A new Policy Matters Ohio report found local government funding has been reduced by $1.4 billion since Gov. John Kasich took office, leading to a nearly 50-percent reduction in state funding.
The report found local government funding dropped from nearly $3 billion in the 2010 and 2011 fiscal years — the years budgeted by former Gov. Ted Strickland — to about $2.2 billion in the 2012 and 2013 fiscal years — the first two years budgeted by Kasich. The governor’s most recent budget proposal would ensure the continuation of the downward slide, with local government funding dropping down to slightly more than $1.5 billion in the 2014 and 2015 fiscal years, according to the report.
Policy Matters concluded new revenue from the state’s
casinos and an expanded sales tax would not be enough to outweigh cuts
in the Local Government Fund, utility tax reimbursements, tangible
personal property reimbursements and the termination of the estate tax. By itself, the estate tax, which was phased out at the beginning of 2013, would have provided $625.3 million to local governments in the 2014-2015 budget, but it was repealed
in 2011 by the Republican-controlled Ohio legislature and Kasich.
The governor’s office has repeatedly argued that the cuts in Kasich’s first budget were necessary to help balance an $8 billion budget deficit, but the Policy Matters report says improving economic conditions have removed a need for further local government funding cuts: “To encourage growth we need good schools, reliable public safety and emergency services and strong communities. During hard times, state and local policy led to cuts. But further cuts in appropriations for local government are not helping communities. Curtailing local control of local revenues will complicate recovery – as the economy improves, it is time to restore the fiscal partnership between state and community.”
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.
CityBeat previously covered Kasich’s 2014-2015 budget proposal and how it affects taxpayers, schools and Medicaid recipients (“Smoke and Mirrors,” issue of Feb. 20).
For a full hour Thursday night, Democratic incumbent Sherrod Brown and Republican challenger Josh Mandel continued their feisty fight for Ohio’s U.S. Senate seat. For the most part, the debate centered on the candidates’ records and personal attacks, with policy specifics spewing out in between.
Apparently, the barrage of attacks is not what the candidates had in mind before the debate started. Throughout the debate, both candidates asked for substance, not attacks. At one point, Brown said, “I appreciate this clash of ideas. That’s what this debate should be about.” At another point, Mandel said, “We need less attacking, and we need more policy ideas to put people back to work.”
These comments came well into the debate. By that time, Mandel had criticized Brown for “Washington speak” so many times that an exasperated Brown quipped, “I don’t get this. Every answer is about Washington speak.”
Brown also launched his own attacks, which focused on Mandel’s dishonesty on the campaign trail, which previously earned Mandel a “Pants on Fire” crown from Cleveland’s The Plain Dealer, and Mandel, who is also Ohio’s treasurer, missing state treasurer meetings to run for political office.
But Ohioans have seen enough of the attacks in the hundreds of campaign ads that have bombarded the state in the past year. Voters probably want to hear more about how each candidate will affect them, and the candidates gave enough details to get some idea of where each of them will go.
On economic issues, Brown established the key difference between the two candidates’ economic policies: Mandel, like most of his Republican colleagues, believes in the trickle-down theory. The economic theory says when the rich grow, they can create jobs by hiring more employees and expanding businesses. In other words, proponents of the theory believe the success of the rich “trickles down” to the middle class and poor through more job opportunities. Belief in this theory is also why most Republicans call the wealthy “job creators.” Under the trickle-down theory, the wealthy are deregulated and get tax cuts so it’s easier for them to create jobs.
On the other hand, Brown says he supports a middle-out approach, which focuses on policies that target the middle class. That is how sustainable employment and growth are attained, according to Brown. Under the middle-out approach, tax cuts and spending policies target the middle class, and the wealthy own a higher tax burden to support government programs.
Some economists, like left-leaning Nobel laureate Paul Krugman, say the trickle-down theory should have been put to rest with the financial crisis of 2008. After all, deregulation is now credited with being the primary cause of 2008’s economic crisis. In that context, more deregulation seems like a bad idea.
Still, Brown’s contrast to Mandel holds true. Brown has
repeatedly called for higher taxes on the rich. In the debate, he touted his
support for the auto bailout and once again mocked Mandel’s promise to not
raise any taxes. These are policies that do end up benefiting the middle class
more than the wealthy. The auto bailout in particular has been credited with
saving thousands of middle-class jobs.
On the other side, Mandel told debate watchers to go to his website and then offered some quick talking points: simplify the tax code, end Wall Street bailouts and use Ohio’s natural gas and oil resources “in a responsible way.” How Mandel wants to simplify the tax code is the issue. On his website, Mandel says he supports “a flatter, fairer income tax with only one or two brackets, eliminating almost all of the credits, exemptions and loopholes.” A study by five leading economists suggests a flat tax model would greatly benefit the wealthy and actually hurt the well-being of the middle class and poor. That matches with the trickle-down economic theory.
Another suggestion on Mandel’s website says, “Help job creators. Reduce capital gains and corporate taxes, and allow for a small business income deduction.” The small business portion would help some in the middle class, but an analysis from The Washington Post found 80 percent of capital gains incomes benefit 5 percent of Americans and half of all capital gains have gone to the top 0.1 percent of Americans. So a capital gains tax cut would, again, match the trickle-down economic theory.
What all this means is on economic issues the choice of candidates depends mostly on what economic theory a voter believes. Brown believes in focusing economic policies that target the middle class, while Mandel mostly supports policies that generally support what he calls “job creators” — or the wealthy.
On partisanship, both sides once again threw out different ideas. Although he was asked for three ideas, Brown only gave one: fix the filibuster. The filibuster is a U.S. Senate procedure that allows 41 out of 100 senators to indefinitely halt any laws. The only way to break the filibuster is by having a supermajority of 60 senators — a rarity in American politics. Brown said if this rule was removed, a lot more could get done in Congress.
Mandel had different ideas for stopping partisan gridlock in Washington, D.C. He touted his support for No Budget, No Pay, which would require members of Congress to pass a budget in order to get paid. He also expressed his support for term limits, saying lifelong politicians only add to the partisanship in Congress. Then, in a strange twist, Mandel’s last suggestion was to stop bailouts, which has nothing to do with partisanship or gridlock in Congress.
Then came Obamacare. Brown said he was “proud” of his vote and continued supporting the law, citing the millions of Americans it will insure. Meanwhile, Mandel responded to the Obamacare question by saying, “The federal government takeover of health care is not the answer.”
The fact of the matter is Obamacare is not a “government
takeover of health care.” Far from it. The plan doesn’t even have a public
option that would allow Americans to buy into a public, nonprofit insurance
pool — an idea that actually has majority support in the U.S. Instead,
Obamacare is a series of complicated reforms to the health insurance industry.
There are way too many reforms to list, but the most basic
effect of Obamacare is that more people will be insured. That’s right, in the
supposed “government takeover of health care,” insurance companies actually gain
more customers. That’s the whole point of the individual mandate and the many
subsidies in Obamacare that try to make insurance affordable for all Americans.
Mandel made another misleading claim when he said Obamacare “stole” from Medicare, with the implication that the cuts hurt seniors utilizing the program. It is true Obamacare cuts Medicare spending, but the cuts target waste and payments to hospitals and insurers. It does not directly cut benefits.
The one area with little disagreement also happened to be the one area with the most misleading: China. It’s not a new trend for politicians to attack China. The Asian country has become the scapegoat for all economic problems in the U.S. But in this election cycle, politicians have brandished a new line to attack China: currency manipulation. This, as Ohioans have likely heard dozens of times, is why jobs are leaving Ohio and why the amount of manufacturing jobs has dropped in the U.S. In fact, if politicians are taken at their word, it’s probably the entire reason the U.S. economy is in a bad spot.
In the Brown-Mandel debate, Brown repeatedly pointed to his currency manipulation bill, which he claims would put an end to Chinese currency manipulation. Mandel also made references to getting tough on China’s currency manipulation.
One problem: China is no longer manipulating its currency. There is no doubt China greatly massaged its currency in the past to gain an unfair advantage, but those days are over, says Joseph Gagnon, an economist focused on trade and currency manipulation. Gagnon argues the problem with currency manipulation is no longer a problem with China; it’s a problem with Malaysia, the Philippines, Singapore, South Korea, Switzerland and Saudi Arabia. If the U.S. wants to crack down on currency manipulation, those countries should be the targets, not China, he argues.
In other words, if currency manipulation is a problem, Mandel was right when he said that countries other than China need to be targeted. To Brown’s credit, his currency manipulation bill targets any country engaging in currency manipulation, not just China. The problem seems to be the misleading campaign rhetoric, not proposed policy.
The debate went on to cover many more issues. Just like the first debate, Brown typically took the liberal position and Mandel typically took the conservative position on social issues like gay rights and abortion. Both touted vague support for small businesses. Each candidate claimed to support military bases in Ohio, although Mandel specified he wants bases in Europe closed down to save money. As far as debates go, the contrast could not be any clearer, and the candidates disagreed on nearly every issue.
The final debate between the two U.S. Senate candidates will take place in Cincinnati on Oct. 25.
Today is the end of the world. Whatever. Life sucks anyway.
Ohio’s unemployment rate dropped from 6.9 percent to 6.8 percent in November. Gains were concentrated in trade, transportation, and utilities, financial activities and educational and health services, with losses in construction, leisure and hospitality, government, professional and business services and information services. Overall, the state’s non-agricultural wage and salary employment increased by 1,600.
But could the recovery last? U.S. House Speaker John Boehner is now ditching efforts to avoid the fiscal cliff, a series of spending cuts and tax hikes set to kick in at the end of the year. Boehner could not get Republicans to vote on a tax hike for people making more than $1 million a year, which isn’t even enough to make President Barack Obama’s demand of increased taxes on anyone making more than $400,000. If the United States goes over the fiscal cliff, the spending cuts and tax hikes will likely devastate the economy. CityBeat wrote about U.S. Congress’ inability to focus on jobs here.
Ohio Gov. John Kasich finished the lame-duck session by signing 42 bills into law. The laws include loosened restrictions on gun control, an update to Ohio’s education rating system and $4.4 million in appropriations. The loosened gun control law in particular is getting criticized from Democrats in the wake of the Newtown, Conn., massacre. The law allows guns in the Ohio Statehouse garage, loosens concealed carry rules and changes the definition of an unloaded gun so gun owners can have loaded clips in cars as long as they are stored separately from guns. CityBeat wrote about the need for more gun control in this week’s commentary.
Hamilton County Prosecutor Joe Deters suggested arming teachers to avoid school shootings, but a considerable amount of research shows that doesn’t work. Cincinnati Police Chief James Craig says arming teachers is a bad idea: “Certainly we can look at other options, but when you talk about arming school teachers or a school administrator without the appropriate training, and training is not just going to a target range and being able to hit center mass. How do you deal with a crisis? We're talking about a place with children.” Craig is now pushing crisis training as a major initiative.
Meanwhile, Sen. Rob Portman says school shootings need a holistic approach. The Ohio Republican says he will consider further restrictions on guns and armed school officials.
It seems a housing recovery is well underway. Cincinnati home sales are showing no signs of a slowdown.
Cincinnati is getting six historic preservation tax credits from the state government. As part of the ninth round of the program, the Ohio Development Services Agency is giving the city credits for parts of Main Street, parts of East 12th Street, parts of East McMillan Street, Abington Flats, Eden Park Pump Station and Pendleton Apartments.
The U.S. Department of Education is looking into whether Ohio charter schools discriminate against students with disabilities. Overall, charter schools in the state enroll as many students with disabilities as traditional public schools, but students with disabilities are concentrated in a few charter schools.
A federal judge upheld Ohio’s exotic animal law, which restricts who can own the animals in the state.
Judith French, a Republican, will replace retiring Justice Evelyn Stratton on the Ohio Supreme Court. Gov. Kasich’s appointment of French keeps the court’s makeup of six Republicans and one Democrat.
Genetics is perfecting the Christmas tree.
From the Twilight Zone archives comes Arnold Schwarzenegger’s Christmas special.
The company that would operate Cincinnati’s parking meters
if the city passes its controversial parking plan this week was mired with audited problems and
complaints in the past. The issues surfaced years before Affiliated
Computer Services (ACS) was bought by Xerox in 2010, and Xerox now denies any wrongdoing.
A 2007 audit found ACS had failed to take care and keep track of parking meters it operated in Washington, D.C. The audit claimed 35 percent of parking meters listed in ACS’s inventory were missing, about 16 percent of the remaining meters were completely inoperative and 65 percent had problems that ranged from defacing to improper height and stability. ACS also failed to fix meters within the 72-hour period mandated by its contract, according to the audit.
For some residents, the broken meters led to unfair
tickets, with 6,888 tickets, or nearly 1 percent of parking meter
tickets, being improperly issued at unfixed meters, according to the audit. The audit also found a 903-percent increase in overall parking meter complaints under the privatization contract with ACS.
The audit also questioned the financial gains for Washington, D.C., which had to pay $8.8 million, or 33.4
percent, more under privatization than projected trends under public
The bad audit wasn’t enough for Washington,
D.C., to cut its contract with ACS, which still manages the city’s
parking meters today.
The audit was among a few other problems tipped to multiple media outlets by Tabitha Woodruff, an advocate at Ohio Public Interest Research Group. In 2007, ACS was accused of bribing police officers in Edmonton, Canada, but a judge ruled in favor of ACS, stating there wasn’t sufficient evidence. In 2010, the Securities Exchange Commission (SEC) charged ACS with backdating and falsely disclosing stock options between 1996 and 2005, and ACS consented to a permanent injunction without admitting or denying the charges.
All the discovered problems occurred before 2010, when Xerox bought ACS.
Kevin Lightfoot, a spokesperson at Xerox, says the audit’s findings were based on “faulty information.” He says Xerox and the District of Columbia Department of Transportation found ACS had saved Washington, D.C., money. He also claims the auditor had misunderstood the parking meters’ screen displays, which he says led to the improper identification of inoperative or malfunctioning meters.
CityBeat previously covered the parking proposal, which would lease the city’s parking assets to fund deficit reduction and economic development, in detail. Mayor Mark Mallory and Vice Mayor Roxanne Qualls have endorsed the plan, and it’s currently expected to have the five votes necessary to pass a possible City Council vote today.
On Friday, Councilman Chris Seelbach revealed Plan S, an alternative proposal that would not lease the city’s parking assets and would instead use $7.5 million in casino revenue, cut $5 million based on the results of the city's priority-driven budgeting and allow voters to choose between a $10-per-month trash fee or a 2-percent increase in the city's admissions tax.
City Manager Milton Dohoney Jr. also put forward
his “Plan B,” which would lay off 344 employees, eliminate Human
Services Funding and close pools and recreation centers, among other
changes. In response, mayoral candidate John Cranley proposed his own
plan, which would use casino revenue, parking meter revenue and cuts to
“non-essential programs” to tame the deficit.
Plan B, Plan S and Cranley’s plan all fix the structural deficit in the city’s budget, while the parking plan only fixes the deficit for two years.
The report, which was put together by Agenda 360 and Vision 2015, compares Cincinnati to other cities in a series of economic indicators. The cities compared were Cincinnati; Austin, Texas; Charlotte, N.C.; Cleveland; Columbus; Denver; Indianapolis, Ind.; Minneapolis, Minn.; Pittsburgh; Raleigh, N.C.; and St. Louis.
First, the good news: Cincinnati has an unemployment rate
lower than the national average, at 7.2 percent. As far as job growth,
total jobs, per-person income and average annual wage goes, Cincinnati
ranked No. 6. Cincinnati was also No. 5 in poverty ranks — meaning the
city had the fifth least people below 200 percent of the federal poverty
level among the 12 cities measured. For the most part, Cincinnati moved up in these ranks since 2010.
When it comes
to housing opportunities, Cincinnati claimed the No. 2 spot, only losing to
Indianapolis. That was a bump up from the No. 3 spot in 2010.
The bad news: Cincinnati didn’t do well in almost
every other category. In terms of educational attainment — meaning the
percent of the population 25 years or older who have a bachelor’s
degree or higher — Cincinnati was No. 9, with 29.3 percent having a bachelor's degree or higher in 2010. That was a slight improvement from the No. 10 rank in the previous report, which found 28.5 percent had a bachelor's degree or higher in 2009.
Cincinnati did poorly in net migration as well. The city was No. 10 in that category, only beating out St. Louis and Cleveland. The silver lining is the city actually gained 1,861 people in 2009 — an improvement from losing 1,526 people in 2008.
Cincinnati also seems to have an age problem. The city
tied with Pittsburgh for the No. 10 spot with only 60.2 percent of the 2011 population made up of people between the ages of 20 and 64. The report also says the
city has too many old people, an age group that tends to work less, provide less tax revenue and use more government and health services. Cincinnati ranked No. 8 in terms of “Old Age
Dependency,” with 20.4 percent of the city made up of people aged 65 and
older in 2011.
However, the report does have a positive note through all the numbers: “In fact, our current pace of growth, especially in the people indicators, exceeds many of our competitors and if this pace continues, our rank could be much improved by our next report.”
The Ohio Turnpike will remain a public asset, according to The Columbus Dispatch. Many Ohioans have been worried Gov. John Kasich would attempt to privatize the Turnpike in order to pay for transportation projects; instead, the governor will try to generate revenue for state infrastructure projects elsewhere, perhaps by using the Turnpike’s tolls. Kasich will unveil his full plans Thursday and Friday.
The asbestos lawsuit bill is heading to Kasich to be signed. The bill attempts to curb duplicate lawsuits over on-the-job asbestos exposure. Supporters of the bill say it will prevent double-dipping by victims, but opponents say the bill will impede legitimate cases. Ohio has one of the largest backlogs of on-the-job asbestos exposure cases.
City Manager Milton Dohoney has released some of the potential bids for the city’s parking services, and one bidder is offering $100 to $150 million. Dohoney says the budget can only be balanced if parking services are privatized or the city lays off 344 employees. But Councilman P.G. Sittenfeld is speaking out against the privatization of the city’s parking services. In a statement, Sittenfeld said, “Outsourcing our parking system robs the city of future revenue, and also will mean higher parking rates, longer hours of enforcement, and more parking tickets.”
LGBT rights are becoming “the new normal,” but not for Western & Southern or American Financial Group. In the 2012 Corporate Equality Index, the Human Rights Campaign gave 252 companies a 100-percent score for LGBT rights. Cincinnati-based Procter & Gamble got a 90 percent, Macy’s got a 90 percent, Kroger got an 85 percent, Fifth Third Bank got an 85 percent, Omnicare got a 15 percent, American Financial Group got a 0 percent and Western & Southern got a 0 percent. The rankings, dubbed a “Buyer’s Guide,” can be found here.
The Sierra Club says Cincinnati has some of the best and worst transportation projects. In its annual report, the environmental group praised the Cincinnati streetcar, claiming the transportation project will attract residents and business owners. But the organization slammed the Eastern Corridor Highway project because of its negative impact on the Little Miami River and the small village of Newtown. The Sierra Club says the purpose of the report is to shed light on the more than $200 billion spent on transportation projects every year.
University of Cincinnati President Santa Ono is getting a 10-year contract.
The disease-carrying Walnut Twig Beetle has been discovered in southwest Ohio. The beetle is known for carrying Thousand Cankers Disease, which threatens the health of walnut trees. So far, no trees have been determined to be infected.
Ohio Gov. Kasich, Ky. Gov. Steve Beshear and U.S. Secretary of Transportation Ray LaHood will meet today to discuss funding for the Brent Spence Bridge project. If the bridge project starts in 2014, northern Kentucky and Cincinnati could save $18 billion in fuel and congestion costs, according to the Build Our New Bridge Now Coalition.
Following the defeat of Issue 2, the Ohio Senate is taking on redistricting reform, but opponents in the House say there isn’t enough time to tackle the issue. The current redistricting system is widely abused by politicians on both sides of the aisle in a process called “gerrymandering,” which involves politicians redrawing district lines in politically beneficial ways. The First Congressional District, which includes Cincinnati, was redrawn during the Republican-controlled process to include Republican-leaning Warren County, heavily diluting the impact of Cincinnati’s Democratic-leaning urban vote.
Ohio employers are more aware of wellness than employers in other states, a new survey found. Wellness programs are one way employers can bring down health-care expenditures as cost shifting feels the pinch of diminishing returns.
However, Ohio ranked No. 35 in a nationwide health survey.
Ohio district didn't win federal Race to the Top education funds in the latest competition.
Internet cafe legislation is dead for the year. Ohio Senate President Tom Niehaus announced the legislation, which essentially puts Internet cafes and sweepstakes parlors out of business. State officials, including Attorney General Mike DeWine, have been pushing for regulations or a ban on the businesses because they see them as a breeding ground for criminal activity.
The final 2011-2012 school report cards will not be available until 2013. The report cards were originally delayed due to an investigation into fraudulent attendance reports.
Michigan may have approved its anti-union right-to-work law, but Ohio is not eager to follow. State Democrats are already preparing for a possible battle over the issue, but even Republican Gov. John Kasich says he’s not currently interested in a right-to-work law.
The Ohio Environmental Protection Agency is loosening hazardous waste reporting requirements for companies. If the rules go into effect, regulated facilities will report on hazardous waste once every two years instead of once a year. The rule changes will get a public hearing on Dec. 19 in Columbus.
In a question-and-answer session Monday, U.S. Supreme Court Justice Antonin Scalia asked, “If we cannot have moral feelings against homosexuality, can we have it against murder? Can we have it against other things?” (Hint: The answer to both questions is yes.) The Supreme Court recently agreed to tackle the same-sex marriage issue. CityBeat wrote about same-sex marriage in Ohio here.
A local music teacher says Cincinnati Hills Christian Academy offered him a job and then rescinded the offer after asking him if he is gay. Jonathan Zeng says he went through the school's extensive interview process, was offered a position and then called back in for a discussion about religious questions in his application, during which he was asked directly if he is gay. Zeng says he asked why such information was pertinent, and an administrator said it was school policy not to employ teachers who are gay because they work with children and something about the sanctity of marriage. When contacted by local media CHCA released the following statement:
CHCA keeps confidential all matters discussed within a candidate's interview. We're looking into this matter, although the initial information we have seen contains inaccuracies. We will not be discussing individual hiring decisions or interviews.Cincinnati's deficit isn't going to get better any time soon, according to a new report.
Senate Republicans yesterday blocked a Democratic bill calling for equal pay in the workplace, and the Dems are going to stick it in their faces during this year's campaigns. From the AP:
As expected, the pay equity bill failed along party lines, 52-47, short of the required 60-vote threshold. But for majority Democrats, passage wasn't the only point. The debate itself was aimed at putting Republicans on the defensive on yet another women's issue, this one overtly economic after a government report showing slower-than-expected job growth.
"It is incredibly disappointing that in this make-or-break moment for the middle class, Senate Republicans put partisan politics ahead of American women and their families," Obama said in a statement after the vote.
"Even Mitt Romney has refused to publicly oppose this legislation," added Senate Majority Leader Harry Reid. "He should show some leadership."
The Washington Post wonders whether Mitt Romney can use Wisconsin Gov. Scott Walker's template for surviving a recall election to try to win the presidency. It involves “big money, powerful organization and enormous enthusiasm among his base.” Exit polls in the state suggest Obama is ahead, however.
China wants foreign embassies to stop releasing reports and Tweeting about its poor air quality.
Gonorrhea growing resistant to antibiotics? Rut roh.
Dinosaurs apparently weighed less than scientists previously thought. Adjust paper-mache Brontosaurus as necessary.
Facebook is considering letting kids younger than 13 use the site.
The Boston Celtics took a 3-2 series lead over the Miami Heat on Tuesday and could send Bron Bron and Co. back home on Thursday.
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.”
A new report has found that some of the best jobs in Cincinnati in 2020 will not require college degrees.
The report, which was done in a collaboration by Agenda 360, Partners for a Competitive Workforce, the Strive Partnership and Vision 2015 using U.S. Bureau of Labor Statistics data, found that 46 percent of jobs in 2020 paying the city average of $33,310 and more will only require a high school diploma or an equivalent to a high school diploma. Twenty-four percent will require bachelor's degrees, and 15 percent will require associate's degrees.
The best-paying, fastest-growing jobs by 2020 will be health care practitioners and any job involving computers and math and science, according to the report. Business and financial jobs will continue being among the best paying, but growth in that area is expected to be fairly timid. Health care support jobs will grow very quickly, but those jobs typically fall below the median wage.
The report also found some of the industries that workers might want to avoid. Food service will grow slowly and pay the worst, the report found. Transportation and production will pay slightly better, but they won't grow much.
The report also found that Cincinnati will continue to grow and be among the top economies. The report estimated that Cincinnati will add 106,115 new jobs by 2020. That should bring Cincinnati to slightly more than 1 million jobs, putting it ahead of competitors Cleveland, Columbus and Austin, Tex. However, Cincinnati will still lag behind Minneapolis, Denver, St. Louis and Pittsburgh in the jobs market.
The full report can be read here.
A nonpartisan think tank that advocates for poor and working class families is urging that Ohio adopt its own version of the federal Earned Income Tax Credit (EITC).
The group, Policy Matters Ohio, said a state version of the federal tax credit, set at 10 percent, would divert just $210 million from Ohio’s coffers but would benefit 949,000 low-income working families across the state. Such a credit would provide families with an average of $221 each, which Policy Matters Ohio described as “modest but helpful.”
Currently 24 states and the District of Columbia have Earned Income Tax Credits, ranging from 3.5 percent to 50 percent of the federal credit.
“A state EITC program enables families to work and build assets while reducing the impact of regressive income tax changes,” said a statement released by Policy Matters Ohio.
“A state EITC makes sense because recent changes to the personal income tax have provided greater tax reductions for higher-income earners than they have for lower- and middle-income families,” the statement continued.
The federal EITC is a refundable tax credit for low- and medium-income individuals and couples, and is considered the nation’s largest poverty relief program. When the credit exceeds the amount of taxes owed, it results in a tax refund to those who qualify and claim the credit.
To qualify for the EITC, a recipient must have earned income of $49,000 or less. The credit is worth significantly more for families with children and is refundable, which means families receive cash refunds above their tax liability.
Created in 1975, the federal EITC is aimed at helping lift families with children about the poverty level, along with offsetting the burden of Social Security taxes and maintaining an incentive for people to work.
In Ohio, 949,692 people currently claim the federal EITC. The credit generates $2.1 billion for state residents, and the average refund is $2,211.
Founded in 2000, Policy Matters Ohio is a nonprofit, nonpartisan policy research organization that seeks to create “a more prosperous, equitable, sustainable and inclusive Ohio,” through research and policy advocacy.
Based in Cleveland and Columbus, the organization is funded primarily through grants from groups like the Ford Foundation, the Sisters of Charity Foundation, the Center on Budget and Policy Priorities, the Corp. for Enterprise Development and others.