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

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.

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.

The Ohio House is looking to rewrite parts of Gov. John Kasich’s budget proposal after dissent has focused on the governor’s tax plan. The chamber’s leaders are looking to set aside the tax plan from the bill so they can better focus on other complicated parts of the budget, including the Medicaid expansion and school funding. Even without the governor’s controversial sales tax expansion plan, Kasich’s budget proposal contains enough leftover money to pass some income tax cuts, with about $280.4 million in general revenue available for fiscal year 2014 and $690.2 million available in fiscal year 2015, according to an analysis in the Bluebook. CityBeat covered Kasich’s budget proposal in further detail here. State Auditor Dave Yost says he expects to get the subpoenaed financial records from JobsOhio today by the noon deadline, even though the audit has come under criticism from Gov. Kasich and other state officials. Yost says he should be allowed to look into JobsOhio’s full financial records, which include private funds, but Kasich and other Republicans argue only public funds are open to audit. JobsOhio is a publicly funded nonprofit, privatized development agency that was set up by Kasich and Republican legislators to eventually replace the Ohio Department of Development, which is susceptible to a full audit. Workers for the $78 million U Square project near the University of Cincinnati allege they are being underpaid. In a lawsuit, union workers are claiming they should be paid prevailing wage established in state law because the project is using public funds and 50 percent owned by a public authority. With the support of City Manager Milton Dohoney Jr., Cincinnati is now looking to cash into its innovative water technology with the formation of the Global Water Technology Hub, which will use expert advice to identify market needs and sell the technology. The city promises the hub will also help keep water rates low for users and find new revenue sources. Councilman P.G. Sittenfeld will hold a press conference today to introduce his Restoring Our Communities Initiative, which will seek to fight blight and improve child safety in Cincinnati. The initiative will include a push for the passage of Ohio Senate Bill 16, which would make it so individuals are not liable for trespassing convictions if the person is remediating blight on abandoned personal property. In a statement, Sittenfeld explained the purpose of the initiative: “Blight is a complicated issue that impacts many aspects of life, and I think this plan helps attack the problem from several angles.” Cincinnati Council’s Budget and Finance Committee unanimously approved $10,000 for the Westwood Square project, which will involve a larger facility for the Madcap Theater, green space and changes to the neighborhood’s entryways to better encourage community pride and economic development. A new $20 million, seven-story apartment tower with 110 high-end apartments is being planned for Downtown, above the Seventh and Broadway Garage. Two weeks in, Horseshoe Casino’s executive says the casino is doing well and turnout has been good. A report found auto insurance rates in Ohio are “a bargain,” with the state having the fourth lowest costs among other states and Washington, D.C. A machine keeps human livers alive outside a body for 24 hours, which could double the amount of livers available for transplant and save thousands of lives.

With the support of local officials from around the state, Cincinnati Councilman P.G. Sittenfeld is launching a website called ProtectMyOhio.com to organize efforts to restore local government funding cut during Gov. John Kasich’s time in office. Speaking during a phone conference today, Sittenfeld, Dayton Commissioner and mayoral candidate Nan Whaley, Columbus Councilman Zach Klein and Toledo Councilman and mayoral candidate Joe McNamara described how state funding cuts have forced cities and counties to cut services. “What we’re really trying to do today is speak up and sound the alarm about the governor’s ongoing raid on the Local Government Fund,” Sittenfeld said. “Over the last four years, the governor has taken away $3 billion in local government funding. This year alone, municipalities across Ohio are going to receive nearly $1 billion less than they previously would have.” He added, “This is the exact same money that cities, villages and townships used to keep cops in the street, staff our fire departments, fix the potholes and some of the other basic services that citizens rightly expect and the local governments are the ones responsible for delivering.” In the past, the Kasich administration has argued the cuts were necessary. When previously asked about cuts to education and other state funding, Rob Nichols, Kasich’s spokesperson, told CityBeat, “The reality is we walked into an $8 billion budget deficit. … We had to fix that.” But the 2014-2015 budget is not under the fiscal pressures Kasich experienced when he took office, and the governor is pursuing $1.4 billion in tax cuts over the next three years, which he argues will help spur small businesses around the state. During the phone conference, local officials said the revenue going to tax cuts would be better used to return funds to local governments.  Sittenfeld says the cuts have left Cincinnati with $12 million less per year. “That is the difference between us having our first police recruit class in nearly six years versus not having it,” he said. “It’s the difference between enduring dangerous fire engine brownouts versus not having to do so.” Klein, who represented Columbus in the call, said the cuts have amounted to nearly $30 million for his city, which he said is enough money to help renovate nearly all the city’s recreation centers, parks and pools. “No one is spared,” Klein said. “Everyone is getting cut across the state, and every neighborhood — no matter if you’re in a small village or in a large city like Columbus, Cleveland, Toledo or Dayton — (is) at some level feeling the effects of the cuts, whether it’s actual cuts in services or what could be investments in neighborhoods.” Klein said the cuts, which have been carried out by a Republican governor and Republican-controlled legislature, contradict values espoused by national Republicans. At the federal level, Republicans typically argue that states should be given more say in running programs like Medicaid, but Ohio Republicans don’t seem to share an interest in passing money down to more local governments, according to Klein. Some state officials have previously argued that it’s not the state’s responsibility to take care of local governments, but Sittenfeld says it’s unfair to not give money back to the cities: “Cincinnati is a major economic engine for the entire state. We’re sending a lot of money to Columbus, so I think it’s fair to say we would like some of that money back. John Kasich doesn’t have to fill the potholes, and John Kasich doesn’t have to put a cop on the street.” Whaley, who represented Dayton in the call, said, “There’s a county perspective on this as well. The counties would certainly say that the unfunded mandates that the state legislature brings down daily are covered by those local government funds. While (state officials) keep on making rules for the counties to administer services and make those efforts, it’s pretty disingenuous to say that (county officials) don’t get a share of the income.”  A Policy Matters Ohio report found the state has cut $1.4 billion from local government funding — nearly half of total funding — during Kasich’s time as governor. The report pinned much of that drop on the estate tax, which was phased out at the beginning of 2013 and would have provided $625.3 million to local governments in the 2014-2015 budget. The estate tax was repealed in 2011 by the Republican-controlled Ohio legislature and Kasich. Cincinnati had structural deficit problems before Kasich took office, but local officials argue the state’s cut have made matters worse. When presenting his 2013 budget proposal, City Manager Milton Dohoney Jr. said the state funding reductions cost Cincinnati $22.2 million in revenues for the year. Kasich’s office did not return CityBeat’s phone calls for this story. Kasich’s latest budget proposal has also been criticized by Republicans and Democrats for tax cuts and education funding plans that benefit the wealthy and expanding Medicaid (“Smoke and Mirrors,” issue of Feb. 20).

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: CPS Still Loses Funding Under Kasich AdministrationGovernor’s Budget Ignores Troubled PastKasich Budget Expands Medicaid, Cuts Taxes