by German Lopez
03.28.2013
82 days ago
Posted In:
News,
Parking,
Budget at 01:15 PM |
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City manager says he's already made preparations for layoff notices
Speaking at a press conference today, city officials did
not mask their contempt for the ruling that put the parking plan on hold
earlier in the day, saying it will force the city to make cuts and layoffs to
balance the 2014 budget and potentially eliminate the passage of
expedited legislation.
The press conference was in response to a ruling
from Hamilton County Judge Robert Winkler, which opened the parking plan
to referendum and ordered a permanent injunction on the plan pending any referendum effort. City Solicitor John Curp said the city is appealing
the ruling.
Mayor Mark Mallory and City Manager Milton Dohoney Jr.
explained the city will now have to close a $25.8 million shortfall in
the budget for fiscal year 2014, which begins July 1. Dohoney said he has already ordered city departments to begin
preparations for Plan B, which will lay off 344 employees, including 80
firefighter and 189 police positions, to balance projected deficits.
“Part of the irony is we're swearing in a recruit class tomorrow,” he said, then shook his head. “Too bad.”
In addition to meeting the July 1 budget deadline, the city has to expedite some layoff notices to meet union contracts, which typically require a notice 30 days in advance.
Curp said the ruling also poses significant legal challenges that will hinder the city’s ability to expedite legislation with emergency clauses. Emergency clauses are often used by City Council to remove
a 30-day waiting period on passed laws, and the city argues they also
remove the ability to referendum.
The layoffs could be retroactively pulled back if the city
wins in appeals courts or if the referendum effort fails to gather
enough petitions.
“Don't sign the petition,” Mallory said. “If you sign a petition, you're laying off a cop or firefighter.”
Dohoney said the delays make the city look
sluggish — an image that he says the city has been trying to overcome.
“One of the criticisms I’ve gotten is that this city takes too long to
get deals done,” he said. “This complicates that.”
City Council approved the parking plan to lease the city’s
parking assets to the Port of Greater Cincinnati Development Authority
to help balance the budget for the next two fiscal years and fund
development projects around the city, including a downtown grocery store
(“Parking Stimulus,” issue of Feb. 27).
Opponents of the plan argued that there were alternatives
that did not involve laying off cops or firefighters. Councilman Chris
Seelbach proposed Plan S, which would redirect $7.5 million in casino
revenue to help balance the deficit, cut $5 million based on the results
of the city's priority-driven budgeting process and put 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.
At the press conference, Mallory called the alternatives
“unworkable.” He said Plan S in particular does not work because it
relies on a ballot initiative that would have to be voted on in
November. “We don’t have until November,” he said.
Opponents say they’re concerned the parking plan will
cede too much control over the city’s parking meters, which they say
will lead to a spike in parking rates.
The city says rate increases are initially capped at 3
percent or inflation — whichever is higher — but the rates can change
with a unanimous vote from a special committee, approval from the city
manager and a final nod from the Port Authority. The special committee
would be made up of four people appointed by the Port Authority and one
appointed by the city manager.
In the legal proceedings, the two sides are arguing whether emergency
clauses eliminate the ability to hold a referendum on legislation. Opponents of the
parking plan, headed by the Coalition Opposed to Additional Spending and
Taxes (COAST), say the city charter is ambiguous with its definition of
emergency clauses, and legal precedent demands courts side with voters’
right to referendum when there’s ambiguity.
Supporters of the parking plan cite state law, which says emergency legislation is not subject to referendum. Terry
Nestor, who represented the city in the court hearings, said legal precedent requires the city
to defer to state law as long as state law is not contradicted in the
city charter.
Winkler sided with opponents of the parking plan in his
decision. He wrote in his ruling, “If the people of Cincinnati had
intended to exempt emergency legislation from their referendum powers,
they could have done so when adopting Article II, Section 3 of the City
Charter.”
Mallory says the city is not disputing voters’ right to
referendum in a general sense; instead, he says the city needs to expedite
the budget process to balance the budget before fiscal year 2014.City officials say the parking plan is necessary largely because of Gov. John Kasich’s local government funding cuts, which Dohoney previously said cost Cincinnati $22.2 million in annual revenues (“Enemy of the State,” issue of March 20). Opponents argue Cincinnati had structurally imbalanced budgets years before Kasich took office, but the city says Kasich’s policies have made the situation much worse.The parking plan is one of the few issues dividing Democratic
mayoral candidates John Cranley and Vice Mayor Roxanne Qualls. Cranley opposes the plan, while Qualls supports it.
by German Lopez
03.26.2013
84 days ago
Posted In:
News,
Budget,
Economy,
Taxes at 09:22 AM |
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Sheriff wants more staff, businesses get tax credits, Ohio Senate to look at gambling bill
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.
by German Lopez
03.28.2013
82 days ago
Posted In:
Budget,
Parking,
News at 10:43 AM |
Permalink |
Comments (1)
City may have to make cuts to balance 2014 budget
In a ruling today, Hamilton County Judge Robert Winkler
said the city will have to allow for a referendum on the parking plan
and imposed a permanent injunction pending the outcome of a referendum.
The ruling means the city may be unable to rely on the
parking plan to balance fiscal year 2014’s budget, and the city may be forced to find cuts elsewhere by July 1, when the new budget will kick in.The ruling may be appealed, but City Solicitor John Curp says he is not aware of any filing yet. He says Mayor Mark Mallory and the city administration plan to hold a press conference later this afternoon to discuss the ruling in further detail.For opponents of the parking plan, the ruling comes as a
big victory that will allow them to put the parking plan on the ballot if they gather enough eligible petition signatures by April 5.
For the city, the ruling potentially leaves a $25.8 million hole in the 2014 budget. When the restraining order was extended for two weeks on March 20, city spokesperson Meg Olberding told CityBeat the delays were causing the city to approach a “pressure point”: “We respect the court's right to do that (the
extension), and know that every day that we cannot make the parking deal
happen is a day that we are closer to having to lay people off.”In the past, City Manager Milton Dohoney Jr. said the plan will force the city to lay off 344 employees,
including 80 firefighter and 189 police positions. But opponents argue
there are ways to solve the budget without laying people off. As an alternative to the parking plan, Councilman Chris Seelbach proposed Plan S,
which would redirect $7.5 million in casino revenue to help balance the deficit, cut $5 million based on the results of the
city's priority-driven budgeting process and put 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.
City Council approved the parking plan on March 6 to lease
the city’s parking assets to the Port of Greater Cincinnati Development
Authority to help balance the budget for the next two fiscal years and
fund more than $100 million in development projects, including the
creation of a downtown grocery store and more than 300 luxury apartments
("Parking Stimulus," issue of Feb. 27).
Opponents of the parking plan say they’re concerned the
city will cede too much control over its parking assets and cause
parking rates to skyrocket. The city says rate increases are initially
capped at 3 percent or inflation — whichever is higher.
But the rates can change with a unanimous vote from a
special committee, approval from the city manager and a final nod from
the Port Authority. The special committee would comprise of four people
appointed by the Port Authority and one appointed by the city manager.
The ruling comes after the city and opponents of the parking plan met in court on March 15 to discuss whether the plan is subject to referendum.
Curt Hartmann, an attorney who represents the Coalition
Opposed to Additional Spending and Taxes (COAST) and opponents of the
parking plan, said the city charter is vague on its definition of
emergency clauses, and legal precedent supports siding with voters’
right to referendum when there is ambiguity.
The city cited state law to argue emergency clauses, which
remove a 30-day waiting period on legislation, eliminate the
possibility of referendum. Terry Nestor, who represented the city, said
legal precedent requires the city to defer to state law as long as state
law is not contradicted in the city charter.
With his decision, Winkler sided with opponents of the
parking plan. He wrote in the ruling, “If the people of Cincinnati had
intended to exempt emergency legislation from their referendum powers,
they could have done so when adopting Article II, Section 3 of the City
Charter.”
The parking plan is one of the few issues dividing Democratic
mayoral candidates John Cranley and Vice Mayor Roxanne Qualls. Cranley opposes the plan, while Qualls supports it.
by German Lopez
03.27.2013
83 days ago
LGBT hearings continue, local unemployment falls, tax plan may remain in state budget
The U.S. Supreme Court is heading into its second day of hearings on same-sex marriage
today. Yesterday, the Supreme Court held hearings for Proposition 8, a ballot initiative in California that overturned the legalization of gay marriage. Today, the court will hold hearings on the Defense of
Marriage Act, the law that banned same-sex marriage at a federal level. The Washington Post posted more in-depth information about the legal arguments here.
Cincinnati’s seasonally unadjusted unemployment rate fell sharply
in February, from 8.6 percent in January to 7.5 percent. Unemployment
in Hamilton County also fell from from 7.9 percent in January to 7.1
percent in February, and Greater Cincinnati’s rate fell from 8 percent
to 7.4 percent. The dropping unemployment rates were matched with
more people employed and less people unemployed.
Ohio’s budget director says he thinks the state’s across-the-board income tax cuts will remain
in the 2014-2015 budget, even as lawmakers take out other proposals put
forward by Gov. John Kasich. The plan originally suggested by Kasich
was widely criticized for disproportionately benefiting the wealthy,
which CityBeat covered in further detail here.
Cincinnati is moving toward semi-automated trash collection, which the city has outlined in full detail here.
This spring and summer, approximately 90,000 households will receive a
65-gallon trash cart that will be assigned to each address. As part of
the broader policy, the lids on the trash carts will have to be fully
closed to be collected, and residents will have to call the city to
request a pickup for bulky items. The city says semi-automation will
save money, improve worker safety, free employees for other services,
increase recycling and help keep neighborhoods cleaner and pests out.
In response to USquare development workers not being paid prevailing wage, council members Laure Quinlivan, Cecil
Thomas and Wendell Young are planning to pass a legislation that will
require any construction project using at least 30 percent in city funds
to pay all its workers prevailing wage. “These men were being pressured
to sign documents stating they were paid prevailing wage when it was
closer to minimum wage,” Quinlivan said in a statement. “These workers
lost their jobs when they blew the whistle, and on their behalf, we
intend to end worker exploitation on projects with significant city
investment.”
UC Health, the University of Cincinnati’s medical wing, says it wants to run ambulances in northern Kentucky.
It recently submitted applications for permission through Kentucky’s
Cabinet for Health and Family Services, which requires providers prove the need for some facilities and services before they can be
opened.
Mercy Health will open a downtown clinic on April 1.
The prosecutor has dismissed charges against Punxsutawney Phil, the famous Pennsylvania groundhog who predicted an early spring.
Here is a shark with two heads.
by German Lopez
03.22.2013
88 days ago
Ohio employment stagnates, transportation budget passed, governor opposes LGBT rights
Ohio’s unemployment rate remained at 7 percent in February, unchanged from January but down from 7.5 percent in February 2012. The stagnant rate comes despite a generally positive national unemployment report in February
— a sign that Ohio may be falling behind national growth rates. Both
the amount of employed and unemployed grew, but growth in employment
wasn’t enough to completely outweigh rises in unemployment. The job
losses were mainly in construction, state government, trade, transportation and
utilities, while professional and business services, educational and
health services and financial activities had particularly strong growth.
A state transportation budget that will raise rural speed
limits to 70 mph and leverage the Ohio Turnpike for statewide
transportation projects cleared the legislature. The bill received bipartisan support and opposition as
it moved through the Ohio House and Senate. Supporters say the bill will
create jobs and address the state’s infrastructure needs without raising
taxes, but opponents are worried potential toll hikes at the Ohio
Turnpike will hurt northern Ohio to subsidize projects for the rest of
the state.
Earlier in the day, Gov. John Kasich seemed to support same-sex civil unions, but his spokesperson walked back
the comments to clarify the governor is still against changing the Ohio
Constitution to support same-sex marriage and civil unions. The initial
comments from Kasich sparked a response from Ian James, co-founder of
FreedomOhio, which is pushing an amendment that would legalize same-sex
marriage in Ohio for 2013: “I hope Gov. Kasich understands civil unions
are banned by the Ohio Constitution as well and they are a cruel
substitute for legal marriage.” The Republican Party is currently
undergoing some soul-searching on the gay marriage issue, with a
Republican National Committee report recently pointing out a generational divide on the issue and Sen. Rob Portman coming out in favor of marriage equality last week.
Tea party leaders are threatening the Republican Party for recent moves
supporting LGBT rights, including Portman’s acceptance of
same-sex marriage. The group also opposes the expected appointment of
Matt Borges to chairman of the Ohio Republican Party because of a
2004 misdemeanor ethics conviction that was later expunged and Borges’
work as a lobbyist for Equality Ohio, an LGBT group.
Cincinnati’s year-over-year home sales were up in February, but growth wasn’t as quick as January.
There were 1,662 homes sold in February, up 11.9 percent from
February 2012 and more than the 1,600 homes sold in January. But January
year-over-year sales were up 27 percent from 2012.
Kasich’s sales tax plan, which was criticized for raising taxes across the board, may be dead, but Ohio legislators are still planning
to carry out changes to the income tax with the 2014-2015 budget. In the past week,
Policy Matters Ohio has pushed for the earned income tax credit, which CityBeat found could be a progressive alternative to an across-the-board cut to the income tax. CityBeat covered Kasich’s budget proposal in further detail here.
The Ohio Development Services Agency says state tourism reaped $15 for every $1 put into marketing. In 2009 and 2010, the returns were $13. In 2011, the return was $14.
Butler County Prosecuting Attorney Michael Gmoser indicted Punxsutawney Phil, a famous groundhog, for the ongoing bout of cold weather. The groundhog predicted an early spring.
The universe’s estimated age has been bumped up to 13.8 billion years.
by German Lopez
03.21.2013
89 days ago
Officials seek local funding, parking plan delayed again, poor schools may get more funding
During Gov. John Kasich’s term as governor, local
government funding has fallen by nearly half — from nearly $3 billion to
about $1.6 billion — and Councilman P.G. Sittenfeld is leading an effort to get that funding back.
With the support of Democratic officials from around the state,
Sittenfeld is launching a website called ProtectMyOhio.com, which is
gathering petition signatures that will eventually be sent to Kasich and
members of the Ohio General Assembly.
Hamilton County Judge Robert Winkler extended the temporary restraining order
on the city’s parking plan yesterday, potentially delaying any ruling
on the city's plan to lease its parking assets to the Port of Greater
Cincinnati Development Authority for another two weeks. In response, the city said
it’s approaching a “pressure point” for budget cuts for fiscal year
2014, which must be executed by July 1.
Ohio House Republicans are looking to bolster education funding to poor districts in response to criticisms of Kasich’s 2014-2015 budget proposal. A previous CityBeat analysis found Kasich’s budget proposal disproportionately benefits the wealthy in a few ways, including education funding.
City Council did not vote on funding
for a feasibility study for Westwood Square Wednesday, but the vote
could happen as early as next week. The delay came after the Westwood
Civic Association said in a letter that the plan needs more discussion.
The controversial election bill moved through
the Ohio House yesterday despite calls for more time for debate. The
bill, which will now head to Kasich to be signed into law, limits the
referendum process by giving referendum and ballot initiative
petitioners 10 days to get more signatures if the initial batch is found
to be inadequate. Under current law, petitioners can continually search
for more signatures while the secretary of state and ballot board sort
through signatures. Republicans argue the change makes the petition
process fair and uniform, but Democrats say it goes too far in weakening ballot initiative
and referendum powers.
The state’s $7.6 billion transportation budget, which
includes plan to fund transportation projects around the state with Ohio
Turnpike funds, breezed through the Ohio Senate Wednesday. It will reach the House for a scheduled vote today.
Attorney General Mike DeWine announced new efforts to help sexual assault victims around Ohio by ensuring each county has
adequate services. The efforts are in response to a survey that found
59 percent of counties don’t have comprehensive services and eight
counties have very few or no services. “It is our goal to ensure that a
quick and compassionate emergency response is available to any victim of
sexual assault at any time of the day, any day of the week and in any
area of the state,” DeWine said in a statement.
The federal government released data that shows
serious safety violations in hospitals that occurred since Jan. 1, 2011,
and the University of Cincinnati Medical Center and Christ Hospital are
both on the list.
Hamilton County ranked No. 65 out of Ohio’s 88 counties
for health in a new survey from Patrick Remington at the University of Wisconsin
School of Medicine. The study found suburban counties fare much better
than urban counties, and premature death is at a 20-year low.
Accusations of inappropriate teacher behavior in Ohio are on the rise.
Voyager 1 is or may soon become the first object humanity has ever sent out of the sun’s reach.
Officials from around Ohio want their local government funding back from Gov. John Kasich
0 Comments · Wednesday, March 20, 2013
With the support of Democratic 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 Republican Gov. John Kasich’s time in office.
0 Comments · Wednesday, March 20, 2013
Mayoral candidate John Cranley, who opposes the parking plan and streetcar, says the city should redirect funding from the streetcar to the MLK/I-71 Interchange, but the funding is specifically attached to the streetcar project.
by German Lopez
03.20.2013
90 days ago
Jobs fair needs employers, parking petition underway, JobsOhio meets deadline
The city’s Youth Job Fair needs more employers
to reach the city’s goal of 100, says Mayor Mark Mallory. The fair offers young people a chance to seek out jobs. Employers can sign up for the free booths at www.mayormallory.com.
The petition to stop the parking plan is at 4,000 signatures
— nearly half of the 8,522 required before April 5. Under the plan, the city will lease its parking assets to the Port of Greater
Cincinnati Development Authority to help balance the 2014 and 2015 budgets and foster economic development,
but opponents say the semi-privatization plan will cede too much
control of the city’s parking assets and cause rates to skyrocket.
Whether the plan is subject to referendum is currently being debated in court.
JobsOhio, the privatized, nonprofit development agency, met the deadline
on a subpoena issued by State Auditor Dave Yost to collect the agency’s
full financial records, which include public and private funds.
JobsOhio also said it will eventually pay back $1 million in public
funds. Gov. John Kasich and other Republicans argued only public
funds can be checked by the state auditor, but Yost says he’s allowed to seek a full audit. Kasich and the Republican-controlled
legislature approved JobsOhio in part to replace the Ohio Department of
Development, which can be fully audited.In a letter to the Latino Affairs Commission, Ohio Attorney General Mike DeWine wrote that the children of illegal immigrants should be eligible for driver’s licenses
under President Barack Obama’s Deferred Action for Childhood Arrivals
(DACA) initiative, which allows the children of illegal immigrants to
qualify for a social security number and work permit. DeWine’s letter is
not legally binding, but since it’s coming from the state’s top legal
adviser, it could put pressure on the Bureau of Motor Vehicles’ legal
team as it continues reviewing Ohio’s driver’s license policy.Policy Matters Ohio, a left-leaning policy research group, is pushing an earned income tax credit (EITC)
that could act as a progressive replacement for Gov. John Kasich’s tax
plan. The tax credit benefits low- and middle-income people,
particularly those with kids. The Policy Matters report says the federal
EITC has been one of the most effective anti-poverty policies in the
United States.
A bill that will limit the referendum process was pushed through the Ohio House Policy and Oversight Committee,
despite warnings from members of the League of Women Voters and
Democrats that the bill might draw a constitutional challenge. The bill
would give petitioners 10 days to collect additional signatures if their
initial submission falls short. Under current law, members can
continuously collect signatures while the secretary of state and boards
of elections verify the initial batch. The Ohio Constitution gives
petitioners 10 days to file, not collect, additional signatures.
Councilman P.G. Sittenfeld unveiled his three-pronged strategy for reducing city blight. The plan would encourage the passage of a state law that would allow people to trespass abandoned properties to remediate them, focus demolition resources on hazardous buildings and expand the city’s vacant foreclosed property registry.
A report from Catalyst for Payment Reform and Health Care Incentives Improvement Institute gave Ohio and six other states a D for health care transparency. Twenty-nine states got an F, and only New Hampshire and Massachusetts got A’s.Ohio lawmakers are poised to raise the speed limit on interstates in rural areas to 70 mph.
When The Huffington Post asked Ohio Sen. Rob
Portman if he wished it hadn't required a personal experience with gay
marriage to alter his position to favor marriage equality, he
responded, “Well, it did.”
He added, “I'm more of an economic policy wonk. That's always been my
background and focus: budget issues and economic growth issues. … That’s
just where I was.” Portman came out in support of same-sex marriage two
years after finding out his son is gay.
T.J. Lane, the convicted Chardon High School shooter, will spend the rest of his life in prison after murdering three Ohio students. At hearings yesterday, Lane smiled and mocked the victims’ families.
Cincinnati Children’s Hospital is looking to fill more than 1,000 jobs.
NASA's advice for a near-term meteor strike: “Pray.”
Due to a severe lack of funding, NASA does not have the proper
technology to detect all the small asteroids in orbit that could level cities. If a
deadly asteroid is detected, the current plan is to crash a spacecraft
on it to slow it down or alter its course.
Would you get a vampire facial?
by German Lopez
03.19.2013
91 days ago
Posted In:
News,
Budget,
Taxes at 10:20 AM |
Permalink |
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Tax credits could be progressive alternative to governor's tax plan
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.