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.

A survey released April 29 found Ohio schools are making cutbacks in response to budget cuts previously approved by Republican Gov. John Kasich and the Republican-controlled Ohio legislature. The 15-question survey from left-leaning Policy Matters Ohio, which received responses from 42 percent of the state’s K-12 school districts in 82 counties, found 70 percent of Ohio schools made cuts for the ongoing 2012-2013 school year, 82 percent cut positions, 84 percent reduced or froze compensation and 62 percent expect budget shortfalls next year if the state doesn’t increase funding. “Long-term investment in education is the best way to build opportunity for Ohioans,” said Piet van Lier, education researcher at Policy Matters Ohio, in a statement. “Instead, Ohio’s cuts to school funding have forced schools to get rid of staff, reduce pay, cut materials and increase class sizes.” The survey found the cuts have led to a reduction in education quality, with 43 percent of Ohio schools reporting larger class sizes, 23 percent reporting less course options, 57 percent cutting materials, supplies, textbooks or equipment for the 2012-2013 school year and 22 percent reducing extracurricular activities or introducing pay-to-play for them. Policy Matters and Innovation Ohio, another left-leaning think tank, previously found Kasich’s 2012-2013 budget slashed education funding by $1.8 billion. In his latest budget proposal, Kasich proposed increasing education funding, although in a way that disproportionately benefited wealthier school districts (“Smoke and Mirrors,” issue of Feb. 20). Since then, the Ohio House passed its own budget bill that rejects Kasich’s proposal and increases overall school funding in a more equitable way. But Policy Matters says the increases aren’t enough. Its analysis found school funding is failing to keep up with inflation, with 2015 funding projected to fall $1.2 billion short of what funding would have looked like if it had kept up with 2006’s inflation-adjusted levels. “Neither Gov. Kasich nor the Ohio House have adequately addressed the needs of Ohio’s schools in their budget proposals,” van Lier said in a statement. “The Senate must now lead the way in crafting a stronger, more predictable funding system for the next two years and beyond.” Cincinnati Public Schools said state funding cuts were one reason the school district needed Cincinnati voters to approve a school levy in 2012 (“Battered But Not Broken,” issue of Oct. 3). The levy, known as Issue 42, passed in the November election.Innovation Ohio previously found Kasich’s budget cuts have led to levies all around the state, effectively increasing local taxes by $1.3 billion since May 2011. “By cutting taxes primarily for the wealthy at the state level, Gov. Kasich and the Republican-controlled legislature have merely pushed the need for tax increases down to the local level,” said Janetta King, president of Innovation Ohio, in a statement. Kasich spokesperson Rob Nichols previously told CityBeat that the cuts were necessary to balance the budget, as required by state law. “The reality is we walked into an $8 billion budget deficit,” he said. “We had to fix that.”

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.

It’s one issue Ohio’s leading conservative and liberal think tanks seemingly agree on: The “economic miracle” often touted by Gov. John Kasich is not really happening. The bleak economic news has been highlighted by recent reports from the right-leaning Buckeye Institute for Public Policy Solutions, which supports little government intervention in the economy, and the left-leaning Policy Matters Ohio, which focuses on policies that can benefit low- and middle-income Ohioans. The March “Ohio by the Numbers” report from the Buckeye Institute did acknowledge that Ohio has a lower unemployment rate than the national average, but the report was particularly hard on Ohio’s lacking private sector job growth. It pointed out the state lost 16,800 private sector jobs in February, ranks No. 27 in the nation for private sector job growth since January 2010 and ranks No. 47 for private sector job growth since January 1990. Policy Matters’ March report was similarly harsh: “Since the end of the recession, Ohio has added 133,700 jobs, growing at a rate of 2.7 percent. But that growth leveled off in the second half of 2012, and the reported zigzag of the last two months means that Ohio has only added 2,700 jobs over the past year, growing at a very weak 0.1 percent.” The news may come as a surprise to those who have been reading seemingly positive job news in recent months. Policy Matters places the problem on the inherent volatility in job reports, which are based on household surveys: “This volatility should serve as an important reminder: Monthly numbers are preliminary and will likely be revised, so it is unwise to make too much over the month-to-month changes. Longer-term trends provide a more accurate gauge of the state’s economic health.” While they agree on the problem, the two think tanks disagree on the causes and solutions. Greg Lawson, policy analyst at the Buckeye Institute, says the biggest problem is Ohio’s tax system. In this area, he points out three major problems: higher income tax rates than other states, an unusual amount of municipalities in Ohio with income taxes and complicated filing for individuals and businesses. “You find nowhere else in the entire country a situation in which someone has to file multiple income tax forms ... for different jurisdictions they work in,” he says, citing the different tax rates and credits someone working in multiple municipalities might have to deal with. “That creates a drag on the efficiency of being able to set up businesses.” As far as tax cuts are concerned, another report from Policy Matters found a series of tax cuts passed by the Ohio General Assembly in 2005 had little impact on the state’s economic growth. The report found Ohio experienced job losses while the rest of the country grew, and not a single Ohio sector outpaced national performance. The report concluded, “State economies are complicated and there are many reasons why Ohio’s job growth is lagging. However, it is clear that the 2005 tax cuts did not bring about the promised job growth. There is no reason to think that further tax cuts will, either.” Instead, Policy Matters has focused on austerity, which led to the public sector job cuts outlined in Policy Matters’ March report: “A private-sector gain of 16,900 jobs has been nearly erased by the 14,200 jobs lost in the public sector. Most of those public job losses happened at the local level.” Indeed, federal sequestration has already caused some damage in Ohio, and local government funding cuts approved by Kasich have also forced local governments to cut back (“Enemy of the State,” issue of March 20).

Mayor Mark Mallory announced in a memo today that he will not be following through with previously planned salary raises for his staff, citing poor morale in light of recent — but misleading — press coverage. But the rest of his budget plan will remain.Mallory explained his reasoning in a statement: "I am rescinding the raises that I gave my staff and returning all salaries to the previous levels. Although the changes that I made in my office structure resulted in a saving of $66,000 to be used in next year’s budget, I realize that the perception has had a negative effect on the morale of other City Employees."I am the biggest promoter of the public servants who choose to work for the city, both on my staff and in all City Departments. I don’t want to see anyone lose their job. I have been successfully fighting to prevent layoffs throughout the recession. I supported the parking plan because it will ensure that no city employees lose their job. I plan to continue to fight for City Employees and to do everything that I can to minimize the reductions to our City Workforce.  Every job that we save is a win for our community."The announcement comes after a misleading report from The Cincinnati Enquirer sparked public outrage. The Enquirer's original report neglected to say that the overall budget plan would save the city $66,000 for the year and $33,000 during the mayor's remaining time in office. CityBeat covered Mallory's budget changes and The Enquirer's misleading report here.

Even though some members of Mayor Mark Mallory's staff are getting double-digit raises, the mayor's budget is actually being downsized to rely on less staff members, ultimately shrinking the mayor's office budget by $33,000 between July 1 and Dec. 1.Some of Mallory's staff obtained raises because they will be taking up the former duties of Ryan Adcock, who left earlier in the month to help lead a task force on infant mortality and will not be replaced. The Cincinnati Enquirer reported the raises earlier today, but the story at first did not mention that the budgetary moves will ultimately save the city money. The "Enquirer exclusive" includes a "tell them what you think" section in which citizens can email the mayor's office and copy Enquirer editors. The story was later updated to include the overall savings, though The Enquirer posted a separate blog titled, "Mallory getting an earful on raises," which was a collection of angry emails to the mayor based on the original version of the story.CityBeat acquired a memo written by Mallory that outlines the rest of the plan, which will produce savings: "I will not replace Ryan Adcock on my staff. Instead, I have divided his responsibilities among my remaining staff. In addition, I will not hire the two part-time staffers that I had considered hiring. The additional work in the office will be supplemented by unpaid interns."In addition, I have enacted internal savings in order to return $20,000 from my FY 2013 office budget to be used for the FY 2014 city budget. Finally, in preparation of the Mayor’s Office Budget for FY 2014, I am reducing my office budget by $33,000 for the remaining 5 months of my term."Mallory spokesperson Jason Barron says the mayor will also not be replacing staff that leaves from this point forward, which could produce more savings down the line. As of 6:30 p.m., The Enquirer's homepage still prominently displayed the story out of context, suggesting that the raises will add to the city's $35 million deficit.Shawn Butler, the mayor's director of community affairs, was given an 11-percent raise; Barron, the mayor's director of public affairs, was given a 16-percent raise; and Arlen Herrell, the mayor's director of international affairs, was given a 20-percent raise. Adcock also obtained a 20-percent raise briefly before leaving, which Barron described to CityBeat as a budgetary technicality.Since Mallory is term-limited, Barron says the savings will only apply to Mallory's remaining five months. The mayor who replaces Mallory in December will decide whether to keep or rework Mallory's policies.Last year, Barron was paid $66,144 in regular pay, Butler was paid $71,349, Herrell was paid $59,961 and Adcock was paid $66,049, according to the city's payroll records. But Barron explained that those numbers were higher because last year happened to have an extra payday. Under normal circumstances, Barron is paid $62,740 a year, Butler is paid $67,760, Adcock was paid $62,740 and Herrell is paid $62,031.

State Sen. Eric Kearney, a Cincinnati Democrat, introduced a bill in the Ohio Senate yesterday that would allow opened alcoholic beverages in “entertainment districts,” which must have populations of more than 50,000 within one-half mile by one-half mile. Kearney said Over-the-Rhine would be an ideal benefactor of the new bill. “Senate Bill 116 will promote tourism and business development across the state,” Kearney said in a statement. “By modifying Ohio’s law, this will provide an opportunity for developments such as the Over-the-Rhine Gateway in Cincinnati and The Flats in Cleveland to create an entertainment experience and attract more customers.” Supporters of the Medicaid expansion say they may attempt to put the issue on the November ballot if the Ohio General Assembly fails to take action by fall. Republicans in the Ohio House and Ohio Senate have so far rejected Gov. John Kasich’s pleas for an expansion, instead moving toward asking the federal government for a Medicaid waiver that would allow the state to make broader reforms. At least 90 percent of the expansion would be funded by the federal government. CityBeat covered the Medicaid expansion and other aspects of the Ohio House budget bill in further detail here. The Greater Cincinnati region and Hamilton County ranked among the worst in the nation in the American Lung Association’s annual “State of the Air” report. The report, which used 2009-2011 U.S. EPA data, found Greater Cincinnati to be No. 10 worst for year-round particle pollution and No. 14 for ozone pollution. Still, the report did find overall improvement around the nation, with Greater Cincinnati making some advances in pollution reduction in the past few decades. A new Ohio law going into effect today will require school coaches to acquire additional concussion awareness training. State Superintendent of Public Instruction Richard Ross says the training will make it easier for coaches to identify symptoms of concussions and get help for students. A University of Cincinnati study found it could be cost-effective to screen at-risk populations for hepatitis C. A vegetarian lifestyle may fit some of CityBeat’s most beautiful employees, but Cincinnati-based Procter & Gamble says pets need a more expansive diet. Not only do they have multiple cultural traditions, but humpback whales also learn new tricks by watching their friends.