by German Lopez
Ohio was one of two states to see economy worsen in three-month index
Despite Gov. John Kasich’s claims to the contrary, the
only miracle in Ohio’s economy might be how bad the state is doing compared to
the rest of the nation.
The proof: Ohio’s economy was among just two states in the
nation that actually worsened during September through November compared to August through October, according
to the research department at the Federal Reserve Bank of Philadelphia. Beyond Ohio’s borders, Alaska also worsened, two states remained stable and the rest of the nation moved in a generally positive direction.
In other words, while 46 states’ economies moved in a generally positive direction, Ohio actually got worse.
The measures come from the State Coincident Index issued
by the Federal Reserve Bank of Philadelphia every month. The index
combines several economic indicators to gauge the condition of each
state’s economy. The research department then gauges whether the index
improved or worsened after the latest month’s data is taken into
account.With the gubernatorial election now less than one year
away, the sorry state of Ohio’s economy could prove a bad sign for Gov.
Kasich, a Republican, came into office as Ohio’s economy
began dashing out of the Great Recession stronger than most of the
nation — a trend Kasich took to calling the “Ohio miracle.”
Ed FitzGerald, Kasich’s likely Democratic challenger, has
criticized the claim in the past few months as Ohio’s economy showed
more signs of worsening despite Kasich’s promises that his policies
would keep the state in the right direction.
One of those policies was privatizing Ohio’s development
agency and effectively turning it into JobsOhio. In less than three years, the
agency has been riddled in multiple scandals following accusations from
Democrats that the JobsOhio board hosts various conflicts of interests
and lacks transparency when recommending who should get state tax
Kasich also pushed and approved an across-the-board income
tax cut earlier in 2013 through the two-year state budget. But because
the income tax cut came with a sales tax hike, left-leaning think tank
Policy Matters Ohio found Kasich’s tax cut heavily favors the wealthy, which
calls into question whether the tax cut will actually help Ohio’s middle
class or economy.
For FitzGerald and other Democrats, the challenge is
advocating a progressive agenda that stands in contrast to Kasich’s
policies. Although they have plenty of criticisms, it remains unclear
what Democrats could do if — as looks almost certain — Republicans
continue to hold Ohio’s legislative chambers.
Then there’s the question of whether state policies matter
much, if at all. Economists generally agree that state officials
tend to dramatize the economic impact of their policies when much
bigger factors are at play, particularly as globalization reshapes the
national and global economies.
For now, one thing is clear: Kasich’s policies
haven’t been enough to turn around Ohio’s sinking economy throughout the
past three months.
by German Lopez
Portune could run for governor, city could host GOP in 2016, laxer regulations draw critics
Hamilton County Commissioner Todd Portune will announce today whether he'll run for governor. If he decides to run, Portune will face off against Cuyahoga County Executive Ed FitzGerald to decide which Democrat should face off against Republican Gov. John Kasich next November. Until now, it has been widely assumed that FitzGerald would take the gubernatorial nomination without a primary challenge. But if Portune enters the race, it could lead to a primary process that could hinder Democrats' chances in a pivotal state election.Hamilton County Republican Party officials are looking into hosting the 2016 national GOP convention in Cincinnati, but they acknowledge their bid might come in too late. The 2016 convention would put the national spotlight on Cincinnati during a presidential election year, when presumably two new presidential contenders will have been picked by Democrats and Republicans to replace President Barack Obama. Hamilton County Republican Chairman Alex Triantafilou said Cincinnati would be a great location for the convention, given the region's electoral importance to both parties, but he wants to make sure Cincinnati actually stands a chance before using time and resources to file a formal application.Entertainment districts allow some businesses in Walnut Hills and nine other Cincinnati neighborhoods to receive their state liquor licenses more quickly and inexpensively, but some — particularly businesses facing new competition — are worried the increasingly popular economic designation will lead to more alcohol-serving establishments than Cincinnati can sustain.Local startup incubator SoMoLend got state hearings over allegations of fraud pushed to February and March. The once-promising crowdfunding incubator previously partnered with Cincinnati, but the city cut ties with the business once allegations of fraud surfaced.The Ohio Department of Health warned on Friday that flu activity is increasing across the state and Ohioans should get vaccinated.The Ohio State Highway Patrol last week launched an enhanced registry of people who have been convicted of drunk driving at least five times.Starting Jan. 1, regulations meant to crack down on puppy mills will require licenses for dog breeders and clean cages. The legislation enforcing the new rules was approved more than a year ago to curtail Ohio's reputation of being soft on large dog breeding operations.Ohio gas prices spiked at the end of the year.With the year drawing to a close, check out CityBeat's top stories of 2013.The question you probably never asked has now been answered: Can a human fall in love with a computer?Follow CityBeat on Twitter:• Main: @CityBeatCincy • News: @CityBeat_News • Music: @CityBeatMusic • German Lopez: @germanrlopez
by German Lopez
Posted In: News
at 09:41 AM | Permalink
Streetcar construction restarts, minimum wage hike incoming, jobless benefits to expire
Construction on the $132.8 million streetcar project
restarted yesterday, marking an end to the nearly two-month drama
brought on by Mayor John Cranley’s election and his threats of
cancellation. City Council paused the project for a little more than
three weeks to conduct an audit on its costs, but the legislative body
agreed to restart construction last week after receiving a signed
agreement from the Haile Foundation that the philanthropic group will
provide $9 million over 10 years to help pay for $3.13-$3.54 million in annual operating costs.
An automatic increase on Ohio’s minimum wage at the start
of the new year will benefit 330,000 Ohioans, according to an analysis
from the Economic Policy Institute (EPI). The higher wages should
translate to a better economy for all Ohioans: EPI found the automatic
increase will generate nearly $39 million in economic impact and 300
full-time jobs. Since a voter-approved measure in 2006, Ohio has been
among several states who peg the minimum wage to increases in the cost
of living.More than 36,000 Ohioans will lose emergency unemployment
benefits for the long-term unemployed tomorrow following a lack of
congressional action, according to left-leaning think tank Policy
Matters Ohio. The emergency benefits were passed by Congress at the
start of the Great Recession to help those hit worse by the economic
downturn, but Congress failed to extend the benefits before it recessed
for the holidays despite lingering signs of a weakened economy. Without the
extension, Ohioans can tap into just 26 weeks of state-provided jobless
aid; federally funded emergency benefits give the unemployed another 37
weeks to find work before losing government assistance.Here are CityBeat’s top stories of 2013.The annual review of the two-year state budget could
include income tax cuts, said Ohio’s tax chief. The statement follows
Gov. John Kasich’s announced push for another income tax cut to help
spur Ohio’s slowing economy. The Republican governor signed a state
budget that reduced taxes — particularly for the wealthy — earlier in
the year, but Ohio’s economy still slowed down in the past few months as the
state unemployment rate surpassed the national rate for the first time
in years.With the Ohio Supreme Court’s rejection last week of a
challenge to the state’s federally funded Medicaid expansion,
conservatives are conceding the battle is “over with” for now. Gov.
Kasich pursued the federally funded expansion without approval from the
General Assembly by going through the seven-member Controlling Board,
but Republicans, who largely opposed the expansion of a government-run
health care program from the start, fought against the board’s approval in court.Gov. Kasich was “stingy” with his clemency powers during his third year in office, according to The Columbus Dispatch.
Even though a review found Cintrifuse is a “Lead Applicant
with strong position within SW Ohio entrepreneurial ecosystem,” Ohio
Third Frontier denied state tax credits for the local startup incubator
because, according to the state review group, Cintrifuse maintains an unrealistic goal to scale to 60 tenants
in its first year and lacks strategy or process for the incubator services, graduation focus, an adequate staffing plan and a defined
tenant award process.
Delta briefly provided very low air fares following a technical error yesterday.
Much to scientists’ frustration, 2014 could be a bad year for the flu after the adaptive virus evolves.Follow CityBeat on Twitter:• Main: @CityBeatCincy • News: @CityBeat_News • Music: @CityBeatMusic • German Lopez: @germanrlopez
by German Lopez
Posted In: News
at 11:48 AM | Permalink
Advocates argue minimum wage increases spur economic growth
When Ohio’s minimum wage automatically increases by 10
cents to $7.95 per hour at the start of 2014, roughly 330,000 workers
will receive raises across the state, according to an analysis from the Economic Policy Institute (EPI).
That could be good news for all of Ohio: EPI found the minimum wage increase will benefit the rest of the state through nearly $39 million in economic impact and 300 new full-time jobs.
“Ohio workers and the Ohio economy will both benefit from
this raise for our lowest-paid neighbors,” said Amy Hanauer, executive
director of left-leaning think tank Policy Matters Ohio, in a statement. “The employees who
benefit will turn around and spend money in our communities, stimulating
The automatic increase is a result of a constitutional amendment
approved by Ohio voters in 2006 that hiked the minimum wage to $6.85 per hour and pegged it to
rises in the cost of living.
Ohio isn’t alone in the increase, however. Policy Matters
estimates 10 other states — Arizona, Colorado, Florida, Montana,
Missouri, Nevada, Oregon, Vermont, Washington and New Jersey —
automatically increase their minimum wages each year to keep up with
The nationwide minimum wage hikes “will generate over $619
million in new economic activity and support creation of 4,600 new
full-time jobs as businesses expand to meet increased consumer demand,”
according to Policy Matters.
The projections come at a time progressives are working on
the national stage to increase the federal minimum wage, which, at
$7.25 per hour, is becoming increasingly irrelevant as Congress fails to
keep up with many states’ minimum wage expansions.
President Barack Obama’s Fair Minimum Wage Law would raise
the federal minimum wage to $10.10 per hour by 2015 and — perhaps most
importantly — ensure the minimum wage increases each year to keep up
with the cost of living. The left-leaning National Employment Law
Project estimates the hike would help 30 million Americans and help grow the economy.
Opponents argue a minimum wage increase, especially one as
rapid as Obama’s proposal, would burden businesses with considerably
higher labor costs. They argue companies would drop
employees or raise prices to cope with higher expenses.
Advocates typically tout a minimum wage hike as a matter
of basic fairness. They claim the federal minimum wage would be
$10.55 per hour today if it kept up with inflation.
Meanwhile, the economics research on the effects of the minimum wage is fairly mixed. Some studies linked higher minimum wages to less employment, while other studies found no effects at all.
5 Comments · Thursday, December 26, 2013
The Top 10 Reasons Why I’ve Only Seen the
Same Black Guy Among the Masses Whenever Believe In Cincinnati Was on
the News Advocating for the Streetcar.
0 Comments · Thursday, December 26, 2013
Why 2013 was a lot of the same bullshit.
The people, budgets and controversies CityBeat covered while writing about the streetcar all year
0 Comments · Thursday, December 26, 2013
Just like it was a big year for Cincinnati and Ohio, it was a big year for the CityBeat news team.
by German Lopez
Posted In: News
at 10:03 AM | Permalink
Ohio must recognize gay marriages, governor calls for more tax cuts, citizens saved streetcar
A federal judge on Monday ordered Ohio authorities to
recognize same-sex marriages on death certificates. Although the ruling
was narrow, many advocates of gay marriage argue the merits of the
judge’s decision indicate a broader problem with Ohio’s marriage laws
following the U.S. Supreme Court’s historic ruling against a federal anti-gay marriage law. The judge’s ruling came just three
days after another federal court struck down Utah’s same-sex marriage
ban on similar constitutional grounds.Gov. John Kasich’s plan to get Ohio’s economy moving
again: more tax cuts. But the policy announcement — unsurprising, coming from a Republican — comes on the
same year Ohio’s economy slowed down even after Kasich and the
Republican legislature passed tax cuts that heavily favored the state’s
Believe in Cincinnati saved the streetcar, argues The Cincinnati Enquirer.
The group was formed shortly after Mayor John Cranley won the November election and
threatened to halt the $132.8 million streetcar project for good. But
the threats inspired a groundswell of streetcar supporters, ranging from concerned
businesses to residents. And before City Council
agreed to continue the streetcar project, Believe in Cincinnati in just eight days gathered 11,300 petition signatures for a charter amendment
restarting the project. CityBeat covered the group in its infancy here.
Cincinnati ranked No. 2 for highest child poverty out of 76 major U.S. cities in 2012, according to the Children’s Defense Fund (CDF). Cleveland and Toledo also made the unfortunate top five, CDF found.Overtime pay at the Metropolitan Sewer District exceeded
$2 million for the third consecutive year in a row, but the number falls
below the accepted standard of less than 10 percent of total
payroll. MSD Director Tony Parrott says overtime allows the agency to
keep staffing numbers in check but still responsive to unexpected
situations. Still, the overtime estimate arrives at a time Hamilton County
commissioners are raising sewer and water rates to comply with federal
Cincinnati will tap into a state program for a major
demolition blitz in 2014. The city plans to knock down 240 blighted and
condemned buildings next year — far higher than the typical annual rate
Eight historic buildings in Cincinnati, including Memorial
Hall, on Dec. 20 received roughly $6 million in state tax credits for
projects totaling $71 million.
Rhinegeist Brewing plans to begin canning its craft beer in January.
Humans were getting the flu as far back as the year 1510,
but it’s completely unknown if dinosaurs suffered from similar
illnesses.Follow CityBeat on Twitter:• Main: @CityBeatCincy • News: @CityBeat_News • Music: @CityBeatMusic • German Lopez: @germanrlopez
by German Lopez
Posted In: News
at 02:07 PM | Permalink
Three Ohio cities make Children Defense Fund’s top five
Cincinnati ranked No. 2 for highest child poverty out of 76 major U.S.
cities in 2012, the Children’s
Defense Fund (CDF) of Ohio said Friday.
The numbers provide a grim reminder that more than half of
Cincinnati’s children lived in poverty in 2012, even as the city’s urban core began a nationally recognized revitalization period.
With 53.1 percent of children in poverty, Cincinnati
performed better in CDF’s ranking than Detroit (59.4 percent) but worse
than Cleveland (52.6 percent), Miami (48 percent) and Toledo (46
percent), which rounded out the top five.
The data, adopted from the U.S. Census Bureau, also shows
Ohio’s child poverty rate of 23.6 percent exceeded the national rate of
22.6 percent in 2012, despite slight gains over the previous year.
“When three of the top five American cities with the
highest rates of child poverty are in Ohio, it is clear that children
are not a priority here,” said Renuka Mayadev, executive director of CDF
of Ohio. “Significant numbers of our children do not meet state
academic standards because their basic needs are not being met.”
With the contentious streetcar debate over for now, some local leaders are already turning their attention to Cincinnati’s disturbing levels of poverty.
Mayor John Cranley on Thursday told reporters that he intends to unveil an anti-poverty initiative next year. A majority of council members also told CityBeat
that they will increase human services funding, which goes to agencies
that address issues like poverty and homelessness, even as they work to
structurally balance the city’s operating budget.
Outside City Hall, the Strive Partnership and other education-focused organizations are working to guarantee a quality preschool education
to all of Cincinnati’s 3- and 4-year-olds. The issue, which will most
likely involve a tax hike of some kind, could appear on the 2014 ballot.
by German Lopez
Cincinnati streetcar saved, gay marriage could appear on ballot, Medicaid overhaul signed
City Council yesterday decided Cincinnati will get a streetcar after all. After securing the six votes necessary to overturn a mayoral veto, Mayor John Cranley
conceded that the $132.8 million streetcar project will restart
following a two-week pause. It was a surprising journey for the project,
which largely seemed like the underdog ever since the new mayor and
council took office earlier in the month. In the end, the project gained
its sixth vote from Councilman Kevin Flynn after the philanthropic Haile Foundation signed onto contributing $900,000 a year for 10 years to help underwrite part of the streetcar’s annual operating costs.Advocacy group FreedomOhio yesterday announced it has enough signatures to place same-sex marriage on Ohio’s 2014 ballot.
The group declined to tell Cleveland.com exactly how many signatures it
had collected so far, but the organization says it’s aiming to collect 1
million before the July filing deadline. At the same time, FreedomOhio
released a poll that found Ohioans are still split on the issue of same-sex
marriage. But the poll also found that a good majority of Ohioans
support FreedomOhio’s gay marriage legalization amendment, which
provides exemptions for religious groups.Gov. John Kasich yesterday signed a bipartisan Medicaid
overhaul bill that seeks to control costs by establishing an
oversight commission and a target for spending growth. The legislation
also sets a focus on health care outcomes to ensure quality
standards in the government-run program. Both parties pursued the bill
to tamp down on health care costs that have been taking up more of the
state’s budget in the past few years.
A new report from the state attorney general’s office
found nearly half the businesses who received state aid in 2012 did not
fulfill their end of the deal in terms of producing new jobs and other promises.Ohio’s unemployment rate dropped to 7.4 percent in
November, down from 7.5 percent the month before. But the number was well above the 6.8
percent rate from November 2012, indicating a decline in job growth in
the past year.Police arrested the mother of a 3-year-old for falsification and the mother’s boyfriend for accidentally shooting the child on Tuesday.Today is Homeless Memorial Day, a day meant to commemorate those who died in 2013 while experiencing homelessness. The Greater Cincinnati Homeless Coalition is gathering at 5:30 p.m. at the corner of 14th and Elm streets to honor the occasion.Bike Share plans to come to Cincinnati next summer and allow residents to rent out bikes around multiple parts of town.Miami University is the second most efficient
university in the nation in terms of delivering a good education
for relatively low cost, according to a study from U.S. News and World Report.Cincinnati’s housing market marked 29 consecutive months of increased sales last month with a 5-percent rise. The measure indicates the local economy is recovering after the Great Recession crippled housing markets around the nation.A new product that claims to translate dogs’ thoughts to human speech is bogus.After today, Morning News and Stuff will take a vacation until Dec. 26. Happy holidays!Follow CityBeat on Twitter:• Main: @CityBeatCincy • News: @CityBeat_News • Music: @CityBeatMusic • German Lopez: @germanrlopez