Ohio’s inspector general released a report today criticizing the Ohio Department of Job and Family Services (ODJFS) for improperly reimbursing federal stimulus funds to hired organizations that did not follow rules.
In a statement, Inspector General Randall Meyer’s office said ODJFS “failed to adequately oversee federal grant funds applied to the Constructing Futures jobs training initiative for Central Ohio.”
The report released by Meyer’s office today, which focused on stimulus programs in central Ohio, outlined a few instances of ODJFS failing to oversee proper standards. In total, the department, which was put in charge of carrying out job training funds in Ohio from the stimulus package President Barack Obama signed into law in 2009, wrongly reimbursed companies it hired for $51,700.81.
In central Ohio, ODJFS hired two organizations to carry out the job training program, or Workforce Investment Act: Associated Builders and Contractors, Inc. (ABC) and Construction Trades Networks (CTN). At ABC, the inspector general found limited problems with faulty reimbursements involving a newspaper subscription, travel and mileage totaling less than $100. The money was not accounted for as a questionable cost since it was so small.
However, at CTN, the faulty reimbursements piled up. The organization was reimbursed $560.61 for phone calls made prior to being hired as part of the federal grant. It was also reimbursed $1,613.62 for its invoices, even though documentation was not provided to link phone calls as necessary to the grant program.
Under the federal stimulus rules, CTN was required to provide 25 percent of its own funds for the program. CTN planned on using $91,800 of in-kind funds — payment that isn’t cash — by paying for trainee wages. The organization paid $60,927.70 by the end of the grant period, and the organization was reimbursed for $49,526.64 by ODJFS, even though the charges were supposed to be carried by CTN. The inspector general requested CTN give the money back to ODJFS.
When the inspector general contacted the organization to explain the findings, CTN attributed the requests for faulty reimbursements to confusion caused by multiple administrative changes at ODJFS.
“In addition, monitoring visits by ODJFS were not conducted until after the grant period expired, even though the partnerships were told the visits would occur as grant activities were underway,” the report said.
Meyer’s office concluded ODJFS should review the questioned costs, work to keep consistent guidelines through administrative changes and monitor grant funds during the grant period.
The full inspector general report can be found here.
A report was released for northwestern Ohio was released on May 10, and it also found wrongdoing. It can be found here. A report for stimulus programs in southwestern Ohio will be released later.ODJFS could not be immediately provide comment on the report. This story will be updated if comments become available.
UPDATE (3:28 P.M.): Benjamin Johnson, spokesperson for ODJFS, provided a comment shortly after this story was published.
“As the report mentions, these were expenditures by local entities, not by the Ohio Department of Jobs and Family Services,” he says. “We appreciate the inspector general bringing this to our attention, and we'll work to resolve the matter.”
By now, most of you have heard there was another horrible mass shooting, this time in Newtown, Conn., that resulted in the death of 20 children and six adults. While everyone is hoping this is the last time the nation has to deal with an event of unspeakable horror, it is only a possibility if we agree to do something about it. That means remembering the heroes who risked their lives and, in some cases, died that day. That means not letting the media and public drop the issue, as has been the case in the past. That means looking at more than just gun control, including mental health services. The Washington Post analyzed what “meaningful” action on gun control would look like, and the newspaper also disproved the idea Switzerland and Israel are “gun-toting utopias.” President Barack Obama also spoke on the issue at a vigil Sunday, calling for the nation to do more to protect people, particularly children, from violence. The full speech can be watched here.
City Council approved its 2013 budget plan Friday. The budget relies on the privatization of city parking assets to help plug a $34 million deficit and avoid 344 layoffs. The budget also nixed the elimination of a tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities, and it continued funding the police department’s mounted unit. As a separate issue, City Council voted to increase the property tax by about 24 percent, reversing a move from conservatives in 2011. CityBeat wrote about budgets at all levels of government and how they affect jobs here.
Michelle Dillingham, who was an aide to former city councilman David Crowley, will seek Democratic support in a run for City Council. Dillingham promises to tackle “industry issues of mutual interest" to business and labor and “transportation funding, family-supporting wages and workforce development.”
At a recent public hearing, mayoral candidate John Cranley proposed a “very easy” plan for the city budget. Only problem: His plan doesn’t work. In an email, Cranley said he stands by his ideas, but he added he was working with limited information and his statements were part of a two-minute speech, which “requires brevity.” He also claimed there are cost-cutting measures that can be sought out without privatizing the city’s parking assets and gave modified versions of his ideas regarding casino and parking meter revenue.
Judge Robert Lyons, the Butler County judge who sealed the Miami rape flyer case, is standing by his decision.
The Greater Cincinnati area is near the top for private-sector growth.
Jedson Engineering is moving from Clermont County to downtown Cincinnati, thanks in part to an incentive package from City Council that includes a 45 percent tax credit based on employees earnings taxes over the next five years and a $300,000 grant for capital improvements. The company was a Business Courier Fast 55 finalist in 2008 and 2009 due to its high revenue growth.
Gov. John Kasich’s Ohio Turnpike plan is getting some support from Toledo Mayor Mike Bell, but others are weary. They fear the plan, which leverages the turnpike through bonds for state infrastructure projects, will move turnpike revenues out of northern Ohio. But Kasich vows to keep more than 90 percent of projects in northern Ohio.
Gas prices are still falling in Ohio.
U.S. House Speaker John Boehner is making some concessions in fiscal talks. In his latest budget, he proposed raising taxes on those who make more than $1 million a year.
One beagle can diagnose diseases by sniffing stool samples.
Ohio State Board of Education President Debe Terhar posted an image of Adolf Hitler on Facebook that said, “Never forget what this tyrant said: ‘To conquer a nation, first disarm its citizens.’ — Adolf Hitler.” But the Cincinnati Republican, who was referencing President Barack Obama’s gun control proposals, now insists she was not comparing Obama to Hitler. It’s pretty obvious she was, though.
Cincinnati’s seasonally unadjusted unemployment rate dropped to 6.7 percent in December, down from 6.9 percent in November. The drop is largely attributed to a decrease in the civilian labor force, which could imply less people are looking for work or seasonal changes are having an impact. Whatever the case, the amount of people who are employed and unemployed both dropped. Hamilton County’s seasonally unadjusted unemployment rate dropped to 6.2 percent in December, down from 6.4 percent in November, but that drop was also attributed to a declining labor force or seasonal factors. Greater Cincinnati’s seasonally unadjusted unemployment rate was unchanged from 6.4 percent, despite 2,600 less people working. In comparison, Ohio’s seasonally unadjusted rate was 6.6 percent in December, up from 6.5 percent in November, and the U.S. rate was 7.6 percent, up from 7.4 percent.
U.S. Sen. Rob Portman, an Ohio Republican, suggested the Dollar-for-Dollar Deficit Reduction Act. The plan requires debt ceiling increases to be matched by an equal amount of spending cuts. Increasing the debt ceiling is essentially Congress agreeing to pay its bills. During the budget process and while passing other legislation, Congress agrees to a certain amount of spending. Increasing the debt ceiling just makes it possible for the president to pay those bills, even if it means surpassing a set debt level. If the debt ceiling isn't raised by May 18, the United States will default on its debts, plunging the country into depression. But the threat of destroying the U.S. economy has not stopped Republicans from using the debt ceiling as a negotiation tool to get the spending cuts they so badly want.
Public employees are avoiding changes to Ohio’s public pension system by retiring before the changes kick in. The changes make it so any teacher who retires before July 1 will get a 2 percent cost of living increase to their pensions in 2015. Anyone who retires after July 1 will not get the increase until 2018. After that, retirees will get a pension increase every five years. Experts are also expecting a rush of retirees in 2015, when age and years-of-service requirements for full benefits are set to gradually rise.
A new report found Ohio’s graduation rate is still improving. The U.S. Department of Education report found the state’s graduation rate was 81.4 percent in the 2009-10 school year, higher than the nation’s rate of 78.2 percent, and an increase from 78.7 percent rate in the 2006-2007 school year.
A study found a link between hourly workers at Hamilton County’s Fernald Feed Materials Production Center and intestinal cancer.
As Ohio cuts back its solar program, Canada is shutting down the rest of its coal-fired power plants by the end of 2013.
The Cincinnati Reds may get to host the 2015 All-Stars Game.
Scientists are rushing to build robots that save lives in disaster zones. Will John Connor please stand up?
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).
The news comes at a time when FreedomOhio is stepping up its efforts to get an amendment legalizing same-sex marriage in Ohio on the 2013 ballot.
This article originally credited Equality Ohio for the amendment. The
amendment push is being led by FreedomOhio, a different pro-gay
The campaign for Freedom to Marry Ohio, the amendment that would legalize same-sex marriage, previously touted an economic study that showed Ohio could bring in $100-126 million of economic growth within three years of legalizing same-sex marriage and sustain 1,160-1,450 Ohio jobs. In Hamilton County, same-sex marriage legalization would bring in $8.3 million. However, the study did not take into account a phenomenon dubbed “marriage tourism,” which involves same-sex couples visiting a state mostly to get married; so it’s possible the economic impact could be even greater than the study suggests.The study also found that more than 9,800 out of more than 19,600 same-sex marriage couples in Ohio would marry within three years if it was legal, and nearly 900 out of nearly 1,800 in Hamilton County would marry within three years. New York City Mayor Michael Bloomberg previously touted same-sex marriage legalization for its economic boost to his city. He said it had produced $259 million in economic growth in New York City.
Today is the end of the world. Whatever. Life sucks anyway.
Ohio’s unemployment rate dropped from 6.9 percent to 6.8 percent in November. Gains were concentrated in trade, transportation, and utilities, financial activities and educational and health services, with losses in construction, leisure and hospitality, government, professional and business services and information services. Overall, the state’s non-agricultural wage and salary employment increased by 1,600.
But could the recovery last? U.S. House Speaker John Boehner is now ditching efforts to avoid the fiscal cliff, a series of spending cuts and tax hikes set to kick in at the end of the year. Boehner could not get Republicans to vote on a tax hike for people making more than $1 million a year, which isn’t even enough to make President Barack Obama’s demand of increased taxes on anyone making more than $400,000. If the United States goes over the fiscal cliff, the spending cuts and tax hikes will likely devastate the economy. CityBeat wrote about U.S. Congress’ inability to focus on jobs here.
Ohio Gov. John Kasich finished the lame-duck session by signing 42 bills into law. The laws include loosened restrictions on gun control, an update to Ohio’s education rating system and $4.4 million in appropriations. The loosened gun control law in particular is getting criticized from Democrats in the wake of the Newtown, Conn., massacre. The law allows guns in the Ohio Statehouse garage, loosens concealed carry rules and changes the definition of an unloaded gun so gun owners can have loaded clips in cars as long as they are stored separately from guns. CityBeat wrote about the need for more gun control in this week’s commentary.
Hamilton County Prosecutor Joe Deters suggested arming teachers to avoid school shootings, but a considerable amount of research shows that doesn’t work. Cincinnati Police Chief James Craig says arming teachers is a bad idea: “Certainly we can look at other options, but when you talk about arming school teachers or a school administrator without the appropriate training, and training is not just going to a target range and being able to hit center mass. How do you deal with a crisis? We're talking about a place with children.” Craig is now pushing crisis training as a major initiative.
Meanwhile, Sen. Rob Portman says school shootings need a holistic approach. The Ohio Republican says he will consider further restrictions on guns and armed school officials.
It seems a housing recovery is well underway. Cincinnati home sales are showing no signs of a slowdown.
Cincinnati is getting six historic preservation tax credits from the state government. As part of the ninth round of the program, the Ohio Development Services Agency is giving the city credits for parts of Main Street, parts of East 12th Street, parts of East McMillan Street, Abington Flats, Eden Park Pump Station and Pendleton Apartments.
The U.S. Department of Education is looking into whether Ohio charter schools discriminate against students with disabilities. Overall, charter schools in the state enroll as many students with disabilities as traditional public schools, but students with disabilities are concentrated in a few charter schools.
A federal judge upheld Ohio’s exotic animal law, which restricts who can own the animals in the state.
Judith French, a Republican, will replace retiring Justice Evelyn Stratton on the Ohio Supreme Court. Gov. Kasich’s appointment of French keeps the court’s makeup of six Republicans and one Democrat.
Genetics is perfecting the Christmas tree.
From the Twilight Zone archives comes Arnold Schwarzenegger’s Christmas special.
The rollback saves property owners $70 in taxes for every $100,000 of valuation. For the next two years they will be paying an extra $35 per $100,000 of their home’s value.
The money will be used to balance the stadium fund, which faces a $7 million deficit. The rollback reduction is expected to raise about $10 million. The board voted 2-1 for the proposal, with sole Democrat Todd Portune dissenting.
“The property tax rollback measure that has been advanced so far buys us only one year, and next year we will be doing the same thing we are doing today,” Portune said.
Portune favored raising the sales tax by 0.25 cents — to 6.75 — per dollar, which would have raised more than $30 million over 10 years. His proposal, which failed to receive any support, would have expired after the 10 years and gone up for review annually after the first five.
Portune said his proposal was more equitable. He said reducing the property tax rollback was going to affect only Hamilton County residential property owners, whereas a sales tax increase would affect everyone who spends money in the county, including visitors from neighboring Kentucky and Indiana.
Portune billed the tax increase as a long-term solution that would raise more than was needed currently but would keep the fund stable in years to come.
Board President Greg Hartmann, who authored the rollback reduction proposal, called Portune’s plan “a bridge too far.” He said it was too large of a tax increase and not a targeted approach to solve the deficit problem. He said he didn’t trust future commissions to allow the tax increase to expire.
Hartmann called the property tax rollback reduction flexible, scalable, clean, immediate and certain.
Commissioner Chris Monzel, who provided the deciding vote, said he didn’t like either and had to go against his principles with either choice.
“No way I walk out of this without breaking a promise. No way I walk out of this winning,” he said.
Monzel said he hopes that savings from the Affordable Care Act would allow the county to lower its property tax rates to make up for the rollback reduction.
Monzel also introduced a successful proposal that will include an annual review of the tax budget to make sure property taxes don’t change, a provision requiring parking revenue from The Banks to be used to develop The Banks and a directive for the county administrator to work with Cincinnati’s professional sports teams on concessions they can make to help out with the stadium funding burden.
For a full hour Thursday night, Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel continued their feisty fight for Ohio’s U.S. Senate seat. For the most part, the debate centered on the candidates’ records and personal attacks, with policy specifics spewing out in between.
Apparently, the barrage of attacks is not what the candidates had in mind before the debate started. Throughout the debate, both candidates asked for substance, not attacks. At one point, Brown said, “I appreciate this clash of ideas. That’s what this debate should be about.” At another point, Mandel said, “We need less attacking, and we need more policy ideas to put people back to work.”
These comments came well into the debate. By that time, Mandel had criticized Brown for “Washington speak” so many times that an exasperated Brown quipped, “I don’t get this. Every answer is about Washington speak.”
Brown also launched his own attacks, which focused on Mandel’s dishonesty on the campaign trail, which previously earned Mandel a “Pants on Fire” crown from Cleveland’s The Plain Dealer, and Mandel, who is also Ohio’s treasurer, missing state treasurer meetings to run for political office.
But Ohioans have seen enough of the attacks in the hundreds of campaign ads that have bombarded the state in the past year. Voters probably want to hear more about how each candidate will affect them, and the candidates gave enough details to get some idea of where each of them will go.
On economic issues, Brown established the key difference between the two candidates’ economic policies: Mandel, like most of his Republican colleagues, believes in the trickle-down theory. The economic theory says when the rich grow, they can create jobs by hiring more employees and expanding businesses. In other words, proponents of the theory believe the success of the rich “trickles down” to the middle class and poor through more job opportunities. Belief in this theory is also why most Republicans call the wealthy “job creators.” Under the trickle-down theory, the wealthy are deregulated and get tax cuts so it’s easier for them to create jobs.
On the other hand, Brown says he supports a middle-out approach, which focuses on policies that target the middle class. That is how sustainable employment and growth are attained, according to Brown. Under the middle-out approach, tax cuts and spending policies target the middle class, and the wealthy own a higher tax burden to support government programs.
Some economists, like left-leaning Nobel laureate Paul Krugman, say the trickle-down theory should have been put to rest with the financial crisis of 2008. After all, deregulation is now credited with being the primary cause of 2008’s economic crisis. In that context, more deregulation seems like a bad idea.
Still, Brown’s contrast to Mandel holds true. Brown has
repeatedly called for higher taxes on the rich. In the debate, he touted his
support for the auto bailout and once again mocked Mandel’s promise to not
raise any taxes. These are policies that do end up benefiting the middle class
more than the wealthy. The auto bailout in particular has been credited with
saving thousands of middle-class jobs.
On the other side, Mandel told debate watchers to go to his website and then offered some quick talking points: simplify the tax code, end Wall Street bailouts and use Ohio’s natural gas and oil resources “in a responsible way.” How Mandel wants to simplify the tax code is the issue. On his website, Mandel says he supports “a flatter, fairer income tax with only one or two brackets, eliminating almost all of the credits, exemptions and loopholes.” A study by five leading economists suggests a flat tax model would greatly benefit the wealthy and actually hurt the well-being of the middle class and poor. That matches with the trickle-down economic theory.
Another suggestion on Mandel’s website says, “Help job creators. Reduce capital gains and corporate taxes, and allow for a small business income deduction.” The small business portion would help some in the middle class, but an analysis from The Washington Post found 80 percent of capital gains incomes benefit 5 percent of Americans and half of all capital gains have gone to the top 0.1 percent of Americans. So a capital gains tax cut would, again, match the trickle-down economic theory.
What all this means is on economic issues the choice of candidates depends mostly on what economic theory a voter believes. Brown believes in focusing economic policies that target the middle class, while Mandel mostly supports policies that generally support what he calls “job creators” — or the wealthy.
On partisanship, both sides once again threw out different ideas. Although he was asked for three ideas, Brown only gave one: fix the filibuster. The filibuster is a U.S. Senate procedure that allows 41 out of 100 senators to indefinitely halt any laws. The only way to break the filibuster is by having a supermajority of 60 senators — a rarity in American politics. Brown said if this rule was removed, a lot more could get done in Congress.
Mandel had different ideas for stopping partisan gridlock in Washington, D.C. He touted his support for No Budget, No Pay, which would require members of Congress to pass a budget in order to get paid. He also expressed his support for term limits, saying lifelong politicians only add to the partisanship in Congress. Then, in a strange twist, Mandel’s last suggestion was to stop bailouts, which has nothing to do with partisanship or gridlock in Congress.
Then came Obamacare. Brown said he was “proud” of his vote and continued supporting the law, citing the millions of Americans it will insure. Meanwhile, Mandel responded to the Obamacare question by saying, “The federal government takeover of health care is not the answer.”
The fact of the matter is Obamacare is not a “government
takeover of health care.” Far from it. The plan doesn’t even have a public
option that would allow Americans to buy into a public, nonprofit insurance
pool — an idea that actually has majority support in the U.S. Instead,
Obamacare is a series of complicated reforms to the health insurance industry.
There are way too many reforms to list, but the most basic
effect of Obamacare is that more people will be insured. That’s right, in the
supposed “government takeover of health care,” insurance companies actually gain
more customers. That’s the whole point of the individual mandate and the many
subsidies in Obamacare that try to make insurance affordable for all Americans.
Mandel made another misleading claim when he said Obamacare “stole” from Medicare, with the implication that the cuts hurt seniors utilizing the program. It is true Obamacare cuts Medicare spending, but the cuts target waste and payments to hospitals and insurers. It does not directly cut benefits.
The one area with little disagreement also happened to be the one area with the most misleading: China. It’s not a new trend for politicians to attack China. The Asian country has become the scapegoat for all economic problems in the U.S. But in this election cycle, politicians have brandished a new line to attack China: currency manipulation. This, as Ohioans have likely heard dozens of times, is why jobs are leaving Ohio and why the amount of manufacturing jobs has dropped in the U.S. In fact, if politicians are taken at their word, it’s probably the entire reason the U.S. economy is in a bad spot.
In the Brown-Mandel debate, Brown repeatedly pointed to his currency manipulation bill, which he claims would put an end to Chinese currency manipulation. Mandel also made references to getting tough on China’s currency manipulation.
One problem: China is no longer manipulating its currency. There is no doubt China greatly massaged its currency in the past to gain an unfair advantage, but those days are over, says Joseph Gagnon, an economist focused on trade and currency manipulation. Gagnon argues the problem with currency manipulation is no longer a problem with China; it’s a problem with Malaysia, the Philippines, Singapore, South Korea, Switzerland and Saudi Arabia. If the U.S. wants to crack down on currency manipulation, those countries should be the targets, not China, he argues.
In other words, if currency manipulation is a problem, Mandel was right when he said that countries other than China need to be targeted. To Brown’s credit, his currency manipulation bill targets any country engaging in currency manipulation, not just China. The problem seems to be the misleading campaign rhetoric, not proposed policy.
The debate went on to cover many more issues. Just like the first debate, Brown typically took the liberal position and Mandel typically took the conservative position on social issues like gay rights and abortion. Both touted vague support for small businesses. Each candidate claimed to support military bases in Ohio, although Mandel specified he wants bases in Europe closed down to save money. As far as debates go, the contrast could not be any clearer, and the candidates disagreed on nearly every issue.
The final debate between the two U.S. Senate candidates will take place in Cincinnati on Oct. 25.