by German Lopez
Posted In: 2013 Election
at 11:29 AM | Permalink
Zoo claims levy renewal is a good investment for region
After getting approval from county commissioners, a levy
renewal for the Cincinnati Zoo and Botanical Garden will appear on the Nov. 5 ballot as Issue
The renewal wouldn’t increase taxes from today’s rates, but it would keep property taxes $10 higher for every
$100,000 of home value.If approved by voters, the funding would go to the care, feeding and maintenance of the zoo’s animals and botanical gardens.
The Cincinnati Zoo is promoting Issue 2 by claiming it’s a
good investment for the region. A study from the University of
Cincinnati Economic Center found the zoo had a $143 million impact on the Cincinnati area in 2012
— representing nearly 3.9 times the zoo’s total spending — and produced
1,700 jobs and nearly $1.6 million in tax revenue for Cincinnati and
The “Renew the Zoo” campaign is already in full motion at friendsofthecincinnatizoo.org.
by German Lopez
Gay marriages recognized, facial recognition panel appointed, drug testing for welfare fails
The federal government announced yesterday that same-sex
marriages will be recognized for federal tax and Medicare purposes even
if the marriage is considered illegal in the state where the couple
resides. That means gay Ohioans could get married in a state
where it’s legal, such as Massachusetts or California, and have their
marriages recognized by the federal government even if the couple
lives in Ohio. The change does not apply to Social Security,
which will continue basing benefits on where couples live, not where
they got married. The changes also won’t apply to taxes at the local and
state level until those governments legalize same-sex marriage for
themselves. Freedom Ohio is currently working to get same-sex marriage
on Ohio’s ballot in 2014, as CityBeat covered in further detail here.
Attorney General Mike DeWine on Thursday appointed the panel
that will review the state’s facial recognition program. It includes
Democrats, Republicans, judges, law enforcement and prosecutors, but not
civil liberties groups, such as the American Civil Liberties Union,
that asked to be involved. Shortly after the program was formally
unveiled on Monday, the ACLU asked DeWine to shut it down
until proper protocols are put in place to protect Ohioans’ rights to
privacy. The program allows police officers and civilian employees to
use a photo to search databases for names and contact information.
Previously, law enforcement officials needed a name or address to search
A Republican state senator is introducing legislation that
would attach drug testing to welfare benefits in Ohio, but similar
measures have failed in other states.
Under the proposal, welfare recipients in three counties would be
required to take a drug test if they admit in a questionnaire to using
drugs in the past six months. In Utah, the state government spent more
than $30,000 screening welfare applicants, but only 12 people tested
positive, according to Deseret News.
The policy has also faced legal troubles, particularly in Florida, but
since the Ohio proposal only requires drug testing after information is
solicited through a questionnaire, it’s unclear whether privacy concerns
will hold up in court.
Hamilton County Commissioner Greg Hartmann, a Republican, is speaking out against a $300 million light rail project
that would run from downtown Cincinnati to Milford, Ohio. Hartmann says
he’s concerned ridership numbers will be low and costs will be too
high. County commissioners are involved with the project through the
Hamilton County Transportation Improvement District.
Ex-Councilman John Cranley continues to outraise and outspend Vice Mayor Roxanne Qualls in the mayoral race. But money rarely matters in political campaigns, according to research and Cincinnati’s mayoral history.
The conservative Coalition Opposed to Additional Spending and Taxes (COAST) is asking the city solicitor
to force Councilman Chris Seelbach to repay the city for his trip to
Washington, D.C., where Seelbach, Cincinnati’s first openly gay council
member, received the White House’s Champion of Change Award. Seelbach
says the trip served a public purpose; mainly, the trip allowed him and
his staff to spend time with other award recipients to learn how to
better deal with LGBT issues.
Cincinnati-based Procter & Gamble announced it backs legislation that would prevent employers from discriminating on the basis of sexual orientation and gender identity. Ohio currently has no such law.
Ohio’s prison population is growing again,
which has spurred further calls from state officials to continue
pursuing sentencing reform. The state government in 2012 passed some
reform that weakened sentences and made it easier for convicts to have their records expunged, but Ohio Department of Rehabilitation and Correction Director
Gary Mohr says more needs to be done.
Ohio gun owners are gathering in Columbus today to call on
Sen. Rob Portman (R-Ohio) to support comprehensive background checks
for firearms, according to a press release from Mayors Against Illegal
Guns. Polling data released by the group found 83 percent of Ohioans
support comprehensive background checks.
A Democratic state representative is asking Gov. John Kasich, a Republican, to explain why he’s accused of forcing the Ohio EPA’s top water watchdog to resign,
but Kasich’s people don’t seem to be taking the concern too seriously.
Kasich spokesperson Rob Nichols responded to the demands by telling The Columbus Dispatch,
“If she had her way, we’d all be living on a collective farm cooking
organic quinoa over a dung fire. So I think we’ll take her views in
context.” George Elmaraghy, chief of the Ohio EPA’s surface-water
division, was allegedly asked to step down by Kasich after Elmaraghy
claimed Ohio coal companies want water-pollution permits “that may have a
negative impact on Ohio’s streams and wetlands and violate state and
federal laws.” Republican lawmakers are notoriously friendly with oil,
gas and coal companies.
Two more are being investigated by the Hamilton County Board of Elections for illegally voting in Ohio while living in other states.
Gas prices are rising in time for Labor Day weekend, but they should be cheaper than last year.
The famous “47 percent” is now down to 43 percent.
The Tax Policy Center says the change is driven by the recovering
economy, rising incomes and cuts to federal assistance programs.
Antarctica appears to be bleeding in a phenomenon that shows life can exist without sunlight or oxygen.
Popular Science has an explainer for cruise missiles, the weapon that soon may be deployed against Syria.
by German Lopez
Former governor dies, facial recognition program criticized, county prosecutor mocks court
Former Gov. John Gilligan, a Cincinnati Democrat best known for winning the creation of the state income tax, died at 92
yesterday. Gilligan’s most lasting accomplishment was also what doomed
his career; the state income tax was unpopular when it passed, even
though it allowed Gilligan to boost funding for education, mental health
and law enforcement programs. Gilligan’s political career began in
Cincinnati Council. From there, he rose to U.S. representative and then
The American Civil Liberties Union of Ohio yesterday asked Attorney General Mike DeWine to shut down a facial recognition program
used by law enforcement until state officials verify and develop safety
protocols that protect Ohioans’ rights to privacy. DeWine formally
unveiled the program in a press conference yesterday. It allows police
officers and civilian employees to use a photo to search databases for
names and contact information. Previously, law enforcement officials
needed a name or address to search such databases. The program has been
live for more than two months and so far used for 2,677 searches, but until now it was kept hidden from the public and hasn’t
been checked by outside groups for proper safety protocols.
Hamilton County Prosecutor Joe Deters stepped down as Hamilton County Juvenile Court Judge Tracie Hunter’s attorney and
called her handling of the court a “judicial circus.” Hunter has been
mired in controversy ever since she took the bench: She was found in
contempt by a higher court, and she’s been sued multiple times by media,
including four times by The Cincinnati Enquirer. Deters, who
under state law had to legally represent Hunter, said the legal troubles
were too much, but his stepping down also complies with Hunter’s wishes
to find her own hand-picked attorney.
The University of Cincinnati is one of the top colleges where students can get the most out of their money, according to PolicyMic.
UC performs better than average in the graduation rate, debt at time of
graduation, percentage of undergraduate students receiving Pell grants
and starting salary after graduation, yet the school manages to stay
only slightly above the national average for tuition and board and room
Mayor Mark Mallory previously approved eliminating city parking requirements,
which should allow residential development projects to greatly reduce
or completely toss out parking space mandates downtown. “The goal of the
ordinance is to encourage development in the urban core by permitting
developers to determine their own parking needs for downtown
developments,” said Councilwoman Yvette Simpson. “I firmly believe that
the market will work to meet parking demands better than government
minimum parking requirements.”
The tax changes passed in the state budget earlier this year, including an income tax cut and sales tax hike, will go into effect on Sept. 1. The changes have been criticized for favoring the wealthiest Ohioans, as CityBeat covered in further detail here.
Gov. John Kasich approved tax credits
that are expected to create more than 591 jobs statewide, with at least
40 of the jobs being created at the Benjamin Steel Company in
Nearly one in five workers at Ohio casinos has quit or been fired. High turnover isn’t unusual in the casino business, but the numbers give a clearer glimpse at the volatility.
Piloting a military drone can apparently take quite the psychological toll.
by German Lopez
Homeless shelters report rise in calls, Cincinnati loses jobs, JobsOhio controversy continues
Greater Cincinnati homeless shelters are reporting a 31 percent increase in the number of families calling for help
— a sign that homelessness may be trending up.
Meanwhile, City Council managed to avoid cutting funding to human
services that help the homeless this year, but the local government has
steadily provided less funding since 2004, as CityBeat covered in further detail here.Cincinnati lost 4,000 jobs
from June to July, but it gained 14,000 between July 2012 and July this
year, far above the 3,000 necessary to keep up with annual population
growth, according to data released yesterday by the Ohio Department of
Job and Family Services. The seasonally unadjusted unemployment rate was
at 7.1 percent in July, down from 7.3 percent in June and 7.4 percent
in July 2012. The labor force shrunk in comparison to the previous month
and year, which means the unemployment rate fell partly because many
people stopped looking for jobs. In comparison, Ohio’s seasonally
unadjusted unemployment rate was 7.2 percent in July and the U.S. rate
was 7.4 percent.
More JobsOhio controversy: The state panel that approves
tax credits recommended by the privatized development agency has never
said no, according to The Columbus Dispatch.
Gov. John Kasich and Republicans say the Ohio Tax Credit Authority is
supposed to be an independent watchdog on JobsOhio, but both JobsOhio
and the Ohio Tax Credit Authority have their boards appointed by the
governor. Democrats have been highly critical of JobsOhio for its lack
of transparency and privatized nature, but Republicans say both are good
traits for an agency that needs to move fast to land job-creating
Meanwhile, two Democrats in the Ohio House are pushing a ban
on Ohio officials, including the governor, receiving outside pay. The
proposal is largely in response to JobsOhio recommending $619,000 in tax
credits in 2012 and 2013 to Worthington Industries, a company that paid
Kasich through 2012 for his time on its board. The Ohio Ethics
Commission refused to investigate the potential conflict of interest
because it said Kasich made a clean break from Worthington when he was
Hamilton County taxpayers might have to put up $10 million
to give the Cincinnati Bengals a high-definition scoreboard, thanks to
the team’s lease with the county. Economists generally see stadiums as
one of the most over-hyped, unsuccessful urban investments, according to The Nation.
No City Council member supports the tea party-backed pension amendment that would privatize Cincinnati’s pension system so future city workers, excluding
cops and firefighters, contribute to and manage individual 401k-style
accounts. Currently, Cincinnati pools pension funds and manages the
investments through an independent board. City officials and unions
claim the measure will cost the city more than the current system and
hurt retirement gains for city employees. But tea party groups say the
amendment is necessary to address Cincinnati’s growing pension costs,
including an $862 million unfunded liability. CityBeat wrote about the amendment and the groups that could be behind it in further detail here.
Ohio is partnering up with the Jason Foundation to provide training and information
to teachers, coaches, other school personnel, parents and students
about suicide, the second leading cause of death for 15- to 24-year-olds
after car accidents. The measure aims to curb down suicide rates.
Hamilton County and Cincinnati are pursuing joint funding
of technology upgrades for 911 services, and the two local governments are moving
permitting services to one location, according to a statement from
Hamilton County Commissioner Greg Hartmann’s office. Hartmann has long pursued more city-county collaboration so both can run more
efficiently and bring down costs.
The Health Foundation of Greater Cincinnati is now called Interact for Health.
The Ohio Department of Health (ODH) yesterday reported 2013’s first case of West Nile Virus.
A 72-year-old woman in Cuyahoga County is apparently being hospitalized for the disease. ODH Director Ted Wymyslo said in a statement that,
while Ohio has dealt with West Nile Virus since 2002, cases have dropped
in the past year.
The University of Cincinnati is set to break another record for enrollment this fall.
Dunnhumby USA yesterday unveiled the design for its downtown headquarters.
A new electric car can fold itself in half when parking.
by German Lopez
Posted In: News
at 01:17 PM | Permalink
Policy Matters Ohio finds cities, counties will receive $720 million less from state
The recently passed state budget means cities and counties will get even less money from the state, according to a new report from progressive think tank Policy Matters Ohio.
The report looks at “three blows” of cuts to local governments: less direct aid, no money from a now-repealed estate tax and
the beginning of the end of a state subsidy that supported local property taxes. The cuts add up to at least $720 million less over the next
two years than cities and counties got in the past two years, the report finds.
It’s even less money when looking further back in Ohio’s history — specifically before Republican Gov. John Kasich took office.
“Local governments will see $1.5 billion less in tax
revenues and state aid compared with” fiscal years 2010 and 2011, said
Wendy Patton, the report’s author, in a statement. “Fiscal crisis will
continue in many communities.”
Kasich and Republican legislators slashed local government
funding in 2011 to help fix an $8 billion budget hole. But the latest
state budget, which Kasich signed into law in June, was awash in extra
revenues because of Ohio’s economic recovery — so much so that
legislators passed $2.7 billion in tax cuts.
The Republican-controlled state government repealed the
estate tax in the last budget, but some Democrats and local governments
were hopeful at least some of the lost money could be restored this
Casino revenue was supposed to curtail some of the cuts,
but Policy Matters concludes it’s not enough. Casino revenue has also
consistently come under expectations: The state government in 2009
estimated Ohio’s casinos would take in $1.9 billion a year, but that
projection was changed in February to roughly $1 billion a year.
For Cincinnati, the previous round of budget cuts cost the
city more than $22 million in revenues — nearly two-thirds of the
budget gap the city faced for fiscal year 2014. Although the city managed to avoid laying off cops and firefighters as a result, it still had to slash other city services and raise property taxes.
Some city and county officials are trying to persuade the
state government to undo the cuts. In March, Cincinnati Councilman P.G.
Sittenfeld gathered officials around the state to launch ProtectMyOhio.com, which lets citizens write directly to the state government about the cuts.
by German Lopez
Port wants parking lease money, Ohio No. 2 for job losses, Kasich plans more tax cuts
New documents acquired by The Cincinnati Enquirer show the Greater Cincinnati Port Authority wants $27 million of the city’s $92 million parking lease.
The Port Authority, a city-funded development agency, says it would use
the money for various projects around the city. The request, which has
been supported by Vice Mayor Roxanne Qualls, may explain why the Port
Authority inexplicably took four days to sign its lease agreement with the city:
It wanted some of the money for itself. The city is leasing its parking
meters, lots and garages to the Port Authority, which will then hire
various private operators from around the country to manage the assets.
The deal will provide $92 million up front and at least $3 million a
year afterward, which the city plans to use for development projects and
to plug budget gaps.
Ohio lost the No. 2 most jobs in the nation last month, according to the U.S. Bureau of Labor Statistics. That pushed the state unemployment rate to 7.2 percent in June, up from 7 percent in May, the Ohio Department of Job and Family Services
found. The state lost 12,500 jobs in June, with the private sector
showing losses across the board. The month’s big losses mean the state
has only added 15,000 jobs in the past year, even though the state
actually topped job growth in May with more than 32,000 new jobs. In
June, Pew Charitable Trusts found Ohio was the No. 46 state for job growth between April 2012 and April this year.
Gov. John Kasich says he wants to further cut state taxes to reduce the bracket for the wealthiest Ohioans
to less than 5 percent. Such a cut could require raising regressive
taxes that put more of a burden on the state’s poorest, such as the
sales tax. The latest two-year state budget, which Kasich signed into
law, did just that, as CityBeat previously covered:
It cut income taxes in a way that favored the wealthy, then it raised
sales taxes in a way that forced the lowest-income Ohioans to pay more.
A report released yesterday suggests Ohio taxpayers could be on the hook for costs
if something goes wrong at an oil and gas drilling operation. The
Environment Ohio report finds the state’s regulations on “fracking,” an
oil and gas extraction process, require too little financial assurance
from drilling companies to dissuade dangerous risks. In Ohio, fracking
well operators are required to secure $5,000 in upfront bonds per well, but even those payments can be avoided through regulatory
loopholes. At the same time, damage caused by fracking can cost
communities and the state millions of dollars, and simply reclaiming the
well and its property can cost hundreds of thousands.
Hamilton County Prosecutor Joe Deters says he wouldn’t have prosecuted George Zimmerman,
the man who shot and killed an unarmed black 17-year-old last year in
Florida. Zimmerman was found not guilty of manslaughter and
second-degree murder by a jury on July 13 after he claimed self-defense.
A lack of local access to healthy foods was linked to higher obesity rates
in a study released yesterday. That could be troubling news for
Avondale and other Cincinnati neighborhoods that are deemed “food
deserts,” areas that don’t have reasonable access to healthy foods. CityBeat covered the efforts of some city officials, including Councilwoman Laure Quinlivan, to end food deserts here.
Cincinnati is looking for feedback on local bike projects.
The American Civil Liberties Union is asking Ohio to avoid shutting off electricity in state prisons,
calling the practice “dangerous” as temperatures approach 100
degrees. Ohio’s prisons have already shut down electricity twice in the
afternoon this week and relied on backup generators. The shutdowns are commonly deployed as part of a power
agreement that’s generated $1.3 million for the state since 2010.
Harris Teeter Supermarkets shareholders are suing to stop a planned acquisition from Kroger.
Detroit yesterday became the biggest city in U.S. history to file for bankruptcy.
An “invisibility wetsuit” hides people from sharks.
by German Lopez
City debt outlook worsens, Port apologizes for email about parking memo, fracking tax fails
It may become more expensive for the city to issue debt after Moody’s downgraded the city’s bond rating.
The credit rating agency pinned the blame on the city’s exposure to
local and state retirement systems, as well as the city’s reliance since
2001 on one-time sources to balance the operating budget. Still,
Moody’s does give the city some credit for its economically diverse
population and recently stabilized earnings tax, despite docking the city for bad socioeconomic indicators, particularly resident income levels and historical unemployment rates.
The Greater Cincinnati Port Authority’s CEO Laura Brunner is apologizing to the public and council members
following the exposure of an email that implied she was trying to keep a
critical parking memo away from public sight. Brunner says she was just trying
to buy time so she could directly show the memo to the Port Authority’s
board before it was reported by news outlets, but she acknowledges that
her email was ill-conceived and came off as an attempt to stifle
transparency. The memo suggests Cincinnati is getting a bad deal from its parking lease agreement with the Port Authority and several private operators, but the Port Authority and city officials argue the memo is outdated and full of technical errors.
The Cincinnati Enquirer has a report detailing political contributions from oil and gas companies
that may have helped bring down a state “fracking tax,” which was supposed to
raise state revenue from Ohio’s ongoing oil and gas boom. Apparently,
many of the Republican legislators who staunchly opposed the oil and gas
severance tax also took in a lot of money from the same companies who
would have to pay up. The tax proposal was effectively dead on arrival,
even with the hyperbolic support of Republican Gov. John Kasich. Fracking is an
extraction technique that pumps millions of gallons of water underground
to free up oil and gas. CityBeat covered its effects on Ohio in further detail here.
Water utility leaders are meeting in Cincinnati this week to discuss sustainable business models.
In Cincinnati, water usage has dropped while expenses to treat water
and waste water have escalated, causing the Metropolitan Sewer District
to take in less money. The conference will discuss models that can
adjust around this trend while keeping rates low for customers.
The owners of The Hanke Exchange, a collection of buildings in Over-the-Rhine, say occupancy is going up
as a result of the promise of the Cincinnati streetcar. The property is
now at 84 percent occupancy rate, up from 28 percent three years ago.
Dayton and Cincinnati will hold rallies Saturday showing support for Trayvon Martin,
the unarmed black 17-year-old who was killed by George Zimmerman last
year. Zimmerman was acquitted of murder by a jury last Saturday.
Richard Cordray, the former Ohio attorney general, was confirmed to direct the federal Consumer Financial Protection Bureau, the top agency that will regulate the financial institutions that played a role in causing the Great Recession.
The Hamilton County Young Democrats are hosting a free event
today to meet Democratic State Sen. Nina Turner, who’s also running for
secretary of state next year against Republican incumbent Jon Husted.
If the sun suddenly went out, humanity could take a few weeks to die out and perhaps live in Iceland.
by German Lopez
Bridge project to use tolling, governor prepares budget victory lap, casino revenue down
Ohio and Kentucky officials will roll out a plan in September to pay for the Brent Spence Bridge project with tolling
— a decision that could lead to opposition from Northern Kentucky
officials who have long advised against using tolls to finance the $2.5
billion project. The funding choice comes as little surprise,
given the lack of major federal support for the interstate bridge project. But tolling could put the plan in
danger if the Kentucky legislature follows the lead of its Northern
Kentucky delegation. The announcement follows a December agreement between Ohio and Kentucky’s governors to get the project done.
Gov. John Kasich will be using a month-long tour to show off the new two-year state budget.
The schedule for the tour is still being worked out, but at least one
stop in southwest Ohio is expected. The $62 billion budget has many
moving parts, but a CityBeat analysis found the plan disproportionately favors the wealthy and limits access to legal abortions and contraceptive care in Ohio.
Cincinnati’s Horseshoe Casino posted its worst monthly revenue gains
since its grand opening in March. It was an equally poor month for the
rest of the state, which saw the worst casino revenue gains since Cincinnati’s
casino opened. If the trend holds up, that could be a troubling sign
for proponents of using casino revenue to balance local and state
A prominent Ohio Republican and former Kasich cabinet member says he supports overturning the state’s ban on same-sex marriage,
giving a bipartisan jolt to FreedomOhio’s efforts to get the issue on
the ballot in 2014. Jim Petro, former attorney general and previous head
of the state’s higher education board, has a daughter who’s gay, which
may have influenced his decision. He was joined by Ian James, co-founder
of FreedomOhio, when announcing his support. CityBeat covered FreedomOhio’s same-sex marriage amendment when it was originally slated for the 2013 ballot here.
Cincinnati Gardens is for sale.
Kenko Corporation, which has owned the garden for 35 years, announced
its plans yesterday. “Our hope would be to sell, and see the historic
venue move forward in its current state: a sports and entertainment
venue,” explained Pete Robinson, president of the Cincinnati Gardens, in
a statement. “However, we are prepared to explore other opportunities.”
At least two county commissioners are expected to approve the Cincinnati Zoo’s levy request, which could put the flat renewal of the five-year levy on the ballot this November.
In other zoo news, here is Gladys the gorilla with her family.
As City Council winds down its sessions, Councilman Chris
Seelbach will keep busy and help other city employees pick up garbage
and clean sewers. Seelbach will be tweeting about his experiences in
a different kind of public service here.
Kroger led Cincinnati stocks to a big start
in July — a good sign for an ailing national economy that has struggled to get
back on its feet. The Cincinnati-based grocer also announced on Tuesday
that it will buy rival Harris Teeter Supermarkets Inc. in a $2.4 billion deal.
Here are some pictures of carnivorous plants in action.
State Republicans lower taxes for the rich, defund Planned Parenthood and try to block health care for the poor in Kasich-signed budget
1 Comment · Wednesday, July 3, 2013
With Gov. John Kasich’s signature,
Republican state officials on June 30 passed a budget that alters taxes,
schools, Medicaid and abortion services in Ohio, putting the state in a
controversial and politically charged path for the next two years.
by German Lopez
Posted In: News
at 12:14 PM | Permalink
Top 1 percent to get $6,083 tax cut
released June 26 found Ohio’s top 1 percent would get the biggest breaks from
the tax plan included in the final version of the two-year state budget, while the
state’s poorest would pay more under the plan.The analysis, conducted by the Institute on Taxation and Economic Policy for public policy think tank Policy Matters Ohio, shows the tax plan’s slew of tax cuts and hikes balance out to disproportionately favor the wealthy in terms of dollars and percents.On average, the top 1 percent would see their taxes fall
by $6,083, or 0.7 percent, under the plan. The next 4 percent would pay
$983, or 0.5 percent, less in taxes.
Meanwhile, the bottom 20 percent would pay about $12, or
0.1 percent, more in taxes. The second-lowest 20 percent would see their
taxes go down by $5, rounded to 0 percent. The middle 20 percent would
see a tax cut of $9, which is also rounded to 0 percent.
Policy Matters criticizes the tax plan, claiming the revenue should go to other programs, not tax cuts.
“Rather than approving a tax plan that will further shift
Ohio’s tax load from the most affluent to low- and middle-income
residents, we should direct those dollars into needed public services,”
said Zach Schiller, Policy Matters Ohio research director, in a
statement. “That includes restoring support for local governments and
schools, and bolstering human services, from foodbanks to child care.”
Michael Dittoe, spokesperson for Ohio House Republicans,
says the tax plan is supposed to provide an economic boost to almost everyone,
not any specific group.
“The tax plan is going to provide an overall tax cut for
nearly all Ohioans,” he says. “What this plan intends to do is not
disproportionately favor the wealthy at all.”
The broad tax cuts, Republicans claim, should provide a boost to Ohio’s economy that will spur further job growth.
But Schiller argues the tax cut ultimately won’t create
jobs: “A 21-percent cut that was approved in 2005 has not kept Ohio’s
job market from underperforming that of the country as a whole during
and after the last recession.”The tax plan cuts income taxes for all Ohioans and
particularly business owners, but it balances the cuts by hiking sales and property taxes.
Specifically, the budget cuts income taxes for all Ohioans
by 10 percent over three years, gives business owners a 50-percent tax
break on up to $250,000 of annual net income and creates a small
earned income tax credit for low- and middle-income working Ohioans based on the federal credit.
To balance the cuts, the plan raises the sales tax from
5.5 percent to 5.75 percent, increases future property taxes by 12.5
percent and graduates the homestead tax exemption to be based on need,
meaning the lowest-income seniors, disabled and widowed Ohioans will get
the most out of the exemption in the future.
Most recently, the conference committee added two
safeguards for low-income Ohioans: a credit that wipes out income-tax
liability for Ohioans making $10,000 or less a year and another $20
credit for those making $30,000 or less a year.
The Policy Matters analysis doesn’t take into account the
two changes to property taxes and several other, smaller changes to
income and sales taxes, but the rest of the changes, including the conference
committee’s recent adjustments, are considered.
The tax plan is part of the $62 billion state budget for
fiscal years 2014 and 2015, which passed the Republican-controlled General Assembly today. It's expected Republican Gov. John Kasich will sign it into law this weekend.Update: Budget bill passed by General Assembly.Check out all of CityBeat’s state budget coverage:• State Budget's Education Increases Fall Short of Past Funding
• State Budget Rejects Medicaid Expansion• State Budget to Limit Access to Abortion