At a Budget and Finance Committee meeting today, City Council members grilled City Manager Milton Dohoney Jr. on how the city will fix the streetcar project’s $17.4 million budget gap and whether paying for the cost overrun to save the project is worth it. Supporters of the streetcar pushed questions and comments that suggested the streetcar will provide the city with a large return on investment, which was supported by Dohoney’s testimony and previous studies from HDR, a consulting firm, and the University of Cincinnati (“Back on the Ballot,” issue of Jan. 23). Opponents suggested the cost overruns were too much, and the project, which the city manager said now stands at an estimated $132 million to $133 million, is too expensive. In a memo issued April 30, Dohoney recommended various capital funding sources to fix the streetcar budget gap, including a temporary reallocation of Music Hall renovation funds and money that would have otherwise gone to infrastructure projects around the Horseshoe Casino. Dohoney clarified that funding for Music Hall is not being permanently pulled; instead, his recommendations would delay Music Hall funding until 2016, which is when the Music Hall project will need the funds, and use currently allocated funding on the streetcar project. Dohoney added that Otto Budig, president of the Music Hall Revitalization Company, raised no concerns about the streetcar plan after it was explained to him. Dohoney also clarified that his recommendations would not raise taxes. A few council members, particularly Councilman Chris Seelbach, asked whether the streetcar project could face future cost overruns. Dohoney said it’s possible, based on the project’s scope. “For major projects like this … there is usually an anticipation that something other than the exact plan may occur somewhere along the line,” Dohoney said. For the streetcar project, there are a few remaining uncertainties. Dohoney said he doesn’t know for certain whether Messer Construction, which responded to the city’s bid process with the lowest construction bid, is still willing to contract with the city under the terms it previously offered. He said Messer officials have indicated they are still interested, but it remains an uncertainty until a contract is in place. Another uncertainty is exactly how much laying down the tracks will cost. Dohoney said it won’t be possible to gauge the exact cost until Messer or any other company contracts with the city and begins actual work on the project. But for those situations, Dohoney said the streetcar project has a $10 million contingency fund available, as required by the federal government. Councilman Chris Smitherman, who opposes the streetcar project, asked whether there’s a funding ceiling that, if breached, would make Dohoney stop supporting the streetcar project. Dohoney said he could not provide a number without further thought and analysis. When Smitherman later asked if the streetcar should be built at any cost, Dohoney said no. When asked what would happen if the project’s cost overruns were not covered, Dohoney said the project would effectively end. Smitherman asked how the city administration can be pushing forward with the project, given the cost overruns: “How is the administration continuing to move forward with a project that without a vote of council is dead?” Dohoney responded by saying the city administration does not have to stop by law until it is directed to do so by City Council. Ending the project would come with its own costs of about $72 million, according to Dohoney: $19.7 million that was already spent, $14.2 million in close-out costs and $38.1 million in federal grants that would have to be returned to the federal government.Dohoney said stopping would also make the federal government reluctant about working with Cincinnati in the future: “They’ve let us know they would not be pleased if we did it.”The city administration is currently working with the federal government to obtain another $5 million that could be used for contingency or to undo some of the overrun fixes being looked at, but federal officials are waiting to see how the city government reacts to the current cost overrun problems before a decision is made, according to Dohoney. Much of the City Council discussion focused on the streetcar’s merits, particularly whether the first phase of the project, which would run from The Banks to just north of Findlay Market, could be successful on its own. The city plans to eventually expand the route to the University of Cincinnati and hospitals uptown — a route originally part of the first phase of the streetcar project that was cut after Gov. John Kasich pulled $52 million in state-distributed federal funding in 2011. “If the intent of the streetcar would only be to go from The Banks to just north of Findlay Market, then I never would have said it's a project worth doing,” Dohoney said. “The intention has always been to connect the two major employment centers of the city and go beyond that.” But Dohoney later clarified that the first phase of the project would help invigorate hundreds of vacant lots and buildings in Over-the-Rhine, which he said would make that phase of the project a success by itself. Some opponents of the streetcar have incorrectly attempted to tie the streetcar project to the city’s $35 million operating budget deficit, which will likely be closed in part by laying off cops, firefighters and other city employees. But the streetcar project’s funding comes from the capital budget, which can’t be used to balance the operating budget because of limits established in state law.

City Council’s Budget and Finance Committee is set to discuss the plan to close the streetcar budget gap today, which was proposed by City Manager Milton Dohoney Jr. on April 30. The plan borrows funding from various capital funding sources, including a temporary reallocation of Music Hall funds and money from infrastructure projects surrounding the Horseshoe Casino. None of the funding pulled can be used to balance the city’s $35 million operating budget deficit, which is leading to cop and firefighter layoffs, because of limits established in state law between capital budgets and operating budgets. A group of bipartisan Ohio legislators proposed bills in the Ohio House and Ohio Senate that would change the state’s anti-discrimination law to cover gay, lesbian, bisexual and transgender communities. The measures would add “sexual orientation” and “gender identity” to the state’s anti-discrimination law, joining 21 other states and the District of Columbia, which already have similar laws.The bills have to be approved by the Republican-controlled General Assembly and Republican Gov. John Kasich to become law. Cincinnati Public Schools (CPS) is making changes to prevent attendance data scrubbing following an audit in February that criticized CPS for the practice. The school district says internal investigations found no employees intentionally scrubbed data, but the changes being made should help prevent further problems in the future. The state auditor’s February report seemed to blame state policy over individual school districts for the findings. Attendance data scrubbing can make schools look much better in state reports, which could lead to increased funds or less regulatory scrutiny from the state. An audit revealed that the IRS targeted tea party groups that were critical of government and attempted to educate people on the U.S. Constitution. The extra scrutiny originated at a Cincinnati field office. Most Ohio public university presidents are paid more than the nationwide median salary for the job. The two brothers of the Cleveland man accused of holding three women captive for about a decade say they have no sympathy for him. One of them called his brother a “monster.” Ohio gas prices are down this week. A new study found people can better calm themselves down by watching their brains on scanners. Participants learned how to control activity in a certain brain region after just two sessions. Watch a Canadian astronaut perform David Bowie’s “Space Oddity” in space:

City Manager Milton Dohoney Jr. defended the streetcar project at a special four-hour session of City Council yesterday, but the city manager did not reveal any specifics over how the project’s $17.4 million budget gap could be closed. Dohoney revealed the price of halting the project would be $72 million: the project has already cost the city $19.7 million, the city would have to spend another $14.2 million in close-out costs and another $38.1 million in federal grants would have to be returned to the federal government. Most of Dohoney’s presentation focused on the streetcar’s economic benefits, but opponents say the budget gap proves the streetcar project is unsustainable and its costs are too high. The Cincinnati Enquirer identified the 17-year-old honors student at LaSalle High School who tried to commit suicide in front of a classroom of 22 other students yesterday, even though parents asked press to provide privacy. The student remains alive and in critical condition this morning. No other students were physically hurt, and classes are resuming as normal. (Update: The student’s name was removed from this post upon the family’s request.) The city is moving to sell Tower Place Mall for $1 to Brook Lane Holdings, an affiliate of JDL Warm Construction, so the construction company can pour $5 million into the defunct mall and convert it into a garage with street-level retail space. Financing the project at Pogue’s Garage, which is across the street from Tower Place Mall, is still being worked out now that the parking plan has been delayed by court battles and a referendum effort. Cincinnati’s police and firefighter unions are filing a lawsuit over the city’s health care dependent audit. The city is asking employees to verify whether spouses and children are legitimately eligible for health care benefits by turning over documents such as marriage licenses, birth certificates and tax returns. The unions’ attorney told WVXU the unions are willing to provide the necessary documents, but he said they’re concerned the process is too intrusive and difficult. Two firms are getting tax credits for creating jobs in the Greater Cincinnati area: 5Me, which creates manufacturing software, and Festo Americas, which specializes in factory and process automation. Altogether, the credits could create 312 jobs in the region. A Democratic state senator hinted yesterday at letting voters decide whether Internet sweepstakes cafes should be allowed in Ohio. State officials, particularly Attorney General Mike DeWine, claim Internet cafes are hubs for criminal activity. The Ohio House already passed a measure that would effectively ban the cafes, but some are cautious of the ban as the Ohio Senate prepares to vote. An intelligent headlight makes raindrops disappear. Some people may prefer death to being saved by this terrifying robot snake.

City Manager Milton Dohoney Jr. gave his suggestions for fixing the streetcar budget gap Tuesday, and CityBeat analyzed the details here. The suggestion, which include temporarily using front-loaded Music Hall funds and pulling money from other capital projects, are capital budget items that can't be used to balance the city's $35 million operating budget deficit because of limits in state law, so if City Council approved the suggestions, the streetcar would not be saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget.Ohio Senate Republicans seem unlikely to take up so-called "right to work" (RTW) legislation after it was proposed in the Ohio House. RTW legislation prevents unions and employers from making collective bargaining agreements that require union membership to be hired for a job, significantly weakening a union's leverage in negotiations by reducing membership. Since states began adopting the anti-union laws, union membership has dropped dramatically around the nation. Democrats, including gubernatorial candidate Ed FitzGerald, were quick to condemn the RTW bills and compare them to S.B. 5, a 2011 bill backed by Republican Gov. John Kasich and Ohio Republicans that would have limited collective bargaining powers for public employees and significantly reduced public sector unions' political power.Hamilton County commissioners approved a county-wide collaborative between health and government agencies to help reduce the county's infant mortality rate, which has exceeded the national average for more than a decade. Funding for the program will come in part from the sale of Drake Hospital to UC Health.With a 7-2 vote yesterday, City Council updated its "responsible bidder" ordinance, which requires job training from contractors working with the Metropolitan Sewer District, to close loopholes and include Greater Cincinnati Water Works projects. Councilman Chris Seelbach led the charge on the changes, which were opposed by council members Chris Smitherman and Charlie Winburn.Ohio Senate Democrats are still pushing the Medicaid expansion, which the Health Policy Institute of Ohio found would insure 456,000 Ohioans and save the state money in the next decade. Ohio House Republicans effectively rejected the expansion with their budget bill, which the Ohio Senate is now reviewing. CityBeat covered the Ohio House budget bill in further detail here.The state's Public Utilities Commissions of Ohio approved a 2.9 percent rate hike for Duke Energy, which will cost customers an average of $3.72 every month.Concealed carry permits issued in Ohio nearly doubled in the first three months of the year, following a wave of mass shootings in the past year and talks of federal gun control legislation.Real headline from The Cincinnati Enquirer: "How much skin is too much skin for teens at prom?"A Pennsylvania woman who had been missing for 11 years turned herself in to authorities in Florida.New research shows early American settlers at Jamestown, Va., ate each other.

City Manager Milton Dohoney Jr. released a memo yesterday detailing how the streetcar project's $17.4 million budget gap could be fixed by pulling funds from various capital projects and issuing more debt, upholding a promise he made at a contentious City Council meeting Monday.The five-page memo says none of the proposed capital funding sources can be used to balance the city's $35 million operating budget deficit because of limits established in state law, which means the streetcar project is not being saved at the expense of cops, firefighters and other city employees being laid off to balance the operating budget."Neither Capital nor TIF funds can be used to help with the operating budget deficit that the City is facing," the memo reads. "They are separate sources of funds and by State Law, cannot be used for operating expenses like police and fire personnel."At least $5.4 million would be temporarily pulled from the $10.6 million planned for the Music Hall renovation project, but the redirected Music Hall funds would eventually come back in capital budgets for fiscal years 2017, 2018 and 2019. City spokesperson Meg Olberding explained in an email that moving funds around would not hinder the Music Hall project."The use of $5.4 million of Funds set aside for Music Hall this year is money currently sitting in a fund for this year that will not be needed this year," she wrote. "Funds for Music Hall will not be needed until 2016, the agreed upon deadline for fundraising for the Music Hall renovation with the Music Hall Revitalization Company. Therefore, the City is still keeping its commitment to Music Hall, while also advancing the streetcar project."About $6.5 million would be taken from infrastructure projects surrounding the Horseshoe Casino, including funds that would otherwise go to lighting the trees along Reading Road and a study that would look at adding a turn lane from Reading Road. The memo acknowledges the trade-off, but it also justifies the redirected spending: "However, since the Streetcar passes within two blocks of the Casino Site, it is a project within the Casino Area that both benefits the TIF District and the Casino."The memo also recommends pulling $400,000 that was originally set for traffic signal replacement, which would be used for the traffic replacement component of the streetcar project. Another $500,000 would come from funding currently set for water main relocation and replacement. The memo says the water main funding is simply Water Works' share: "Of the $21.7 million cost overrun for the Streetcar project, approximately $1 million was for water main relocation (and) replacement work. Water Works' share of this is $0.5 million."The remaining $4.6 million would come from the city issuing general capital debt, which would be paid back through a small portion of the income tax that is established in the City Charter for permanent improvement purposes. The memo acknowledges this would cost other economic development and housing projects $340,000 a year over the next 20 years, but it claims the funding is justified because the streetcar project is a permanent improvement project.The memo outlines other vague capital funding options that could be used to balance the budget, but Dohoney does not explicitly recommend them. The memo also leaves open the possibility of future sources of funding, including $15 million that could be opened up if the city prevails in court against Duke Energy over who has to pay for moving utility lines to accommodate streetcar tracks — but this was money that was originally supposed to go to neighborhood development projects — and the sale of remaining city-owned land at the Blue Ash Airport.City Council still has to consider and approve the memo's recommendations for them to become law.

Two Ohio House Republicans are preparing to introduce so-called "right to work" (RTW) legislation, a deceptively named type of law that would ban collective bargaining agreements between unions and employers that require union membership to be hired at a job. Since states began adopting the anti-union laws, union membership has dropped dramatically. Democrats, including gubernatorial candidate Ed FitzGerald, were quick to condemn the bills, invoking 2011's voter rejection of S.B. 5, a bill backed by Gov. John Kasich and Ohio Republicans that would have limited collective bargaining rights for public employees and hindered public sector unions' political power.The city released a memo yesterday outlining how the streetcar project's $17.4 million budget gap will be funded. The memo emphasizes that the capital funds being used for the streetcar project can't be used to balance the city's $35 million operating budget deficit because of state law, so the streetcar project is not being saved at the expense of cops, firefighters and other public employees being laid off to balance the operating budget. CityBeat will have a more thorough analysis of the memo shortly after this article is published.The state auditor released an audit yesterday that shows the Ohio Department of Transportation could save $7.4 million in taxpayer money by mowing the lawn less often. "We need to cut back by mowing less," State Auditor Dave Yost said in a statement. "Sometimes, it’s the simplest solutions that have the greatest impact."A Policy Matters Ohio survey confirmed Ohio schools are making cuts as a result of Kasich's education funding cuts. In total, 70 percent of schools slashed budgets for the 2012-2013 school year.The mayor and city manager held a roundtable with the press yesterday explaining the merits of the city's plan to lease its parking assets to the Port Authority. The city officials made the same arguments heard before about how it would help balance the budget and bring economic development to the city, which CityBeat covered in further detail here.If estimates are correct, this year's Flying Pig Marathon will bring $9.5 million into Greater Cincinnati's economy.In light of grim drug addiction and overdose statistics recently released, Ohio Sen. Rob Portman says it's time to call the "war on drugs" something else. The most recent data found one Ohioan died of a drug overdose every five hours on average in 2011.Next Tuesday is primary election day in Ohio, but there isn't much to vote on in southwest Ohio.Steve Smith, who admitted to raping and killing a six-month-old in Mansfield, Ohio, will be executed by the state today, but his relatives insist he didn't do it.Gladys, the unfortunately named gorilla at the Cincinnati Zoo, recently got a look at her new home.Antimatter is the opposite of matter, but it's unclear whether it falls up or down.

Convening in packed City Council chambers today, Cincinnati officials discussed the costs and benefits of the streetcar project in light of a $17.4 million budget gap revealed by the city administration on April 16. City Manager Milton Dohoney Jr. said the project could and should be saved, but a minority of public speakers and some City Council members did not seem convinced.To balance the budget gap, Dohoney said the city would have to pull funds from multiple sources. He said he will offer specifics in writing tomorrow, which invoked verbal disappointment from officials who were expecting details at the meeting.“I'm disappointed in this presentation,” said Councilman Chris Smitherman. “We're here today to hear how we're going to pay for it.”The meeting, which was called by Democratic Vice Mayor Roxanne Qualls shortly after the budget shortfall was announced, covered a presentation from Dohoney, comments from public speakers and City Council questions to Dohoney. Despite expectations prior to the meeting, no specifics were given for closing the budget gap even after extensive questioning.Dohoney did reveal the price tag for halting the streetcar project: $72 million. According to Dohoney, the project has already cost the city $19.7 million, and the city would have to spend another $14.2 million in close-out costs. Another $38.1 million in federal grants would have to be returned to the federal government.Dohoney added that terminating the project would also reduce faith in Cincinnati’s competitiveness and ability to take on big development projects.The budget gap was originally $22.7 million, but the city administration identified $5.3 million in potential cuts. Dohoney said further cuts would “alter the scope” of the project and push it into a “danger zone.”The budget gap is a result of construction bids coming in $26 million to $43 million over budget. The lowest bid from Messer Construction, which came in $26 million over budget, has already expired, but Dohoney said the company is still willing to work on the streetcar project.The city could rework the request for proposal for construction bids, but Dohoney said city officials and third-party experts agreed it’s unlikely that would effectively lower costs.Throughout the meeting, streetcar opponents argued that the cost of the project is too high and the budget shortfall is proof the program is unsustainable.Most of Dohoney’s presentation focused on the streetcar’s purpose. He said the streetcar would help drive economic and population growth, which would then bring in more tax revenue to help balance the city’s operating budget. That would represent a turnaround for Cincinnati, which has been steadily losing population since the 1950s during a period that has coincided with disinvestment, urban flight and the dissolution of the city’s old streetcar system.Throughout his presentation, Dohoney cited multiple examples and studies that found streetcars can help grow local economies. He said the city has not pursued the streetcar because “it’s a cool thing to do,” but because it follows the expert advice given to city officials about what’s necessary to compete with other cities.Dohoney’s argument was previously supported by HDR, which the city hired to do an economic impact study in 2007. HDR found major benefits to connecting Over-the-Rhine and the Central Business District, including travel cost savings, increased mobility for low-income individuals and economic development that would spur rising property values. The HDR study was entirely supported and echoed by a follow-up assessment from the University of Cincinnati.Some critics have argued that the study is outdated because it was conducted before Over-the-Rhine’s recent revitalization, but Dohoney said there are still several hundred vacant buildings in the area, particularly north of Liberty Street.The project has faced continued opposition from Democratic mayoral candidate John Cranley, Republicans and the conservative Coalition Opposed to Additional Spending and Taxes (COAST). They say the project is too expensive and they’re skeptical of the economic growth being promised by city officials.Opponents of the streetcar have so far put the project on the ballot twice, but Cincinnati voters rejected the referendum efforts. Still, the streetcar may be on the ballot again this year through the 2013 mayoral race between Democrats Cranley and Qualls (“Back on the Ballot,” issue of Jan. 23). Cranley opposes the streetcar, while Qualls supports it.The streetcar project was originally supposed to receive $52 million in federal funds through the state government, but Republican Gov. John Kasich pulled the funds after he unseated Democratic Gov. Ted Strickland. Beyond the financial cost, Dohoney pointed out Kasich’s decision raised concerns about the project’s feasibility among previous supporters, leading to more hurdles and delays. He said Duke Energy in particular began stalling efforts to move utility lines to accommodate for streetcar tracks because the company grew weary of the project’s prospects.Duke’s reluctance led to a conflict with the city over who has to pay to move utility lines — a conflict Duke and the city agreed to resolve in court. While the court battles play out, the city set aside $15 million from the Blue Ash Airport deal to move utility lines, but city officials say they will get that money back if the courts side with the city.The city originally expected $31 million in private funding for the streetcar project, but those expectations were dampened as a result of the Great Recession, which forced local companies to scale back private donations.John Deatrick, the current project manager for The Banks, previously told CityBeat that it’s normal for large projects to deal with multiple hurdles. Deatrick, who the city wants to hire to manage the streetcar project, said, “Any time you try to build something — even out in the middle of a corn field — you’re going to have unexpected, unanticipated issues. ... These things happen, and that’s what project management is all about.”Dohoney said the current phase of the streetcar project is only a starter line between Over-the-Rhine and Cincinnati’s business district, but city officials are already planning for a second line that would run up to the University of Cincinnati and hospitals in uptown. If Dohoney’s vision for the project were completed, streetcars would run on multiple lines all around the city, ranging from the Cincinnati Zoo to The Banks.The streetcar budget debate comes amid another debate regarding a $35 million deficit in the city’s operating budget. Some streetcar opponents have tried to link the two issues, but the streetcar is funded through the capital budget, which cannot be used to balance the operating budget because of legal and traditional constraints.

City Hall will be hosting a meeting on the streetcar project at 6 p.m. today to figure out what the project’s options are now that it has a $17.4 million budget gap. The meeting was called by Vice Mayor Roxanne Qualls after City Manager Milton Dohoney Jr. explained in a memo that the project has a budget gap because construction bids came in $26 million to $43 million over budget. State Sen. Bill Seitz, a Cincinnati Republican who chairs the the Senate Public Utilities Committee, says he wants to “modify,” not repeal, Ohio’s Clean Energy Law to have more clear-cut compliance standards. Environmentalists say they’re concerned Seitz will use the review as a front to water the law down, especially since electricity giant FirstEnergy is pushing against the law’s energy efficiency standards. CityBeat wrote more about the conflict between environmentalists and FirstEnergy here. It’s one issue Ohio’s leading liberal and conservative think tanks apparently agree on: Ohio is not the “economic miracle” often touted by Gov. John Kasich. In the past year, job numbers for the state have been particularly weak, with public sector losses nearly making up for very weak private sector gains. The right-leaning Buckeye Institute for Public Policy Solutions says a complicated tax system is largely to blame for the stagnant job growth, while the left-leaning Policy Matters Ohio is mostly focusing on governments’ budget austerity. A student allegedly shot himself in front of classmates at LaSalle High School today. Police say he is currently at a hospital, and there are currently no reports of anyone else being shot. As of 10:30 a.m., the situation was still developing.After misleading media reports sent the public into a furor, Mayor Mark Mallory agreed to rescind salary raises that were part of his office’s deficit-reducing budget plan. The plan gave the mayor’s top aides raises to make up for an increased workload following staff reductions. Even with the raises, the plan reduced the deficit by $33,000 during the mayor’s remaining time in office — a fact originally omitted by The Cincinnati Enquirer. Music Hall’s facelift is not happening just yet, even though approvals from City Council and the Music Hall Revitalization Company have already paved the way for Cincinnati Center City Development Corporation (3CDC) to begin renovations. As project manager, 3CDC will take four to six months to develop a budget, review designs and go over the legal and financial work necessary to start the project.Hamilton County is currently tracking to be $1.5 million over budget this year — a budget hole the Board of Commissioners hopes to plug by using the rainy day fund. One section of the Ohio House budget bill would allow charter schools to enroll out-of-state students and charge them tuition. The policy could involve online schools, which were previously found to have poor results in a CityBeat report. The relaxed rules potentially add more controversy to a budget plan that’s already mired in criticism for defunding Planned Parenthood and forgoing the Medicaid expansion, which CityBeat covered in further detail here.Ohio gas prices are starting 9 cents down this week. Bad news: The largest HIV vaccine study was shut down after patients contracted the AIDS virus more often than those who didn’t take it.