CityBeat Blogs - Taxes http://www.citybeat.com/cincinnati/blogs-1-1-1-34-202.html <![CDATA[Policy Group: Ohio House Tax Plan Favors Wealthy]]>

The budget bill currently working through the Republican-controlled Ohio legislature would cut taxes in a way that disproportionately favors the wealthy, according to a new analysis from Policy Matters Ohio, a left-leaning policy group.

The budget bill, which was passed the Republican-controlled Ohio House with a 61-35 vote on April 18, would cut state income taxes for all Ohioans by 7 percent. Policy Matters analyzed the result for each tax bracket: For the top 1 percent, the tax plan would cut $2,717 in taxes on average. For the middle 20 percent, it would amount to a $51 cut on average. For the bottom 20 percent, it would result in $3 on average.

The report explains the disproportionate gains are caused by the structure behind Ohio’s tax system: Ohio has a graduated income tax, so people pay more on higher levels of earnings. Because of that, across-the-board tax cuts give much more money to the wealthiest Ohioans. This reinforces inequality and adds to the unfairness of the state and local tax system, which is weighted in favor of upper-income taxpayers when all state and local taxes are taken into account.

Zach Schiller, research director at Policy Matters, says the Ohio House tax plan will also have little impact on Ohio’s economy.

“Since the 21-percent reduction in state income taxes approved in 2005, Ohio’s economy has underperformed the nation,” Schiller said in a statement. “There is little reason to believe that another round of income-tax cuts will produce a different result.”

Michael Dittoe, spokesperson for Speaker of the House William Batchelder and Ohio House Republicans, wrote in an email to CityBeat that there are still two months for the state government to finalize the details of the tax plan as it works through the Ohio legislature.

The budget bill still has to be approved by the Republican-controlled Ohio Senate. If changes are made to the Ohio House proposal, the Ohio Senate bill would have to be concurred by the Ohio House. It would then need to be signed by Republican Gov. John Kasich, who could line-item veto certain parts of the bill or veto the entire bill.

“It’s disappointing to see that Policy Matters Ohio would begrudge an income tax cut which will benefit all Ohioans,” Dittoe wrote in the email. “Of the seven citations in their report, ironically, five of them refer back to previous ‘studies’ issued by none other than Policy Matters Ohio. Before issuing a study of this magnitude, it may be wise for them to cite something other than themselves to make the report more credible.”

Policy Matter’s findings were gathered through the independent Institute on Taxation and Economic Policy, which plugs the numbers into its own model to gauge the impact of tax cuts on different income levels.

The resulting numbers do little to deflate concerns raised by Policy Matters about Kasich’s tax proposal, which was a much larger 20-percent across-the-board income tax cut. Policy Matters found Kasich’s tax plan also favored the wealthy, except the overall plan actually raised taxes on the state’s poorest because it included an expansion of the sales tax that the Ohio House rejected (“Smoke and Mirrors,” issue of Feb. 20).

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<![CDATA[Morning News and Stuff]]>

Today is Tax Day, which means income tax returns have to be filed by midnight. If you’re in a rush, there are a variety of online tax filing services out there, particularly for state and federal taxes. Cincinnati’s e-filing service can be found here.

Cincinnati is outlining the time frame for police, firefighter and other layoffs that the city says it must undertake to balance the budget. The layoffs are currently set for June 9, with layoff letters going out by then. The city administration says the layoffs are necessary because the city’s plan to lease its parking assets has been held up in court and a referendum effort, eliminating the use of parking funds to help balance the budget in time for fiscal year 2014. Opponents say there are alternatives, but Mayor Mark Mallory and the city’s budget gurus recently criticized the suggestions as misleading and unworkable.

Ohio House Republicans are once again attempting to defund Planned Parenthood in their latest budget plan, but this time they are also throwing in support for crisis pregnancy centers, which tout abstinence-only education, in a separate part of their budget proposal. The moves have sparked criticism from pro-choice groups around the state that say Republicans are trying to push their morality on women, while anti-abortion groups have praised the budget for enforcing family values and what they claim are more women’s health options.

The Medicaid expansion is uniting Gov. John Kasich, Ohio Democrats, mental health advocates and other health experts against the Ohio House Republicans’ budget proposal, which rejects the expansion. Supporters of the expansion point to studies that say the expansion will save the state money, insure nearly half a million Ohioans and help the state’s neediest, but Ohio Republicans say they’re concerned the federal funding backing the expansion will dry up at some point, even though there’s no historical precedent of the federal government failing to meet its Medicaid commitments.

State officials are moving to reform Ohio’s foster care system after several deaths were linked to poor oversight and regulations. The Foster Care Advisory Group sent out its suggestions last week, which include removing some rules to “normalize” foster children’s childhoods and eliminating county-by-county funding inequality.

Internet sweepstakes cafes have been closed in California and Florida — a move state officials are looking to replicate in Ohio.

Ohio gas prices are low this week.

A new state license plate design is now available.

A new strand of the bird flu is here, and it’s already killed 11 people in China.

Scientists have reconstructed the ancestor that came between the human and chimp.

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<![CDATA[Interactive Map: State Earned Income Tax Credit]]>

As part of an effort supporting a state earned income tax credit (EITC), Policy Matters Ohio unveiled an interactive map today that shows the potential benefits to taxpayers in different counties.

For Hamilton County, about 19 percent of tax-filing households would qualify for the program. A 10-percent EITC would return about $15.6 million to households in Hamilton County, or about $225 on average for each qualifying filer. A 20-percent EITC would return about $31.2 million to Hamilton County, with each qualifying filer getting about $451 on average.

EITC is a tax credit that goes to working families, typically favoring low- and middle-income earners with children. It is already used by the federal government and several states to progressively reward employment.

CityBeat previously covered Policy Matter's efforts and how EITC could replace Gov. John Kasich's tax proposals, which would expand the sales tax and cut income taxes by 20 percent across the board, here.

Since then, Ohio House Republicans have rejected most of Kasich's tax proposals, instead downsizing the plan to a 7-percent across-the-board tax cut with no sales tax expansion.

Here is the interactive map, courtesy of Policy Matters:


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<![CDATA[Morning News and Stuff]]>

Even as it faces budget cuts, the Hamilton County Sheriff’s office says it wants more staff to keep up with higher jail populations — especially in light of a new measure that will keep more people detained until they appear in court. The measure is in response to some people never showing up to court after being released from jail. Staff are crediting the feasibility of the measure to Hamilton County Sheriff Jim Neil encouraging them to think “outside the box.” Still, Hamilton County Board of Commissioners President Chris Monzel says the cost of the program might require Neil to think “inside the box.”

The Ohio Tax Credit Authority is giving tax breaks to 13 businesses around the state in hopes of creating 1,417 jobs and spurring $83 million in investment. Seven of the projects are in the Hamilton, Butler and Clinton counties, with one in Cincinnati.

The Ohio House easily passed a bill that would effectively shut down Internet sweepstakes cafes, but the Ohio Senate is including the measure in a more comprehensive gambling bill. Senate President Keith Faber says there are a lot of issues related to gambling in Ohio, and the cafes are just one part of the problem.

Ohio Sen. Rob Portman is one of many being targeted by New York City Mayor Michael Bloomberg’s pro-gun control ad campaign. Bloomberg is a leader in supporting more restrictive gun measures, and he’s planning on airing the ads in 13 states during the ongoing congressional spring break to push for stricter background checks and other new rules.

Ohio failed to show improvement in the latest infrastructure report card from the American Society of Civil Engineers (ASCE). In both 2009 and 2013, Ohio got a C- for its infrastructure, which translates to 2,462 structurally deficient bridges and puts about 42 percent of roadways as “poor” or “mediocre” quality. But the report might not be as bad as it sounds. The Washington Post’s Brad Plumer argues that the ASCE is notoriously too harsh.

A study from NerdWallet found Cincinnati is the No. 1 city in the nation for consumer banking.

Duke Energy rolled out a new logo yesterday.

A former Miami University student is facing charges for allegedly changing his grades.

More options aren’t always a good thing, according to some science. A new study found more choices can lead to bad, risky decisions.

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<![CDATA[Policy Matters Pushes Earned Income Tax Credit]]>

Policy Matters Ohio is now pushing an earned income tax credit (EITC) that would benefit the state’s poor and middle class, including more than 822,000 working families. The plan could be a progressive replacement for Republican Gov. John Kasich’s proposed tax plan, which some reports claim disproportionately benefits the wealthy.

The EITC is a tax credit targeted at working people who have low to moderate income, particularly those with children. It is currently used by the federal government, 24 states and Washington, D.C.

The report from Policy Matters, a left-leaning policy research group, found a 10-percent EITC would cost about $184 million per year, producing an estimated $224 million in economic benefits, and a 20-percent EITC would cost about $367 million per year, producing an estimated $446 million in economic benefits.

If state legislators set aside Gov. John Kasich’s tax proposals, the state would be left with about $280.4 million in general revenue available for fiscal year 2014 and about $690.2 million available in fiscal year 2015, according to an analysis of Kasich’s budget bluebook. That would be more than enough money in fiscal year 2014 to pay for a 10-percent EITC, and even a 20-percent EITC would only eat up about half of available funds in fiscal year 2015.

Using a model from the nonpartisan Institute for Tax and Economic Policy, the Policy Matters report found a state EITC would benefit Ohioans making less than $51,000 per year. Under a 10-percent credit, qualifying families making less than $18,000 would get $190 on average, qualifying families making between $18,000 and $33,000 would get $323 on average and qualifying families making between $33,000 and $51,000 would get $149 on average, according to the report.

Under a 20-percent credit, benefits would be bumped up to $381 on average for qualifying families making less than $18,000 per year, $646 on average for qualifying families making between $18,000 and $33,000 and $298 for qualifying families making between $33,000 and $51,000, according to the report.

These benefits would then be spent in a way that helps families, local communities and small businesses, according to the Policy Matters report: “Families that claim the EITC use the refunds to pay for basic needs like housing, food, transportation and child care. These purchases stimulate local economies. A number of studies focusing on the economic impacts of the EITC find that small businesses and other taxes benefit from a cash infusion into the local economy.”

The report claims a state EITC would also result in a fairer tax system that better helps the state’s low- and middle-income earners, stronger incentives to work and better social and economic results for EITC recipients.

The Policy Matters report touts the federal EITC, which was created by former President Gerald Ford in 1975 and has been expanded by every presidential administration since, to support adopting a similar policy in the state: “The federal Earned Income Tax Credit does more than any other program to keep working families out of poverty. … (It) is lauded for its direct impact in keeping families with children above the poverty line, making work pay, and sending federal dollars to local communities.”

Anyone making $50,270 a year or less qualifies for the federal EITC. The tax credit is built so it particularly benefits families with children, and it “encourages families making at or near minimum wage to work more hours since the credit has a longer, more gradual phase-out range compared to other programs,” according to the Policy Matters report.

The report says the federal EITC has already benefited more than 950,000 Ohio families with an average refund of $2,238.

In previous analyses, Policy Matters found Kasich’s tax proposals disproportionately benefit the wealthy and actually raise taxes on the state’s poor and middle class (“Smoke and Mirrors,” issue of Feb. 20). But Kasich says his tax plan will cut taxes for “job creators,” particularly the state’s small businesses.

The governor’s tax proposals are facing bipartisan resistance, and the Republican-controlled Ohio House is currently considering setting the proposals aside while the rest of the budget is worked out, according to Gongwer.

In a press conference on March 14, local officials around the state, including Councilman P.G. Sittenfeld, suggested dropping income tax cuts and instead using the revenue to restore local government funding cuts, which have totaled $1.4 billion since Kasich took office.

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<![CDATA[Morning News and Stuff]]>

Cincinnati’s plan to lease parking assets to the Port of Greater Cincinnati Development Authority remains on hold as a lawsuit arguing the law should be subject to referendum works through the Hamilton County Common Pleas Court. The legal dispute is focused on City Council’s use of the emergency clause, which eliminates a 30-day waiting period on implementing laws and takes away the possibility of a referendum. Emergency clauses are routinely deployed in City Council, but opponents of the parking plan say that doesn’t make them right.

Whether the parking deal does go through or not, the Tower Place Mall renovations will be carried out. The city originally included the renovations as part of the plan, but Meg Olberding, city spokesperson, told The Cincinnati Enquirer that the city is planning on selling the the property to a subsidiary of JDL Warm Construction for an undisclosed sum, and the company will then pay an estimated $5 million for the redevelopment.

Gov. John Kasich’s plan to expand the sales tax to fund tax cuts is being heavily criticized by some members of the business community, but Rep. Ron Amstutz, chairman of the Ohio House Finance & Appropriations Committee, says he is looking into ways to save the proposal. Kasich’s plan would expand the application of the sales tax to include more services, including cable TV and admission to sport events, but it would lower the sales tax rate from 5.5 percent to 5 percent and carry out 20-percent across-the-board income tax cuts. CityBeat wrote about Kasich’s budget proposal in further detail here.

As part of Kasich’s education plans, the state’s school voucher program is expanding to help students meet a Third Grade Reading Guarantee, which requires third-graders pass a test in reading proficiency before they can move onto fourth grade. Supporters argue the voucher program provides more choice and control for parents, but opponents say the state should not be paying for private educations. A previous Policy Matters Ohio report found expanded school choice through more vouchers can have negative effects on education, including worse results for students and teachers.

State Auditor Dave Yost is pushing for a full audit of JobsOhio, the publicly funded private, nonprofit agency, but Republican state legislators are joining Kasich in opposition. The opposing Republicans say the state auditor can track any public funds used for JobsOhio, but they say the agency is allowed to keep its private funds under wraps. Kasich says he plans to replace the Ohio Department of Development, which can be fully audited by the state auditor at any time, with JobsOhio.

The Ohio Department of Education apparently knew or should have known of ongoing data scrubbing in schools as early as 2008, according to The Toledo Blade. Emails acquired by The Blade show officials analyzed and discussed data reports that year after media reports detailed how urban districts excluded thousands of test scores on state report cards.

Supporters of the Anna Louise Inn gathered Friday in celebration of International Women’s Day and to stand against Western & Southern’s repeated efforts to run the Inn out of the neighborhood.

The U.S. Census Bureau says Cincinnati commutes are much shorter than the national average, with only 2.9 percent of Cincinnatians spending more than 60 minutes one-way during their commute, as compared to the 8.1 percent national average.

The Cincinnati Enquirer unveiled its new tabloid format today. Ben Kaufman says it looks nice and arrived on time.

The Killers are coming to the Horseshoe Casino.

A new study says results from fMRI scans are unintentionally distorted and inaccurate — to the point that some studies on the human brain that use fMRI results may be seriously questionable.

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<![CDATA[So Much for Socialism]]>

A YouTube video that went viral over the weekend may have broken the rosy illusions the average American has about wealth and income inequality.

Using data from Mother Jones, Dan Ariely, ThinkProgress and CNN, the video compares the average American’s ideal distribution of wealth, what the average American says wealth inequality looks like and how wealth is distributed in reality — ultimately showing that the average American says the nation is much more equal than it really is.

The video suggests investment income as one of the drivers of inequality. The top 1 percent wealthiest Americans hold 50 percent of the nation’s stocks, bonds and mutual funds, while the bottom 50 percent of Americans only hold 0.5 percent of such investments, according to the video.

“The average worker needs to work more than a month to earn what the CEO makes in one hour,” the narrator says.

In the past, the United States was a lot closer to equality. As the video points out, the top 1 percent only took home 9 percent of the nation’s income in 1976. Today, that number is up to 24 percent.

Ohio isn’t immune to the trend. A previous report from the left-leaning Center on Budget and Policy Priorities found Ohio’s income gap — the income difference between the rich and poor — is wide and growing, and low-income and middle-income Ohioans have actually seen their incomes drop since the 1990s.

The video doesn’t make any suggestions on how to fix the problem — it simply shows massive inequality exists — but there are plenty of ideas out there. A paper from the Congressional Research Service suggested the tax system may be playing a role in driving up income and wealth inequality: “However, the top tax rate reductions appear to be correlated with the increasing concentration of income at the top of the income distribution. … The statistical analysis in this report suggests that tax policy could be related to how the economic pie is sliced — lower top tax rates may be associated with greater income disparities.”

In December, The Washington Post posted 10 empirically supported ideas, which included funding preschool education, making unions easier to join and promoting trade in highly skilled professions. 

In his 2013 State of the Union, President Barack Obama suggested raising the federal minimum wage to help combat poverty and income inequality — a policy that economist Lawrence Mishel of the Economic Policy Institute recently advocated.

Here is the full video:

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<![CDATA[Seelbach Announces "Plan S" Budget Alternative ]]> City Councilmember Chris Seelbach this afternoon released a third alternative to City Manager Milton Dohoney Jr.'s budget plans, both of which have received negative feedback from the public.

Like Dohoney's "Plan B" (read about that here), Plan S would not lease the city's parking system to a private operator, a solution that citizens and officials are concerned would cause parking rates to skyrocket and ultimately not serve as a sustainable solution to the city's budget problems.

Instead, Plan S would involve redirecting $7.5 million in casino revenue to help balance the city's $25 million deficit, $5 million in spending cuts based on the results of the city's priority-driven budgeting and two charter amendments on the ballot that, if approved, would include up to a $10-per-month trash fee and increase the city's admissions tax by 2 percent.

Plan S is Seelbach's alternative to Dohoney's Plan B, which also does not privatize parking. Under Plan B, the city would be forced to lay off 344 public employees, including 80 firefighters and 189 police positions, and close three community centers and six pools.

Instead, the $5 million in spending cuts would include reductions to city administrative services, council and the mayor’s office, some recreation and health programs and consolidation of some police and fire services. It would also freeze 20 vacant city positions and reduce car allowances for city employees. Seelbach says he determined who would suffer these cuts by exploring city services citizens valued least during last fall's Priority-Driven Budget Initiative.

If council were to approve pursuing Seelbach's Plan S, there's a possibility it could send the city back to the drawing board, should voters choose not to approve the proposed charter amendments.

"To me it seems like the public is overwhelmingly against parking, but we still have to balance our budget. ... I'm providing the public an alternative. If [the charter amendments are] something the voters would reject, I respect that and then we’d have to go back to the table and either do the leasing of parking or layoff 300 police and fire officers," Seelbach says.

The parking plan is expected to be voted on during the Budget and Finance Committee's meeting at 1 p.m. on Monday, March 4.

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<![CDATA[Morning News and Stuff]]>

While fact checking an interview, CityBeat discovered it will be possible to circumvent the parking plan’s cap on meter rate increases through a multilayer process that involves approval from a special committee, the city manager and the Port of Greater Cincinnati Development Authority. The process adds a potential loophole to one of the city manager’s main defenses against fears of skyrocketing rates, but Meg Olberding, city spokesperson, says raising the cap requires overcoming an extensive series of hurdles: unanimous approval from a board with four members appointed by the Port Authority and one selected by the city manager, affirmation from the city manager and a final nod from the Port Authority. Olberding says the process is necessary in case anything changes during the 30-year time span of the parking deal, which CityBeat covered in detail here.

Democratic mayoral candidate John Cranley launched DontSellCincinnati.org to prevent the city manager’s parking plan, which semi-privatizes the city’s parking assets. The website claims the plan gives for-profit investment companies power over enforcement, guarantees 3-percent rate increases every year and blows through all the money raised in two years. The plan does task a private company with enforcement, but it will be handled by Xerox, not a financial firm, and must follow standards set in the company’s agreement with the Port Authority. While the plan does allow 3-percent rate increases each year, Olberding says the Port Authority will have the power to refuse an increase — meaning it’s not a guarantee.

Arnol Elam, the Franklin City Schools superintendent who sent an angry letter to Gov. John Kasich over his budget plan, is no longer being investigated for misusing county resources after he paid $539 in restitution. CityBeat covered Elam’s letter, which told parents and staff about regressive funding in Kasich’s school funding proposal, and other parts of the governor’s budget in an in-depth cover story.

To the surprise of no one, Ohio’s oil lobby is still against Kasich’s tax plan, which raises a 4 percent severance tax on oil and wet gas from high-producing fracking wells and a 1 percent tax on dry gas.

Local faith leaders from a diversity of religious backgrounds held a press conference yesterday to endorse the Freedom to Marry and Religious Freedom Amendment, an amendment from FreedomOhio that would legalize same-sex marriage in the state. Pastor Mike Underhill of the Nexus United Church of Christ (UCC) in Butler County, Rabbi Miriam Terlinchamp of Temple Sholom, Pamela Taylor of Muslims for Progressive Values and Mike Moroski, who recently lost his job as assistant principal at Purcell Marian High School for standing up for LGBT rights all attended the event. CityBeat covered the amendment and its potential hurdles for getting on the 2013 ballot here.

Vanessa White, a member of the Cincinnati Public Schools board, is running for City Council. White is finishing her first four-year term at the board after winning the seat handily in 2009. She has said she wants to stop the streetcar project, but she wants to increase collaboration between the city and schools and create jobs for younger people.

The Ohio Bureau of Motor Vehicles’ (BMV) policy on providing driver’s licenses to the children of illegal immigrants remains unclear. Since CityBeat broke the story on the BMV policy, the agency has shifted from internally pushing against driver’s licenses for Deferred Action for Childhood Arrivals (DACA) recipients to officially “reviewing guidance from the federal government as it applies to Ohio law.” DACA is an executive order from President Barack Obama that allows the children of illegal immigrants to qualify for permits that enable them to remain in the United States without fear of prosecution.

A survey from the Ohio-Kentucky-Indiana Regional Council of Governments found locals are generally satisfied with roads, housing and issues that affect them everyday. The survey included 2,500 people and questions about energy efficiency, infrastructure, public health, schools and other issues.

Ohio Attorney General Mike DeWine revealed 7,000 Ohioans have received more than $280 million in consumer relief as part of the National Mortgage Settlement announced one year ago. The $25 billion settlement between the federal government and major banks punishes reckless financial institutions and provides relief to homeowners in the aftermath of the 2008 financial crisis.

Ohio received a $3 million federal grant to continue improving the state’s health care payments and delivery programs.

Cincinnati home sales reached a six-year high after a 27-percent jump in January.

CityBeat’s Hannah “McAttack” McCartney interviewed yours truly for the first post of her Q&A-based blog, Cinfolk.

Crows have a sense of fairness, a new study found.

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<![CDATA[Morning News and Stuff]]>

A new report found “renters by choice” — those who can afford to own a house but choose not to — and people returning to the market in the Great Recession’s aftermath may be driving a rush to rent in Cincinnati, reports The Cincinnati Enquirer. The report from CB Richard Ellis found the average apartment occupancy rate was 93.6 percent in 2012, underscoring the need for new apartments in Downtown and Over-the-Rhine. News of the report came just one day after City Manager Milton Dohoney Jr. announced his parking plan, which will add 300 luxury apartments to Downtown.

Gov. John Kasich and Ohio legislators are getting some bad feedback on the governor’s plan to broaden the sales tax, reports Gongwer. Numbers from Policy Matters Ohio found the sales tax plan would outweigh sales and income tax cuts for the lower classes, but won’t be enough to dent tax savings for the wealthiest Ohioans. CityBeat covered Kasich’s budget in detail here.

Not much new information came from a special City Council meeting last night that covered Cincinnati’s public retirement system, reports WVXU. The one piece of new information was that preliminary numbers show Cincinnati's Retirement System had an 11.9 percent return on its investments in 2012 — higher than the 7.5 percent that was originally projected.

Mayor Mark Mallory is using his plan to lower Cincinnati’s infant mortality rate to try to win the Bloomberg Philanthropies’ Mayors Challenge. Mallory’s proposal would create an Infant Vitality Surveillance Network, which allows pregnant women to enroll in First Steps, a care program that maintains a secure database of new mothers and monitors pregnancies, according to a press release from the mayor’s office. The program could be especially helpful in Cincinnati, which has a higher infant mortality rate than the national average. The Bloomberg challenge pits mayors around the country against each other to win $5 million or one of four $1 million prizes for their programs aimed at solving urban problems and improving city life. With Mallory’s program, Cincinnati is one of 20 finalists in the competition. Fans can vote on their favorite program at The Huffington Post.

A local nun may have committed voter fraud, reports WCPO. Rose Marie Hewitt, the nun in question, died Oct. 4, but the Hamilton County Board of Elections still received a ballot from her after she died. Hewitt apparently filed for an absentee ballot on Sept. 11 — less than one month before she died. In a letter to Board of Elections director Tim Burke, Hamilton County Prosecutor Joe Deters wrote there’s enough probable cause to believe criminal activity occurred.

In 2012, 88,068 new entities filed to do business in the state — making the year the best ever for new state filings, according to Secretary of State Jon Husted.

A new bill in the Ohio legislature that allows poll workers to help blind, disabled and illiterate voters file their ballots is getting widespread support, but another bill that makes it more difficult to get issues on the ballot is getting a stern look from Democrats, reports Gongwer.

Think your landlord is bad? An Ohio landlord allegedly whipped a late-paying tenant, reports The Associated Press.

The University of Cincinnati surpassed its $1 billion fundraising goal for the Proudly Cincinnati campaign, reports the Business Courier.

President Barack Obama is coming back to Ohio to give the commencement speech at Ohio State University, reports the Business Courier.

Donald Trump is threatening Macy’s protesters with a lawsuit because they want the Cincinnati-based retailer to cut ties with Trump, who is currently contracted as a spokesperson, reports the Business Courier.

Popular Science has seven reasons coffee is good for you.

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Gov. John Kasich will give his State of the State address today in Lima, where he is expected to cover his budget plan, jobs and tax reform. It will air live at The Ohio Channel at 6:30 p.m. During his last State of the State speech, the governor lacked focus, imitated a Parkinson’s patient and called Californians “wackadoodles,” leading outlets like The Hill to call the speech “bizarre.”

The next state superintendent of public instruction could be Richard Ross, Gov. John Kasich’s education policy adviser, or acting superintendent Michael Sawyers, according to StateImpact Ohio. Ross apparently has Kasich’s support, making him a favorite. Stan Heffner, the previous state superintendent, was forced to resign after misusing state resources.

New legislation will be introduced by Vice Mayor Roxanne Qualls and Councilman P.G. Sittenfeld to City Council today to require all rental properties to be equipped with photoelectric smoke detectors. The photoelectric detectors have better protection against smoldering, smoky fires, which cause more fatalities than the flaming, fast-moving fires picked up by ionization form of detectors, according to the vice mayor’s office. Qualls and Sittenfeld are introducing the legislation after hearing stories from Dean Dennis and Doug Turnbull of Fathers for Fire Safety, who both lost children to house fires.

The Horseshoe Casino’s parking plan was revealed yesterday, reports WVXU. Parking will be free for guests on opening day from 6 p.m. to 6 a.m. It will also remain free on weekends. Weekday parking will be free for guests who play slots or table games for 30 minutes, play an hour of poker or spend at least $25 in a restaurant or gift shop. Otherwise, parking will cost $1 for the first hour, up to a daily maximum of $14.

Restaurants around the country are discovering that fewer calories brings better health and business, according to Dayton Daily News.

Ohio gas prices are continuing their movement up, according to the Associated Press.

Glass was found in Kellogg’s Special K Red Berries cereal, prompting a recall, reports WCPO.

Burger King’s Twitter account was hacked yesterday, which raises all-important questions: How did anyone notice? Why are people following fast food chains on Twitter?

Popular Science has an in-depth report on how neuroscience will allow scientists to rewire the brain to battle seizures, dementia, blindness, paralysis and deafness.

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<![CDATA[Morning News and Stuff]]>

Gov. John Kasich appointed a former Republican to a Public Utilities Commission of Ohio (PUCO) seat that must go to a Democrat or Independent, according to The Plain Dealer. M. Beth Trombold will finish her term as the assistant director in Kasich’s Ohio Development Services Agency in April, when she will then take up the PUCO position. The appointment immediately drew criticism from some Democrats. State Rep. Mike Foley of Cleveland called the appointment “another example of Kasich cronyism running rampant.”

A poll from Innovation Ohio, a left-leaning policy research group, found Kasich’s budget proposals aren’t popular with most Ohioans. The poll found 62 percent of Ohioans prefer prioritizing school funding over reducing the state income tax, while only 32 percent prefer tax reduction. When asked what Ohio lawmakers should prioritize in the coming months, 56 percent said job creation, 38 percent said school funding, 24 percent said keeping local property taxes low and 18 percent said cutting the state income tax.

A school superintendent from Warren County may face prosecution for misusing public resources after he wrote a letter to parents urging them to campaign against Kasich, reports Dayton Daily News. Franklin City Schools Superintendent Arnol Elam was apparently angry with Kasich’s new school funding formula, which did not increase funding for poor school districts like Franklin Cities, but did give increases to Springboro, Mason and Kings — the three wealthiest districts in Warren County. County Prosecutor David Fornshell said he will be investigating Elam for engaging in political activity with public resources.

Kasich will give his State of the State Tuesday. The speech is expected to focus on the governor’s budget and tax reform plans.

As part of an agreement with the city, Duke Energy is suing over the streetcar project, according to WLWT. The lawsuit is meant to settle who has to pay for moving utility lines to accommodate for the streetcar. CityBeat covered the agreement between the city and Duke here and how the streetcar will play a pivotal role in the 2013 mayor’s race here.

Thousands of people in Butler County, mainly students, are benefiting from Judge Robert Lyons’ criminal record seals, according to The Cincinnati Enquirer. Lyons’ practice of sealing cases came to light after he sealed the case for the Miami University student who posted a flyer on how to get away with rape. In the past five years, Lyons has sealed 2,945 cases — more than a third of the new misdemeanor cases filed.

Ohio’s casinos are falling far short of original revenue projections, according to The Columbus Dispatch. It’s uncertain why that’s the case, but some are pointing to Internet-sweepstakes cafes. Cincinnati’s Horseshoe Casino, which will open March 4, was spurred by the original projections.

StateImpact Ohio reports that many Ohio teachers are concerned with new teaching evaluation rules.

Two Cincinnati Republicans will begin reviewing the effects of legislation that deregulated phone companies in Ohio, reports Gongwer. State Rep. Peter Stautberg, who chairs the House Public Utilities Committee, and State Sen. Bill Seitz, who chairs the Senate Public Utilities Committee, will hear testimony from PUCO Tuesday.

Downtown’s Chiquita center has landed in bankruptcy, reports WCPO. The building lost its major tenant last year when Chiquita Brands relocated to Charlotte, N.C.

“Star Trek” is becoming reality. University of Cincinnati researchers are developing a tricorder device to help users monitor their own health, reports WVXU.

Are you worried about space rocks recently? Popular Science says NASA is concerned as well.

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<![CDATA[Morning News and Stuff]]>

Damaged parking meters in Over-the-Rhine are causing problems for residents and local businesses. For months, thieves have been cutting off the top of meters to steal change. The vandals directly steal revenue from the city, ensure the damaged meters won’t collect revenue until they’re fixed and force the city to shell out more money to fix the meters. Businesses and residents are also worried the damaged meters cause confusion for drivers and make the area look unattractive.

Democratic mayoral candidate John Cranley wants to debate Vice Mayor Roxanne Qualls, a Democrat who’s also running for mayor, over the city’s plan to privatize parking services. Cranley, a former council member, has pushed the city to find an alternative to the privatization plan — sometimes leading him to make claims with little backing. Qualls isn’t ecstatic about the privatization plan, but she seems to side with City Manager Milton Dohoney’s position that it’s necessary to avoid the layoff of 344 city employees.

County officials around the state are peeved at Gov. John Kasich’s budget plan because it limits how much they can leverage in county sales taxes. The proposal bars counties from changing their sales tax rates for three years starting July 2013, and it also adjusts county’s rates to force a 10 percent revenue increase over the prior year beginning December 2013. The Kasich administration claims the move is necessary to prevent county governments from using the governor’s plan to subtly raise the sales tax, but county officials argue the move infringes on local rights. Kasich’s plan lowers the state sales tax rate from 5.5 percent to 5 percent, but it expands what’s affected by the tax.

CityBeat analyzed Kasich’s budget proposal yesterday:

  • CPS Still Loses Funding Under Kasich Administration: The budget does increase school funding for Cincinnati Public Schools (CPS), but it’s not enough to make up for the last state budget cuts to CPS.
  • Kasich Tax Cut Favors Wealthy: Kasich claims he’s giving a tax cut to every Ohioan, but a new report from Policy Matters Ohio shows the poor and middle class will pay more on average under his plan.

Kasich’s school funding plan is also drawing complaints from school leaders. At a press conference, Kasich made his plan sound fairly progressive, but school leaders found the actual numbers underwhelming, and 60 percent of schools won’t get any increased funding.

City Council Member Chris Seelbach took to Facebook to slam Cranley for some recent comments regarding freestanding public restrooms. During an interview with Bill Cunningham, Cranley tried to politicize the issue by saying City Council wants to build a $100,000 freestanding restroom. In his Facebook post, Seelbach explained that’s not the case: “John Cranley, if you haven't heard (which I find surprising), NO ONE on City Council has ever said, in any capacity, that we should spend $100,000+ on a 24-hour public restroom facility. No one. In fact, I went on Bill Cunningham to make that clear. I'd appreciate if you'd stop trying to politicize the real issue: Finding a way to offer more public restroom choices in our urban core for our growing and thriving city. In case you didn't hear my interview with Cunningham, or my comments to almost every media source in this region, I'll post the interview again.” Seelbach’s interview with Cunningham can be found here.

Clifton’s new grocery store will begin construction next week. Goessling's Market-Clifton is finally replacing Keller's IGA on Ludlow Avenue.

A local high school’s prom was canceled to punish students for a massive water balloon fight at lunch. The giant fight was planned as a prank on social media, and school staff tried to prevent it by warning students of the repercussions on the day of the prank. Students did not listen. Prom was lame, anyway.

PNC Bank donated $450,000 to Smale Riverfront Park. The money will be used to build the PNC Grow Up Great Adventure Playground, which will have a swinging rope bridge for kids to walk across a canyon. PNC is among a handful companies to donate to the riverfront park; most recently, Procter & Gamble donated $1 million.

Cincinnati was called the most literate city in Ohio.

The Montgomery County Democratic Party endorsed the Freedom to Marry Amendment, which would legalize same-sex marriage. CityBeat wrote about the amendment here.

Kasich’s latest budget proposal would privatize food services in prisons to save $16.2 million. The Ohio Civil Service Employees Association, which represents prison staff, has come out against the plan.

A lawsuit has been filed to take down a Jesus portrait in Jackson Middle School in southern Ohio. The lawsuit is being backed by the American Civil Liberties Union of Ohio and the Freedom from Religion Foundation. They argue the portrait is an “unconstitutional endorsement of religion and must be removed.”

A new cure for color blindness: goofy glasses.

There’s new evidence that a giant asteroid really sparked earth’s last great mass extinction event, which killed the dinosaurs.

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<![CDATA[Kasich Tax Cut Favors Wealthy]]>

Gov. John Kasich says he’s cutting everyone’s taxes in his 2014-2015 budget, but an analysis released Thursday found the plan is actually raising taxes for the poor and middle class. The Policy Matters Ohio report reveals the poorest Ohioans will see a tax increase of $63 from Kasich’s budget plan, while the top 1 percent will see a tax decrease of $10,369.

For the poorest Ohioans, the new tax burden comes through the sales tax. On average, the bottom 20 percent of the income ladder will have their income taxes reduced by $8, but the sales tax plan will actually increase their average sales tax burden by $71.

The middle 20 percent fares slightly better. Under the budget proposal, they will get a $157 income tax cut on average, but their sales tax burden will go up by $165 — meaning they'll end up paying $8 more in taxes.

The top 1 percent get the most out of Kasich’s tax plan. Their income taxes will be reduced by a whopping $11,150. The top 1 percent do see the highest sales tax increase at $781, but it’s nowhere near enough to make up for the massive income tax cut.

Kasich says his budget is all about creating jobs and spurring the economy, but the regressive tax system defies economic research. A previous analysis from the Congressional Budget Office (CBO), which measures the budgetary and economic impact of federal policy, found letting tax cuts expire on the wealthy would barely dent the economy. The same report also found the economy greatly benefits from tax and social welfare programs that disproportionately benefit the lower and middle classes.

Another report from the Congressional Research Service (CRS) also concluded tax hikes on the rich would have negligible economic impact. The findings made national Republicans so angry that they pressured CRS to pull the report. CRS later re-released the study — except this time it had nicer language to appease politicians that can’t handle reality.

Kasich’s plan proposes cutting the state income tax by 20 percent across the board and lowering the sales tax from 5.5 percent to 5 percent. To pay for the cuts, the proposal broadens the sales tax so it applies to additional services — including cable TV services, coin-operated video games and admission to sports events and amusement parks — while keeping exemptions for education, health care, rent and residential utilities.

For more analysis of Kasich’s budget, check out CityBeat’s other coverage:

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<![CDATA[Morning News and Stuff]]>

Council Member P.G. Sittenfeld is circulating a small business petition to stop Cincinnati from privatizing parking services. Sittenfeld threw his support behind the petition in a statement: “Individual citizens have made clear that they are overwhelmingly against outsourcing our parking system. Now we're going to show that small businesses feel the same way. I hope that when council sees that the small businesses that are the engine of our city are strongly against outsourcing our parking, we can then nix the proposal immediately.” The petition asks city officials “to find a smart, resourceful, sustainable alternative to address the budget situation.” City Manager Milton Dohoney says parking privatization is necessary to avoid laying off 344 city workers.

Gov. John Kasich’s expanded sales tax is going to hurt a lot of people. The tax is being expanded to apply to many items included in households’ monthly budgets, such as cable television, laundry services and haircuts. The revenue from the sales tax expansion will be used to cut the state income tax by 20 percent across the board, lower the sales tax from 5.5 percent to 5 percent and slightly boost county coffers.

City Council and local residents are not impressed with the USquare development. At a City Council meeting Tuesday, Vice Mayor Roxanne Qualls described the development: “I have to say that it is underwhelming. And that’s about the kindest thing I can say about it.  And also really repeats, on many different levels, virtually all of the mistakes that have ever been made in the city and in neighborhoods when it comes to creating public spaces.” But architect Graham Kalbli said he’s excited about the plan: “Because we’ve taken a vacant strip of land and really made kind of a living room for the Clifton Heights community. We wanted to do that, that was one of our overriding goals.”

The Hamilton County Board of Elections is subpoenaing 19 voters who are suspected of voting twice in the November election. Most of the voters being investigated filed provisional ballots then showed up to vote on Election Day.

David Mann is officially running for City Council. The Democrat has served as a council member, mayor and congressman in the past.

Traffic congestion isn’t just bad for drivers; it’s also bad for the environment and economy. The Annual Urban Mobility Report from the Texas A&M Transportation Institute found traffic congestion cost Cincinnati $947 million in 2011 and produced an an extra 56 billion pounds of carbon dioxide nationwide.

Leslie Ghiz is taking the judge’s seat a little early. The former city council member was elected to the Hamilton County Common Pleas Court in November, but she was appointed to the seat early by Gov. John Kasich to replace Dennis Helmick, who retired at the end of 2012.

The magic of capitalism: Delta is already matching a low-cost carrier’s fares to Denver at the Cincinnati/Northern Kentucky International Airport. 

The U.S. Postal Service is ending Saturday mail delivery starting Aug. 1. The Postal Service has been dealing with financial problems ever since a 2006 mandate from U.S. Congress forced the mail delivery agency to pre-fund health care benefits for future retirees. Riddled with gridlock, Congress has done nothing to help since the mandate was put in place. This will be the first time the Postal Service doesn’t deliver mail on Saturdays since 1863.

It’s unlikely zombies could be cured by love, but it’s possible they could be cured by science.

The next Michael Jordan has been discovered:

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<![CDATA[Kasich Budget Expands Medicaid, Cuts Taxes]]> Gov. John Kasich released his 2014-2015 budget plan today, and it has a few surprises — some pleasant, some not — for progressives. Despite his vocal opposition to Obamacare, Kasich will be taking up the federal laws incentive to expand Medicaid, the health care program for low-income families. But instead of taking back past cuts to social services, education and local governments, the governor is pushing ahead with income and sales tax cuts.

The Medicaid expansion would add more Ohioans to the state-federal health care program by raising the eligibility threshold to 138 percent of the federal poverty level, up from 90 percent. The budget summary claims the expansion makes financial sense for the state as long as the federal government picks up most of the tab. As part of Obamacare, the federal government takes all the costs for newly insured Medicaid recipients for the first three years. After that, the federal government’s share is brought down to 95 percent and ultimately phased down to 90 percent. If the federal government reneges on its promise to pay for the bulk of the share, Kasich’s budget has a trigger to wind down the Medicaid expansion.

The budget also proposes income and sales tax cuts, which would come with some trade-offs. The state income tax would be brought down by 20 percent across the board, and the sales tax would be cut from 5.5 percent to 5 percent. To balance the cuts, Kasich has proposed broadening the sales tax to include other “economic activity,” while keeping exemptions for education, health care, rent and residential utilities.

In another slew of tax changes, Kasich’s plan proposes revamping the oil and gas severance tax. It would eliminate the tax for “small, conventional natural gas producers,” but imposes a 4 percent tax for bigger oil and gas producers.

In the past, liberals have voiced opposition to tax cuts — instead favoring investments elsewhere. Policy Matters Ohio released its own budget proposals Jan. 31, which emphasized “education, health care and human services.” The plan would also increase the income tax for top earners.

City Council Member P.G. Sittenfeld released a statement criticizing Kasich’s budget for not using the extra revenue to scale back local government and education cuts enacted in the 2012-2013 budget: “At a time when local governments around the state are being forced to slash basic services, lay off safety personnel, raise taxes, and sell off assets just to stay afloat, it's out of touch for Gov. Kasich not to reverse his raid on our local government fund. We don’t pay taxes to pad the governor’s soundbites, we pay them to maintain our roads and keep cops on the street. This should not be a partisan issue. It's simply illogical governance to make the state look good while in the process hurting Ohio's cities.”

The budget proposal also includes Kasich’s Ohio Turnpike plan and education reform plan.

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<![CDATA[Morning News and Stuff]]>

Between October and December, the U.S. economy unexpectedly shrank by 0.1 percent — the first contraction since 2009. The downturn was primarily caused by the threat of conservative fiscal policies, particularly defense spending cuts. Dropping business inventories also helped drag down the economy. Otherwise, consumer and business spending was actually strong.

Some Republicans want another go at reducing voting rights. Rep. Mike Dovilla, chairman of the newly created House Policy & Legislative Oversight Committee, says he wants to consider measures that crack down on alleged voter fraud, including reduced voting times and a photo ID requirement to vote. But in-person voter fraud is not a real problem. News21, a Carnegie-Knight investigative reporting project, found only 10 cases of in-person voting fraud in the United States between 2000 and 2012. That’s not even one case of in-person fraud each year. The real reason Republicans want to enact stricter voting measures is to hinder young, minority voters that typically support Democrats. One study found 700,000 young, minority voters were excluded by photo ID laws in 2012.

A Policy Matters Ohio report found Ohio’s income tax hits the poor and middle class a lot harder than the wealthy. The numbers from the report: “The top 1 percent of non-elderly Ohio families by income, who earned at least $324,000 in 2010, on average pay 8.1 percent of their income in state and local income, property, sales and excise taxes. By contrast, the lowest fifth, who make less than $17,000, on average pay 11.6 percent. Families in the middle fifth of the income spectrum, who make between $31,000 and $49,000, on average pay 10.6 percent.”

Cincinnati is extending its contract with Southwest Ohio Regional Transit Authority (SORTA) for a month despite an ongoing conflict, but the supposed conflict is really much ado about nothing. SORTA wants the city to guarantee it won’t use the transit fund for the streetcar, but City Council has already passed a resolution saying it won’t and Mayor Mark Mallory has repeatedly stated he will not use the transit fund for the streetcar. Due to the mayor’s race, the streetcar will be facing another contentious year at the ballot box, which CityBeat covered in-depth here.

More than 60 percent of Greater Cincinnati entrepreneurs are expecting a net profit in 2013. Most of them also expect to hire part-time employees, according to a new survey from the Entrepreneurs’ Organization. The survey is another sign of rising confidence in the U.S. economy.

The Dayton Daily News reports manufacturing is driving economic growth in Ohio, to the benefit of more than half of the state’s counties.

When defending Ohio's charter school and voucher programs, conservatives often tout the magic of “school choice,” but a Policy Matters report found school choice may hurt education standards in the state.

Ed FitzGerald, a popular Democrat from Cuyahoga County, is gearing up to run for the governor's race in 2014.

Scientists have taught bacteria to eat electricity. The trick could eventually be used to turn microorganisms into a biofuel source.

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<![CDATA[Morning News and Stuff]]>

Gov. John Kasich’s 2014-2015 budget plan is on the horizon, and it contains “sweeping tax reform,” according to Tim Keen, budget director for Kasich. Keen said the new plan will “result in a significant competitive improvement in our tax structure,” but it’s not sure how large tax cuts would be paid for. Some are already calling the plan the “re-election budget.” Expectations are Kasich’s administration will cut less than the previous budget, which greatly cut funding to local governments and education.

Chris Monzel is now in charge of the Hamilton County Board of Commissioners. Monzel will serve as president, while former president Greg Hartmann has stepped down to vice president. Monzel says public safety will be his No. 1 concern.

City Council may vote today on a plan to build the first freestanding public restroom, and it may be coming at a lower cost. City Manager Milton Dohoney said last week that the restroom could cost $130,000 with $90,000 going to the actual restroom facility, but Councilman Seelbach says the city might be able to secure the facility for about $40,000.

Tomorrow, county commissioners may vote on policy regarding the Metropolitan Sewer District. Commissioners have been looking into ending a responsible bidder policy, which they say is bad for businesses. But Councilman Seelbach argues the policy ensures job training is part of multi-billion dollar sewer programs. Board President Monzel and Seelbach are working on a compromise the city and county can agree on.

The Hamilton County Board of Elections is prepared to refer five cases of potential voter fraud from the Nov. 6 election. The board is also investigating about two dozen more voters’ actions for potential criminal charges.

King’s Island is taking job applications for 4,000 full- and part-time positions.

Ohio may soon link teacher pay to quality. Gov. John Kasich says his funding plan for schools will “empower,” not require, schools to attach teacher compensation to student success. A previous study suggested the scheme, also known as “merit pay,” might be a good idea.

An economist says Ohio’s home sales will soon be soaring.

Debe Terhar will continue as the Board of Education president, with Tom Gunlock staying as vice president.

Equal rights for women everywhere could save the world, say two Stanford biologists. Apparently, giving women more rights makes it so they have less children, which biologists Paul R. and Anne Ehrlich say will stop humanity from overpopulating the world. 

Ever wanted to eat like a caveman? I’m sure someone out there does. Well, here is how.

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<![CDATA[Morning News and Stuff]]>

Metal detectors could come back to City Hall, but local legislators can’t do much more regarding local gun control. Still, Vice Mayor Roxanne Qualls and other City Council members will begin pushing for more federal regulations on guns starting today. President Barack Obama is already beginning to drum up support for more regulations on guns, including a ban on assault weapons and high-capacity ammunition clips. He also wants to close a loophole that allows people to buy firearms at gun shows without background checks. At the state level, a new bill loosening gun regulations in Ohio is facing criticism. The bill will make it easier to store firearms in cars and allows them for the first time in parking garages under the Ohio Statehouse and a nearby office tower. Gov. John Kasich said he will sign the bill.

The University of Cincinnati is launching a fundraising effort for the renovation of Nippert Stadium. The project could cost as much as $70 million. The university wants to offset as much of the cost as possible to build premium seating, with the possibility of 28 new luxury boxes and more than 1,400 premium seats being added. Goals could change based on demand and fundraising efforts.

A Cincinnati-based company and its top executive have pleaded guilty to circumventing Ohio’s competitive bid process. The actions cost Ohio taxpayers tens of thousands of dollars, according to Ohio Attorney General Mike DeWine. The company circumvented the competitive process by submitting multiple bids on road jobs under different names, creating the illusion of competition.

Sen. Rand Paul of Kentucky, a possible candidate for the presidency in 2016, will headline a Hamilton County GOP event. He will be a featured speaker next month at the Northeast Hamilton County Republican Club's annual pancake breakfast.

The Cincinnati College Preparatory Academy failed to follow its own compensation policies, resulting in improper over-payments of $2,325, according to Ohio State Auditor Dave Yost.

Top state officials will begin pushing and outlining school safety efforts in the wake of the massacre at Sandy Hook Elementary School in Newtown, Conn.

State Impact Ohio has a fantastic infographic showing the growth of charter schools in Ohio. In the Cincinnati urban district, charter schools now host 6,642 students.

A new state policy will automatically refund businesses when they’ve overpaid their taxes. The first round of the policy will refund businesses in Ohio $13 million.

The animal takeover continues. Due to the effects of climate change, some animals are moving into cities.

On the bright side, animals can be pretty cute. Here is a dog flipping over its food, and here are cats locked in deadly combat against a printer.

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<![CDATA[Council Passes Budget Reliant on Parking Lease]]>

Cincinnati City Council on Friday approved a budget that relies on parking privatization as a means to plug a $34 million budget deficit while also raising property taxes in 2014.

Mayor Mark Mallory opened up the council meeting with a moment of silent prayer for the 27 students and adults killed at an elementary school in Connecticut.

“I want us all to take a moment and put into perspective what we’re doing today,” he said.

Council voted to increase the property tax by about 24 percent, from 4.6 mills (a mill is equal to one-tenth of a cent) to 5.71 mills. That means Cincinnatians would pay an additional $34 for every $100,000 of their home’s value.

The vote reverses a move made last year by conservatives on council, who reduced property taxes.

Council also passed a budget that relies on $21 million from a proposed lease of the city’s parking facilities — a deal that is expected to be voted on in March. Of the proposals submitted to the city so far, Cincinnati stands to gain $100 million to $150 million in an upfront payment and a share of the profits over the 30-year lease.

“My concern about balancing this budget with a onetime revenue source by selling our parking system seems to be ill advised,” said Independent Councilman Chris Smitherman. “We don’t know how council will vote in March … but we have tied not only the budget to this one time revenue source, but we have also tied reciprocity.”

Council nixed a plan to eliminate tax reciprocity for people who lived in Cincinnati but worked elsewhere and paid income tax in both cities. 

Though the budget doesn’t mention parking privatization, council hasn’t mentioned other options to close the budget deficit.

If opponents of parking privatization want to keep facilities under city control, they would have to come up with $21 million in revenue elsewhere or make $21 million in cuts. 

Councilman P.G. Sittenfeld suggested using casino revenue, cutting travel expenses, downsizing the ratio of managers to workers, sharing services with nearby jurisdictions and downsizing the city’s fleet as ways to cut down the budget.

Councilwoman Laure Quinlivan, long an advocate of downsizing the police and fire departments, voted against the property tax increase in protest of what she said was bloated spending on departments that were outpacing population growth.

The budget also requires Cincinnati to accept police and fire recruit classes in 2014, regardless of whether the city gets a federal grant to fund the classes. 

The budget also restores the Cincinnati Police Department’s mounted patrol, which patrols downtown on horseback. The city will use $105,000 from off-duty detail fees from businesses that hire off-duty officers. Council also voted to start charging those businesses an extra $1.64 on top of the off-duty pay.

Council also voted to shift $50,000 for repairs and upgrades to the Contemporary Arts Center to pay for maintenance and beautification at Washington Park, which is operated by 3CDC.

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