What it Does:The Child Care Availability and Affordability Act increases the amount of the Child and Dependent Care Tax Credit ($2,500 for one child, $4,000 for two or more children) and makes it refundable to help lower income families. The proposal also incentivizes businesses to provide child care for their employees. The Child Care Workforce Act offers grants to states and localities to expand or create supplemental income programs aimed at recruiting more child care workers and reducing turnover.
Why This Matters: The Senators note that the “U.S. child care crisis has an economic toll of $122 billion in lost earnings, productivity, and revenue every year.” In Ohio, Gongwer reported that 70% of Ohio mothers would return to work or work more hours if they didn’t have childcare as a barrier. More on the child care labor market here.
STATE GOVERNMENT
Redistricting: Governor DeWine hosted a press conference on July 31st addressing the proposed Citizens Not Politicians ballot amendment aimed at changing how political districts within Ohio are drawn.
The Rub: Differing viewpoints have caused the Governor and the political group “Citizens Not Politicians” to disagree about whether the changes included in the proposal will effectively address the shortcomings of Ohio’s current map-making policy. DeWine argues if this proposal were to be adopted, Ohio would end up with a system that compels map makers to draw gerrymandered districts. He asserts, using proportionality as a guide will tear up counties, townships, cities, communities, and school districts. He says it will lead to the disenfranchisement of voters, more out of balance primaries, and would cause candidates to only focus on primary elections, causing more polarization in our state.
The Iowa Model: Governor DeWine referenced Iowa’s framework that he believes addresses this issue. He believes the Iowa Plan is simple, clear, and it effectively takes politics out of map drawing. It requires reasonably compact districts; prevents drawing lines to favor one political party, incumbent, or candidate; and prohibits the use of addresses for incumbent legislators, affiliation of registered voters, or previous election results. The only demographic information map makers are permitted to use is head counts.
The Rebuttal: The Governor has received push back from some supporters of the Citizens Not Politicians ballot proposal, which resembles Michigan’s, questioning whether using a model from a state that is vastly different from Ohio is desirable. They also question how Iowa’s plan, which requires its state legislature to approve maps drawn by the non-partisan Legislative Services Agency, takes political influence out of the process.
What’s Next: Governor DeWine is not calling an immediate special session to combat this measure, instead he hopes Ohioans choose to vote it down on Election Day. The Governor plans to work with the State Legislature in the coming year to craft a plan in Ohio based after the Iowa Model. He also stated that if his work with the legislature fails, he would consider working to get in on the statewide ballot by initiative.
LUNCH & LEARN
Marijuana Sales Have Begun: On August 6th, recreational marijuana sales officially began in Ohio. After one week of legal sales, facility operators claim they are seeing an increase in business, and Cincinnati area dispensaries are attracting many customers from other states. Data from the first 5 days of recreational sales show over $11 million of marijuana was purchased in Ohio. According to the Ohio Division of Cannabis Control, between August 6th and August 10th, roughly 1,285 pounds of plant material was sold. Sales do not appear to be slowing either. The week of August 17th saw nearly $11 million in sales, bringing the total to over $22 million since recreational sales began.
Why This Matters: In November of last year when voters approved Issue 2, the plan for allocating the revenue from recreational marijuana sales was outlined, including a 5.75% state sales tax and a 10% excise tax. Tax revenues collected go into four buckets: 3% for general administrative costs, 25% for substance abuse and addiction services, 36% for hosting community funds in areas with adult-use dispensaries, and 36% for a social equity and jobs program fund.
State Funds for Blighted Buildings: Governor DeWine’s administration launched the Demolition and Site Revitalization Program in 2021 and has since awarded over $200 million to projects in all 88 Ohio counties. This year, our region received $26.7 million – with $1.26 million going to projects in Butler County and $25.4 going to projects in Hamilton County. You can view the list of funded projects here.
Why This Matters: The cost to remove blighted buildings and remediate brownfields stands in the way of economic development. State funds help offset those costs to spur growth throughout our region. As Ohio Department of Development Director Lydia Mihalik puts it: “Removing blight can increase property values, revitalize housing markets, and eliminate safety hazards – paving the way for new businesses and opportunities.”
LOCAL GOVERNMENT
City Administration’s Futures Commission Report: This month, the Cincinnati City Administration released their analysis of the Futures Commission report. Councilmember Cramerding chose to hold City Council’s review and discussion until their next meeting to give his colleagues time to review the Administration’s report. The Administration’s report identified areas of alignment between the Futures Commission’s recommendations and existing City initiatives and policies and laid out next steps for policy makers to consider as they begin acting on it.
What the Mayor Says:In interviews with the media, Mayor Aftab embraced many of the Commission’s recommendations and committed to work with stakeholders to bring those recommendations to life in the coming year.
In Depth: Check out the Futures Commission Report here.
Purple People Bridge: After closing in May because a piece of sandstone broke off on the Cincinnati side of the bridge, leaders in Newport and Northern Kentucky are taking action to repair and reopen the Purple People Bridge, an important bike and pedestrian link between businesses, attractions, and trails in downtown Cincinnati and Northern Kentucky.
The Cost: The City of Newport and the Northern Kentucky Port Authority together invested $125,000 to begin repair work on the bridge, while organizations on both sides of the river are working to raise the additional $125,000 necessary to complete the repairs. This work will ensure that the bridge remains open for major fall events and supporting small businesses in Newport.
ON THE BALLOT:
Fair Share for Cincy: The group trying to amend the city’s charter to change the voting structure of OKI fell short by 3,257 signatures. They had a 10-day cure period to get the remaining needed signatures to make the ballot in November, but as of August 14, they failed to do so.
What the Chamber Said: The Cincinnati Regional Chamber stands firmly against the proposed “Fair Share for Cincy” Charter Amendment. The proposal does nothing but negatively impact funding for City projects. Requiring the City’s participation to be contingent on changes to OKI’s voting structure will jeopardize funding for essential infrastructure, transportation, and pedestrian safety projects throughout the city.
Citizens Not Politicians: Secretary of State Frank LaRose confirmed the ballot initiative had enough signatures to make the ballot in November.
Now What: The ballot language. The group submitting the proposal suggested ballot language that included a description saying the measure would “require that the commission consist of 15 members who have demonstrated the absence of any disqualifying conflicts of interest and who have shown an ability to conduct the redistricting process with impartiality, integrity and fairness.” The Secretary of State changed it to say, “eliminate the longstanding ability of Ohio citizens to hold their representatives accountable for establishing fair state legislative and congressional districts.”
What's Next: The ballot board approved new language but legal challenges have been filed with the Ohio Supreme Court, as supporters of the amendment claim the ballot language is biased. Ballot language is critical, and the process is typically contentious. The vast majority of voters don’t read the full proposal, so the small blurb you see on the ballot needs to explain to – and convince – a voter to mark yes or no.
City Charter Amendment Proposal: Former State Rep. Tom Brinkman, Jr. has filed a petition and has begun collecting signatures to potentially place a Charter Amendment in front of Cincinnati voters this November.
What It Does: The proposal would take $600 million of the $1.6 billion from the sale of the Cincinnati Southern Railway earlier this year and use it to pay the city portion of Cincinnati residents’ property taxes.
But, The Infrastructure: State law had to change in order for the sale to Norfolk Southern to go on the ballot. Part of that law change required the money be spent on existing city infrastructure (i..e. roads, bridges, fire houses; not new infrastructure projects like a new rec center or streetcar expansion). The City has an estimated $500 million in deferred maintenance and has a plan to spend the interest earned from the CSR sale.
What’s Next: Brinkman and his team will have to collect 8,786 in the coming days to get on the ballot. As you read above, this is a difficult task in a short amount of time. But don’t count him out yet, Brinkman has a history of leading ballot proposals, and he has never failed to make the ballot. We expect that if this makes the ballot and passes, it will likely get stuck in litigation given the state law in place.
DATA DROP FROM THE CENTER FOR RESEARCH & DATA Fastest Growing Industries
Hot Off the Press: As mentioned in the Cincinnati Chamber Newsletter, last week the Center for Research and Data released its Summer 2024 Labor Market Analysis.
What’s In It: The report is packed with information about employment, workforce characteristics, migration, and educational attainment in the Cincinnati region.
A Highlight: One data set included in the report is fastest growing industries, which shows that transportation and warehousing is our region’s fastest growing industry, adding over 16,000 jobs in the past decade. This represents a roughly 36% increase. The average earnings for the transportation and warehousing industry are about $73,000 per year. The region saw solid growth in a few other industries, including professional, scientific, and technical services—which has high average earnings at approximately $114,000 annually.
The Click Down: To see the latest data on how the Cincinnati region compares to peer cities across the country, check out our regional indicators dashboard.
ON THE HORIZON
August 28: WE SPEAK: Catalysts for Change, Women in Politics – City Manager Sheryl Long and Chief of Staff for Mayor Aftab Keizayla Fambro will share about their work in leadership roles in local government. The event is at the Chamber on August 28 from 4-6 PM. More details and registration here.
September 18: State of the Region 9-11 AM at the Cincinnati Ballet. The 2024 State of the Region report will feature vital information about the Cincinnati region’s demographics, economy, and cultural vibrancy. With an expanded section on immigration and an industry spotlight on Arts and Culture, the report is jam-packed with data and information relevant to Cincinnati region policymakers, stakeholders, and decision-makers. The event will include a rundown from Brandon Rudd, the Director of the Center for Research & Data, and a panel of experts on the Cincinnati region. More details and registration here.
October 2: Chamber Advocacy Council meeting 5-6:30 PM at UC Gardner Neuroscience Institute (UCGNI). The CAC offers a platform for Chamber members of various sizes, industries, and backgrounds to actively participate in discussions concerning government, politics, and policy. Registration information and details to come!
Cincinnati Planning Commission backs contentious $45 million apartment project in Bond Hill – Cincinnati Business Courier || After several months of delays due to opposition, the Cincinnati Planning Commission passed a plan to build a 150-unit complex in Bond Hill. The developer had to remove a level and 18 units after opposition from neighbors. The cost to build housing continues to rise, in part due to heavy opposition and other barriers to building. The Chamber will continue to promote policies that make way for more housing to balance the supply and demand to make housing more affordable to attract and retain talent in the region.
2024 Priciest Senate Races – Axios || As Ohio is no longer considered a swing state for the Presidential Race, the tops of the tickets are not spending much on ads here this cycle. But, the U.S. Senate race will make up for that lost revenue as one of the most crucial Senate races in the country. The latest numbers show Ohio is expected to get $100 million more in Senate race ads than any other state. 10 weeks left.
