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
by German Lopez
Seelbach calls for Voting Rights Act rework, 3CDC upkeep criticized, politics in budget veto
Councilman Chris Seelbach and other local leaders are
calling on Congress to rework the Voting Rights Act following a U.S.
Supreme Court decision that struck down key provisions. Supporters of
the Voting Rights Act argue it’s necessary to prevent discrimination and
protect people’s right to vote, while critics call it an outdated
measure from the Jim Crow era that unfairly targeted some states with
forgone histories of racism. “Within 24 hours of the Supreme Court’s
decision to gut the Voting Rights Act, five states are already moving
ahead with voter ID laws, some of which had previously been rejected by
the Department of Justice as discriminatory,” Seelbach said in a
statement. “The right to vote is one of the most sacred values in our
nation and Congress should act immediately to protect it”.
Nonprofit developer 3CDC says it’s restructuring staff and guidelines to take better care of its vacant buildings
following criticisms from residents and the local Board of Housing
Appeals. The board has fined the 3CDC three times this year for failing
to maintain Cincinnati’s minimum standards for vacant buildings, which
require owners keep the buildings watertight and safe for emergency
personnel to enter.
Gov. John Kasich said the funding allocation belonged in
the capital budget — not the operating budget he signed into law — when
he vetoed money going to State Treasurer Josh Mandel’s office, but The Columbus Dispatch reports it might have been revenge
for Mandel’s opposition to the Medicaid expansion and an oil-and-gas
severance tax. Kasich spokesperson Rob Nichols says the allegation is
“silly” and “absurd,” adding that Kasich said he would work with Mandel
on allocating the money during the capital budget process. The state
treasurer’s office says it needs the $10 million to upgrade computers
against cyberattacks. Mandel was one of the first state Republicans to
come out against the Medicaid expansion, which CityBeat covered here and here.
A series of mandatory across-the-board federal spending
cuts was supposed to take $66 million from Ohio schools, but state
officials say they’ll be able to soften the blow with $19 million in unspent federal aid.
The federal cuts — also known as “sequestration” — were part of a debt
deal package approved by Congress and President Barack Obama that kicked
in March 1. Prior to its implementation, Obama asked Congress to rework
sequestration to lessen its negative fiscal impact, but Republican
legislators refused. CityBeat covered some of sequestration’s other statewide effects here.
The mayoral race officially dropped down to four candidates yesterday, with self-identified Republican Stacy Smith failing to gather enough signatures to get on the ballot.
Check out the Cincinnati Zoo’s latest expansion here.
Headline from The Cincinnati Enquirer: “Where does John Cranley live?”
It’s now legal to go 70 miles per hour in some state highways.
Cincinnati-based Kroger and Macy’s came in at No. 2 and No. 14 respectively in an annual list of the nation’s top 20 retailers from STORIES magazine.
The Tribune Co. is buying Local TV LLC in Newport for $2.7 billion to become the largest TV station operator in the nation.
Human head transplants may be closer than we think (and perhaps hope).
by German Lopez
Governor signs budget, school funding falls short in long term, Medicaid expansion denied
Following approval from the Republican-controlled General
Assembly earlier in the week, Gov. John Kasich last night signed a $62
billion two-year state budget that makes sweeping changes to taxes
and takes numerous anti-abortion measures. On the tax front, Policy
Matters Ohio previously criticized the mix of income tax cuts and property and
sales tax hikes for favoring the wealthy.
Meanwhile, abortion-rights advocates say the budget will hurt women by
limiting access to abortion, while Republicans say they’re trying to protect the “sanctity of human life.”
The budget also makes changes to the school funding
formula that increases funding to schools by $700 million, but the
funding is still $515 million less than Ohio schools got in 2009.
Stephen Dyer, former Democratic state representative and education
policy fellow at left-leaning think tank Innovation Ohio, says
Republican legislators should have spent less time on tax reform and
more on education. Although Dyer acknowledges the final education plan is
more equitable than Kasich’s original proposal, he argues equity doesn’t matter much when schools are still underfunded.
One policy that didn’t make it into the final state
budget: the Medicaid expansion. Kasich strongly backed the expansion
throughout the budget process, but Republican concerns about federal
funding ultimately won out and kept the Medicaid expansion from the final version of the budget.
Col Owens, co-convener of the Southwest Ohio Medicaid Expansion
Coalition, says the expansion’s absence is irresponsible, but he’s optimistic
it will be passed in a stand-alone bill later on. Owens and other
supporters of the expansion argue it will help insure hundreds of
thousands of Ohioans and save the state money by placing more of the
funding burden on the federal government.
One beneficiary of the state budget: low-rated charter schools.
Democratic State Sen. Nina Turner today announced her
candidacy for Ohio secretary of state — a position she will attempt to
take from Republican Jon Husted. Turner is a vocal critic of
Republicans’ voting policies, which she says suppress voters,
particularly minorities and low-income Ohioans.
Ohio Attorney General Mike DeWine on Friday released the first Human Trafficking Statistics Report,
which his office plans to release on an annual basis to continue
spotlighting Ohio’s trafficking problem. Law
enforcement identified 38 human trafficking victims in the last year,
but that’s only a fraction of the estimated thousands of Ohioans,
particularly youth and those “at risk,” who are reportedly trafficked
and abused each year.
The Cincinnati Park Board won the National/Facility Park Design Award for Smale Riverfront Park.
The award from the National Recreation and Park Association recognizes
the park’s design, the inclusiveness of the design process and how the
board met the local community’s needs for the park. This is just another
major national award for The Banks; earlier in the year, the project won the American Planning Association’s 2013 National Planning Excellence Award for Implementation.
Some Republicans are not taking last week’s U.S. Supreme
Court decision on same-sex marriage well: State Rep. John
Becker, a Republican from Clermont County, now says polygamy is inevitable.
Cincinnati is currently looking for a new police chief, and it already has 13 applications.
Ohio gas prices are down again this week.
Kasich says he’s not interested in running for president in 2016.
Apparently, the unmanned Voyager 1 spacecraft entered a scientifically funky region last summer.
Here is an explanation of what happens when stars collide.
by German Lopez
State tax plan favors wealthy, state budget limits abortion, mayoral primary incoming
The Republican-controlled Ohio General Assembly yesterday
passed its state budget for the next two years, and Gov. John Kasich is
expected to sign the bill this weekend. Part of the budget is a tax plan
that would cut income taxes but raise sales and property taxes in a way
that Policy Matters Ohio, a left-leaning public policy think tank, says
would ultimately favor the state’s wealthiest.
On average, individuals in the top 1 percent would see their taxes fall by $6,083, or
0.7 percent, under the plan, while those in the bottom 20 percent would pay about
$12, or 0.1 percent, more in taxes, according to Policy Matters’
The state budget also includes several anti-abortion measures: less funding for Planned Parenthood, more funding for
anti-abortion crisis pregnancy centers, regulations that could be used
by the state health director to shut down abortion clinics and a
requirement for doctors to do an external ultrasound on a woman seeking
an abortion and inform her whether a heartbeat is detected. Republicans claim they’re protecting the sanctity of
human life, while abortion rights advocates are labeling the measures
an attack on women’s rights.
Cincinnati will have a mayoral primary on Sept. 10.
Five candidates vying for the highest elected position in the city:
Democrats Roxanne Qualls and John Cranley, Libertarian Jim Berns,
self-identified Republican Stacy Smith and Sandra Queen Noble. Qualls
and Cranley are widely seen as the favorites, with each candidate
splitting on issues like the parking lease and streetcar. Qualls supports the policies, while Cranley opposes both. A recent poll from the Cranley campaign found the race deadlocked, with Cranley and Qualls both getting 40 percent of the vote and the rest of polled voters claiming they’re undecided.
Former U.S. Rep. Gabrielle Giffords will appear at the Northside Fourth of July parade. Giffords will be in Cincinnati as part of a nationwide tour on gun violence.
Elmwood Place’s speed cameras are being confiscated by the Hamilton County Sheriff Department. Judge Robert Ruehlman originally told
operating company Optotraffic to turn the cameras off, but when the company
didn’t listen, the judge ruled the cameras should be confiscated.
The Ohio-Kentucky-Indiana Regional Council of Governments released its new bike map for southwest Ohio.
President Barack Obama signaled on Thursday that the federal government will extend marriage benefits to gay and lesbian couples in all states,
even those states that don’t allow same-sex marriage. That may mean a
gay couple in Ohio could get married in New York and Massachusetts and
still have their marriage counted at the federal level, but state
limitations would still remain. The administration’s plans follow a U.S.
Supreme Court ruling on Wednesday that struck down a federal ban on
The U.S. Senate on Thursday approved a bill to overhaul the nation’s immigration laws.
Ohio’s two senators were split on the bill: Democratic Sen. Sherrod
Brown voted for it, while Republican Sen. Rob Portman voted against it. A
Congressional Budget Office report previously found the bill would reduce the nation’s deficit and boost the economy over the next decade.
Scientists cloned a mouse with a mere blood sample.
CityBeat won a bunch of awards at Wednesday’s
Society of Professional Journalists Cincinnati chapter awards banquet
and hall of fame induction ceremony. Read about them here.
ACLU: Pay-to-stay policies harm low-income inmates, raise little money for county jails
0 Comments · Wednesday, June 26, 2013
The Hamilton County Jail charges its
inmates a fee for incarceration, and a new report from the American
Civil Liberties Union of Ohio (ACLU) suggests the practice harms
low-income inmates and raises little money for the county.
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
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 03:28 PM | Permalink
Tax plan also creates earned income tax credit, changes property taxes
Republican state legislators today rolled out a major tax overhaul
that would cut Ohio income taxes, but the plan would also increase and
expand sales and property taxes.
Legislators plan to add the tax changes to the $61.7
billion two-year budget. The final plan is being touted as a
merger of the original proposals from the Ohio House and Senate, but
none of the proposed tax hikes in the revised plan were included in the
original tax proposals from either chamber.
Relative to rates today, the new plan would cut state
income taxes across the board by 8.5 percent in the first year of the
budget’s implementation, 9 percent in the second year and 10 percent in
the third year. That’s a bump up from the House plan, which only included a
7-percent across-the-board income tax cut.
The Senate’s 50-percent tax deduction for business owners
would be reduced to apply to up to $250,000 of annual net
income, down from $750,000 in the original plan. Under the
revised plan, a business owner making a net income of $250,000 a year
would be able to exempt $125,000 from taxes.
The plan would also create an earned income tax credit that would give a tax refund to low- and moderate-income working Ohioans.
To balance the cuts, the plan would hike the sales tax
from 5.5 percent to 5.75 percent. Some sales tax exemptions would be
eliminated, including exemptions for digital goods such as e-books and iTunes
The plan would also make two major changes to property taxes:
First, the state would not pay a 12.5-percent property tax rollback on new property tax levies, which means future levies for schools, museums and other services would be 12.5 percent more expensive for local homeowners.
Second, the homestead tax exemption,
which allows disabled, senior and widowed Ohioans to shield up to
$25,000 of property value from taxes, would be graduated over time to be
based on need. In other words, lower-income seniors would still qualify
for the exemption, while higher-income seniors wouldn’t. Current
exemptions would remain untouched, according to House Finance and
Appropriations Committee Chairman Ron Amstutz.
The final tax plan is a lot closer to Gov. John Kasich’s
original budget proposal, which left-leaning Policy Matters Ohio
criticized for disproportionately favoring the wealthy (“Smoke and Mirrors,” issue of Feb. 20).
The budget must now be approved by the conference committee, House, Senate and Gov. John Kasich in time for a June 30 deadline.
by German Lopez
Posted In: News
at 04:06 PM | Permalink
Delay raises questions about local control
It’s been three days since City Manager Milton Dohoney
signed an agreement to lease Cincinnati’s parking meters, lots and
garages to the Greater Cincinnati Port Authority, and the Port Authority
still hasn’t signed the agreement.Port Authority spokesperson Gail Paul told CityBeat she had no definitive information on when or whether the Port Authority will sign the lease, but she said she would contact CityBeat when she learned more.
The lease would produce a $92 million lump
sum for the city, followed by at least $3 million in annual payments, according to
city estimates. But it would hand over
majority control of Cincinnati’s parking assets to the Port Authority, which will operate
and upgrade the meters, lots and garages through four private companies from around the nation.
The Cincinnati Enquirer reported
the Port Authority has yet to sign the lease because it first wants a
financial guarantee that the city will not threaten to cut future
funding. In May, City Council considered pulling $100,000 out of
$700,000 in annual funding from the Port Authority as part of a broader
cut to outside agencies. The threat apparently made Port Authority
officials concerned about future funding.
The city originally claimed the parking plan will keep
local control of the city’s parking assets through the Port Authority.
But the delay has raised doubts about local control, given that the Port
Authority is going against the will and assumptions of the city
When asked whether the delay on signing the lease raises
question about local control, Paul
responded, “That’s an interesting take on it.” She says the Port
Authority isn’t refusing to sign the lease, but the agency’s board is
getting “reacquainted” with the plan and has a few lingering questions.
Paul added the Port Authority understands there’s a lot of
public interest in the plan. She said the organization is paying
attention to feedback and criticisms.
City spokesperson Meg Olberding said
she’s confident the Port Authority will sign the lease. Olberding responded to questions about local control by pointing out
the Port Authority “has been at the table since the beginning.” She added, “The local control is not only through
the Port, but also through the advisory board. The board members are
citizens as well. So that local control will still be there.”
The advisory board will be made up of five members: four appointed by the Port Authority and one appointed by the city
The board would be able to make changes to various aspects
of the parking plan, including parking meter rates. Under the original
agreement, rates downtown will go up by 25 cents every three years, and
rates in neighborhoods will go up by 25 cents every six years. The
advisory board will be able to approve a hike or reduction in those
rates, but those changes would also require approval from the city
manager and Port Authority’s board.