0 Comments · Wednesday, December 12, 2012
If someone turned on the news during the
past few weeks, it would be hard to blame him if he thought the most
pressing issues in the world right now are budgets and abortions.
by German Lopez
12.10.2012
Parking privatization deal reached, rape flier case could be unsealed, casino revenue drops
The city of Cincinnati and its largest city employees union have reached a deal
regarding the privatization of the city’s parking assets. Under the
deal’s terms, the city will give raises and not lay off anyone for three
years, but only if the city’s parking assets are privatized. However,
the head of a Clifton community group is still not happy with the privatization plan. He says the plan is bad for business because it limits the amount of affordable parking in the area. But would laying off 344 city employees be better for business?
The identity of the Miami University student who put up
the infamous “Top Ten Ways to Get Away with Rape” flier may soon be revealed. The Ohio Supreme Court
will decide by Dec. 14 whether the case should be unsealed and open to public view. Robert Lyons, the Butler County part-time judge who sealed the case, has faced scrutiny in the past few months for conflicts of interest regarding drinking-and-driving cases.
Revenue from casinos in Toledo and Cleveland is dropping. The numbers paint a bad picture for Cincinnati and Hamilton County officials expecting budget problems to be solved by casino revenue.
A proposal mandating drug testing for welfare recipients in Ohio resurfaced last week. Republican legislators claim the requirement will save the state money, but a similar proposal in Florida added to budget woes as the state was forced to pay for drug tests.
Ohio’s ultra-wealthy population is growing.
About 1,330 Ohioans are worth $30 million or more, an increase of 2
percent since 2011, according to a report from Wealth-X. The news could
shape Gov. John Kasich’s plan to cut the income tax using revenue from a
higher oil-and-gas severance tax, perhaps encouraging state officials to make
the cut more progressive.
Gov. Kasich is ending the practice
of giving so many tax credits to keep businesses in Ohio. The move could
potentially cost the state jobs as businesses move to other areas with
bigger, better incentives, but state officials and the business community don’t seem too worried for now.
If the Ohio government agencies were forced to cut their budgets by 10 percent, the results would not be pretty. The Ohio Department of Rehabilitation and Correction
would have to close prisons, and the Ohio Department of Natural
Resources would have a tougher time enforcing new regulations on
fracking.
Ohio’s exotic animal law is facing a challenge in federal court
today. Exotic animal owners claim the law violates their First
Amendment and property rights by forcing them to join private
associations and give up their animals without compensation. They also
do not like the provision that requires microchips be implanted into the
animals. The Humane Society of the United States is defending the law,
which was passed after a man released 56 exotic animals and killed himself in 2011.
An Ohio court said a business tax on fuel sales must be used on road projects.
Ohio gas prices are still dropping.
The cure for leukemia could be a modified version of the AIDS virus.
by German Lopez
12.06.2012
Environment Ohio touts renewable energy’s health, job benefits
A Dec. 5 report is encouraging Cincinnati to become the solar
energy capital of Ohio and the broader region. The report, titled
“Building a Solar Cincinnati,” was put together by Environment Ohio to
show the benefits and potential of Cincinnati regarding solar power.
Christian Adams, who wrote the report along with Julian
Boggs, says Cincinnati is especially poised to take charge in this
renewable energy front, in contrast to the rest of the state, which gets
82 percent of its electricity from coal. Adams points to
the sustainability-minded city officials and public, a “budding solar business
sector” and the great business environment as the city as reasons why
Cincinnati could become a pivotal leader.
With 21 public solar installations to date, the city has
already seen some of the benefits of solar power. The most
obvious benefit is cleaner air, which leads to better overall health and
helps combat global warming. But the report points out that local solar
initiatives mean local jobs. “You can’t export these jobs,” Adams says.
“It’s a great opportunity for economic revitalization.”
With solar energy comes an array of job opportunities for
solar installers, solar designers, engineers, construction workers,
project managers, sales associates and marketing consultants. That’s
enough to create brisk job creation. The report points out
“energy-related segments of the clean economy added jobs at a torrid
pace over the last few years, bucking trends of the Great Recession.”
Still, there are hurdles.
Although solar energy saves money in the long term, installing solar
panels has a high upfront cost. The cost can make the short term too bleak for many potential customers.
To help overcome the short-term problem, the report suggests
third-party financing. In these financing agreements, customers agree to
give up roof space to have a solar power company install solar panels,
and then customers agree to buy their power needs from the company. It’s
a win for the solar power company because the panels eventually pay for
themselves through new customers, and it’s a win for the customer because
he sees more stable, lower energy costs and cleaner air. Adams points
out that a few businesses and individuals in the area have already taken part in such agreements with great success.
There are also some incentives already in place to
encourage solar energy. Ohio’s Clean Energy Law, which was passed in
2008, pushes utility companies into the renewable energy market with
Solar Renewable Energy Credits. These are credits utility companies must
earn to meet annual benchmarks by installing solar panels or purchasing
them from third parties. Duke Energy has followed the law’s
requirements by establishing its own renewable energy credit program.
Ohioans also have access to some tax breaks — the Energy
Conversion Facilities Sales Tax Exemption, Air-Quality Improvement Tax
Incentives and Qualified Energy Property Tax Exemptions — and loan
programs — the Energy Loan Fund and Advanced Energy Fund — that
encourage solar and other renewable energy sources.
Larry
Falkin, director of the city’s Office of Environmental Quality (OEQ),
says the report didn’t have much new information, but he’s glad
it can be used to push solar energy to the broader public. He touted the
benefits of job creation and reducing reliance on foreign energy
sources by moving toward energy independence.
For now, the city is mostly taking the approach of leading
by example. Falkin says the city is acting like a “model” for solar
energy. Cincinnati added solar installations to two city facilities this
year, and another will be added by the end of the month. Falkin’s
office is also working together with different organizations to keep any
momentum going.
Adams and Falkin both attended a Dec. 5 roundtable discussion
that engaged regional officials, including solar businesses,
environmental and sustainability groups, education leaders and the
Cincinnati Zoo. They both said the roundtable went well.
“I think all the right people are coming together and doing the right things to try to move us forward,” Falkin says.
by German Lopez
12.05.2012
Cincinnati to work with SoMoLend in lending plan
The city of Cincinnati will be pairing up with a web-based
lending platform to help out small businesses and startups. With the approval of the
Small Business Advisory Committee, the city and SoMoLend will give up
to $400,000 in loans to stimulate economic
growth and job creation.
The partnership will aid small businesses and startups
through crowd funding, which connects multiple potential lenders so no
single investor, including the city government, is carrying the a bulk
of the burden. Since crowd funding gets more investors involved, it can
also raise more money for promising startups and small businesses.
Businesses will be picked through SoMoLend’s typical
application process, which emphasizes startups and small businesses.
Successful applicants usually have 15 or fewer employees, meet a few
standards regarding business and personal finances and prove they
actually need a commercial loan. In the past, businesses have raised as
much as $1 million in loans with SoMoLend.
Applicants will also have to go through the city’s
application process. The city government will look at how many jobs are
created, what’s the capital investment involved, how much the city will
give relative to private lenders and other similar metrics.
Even as the economy recovers, small businesses and
startups are having a tough time getting loans in comparison to bigger businesses. So the focus on small
businesses and startups is in part to bring beneficial fairness to the
system, says Meg Olberding, city spokesperson. “Access to capital at all
levels has to happen. And the city government feels like small
businesses are key to growth in our local economy.”
The partnership’s focus on startups is economically sound. Governments and politicians love to herald small businesses as the drivers of economic
growth, but studies suggest startups are more deserving of the praise. A paper from the National Bureau of Economic Research found that young small businesses, or startups, are the key drivers to economic and job growth.
As for why SoMoLend was picked over other platforms,
Olberding says location and history played a role: “It’s a local small
business, so it’s … demonstrating what we’re talking about. It’s also a
demonstrated success in terms of bringing viable businesses to the
market.”
The partnership is part of an ongoing effort to spur small
businesses and startups in Cincinnati. SBAC was created in 2012 to pave
a clearer, better path that encourages such businesses in the city.
SBAC reviewed, gave feedback and approved the new partnership earlier
today.Councilwoman Yvette Simpson, head of SBAC, praised the
partnership in a statement: “I am excited that the SBAC approved the city’s new partnership with SoMoLend today. By making city lending more
efficient and expanding the network of small businesses receiving city
assistance, this new partnership fits well into the SBAC’s goal of
making Cincinnati a better place for small business.”
by German Lopez
12.03.2012
Ohio's fracking boom disappoints, war on babies declared, Cincinnati's economic triumph
Ohio’s fracking boom might not be living up to the hype.
The Ohio Department of Natural Resources originally estimated that 250
fracking wells would be built by the end of the year, but only 165 have been completed and 22 are currently being built.
The disappointing results are being blamed on low natural gas prices
and a backlog in work needed to connect wells to customers. Maybe the
state’s claim had as much basis as Ohio Gov. John Kasich’s claim that the state’s fracking boom would be worth $1 trillion.
By killing the heartbeat bill and a bill that defunds
Planned Parenthood, Ohio Senate President Tom Niehaus, a Republican,
apparently declared a war on babies,
according to anti-abortion groups. Niehaus is term-limited, so he will
not be in the Ohio Senate in the next session, which begins next year.
Incoming senate president Keith Faber already said the heartbeat bill
could come up to vote in the next Senate session. CityBeat previously wrote about Ohio Republicans’ renewed anti-abortion agenda.Between 2011 and 2012, Cincinnati had the 12th best economic performance
in the United States, according to a Brookings Institute study. Out of
the 76 metropolitan areas looked at, only Dallas; Knoxville, Tenn.; and
Pittsburgh have recovered from the recession, and 20 areas lost more
ground throughout the year.
Media Bridges, Cincinnati’s public access media outlet, is the latest victim
of the 2013 budget proposal from City Manager Milton Dohoney Jr. The
budget plan suggests slashing $300,000 from the organization’s funding.
When coupled with state funding cuts, Media Bridges is losing $498,000
in funding, or 85 percent of its budget. Tom Bishop, executive director
of Media Bridges, compared the cuts to a “meteor” hitting Media Bridges’
budget. The city says cuts were suggested in part due to public feedback.
The Greater Cincinnati Homeless Coalition is pushing the
public to speak out against $610,770 in cuts to human services funding
in Dohoney’s proposed budget. Mayor Mark Mallory and City Council have
already agreed to continue 2013 funding at 2012 levels, but homeless
advocates want to make sure the funding, which largely helps the
homeless and low-income families, remains. The group is calling for
supporters to attend City Council meetings on Dec. 5 at 1:15 p.m. at
City Hall, Dec. 6 at 5:30 p.m. at City Hall and Dec. 10 at 5:30 p.m. at
the Corryville Recreation Center.
It’s commonly said Cincinnati is Republican territory, but after the latest elections, that’s looking more and more false.
The University of Cincinnati is stepping up safety efforts around campus.
The university held a summit to gather public feedback on possible
improvements in light of recent incidents in and around campus.
Beginning in January, UC will increase patrols by 30 percent.
Crime around Columbus’ Hollywood Casino has ticked up. Could Cincinnati face a similar fate when the Horseshoe Casino is up and running? A Washington Post analysis found casinos bring in jobs, but also bankruptcy, crime and even suicide.
Results equal funding. That’s the approach Gov. Kasich is taking to funding higher education,
but Inside Higher Ed says the approach is part of “an emerging
Republican approach to higher education policy, built largely around
cost-cutting.” Kasich’s approach is meant to encourage better results by
providing higher funds to schools with higher graduation rates, but
schools with funding problems and lower graduation rates
could have their problems exacerbated.
Josh Mandel, state treasurer and former Republican
candidate for the U.S. Senate, insists his big loss in November does not
make him a political has-been.
Mandel will be pursuing a second term at the Ohio treasurer’s office in
2014. Mandel lost the Senate race despite getting massive amounts of funding from third
parties — Democrats estimate $40 million — to support his campaign.
The auto industry is still chugging along with impressive numbers from November.
Gas prices moved down in Ohio this week.
One geneticist says people are getting dumber, but he doesn’t seem to have much to back his claims up.
by German Lopez
09.12.2012
Hired organizations did not properly comply with federal stimulus requirements
Ohio’s inspector general released a report today
criticizing the Ohio Department of Job and Family Services (ODJFS) for
improperly reimbursing federal stimulus funds to hired organizations
that did not follow rules.
In a statement, Inspector General Randall Meyer’s office
said ODJFS “failed to adequately oversee federal grant funds applied to
the Constructing Futures jobs training initiative for Central Ohio.”
The report released by Meyer’s office today, which focused
on stimulus programs in central Ohio, outlined a few instances of ODJFS
failing to oversee proper standards. In total, the department, which was
put in charge of carrying out job training funds in Ohio from the
stimulus package President Barack Obama signed into law in 2009, wrongly
reimbursed companies it hired for $51,700.81.
In central Ohio, ODJFS hired two organizations to carry
out the job training program, or Workforce Investment Act: Associated
Builders and Contractors, Inc. (ABC) and Construction Trades Networks
(CTN). At ABC, the inspector general found limited problems with faulty
reimbursements involving a newspaper subscription, travel and mileage
totaling less than $100. The money was not accounted for as a
questionable cost since it was so small.
However, at CTN, the faulty reimbursements piled up. The
organization was reimbursed $560.61 for phone calls made prior to
being hired as part of the federal grant. It was also reimbursed
$1,613.62 for its invoices, even though documentation was not
provided to link phone calls as necessary to the grant program.
Under the federal stimulus rules, CTN was required to
provide 25 percent of its own funds for the program. CTN planned on
using $91,800 of in-kind funds — payment that isn’t cash — by paying for
trainee wages. The organization paid $60,927.70 by the end of the grant
period, and the organization was reimbursed for $49,526.64 by ODJFS, even though
the charges were supposed to be carried by CTN. The inspector general requested CTN give the money back to ODJFS.
When the inspector general contacted the organization to
explain the findings, CTN attributed the requests for faulty
reimbursements to confusion caused by multiple administrative changes at
ODJFS.
“In addition, monitoring visits by ODJFS were not
conducted until after the grant period expired, even though the
partnerships were told the visits would occur as grant activities were
underway,” the report said.
Meyer’s office concluded ODJFS should review the
questioned costs, work to keep consistent guidelines through
administrative changes and monitor grant funds during the
grant period.
The full inspector general report can be found here.
A report was released for northwestern Ohio was released
on May 10, and it also found wrongdoing. It can be found here. A report
for stimulus programs in southwestern Ohio will be released later.ODJFS could not be immediately provide comment on the report. This story will be updated if comments become available.UPDATE (3:28 P.M.): Benjamin Johnson, spokesperson for ODJFS, provided a comment shortly after this story was published.“As the report mentions, these were expenditures by local entities, not by the Ohio Department of Jobs and Family Services,” he says. “We appreciate the inspector general bringing this to our attention, and we'll work to resolve the matter.”
by German Lopez
09.07.2012
Facing budget constraints, cities and states cut budgets and jobs
The U.S. Bureau of Labor Statistics today released a disappointing job report. Unemployment fell to 8.1 percent in August, and 96,000 jobs
were added nationwide. But economists were expecting about 150,000 jobs,
and the unemployment rate fell largely due to people giving up on the
job hunt, which means they are no longer counted in the labor pool.One of the reasons for disappointment is the drop in
public jobs. People are quick to look at the private sector when these
kind of numbers come up, but the public sector employs people, too. And
the public sector lost 10,000 jobs at state and local levels, according
to today’s jobs report.
That follows the trend of the past few years. The public
sector has been doing poorly since the Great Recession started,
according to this chart from the Center on Budget and Policy Priorities:
The chart shows state and local payrolls since the
beginning of the recession. It proves quite clearly that governments have
been making cuts to public jobs.Ohio has not avoided government job cuts. The Ohio
Department of Job and Family Services reported July’s unemployment rate
at 7.2 percent, which was unchanged from June’s unemployment rate. The
biggest loss in jobs for the month came from government, which lost
5,300 jobs statewide. In comparison to July 2011, July 2012 had 4,400 fewer government jobs.
Instinctively, it makes some sense. As the recession kicks
in and families and businesses are forced to budget for lower
expectations, it might seem natural to expect the government to do the
same.
However, many economists argue it should be the opposite.
They say the government should be used to balance out the private
sector. In other words, when the private sector is performing poorly —
recession — the government should step in to make up for the drop. When
the private sector is performing well — boom — the government can relax
and run budget surpluses.
Paul Krugman, a Nobel-winning economist, has advocated for this approach time and time again. In his New York Times
column and blog, Krugman has pushed for more stimulus efforts from the
federal government, and he called for a much larger stimulus package
than the $787 billion package President Barack Obama signed into law in
2009.
The data seems to support economists calling for more
action. Last month, the Brookings Institute conducted a study that found
June’s national unemployment rate would be at 7.1 percent if
governments hadn’t made cuts.What this means is if governments truly want to fix the
economic crisis, they might want to kick the debt can down the road. But
considering many cities and states have constitutional amendments
requiring balanced budgets, that might be hard to pull off.
by Andy Brownfield
11.21.2012
Comprehensive plan sets short-, long-term goals for development
Cincinnati City Council on Wednesday approved the first
comprehensive plan in the last 32 years to direct future city growth and
development.
All eight present members of council voted in favor of the
plan, after a 10-minute “love-fest,” as Councilwoman Yvette Simpson put
it, praising one another and the team that created the plan. The
nine-member team worked on the comprehensive plan for the last three
years.
Councilman Chris Smitherman was not present for the vote.
“I can’t use the term that Joe
Biden, our vice president used, but this is a big deal,” said Mayor Mark
Mallory, referencing an infamous gaffe where Biden uttered an expletive
into a hot microphone.
The 228-page plan emphasizes urban development over suburban, citing population movement back into city centers.
The plan focuses on key areas and offers proposals for the near-, middle- and long-terms.
These include proposals to stabilize residential and
business areas, improve quality of life, improve housing choices and
affordability and offer alternative means of transportation to
automobiles, including the controversial streetcar.
CityBeat previously covered the plan in depth.
by German Lopez
11.21.2012
Cincinnati unemployment drops, Ohio standardized test to be replaced, gas prices rise
Public service announcement: There will be no Morning News
and Stuff Thursday and Friday due to Thanksgiving break. Happy
Thanksgiving, and CityBeat will see you again on Monday!
With gains in the civilian labor force, Cincinnati’s seasonally unadjusted unemployment rate dropped to 6.8 percent.
The city’s unadjusted unemployment rate is below the nation’s rate of
7.5 percent, but it’s above Hamilton County’s 6.2 percent rate and
Ohio’s 6.3 percent rate.The Ohio Graduation Tests will soon be no more. As part of
broader reform, state education leaders have agreed to establish new
standardized tests with a focus on college and career readiness.
But the reform faces some concerns from Democrats, who worry the new
standards, particularly the school report cards that evaluate schools and
districts, may be unreasonably tough. An early simulation of the new
school report cards in May showed Cincinnati Public Schools (CPS)
dropping from the second-best rating of “Effective” under the current
system to a D- under the new system, with 23 CPS schools flunking.
Gas prices in southwest Ohio appear to be on the rise. Since Monday, they have moved up 10 to 20 cents.
The Horseshoe Casino is hiring again.
This time, the casino is looking for people experienced in restaurant
management, hosting, banquet, finance, marketing and guest services.
One problem Ohio must consider in its decision to expand Medicaid or not: a doctor shortage. Still, one study
found states that expanded Medicaid had notable health gains. Contrary
to the fiscal reasons normally cited by Republican Gov. John Kasich’s
office, another report from the Arkansas Department of Human Services
found expanding Medicaid would actually save the state money by lowering
the amount of uncompensated care.
Thirteen people are going for the Ohio Supreme Court.
The vacant slot needs to be filled after Justice Evelyn Stratton
announced she was stepping down earlier in the year. Her replacement,
who will be picked by Gov. Kasich, will finish the two years of her
six-year term. Some of the candidates are from the Cincinnati area,
including Pat Fischer and Pat DeWine, the newly elected First District
appellate judge. Surprisingly, Republican Justice Robert Cupp did not
submit an application despite recently losing re-election.
A ban on internet sweepstakes cafes is on its way. The cafes are allegedly susceptible to illegal activities such as money laundering, racketeering and sex trafficking.
Marc Dann, the Democrat formerly in charge of the Ohio attorney general’s office, lost his law license for six months. Dann resigned from the role of attorney general in 2008 after 17 months of scandal-ridden service.
Three staffers at Gov. Kasich’s office were cleared by the Ohio inspector general’s office of engaging in political activity during work hours.
The mediation between Hostess and a striking union failed. The company is blaming the union for shutting down, but the free market is a likelier culprit.
With Thanksgiving around the corner, here is some science on weight gain.
A new way to give drugs to patients: injectable sponges that expand inside the body.
by German Lopez
11.20.2012
Posted In:
Economy,
News at 10:49 AM |
Permalink |
Comments (0)
City remains ahead of nation, behind state, county
The City of Cincinnati’s unemployment rate moved down a
notch between September and October, from 6.9 percent to 6.8 percent,
according to data from the Ohio Department of Job and Family Services.
Greater Cincinnati and Hamilton County followed suit; Greater
Cincinnati dropped from 6.4 to 6.3 percent, and the county dropped from
6.4 to 6.2 percent.
The numbers, which were unadjusted for seasonal factors,
seemed positive overall. Unlike last month, the unemployment rate did
not move down due to people leaving the civilian labor force, which measures the amount of people looking for work in addition to the amount of people who have jobs. Instead, labor forces in Cincinnati, Hamilton County and Greater Cincinnati
all grew.
The city is now better across the board than it was in
October 2011. The civilian labor force and amount of employed are
larger, and the amount of unemployed is lower. The city’s current 6.8
percent unemployment rate is also a vast improvement from the 9.1
percent unemployment rate in October 2011.
Greater Cincinnati and Hamilton County made similar
improvements in all numbers. Back in October 2011, Greater Cincinnati
was at 8.1 percent unemployment, and Hamilton County was at 8.3 percent.
However, Cincinnati remains below the state’s seasonally
unadjusted unemployment rate of 6.3 percent. It does beat the nation’s
seasonally unadjusted 7.5 percent rate, however.
Part of the recovery is likely fueled by improvements in the housing market. Cincinnati’s housing numbers from October showed a
16.5 percent year-over-year improvement, according to the Cincinnati
Area Board of Realtors.
Unemployment numbers are calculated through a household
survey. The unemployment rate gauges the amount of unemployed people
looking for work in contrast to the total civilian labor force. Since
the numbers are derived from surveys, they are often revised in later
months. State and federal numbers are typically adjusted to fit seasonal
employment patterns to give a more consistent rate, while local numbers
are not.