partnerships.
After the final
public hearing on the city budget Wednesday, Councilwoman Laure Quinlivan plans to introduce her own
budget plan that would avoid all city employee layoffs. A statement from Quinlivan
did not give much in the way of details: “My plan saves all city jobs
and restores all neighborhood programs. It requires common sense and
shared sacrifice of all city employees.” Most recently, council members
Chris Seelbach and Roxanne Qualls co-sponsored a motion that would eliminate fire layoffs and reduce police layoffs to 25 by making cuts elsewhere.
The Ohio Senate plans to vote
today on a measure that would effectively close down hundreds of
Internet “sweepstakes” cafes around the state in an effort to eliminate
illegal gambling activities. The cafes’ operators insist their
activities are not gambling but rather a promotional tool that helps
sell Internet time and long-distance phone cards.
Cincinnati’s zoning hearing examiner says he’s trying to reduce the time it takes to go through the zoning hearing process to less than 60 days.
Three major Ohio universities, including the University of
Cincinnati, and four hospitals, including Cincinnati Children's
Hospital, are teaming up to find out what causes premature birth.
Beginning July 1, some Ohio interstates will allow drivers to go 70 miles per hour. Find out which ones here.
At congressional hearings yesterday, U.S. senators
criticized Apple for legally taking advantage of the complex American
corporate tax system, but Kentucky Sen. Rand Paul put the blame on
Russia is building robots to “neutralize” terrorists, and other researchers are working on robots that will attempt to rescue people after disasters.
The creator of the GIF says it’s pronounced “jif.”
by German Lopez
Posted In: News
at 02:01 PM | Permalink
Cincinnati unemployment rate drops to 6.9 percent
Local joblessness fell sharply in April, continuing a positive
trend as Cincinnati’s economy recovers from the Great Recession, according to new data from the Ohio Department of Job and Family Services (ODJFS).
“We’re continuing to see the same positive trend at both
the local level and the state level,” says Michael Jones, research
director at the University of Cincinnati Economics Center.
Cincinnati’s seasonally unadjusted unemployment rate dropped to 6.9
percent in April, down from a revised 7.4 percent in March and 7.4
percent in April 2012. In the past, the unemployment rate sometimes dropped as people gave up on looking for work and left the civilian labor force, but the April report reflected genuine improvements in the local economy. The civilian labor force and amount of people with a job were higher, and the amount of people without a job dropped.
The news was similarly positive for the rest of the region. Greater
Cincinnati’s seasonally unadjusted unemployment rate dropped to 6.5
percent, down from 7.2 percent in March and 7 percent in April 2012.
Hamilton County’s rate hit 6.3 percent, down from 6.9 percent in March
and 6.8 percent the year before.
Jones says the health care sector has been one of the
leading areas of growth in the local economy, but the April report also
showed strong gains in manufacturing — allaying fears raised in recent
months that the industry, which Jones calls “volatile,” was beginning to
“We’re starting to see that upward swing again,” Jones
says. “We’re not back on track ... but we’ve erased the last couple
months of losses.”
Still, the public sector has continued to decline,
reflecting budget cuts made at all levels of government in the past
Jones says it’s common for the public sector to lag behind
the private sector, so it’s possible there will be government job gains in a few months
once government budgets are updated to match higher tax revenues resulting from the
In Ohio, the seasonally unadjusted unemployment rate was
6.7 percent in April, down from 7.3 percent the month before.
Nationwide, the rate was 7.1 percent, down from 7.6 percent.
Job numbers are obtained through household surveys by the
U.S. Bureau of Labor Statistics, which uses the data to measures the
amount of people employed relative to the civilian labor force. The
numbers are adjusted for seasonal factors at state and national levels,
but not at the local level. Since the numbers are obtained through
surveys, they are often revised with stronger data in later months.