Learning how removing barriers to unionizing will create a more equitable, better-functioning economy and the State of Manufacturing

Recent Presentation

Tuesday December 16th, 2008, 1:00-3:00 p.m.
The Gallery at Trinity Cathedral,
2021 E. 22nd St. (corner of Euclid and 22nd)
Free Parking – Enter off Prospect

Panelists & Speakers include:

• Michael Ettlinger, Vice President for Economic Policy, Center for American Progress,
• Amy Hanauer, Executive Director, Policy Matters Ohio,
• Stuart Acuff, Organizing Director, National AFL-CIO,
• Reverend Marvin McMickle, Pastor, Antioch Baptist Church
• John Ryan, State Director, office of Senator Sherrod Brown

Join the debate on creating an economy that works better for all.

The Pre-K Pinch: Early Education and the Middle Class

In Ohio, the average family would need to earn about 1.3 times the state’s pre-K income eligibility levels to afford a typical early care and education program on their own, according to a new study from the national advocacy organization Pre-K Now, released in Ohio by Policy Matters Ohio. Even families earning as much as $58,000 in Ohio would struggle to pay for early education on their own, according to the Pre-K Now study.

The Pre-K Pinch: Early Education and the Middle Class outlines the difficulties facing families who earn too much to qualify for state pre-k programs but too little to pay for quality care on their own, and highlights the well-documented benefits – to these cash-strapped families, their children, and society as a whole – of providing high-quality, voluntary pre-k to all three- and four-year-olds.

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Federal Estate Tax Covers Few Ohioans

New estate tax statistics from the IRS show that the percentage of deaths resulting in federal estate tax is below 1 percent nationally and continues to fall under tax cuts approved in 2001. This December 2008 report by Citizens for Tax Justice presents the latest numbers. In Ohio, just 425 estates or 0.4 percent of the total owed federal estate tax in 2007. The report explains why the threshold for the tax needs to be restored, not set permanently at a lower level than it was prior to the cuts.

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Task force to fight urban blight

Job losses, foreclosures leave vacant homes throughout cities like Akron, damaging spirit and value of neighborhoods

By Rick Armon

The Akron Beacon Journal

Ron Perry feels surrounded. 

Across the street from his home, there are two vacant houses — both with overgrown lawns. Behind him, there’s another one. And just around the corner sits yet another abandoned home, this one with plywood covering the porch.

For Perry, who has lived in Akron’s Goodyear Heights neighborhood for nearly 50 years, it’s a depressing and unsettling sight.

He and his neighbors still take pride in their properties. And they bemoan the increasing number of vacant eyesores that not only have become targets for drug dealers and other criminals, but also have damaged the psyche of the community itself.

”This is ridiculous, really,” the 77-year-old retired truck driver said, gesturing to the homes. ”This neighborhood has gone to pot.”

Recognizing the adverse impact on neighborhoods and the financial drain on communities, Summit County leaders are creating the Abandoned and Vacant Property Task Force. The group will try to figure out how many vacant properties there are in the county and identify policies that could help reduce the number.

Job losses and foreclosures have escalated the vacancy problem nationwide, especially in urban communities like Akron and Barberton. For every 1,000 people in Ohio, more than six properties were put up for sheriff’s sale last year, according to a study by the Policy Matters Ohio in Columbus.

Those properties not only are an annoyance from an aesthetic point of view, but they also are a magnet for criminals, dumping and vandalism.

”Even in some of your nicer areas, if you get one or two vacant houses, it can be detrimental to the health of a neighborhood,” Barberton Mayor Bob Genet said. ”It can tear down a neighborhood real quick.”

Financial impact

A study released this year estimated that more than 25,000 vacant and abandoned properties in Cleveland, Columbus, Dayton, Ironton, Lima, Springfield, Toledo and Zanesville cost those communities at least $63 million in services and tax revenue in 2006.

The study was commissioned by ReBuild Ohio, a coalition of local government, nonprofit and civic organizations.

One of the biggest hurdles is just identifying the number of vacant properties to understand the scope of the problem, said Gene Krebs, co-director of Greater Ohio, a coalition member and smart growth group in Columbus.

Akron officials have estimated, based on water shut-offs, that there could be up to 7,000 vacant properties in the city. Meanwhile, the estimate in Barberton ranges from 200 to 600.

Krebs said the good news for Akron is that it has not been hit as hard as other regions of the state.

”You’re actually punching above your weight and you’re doing things better than other communities,” said Krebs, a former state lawmaker.

Don’t tell that to people living next door to a vacant home, though.

Barberton resident Tom Bednarik isn’t a big fan of the cottage-style house next door to him.

The vacant, bank-owned property on Robinson Avenue in Barberton was foreclosed upon this year. And, as Bednarik notes, it just sits there as an eyesore inviting trouble.

He’s already had to chase away kids smoking and drinking under the porch. And don’t get him started about the lawn.

He hopes someone buys it and moves in soon.

”I figure it’s going to take the value of this property down if they don’t do something,” the 59-year-old Bednarik said. ”Something like that in the neighborhood seems to be catching after awhile. Other neighbors seem to let their property go as time goes by.”

Perry, who goes by the nickname ”the Mayor of Brandon Street,” agreed.

He said he keeps tabs on the vacant homes in his neighborhood, alerting police to potential problems.

But it’s annoying to look outside his front window and see the overgrown grass at the two vacant houses across the street.

Asked what should be done, Perry shrugged and pushed up his baseball cap.

”I don’t know,” he said.

Maybe the government needs to buy the properties, tearing down the unsalvageable ones, and repairing and reselling the others, he said.

Local program

The county is on the verge of doing just that.

Last week, county leaders unveiled a program designed to stabilize neighborhoods by buying foreclosed and abandoned houses.

Summit County will use $3.7 million in federal grants from the Housing and Economic Recovery Act of 2008 to fund the effort.

The county will rehab and resell the properties, or raze them and save the land for future development.

Akron, which is slated to receive $8.5 million, is not included in the county program.

County leaders identified 25 neighborhoods with the most need. Fifteen are in Barberton. Six are in Springfield Township. The others are in Copley Township, Lakemore, Twinsburg Township and Norton.

The program will move forward at the same time the county task force is studying the problem.

Best practices

County Councilman Cazzell Smith, who proposed the task force, said the group will look at successful programs elsewhere to see whether they can be replicated here.

”We are looking for solutions,” Smith said. ”The abandoned and vacant properties are just skyrocketing.”

The task force, which will include a mix of at least 15 public and private-sector officials, is expected to study the issue for six months and then release a report with recommendations.

Jennifer Leonard, director of the National Vacant Properties Campaign in Washington, D.C., praised the county effort.

”We’d like more people to be thinking about it at the county level,” Leonard said. ”It’s not just what happens in Akron. It’s creeping out into the suburbs as well.”

The campaign was launched five years ago to identify positive programs throughout the country and share them with other communities. The Rust Belt has been dealing with the vacancy problem for years, but it is now moving into stronger markets thanks to the increase in foreclosures, Leonard said.

One of the most popular initiatives involves land banking and tax foreclosure reform in Genesee County, Mich., she said. There, the local government does exactly what Perry suggests.

The Genesee County Land Bank Authority is able to buy foreclosed properties and determine the best use for the land — whether it’s razing the structure, rehabbing it and reselling it, or holding onto it for development.

Leonard also cited programs involving strict code enforcement.

”Stopping properties from becoming vacant in the first place is becoming critically important,” she said.

 

Sheriff Sales in Ohio, 2008

Seventy-five county sheriff departments that responded to our biennial survey reported putting 68,974 foreclosed properties up for sale last year. The number of such properties grew substantially again in 2007. In the 72 counties that provided data to Policy Matters Ohio for each of the last two years, the number of properties put up for sale increased 18.4 percent from a year earlier, to 68,260. That reflected a jump of 50.6 percent from 2005. While it is difficult to put a precise number on how many Ohio families lose their homes to foreclosure each year, Policy Matters Ohio uses data from the survey to provide another estimate. The 75 sheriff departments responding to the survey – all but 13 of Ohio’s counties — represent 92 percent of the state’s population. The continued growth in sheriff sales is just one more piece of evidence that foreclosures are damaging Ohio communities, and that policy reform is needed to stabilize our neighborhoods.

Executive Summary

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Campaign Briefing 2008: Achieving an Economy That Works

Since our arrival on the scene eight years ago, Policy Matters has warned about an economy that excessively compensated the wealthiest while leaving out low- and middle-income workers. We noted the frightening spike in foreclosures and demanded better regulation. We’ve raised caution about underinvestment in people, infrastructure and alternative energy, and we’ve laid out a vision of a smarter economy that invests in the future, creates opportunity, and increases equity and sustainability.

Creating a more fair, prosperous and sustainable Ohio requires thinking big. This campaign briefing and our other resources will, we hope, provide the beginnings of a blueprint for a smarter approach that leaves us prepared for tomorrow.

Action Items for Ohio Candidates Seeking and Holding Office in Ohio:

• Raise Adequate Revenue to Invest in Needed Services and Increase Tax Fairness
• Invest in Pre-Kindergarten Education
• Train and Retrain Ohio’s workforce to Meet Labor Demands
• Invest in Energy and Infrastructure.
• Create Opportunity in Ohio
• Construct On-Ramps to the Middle Class
• Strengthen Unemployment Compensation
• Help Build and Protect Ohioans’ Assets

Providing opportunity, investing in the future, building on-ramps to the middle class, protecting assets and providing strong public infrastructure led to a more prosperous, educated, productive, equitable and sustainable Ohio. A renewed commitment to these policies will create a better Ohio and a better America.

Click Here to Read Campaign Briefing 2008:  Achieving an Economy that works 

October 2008: Boo! Halloween news from Policy Matters Ohio

Tricky economy - Since our founding eight years ago, Policy Matters has warned about an economy that doled out treats to the wealthiest while leaving low- and middle-income workers out in the cold. We noted the frightening spike in foreclosures and demanded better regulation. We warned about underinvestment in people, infrastructure and alternative energy, and we laid out a vision of a smarter economy that invests in the future, creates opportunity, and increases equity and sustainability. This campaign briefing for candidates provides the beginnings of a blueprint for a smarter approach that leaves us less scared about tomorrow.

Bloodsucking loans - A recent small survey of Ohio credit counselors found that these accredited professionals are deeply concerned about the costs of payday loans to their clients. The responses, summarized in our new report, revealed a consistent conclusion that payday loans are harmful to low- and middle-income working families. If you agree, vote YES on Issue 5 next week to keep in place a sensible cap on interest rates that was passed by the legislature. A “yes” vote on issue 5 has been endorsed by our current Governor Ted Strickland, former Governors Bob Taft, George Voinovich, Richard Celeste and John Gilligan, current Attorney General candidates Richard Cordray and Mike Crites and previous Ohio Attorneys General James Petro and Betty Montgomery. The campaign will hold a seance tonight to seek the bipartisan support of the ghosts of governors past…

Terrifying Tax Breaks -  Ohio gives special tax treatment to payday lenders and mortgage brokers, who pay a lower state tax rate than banks under an outmoded tax law unique to Ohio. Lobbyists and debt collectors don’t have to bill their clients for sales tax. The state also recently made it much easier for high-income retirees who spend part of the year out of state to avoid paying Ohio income tax. These are among a dozen tax breaks our report says could be slashed to generate up to $270 million annually for essential programs and to make the tax system more fair. We recommend putting the nail in the coffin on these loopholes, and finding more to bury.

But here are a few treats: a clean-energy, job-rich future – Governor Ted Strickland joined Apollo Alliance President Jerome Ringo and Apollo Alliance Board Chair Phil Angelides (who was California’s state treasurer), along with business, labor, community and environmental leaders, to unveil the new national Apollo Alliance plan for clean energy and good jobs. Click here to learn about the 10-year plan for energy independence.

…with better teachers - In 1981, a groundbreaking Toledo program created a model for teacher support and development that has fostered new relationships among teachers and administrators. Since then, about 70 districts nationally have put similar efforts in place, often laying the foundation for other new ways to improve teaching and learning. This study can help Governor Strickland review one very effective model as he seeks to improve Ohio schools.

… and new jobs - Join the Ohio Department of Development, the Ohio AFL-CIO, the United Labor Agency and other leaders to think about how best to spur job creation in Ohio, ensure that workers are ready to fill those jobs, and assist those displaced by our volatile economy at a Columbus conference on November 18-19. If you want to brainstorm a brighter future for Ohio’s workforce, contact nancy.roth@ula-ohio.org to register or learn more.

You might have missed -  Our other research on payday lending, our director on TV, our annual report, or our prescriptions for health care, the income tax, unemployment and more. Go to www.policymattersohio.org for sweet solutions to some very petrifying policies …

That’s all!
The Policy Matters Ohio Team 

Payday loans no help, credit counselors say

Policy group’s small survey finds no fans of short-term credit
By Jim Siegel

Columbus Dispatch

A Cleveland research group says that Ohioans who try to help people drowning in debt generally see payday loans as part of the problem.

The liberal-leaning Policy Matters Ohio said yesterday that 17 accredited credit counselors from across the state answered its survey. They said that more than one-quarter of their clients’ debt included payday loans. Those clients averaged four payday loans apiece, and some reported as many as eight, the report said. The average payday-loan debt was about $1,000.

Ohio voters will decide Nov. 4 whether tough new state payday-lending regulations will prevail.

Only one of the counselors said he would recommend a payday loan, and then only under “extreme conditions.” The report said most had concerns about the interest rates on payday loans, which compounds to 391 percent annually, and the two-week term of the loans.

Every respondent, the report said, indicated that payday loans added to their clients’ financial problems.

“You can’t get out of debt by taking out another loan,” one counselor said.

Researcher David Rothstein, who conducted the study, said he was surprised by the extent to which counselors said payday loans hurt people’s ability to pay other bills.

“I often thought these were very small amounts of money people were taking out,” he said. “But when a lot of them are outstanding, it adds up.”

Reacting to the study, the conservative Buckeye Institute called it presumptuous to second-guess why people get payday loans.

“Most are not the ignorant borrowers portrayed by the opponents of payday lending,” said Marc Kilmer of the Buckeye Institute in Columbus. “Instead, they are making an informed choice that is rational to them.”

Policy Matters recommends a “yes” vote on Issue 5, which would restrict payday loans to a maximum 28 percent annual interest rate under House Bill 545. A “no” vote would allow lenders to continue operating as they do now, charging $15 per $100 on a two-week loan.

Lenders say they cannot operate under a 28 percent rate, which would cut off a valuable credit source to those with nowhere to turn.

Kim Norris, spokeswoman for the coalition opposing Issue 5, said a payday loan is often more affordable than late fees or bounced checks.

“It’s easy for wealthy politicians and activists to dismiss short-term payday lending options, in large part, because they have never been in a tight financial position themselves,” she said.

Report urges reduced usury rate for payday loans

Dayton Daily News

COLUMBUS — The cost of payday loans is harmful to low- and middle-income working families, according to a new report from Policy Matters Ohio, a nonpartisan research organization.

Credit counselors surveyed about payday loans — borrowed by consumers as a short-term effort to pay debts — said they are concerned about the high interest rate on such loans and the number of clients who have several loans outstanding at the same time, Policy Matters Ohio said Wednesday, Oct. 15.

On average, those clients have payday loan debts of $1,000, the credit counselors said. Payday loan debt hinders a consumer’s ability to pay household expenses including housing and transportation costs, the counselors said.

Policy Matters Ohio said it surveyed 17 credit counselors who serve an area covering 28 of Ohio’s 88 counties.

The organization’s report recommends preservation of a bill the Ohio General Assembly enacted to cap the annual percentage rate of payday loans to 28 percent, down from prior annual rates of up to 391 percent.

The payday loan industry has submitted petitions in support of a ballot issue that would set aside that bill and allow the higher usury rates. The issue will be on the Nov. 4 ballot if Ohio determines there are enough valid petition signatures.

A “yes” vote on the ballot issue would limit lenders to the new 28 percent interest cap while a “no” vote would allow lenders to keep the 391 percent cap.

Wise Counsel: Credit Counselors Cite Perils of Payday Lending

A recent survey of Ohio credit counselors found that these accredited professionals are deeply concerned about the costs of payday loans to their clients. The responses, summarized in a new report from Policy Matters Ohio, revealed a consistent conclusion that payday loans are harmful to low- and middle-income working families.

Press Release

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