A new report highlights the role that public transportation can play in addressing key priorities of the state

On Wednesday, the Commentary Page featured a column by Amanda Woodrum of Policy Matters Ohio making the case for a larger investment of state dollars in public transportation. She develops the argument more fully in a recent report, ”Committing to Commuters: Transit and Ohio’s New Energy Economy,” which can be found at www.policymattersohio.org. Her points deserve further attention. If Ohio wants to transform its economy, proving more agile and prosperous, it must find ways to enhance mass transit.

Consider the challenges ahead, say, becoming more energy-efficient, creating jobs, curbing urban sprawl and protecting the environment. Public transportation promises advances on all of these fronts.

One study found that each passenger mile traveled via mass transit yields half the carbon dioxide of traveling in a car. More, public transportation connects workers and jobs, providing the necessary mobility for those workers with lower incomes. In many ways, mass transit helps to revitalize metropolitan areas, the centerpieces of regional economies.

Unfortunately, as Woodrum makes plain in her report, Ohio falls short. State spending on public transportation has declined 48 percent the past decade. As a result, public transportation relies heavily on local dollars. In Summit County, voters recently rose to the occasion, approving additional revenue for the Metro Regional Transit Authority. The Metro system still suffers from narrowed service. Many local communities no longer can bear such a burden.

Ohio ranks 40th in the nation in the percentage of state transportation dollars spent on mass transit. Indiana spends twice as much. State spending in Illinois, Michigan and Pennsylvania far exceeds Ohio.

Ted Strickland deserves credit for seeking to bring greater direction and commitment to public transportation in the state. He wants to do a better job attracting federal dollars. His proposed rail service from Cincinnati to Columbus to Cleveland looks more practical in view of the changing landscape in energy and the environment. Yet his two-year budget plan calls for decreases in state spending.

Woodrum targets the flaw the state’s approach. Public transportation lacks a dedicated funding source. The state constitution bars routing revenue from the motor fuel tax to public transportation. Thus, mass transit must compete with an array of priorities for money in the state general fund. To build a modern transportation system, Ohio must amend its constitution to permit the use of gas tax revenue for mass transit.

The federal government dedicates 17 percent of its gas tax to public transportation. Woodrum proposes that Ohio put the share of its gas tax at 20 percent. An amount at the level would advance the state. The spike in gas prices last summer provided a warning, many suddenly looking to mass transit and finding an inadequate system. Want to turn around Ohio? Make public transportation part of the ride.

Full Article (PDF version)

Testimony of Zach Schiller on House Bill 1
House Finance and Appropriations Committee Hearing
March 25, 2009

Good morning Chairman Sykes, Ranking Member Amstutz and members of the House Finance and Appropriations Committee. I am Zach Schiller, research director of Policy Matters Ohio, a nonprofit research institute with offices in Cleveland and Columbus.

Nearly four years ago, the General Assembly approved House Bill 66, including the biggest overhaul of Ohio’s tax system in a generation. The tax changes, including the 21 percent cut in the income tax and the elimination of two major businesses taxes in favor of a new tax on gross receipts, were aimed at generating jobs and improving Ohio’s economy.

Full Testimony

Survey Finds Support for More Revenue to Save Services

Gongwer News Service, Volume #78, Report #58, Article #2

The push for tax hikes in the biennium budget advanced on two fronts Wednesday, as advocates argued that more state revenue is in order given the curtailment of some services and program cuts Gov. Ted Strickland has proposed in his $54.3 billion plan.

Policy Matters Ohio Research Director Zach Schiller prompted a spirited debate with testimony at the House Finance & Appropriations Committee that challenged the sustainability of the 2005 tax system overhaul as well as the argument that some $1 billion in business tax cuts under that plan have kept Ohio’s economy out of deeper water.

Later in the day, the Campaign to Protect Ohio’s Future, a coalition of government service advocacy groups, released the results of a survey indicating Ohio voters would support increased taxes to protect government services.

Up to this point at least, such arguments have yet to gain traction with Democratic Gov. Strickland, who has said repeatedly that a tax increase during such dismal economic times would be counterproductive, and Republicans who control the Senate and have argued instead on the side of tax cuts and reduced state spending.

Reiterating the findings of past Policy Matters Ohio studies on the issue, Mr. Schiller told lawmakers that the so-called “tax reform” plan enacted four years ago has failed in its basic premise of encouraging business development as evidenced by the fact that Ohio still lags other states in that regard.

“Ohio needs more revenue to pay for today’s needs and provide a stable source of funding in the future,” he said.

Mr. Schiller also took issue with Gov. Strickland’s tax breaks in the biennium budget (HB 1), saying they would “ratify a major change in philosophy in Ohio’s economic development efforts” because of proposed changes to Job Creation and Job Retention tax credit programs that would serve to expand the programs by removing certain restrictions.

Additionally, he objected to the New Markets Tax Credit piggyback to the federal program, championed by House Speaker Armond Budish (D-Beachwood), calling it “a misguided effort” because other states would respond in kind.

“In the end, this will simply lead to a reduction in state revenue,” he said.

Mr. Schiller said much the same in regards to the 2005 tax restructuring, which he called on legislators to substantially reverse by, among other things: restoring the 7.5% top income tax rate for people making more than $200,000 a year; restoring the corporate franchise tax; bolstering the commercial activity tax; and eliminating “tax loopholes” detailed in the state’s biennial Tax Expenditure Report.

His comments prompted some adverse commentary from Republican panelists including Rep. Ross McGregor (R-Springfield), an executive in his family-owned automotive part manufacturing business.

If the legislature were to adopt Mr. Schiller’s proposals, the lawmaker asked, “Who should I have to go back to my shop and fire?” He disagreed with the negative assessment of the tax reform’s benefits to the state, saying “the benefits are the people I’m still able to employ” as a result of the tax code changes that, among other things, eliminated the business tangible personal property tax.

Without such business tax breaks, Mr. McGregor added, “The landscape would be devastation in the state of Ohio for manufacturing.”

Rep. Barbara Sears (R-Sylvania) said of Mr. Schiller’s contention that state tax policy isn’t a major component of business location decisions, “I’d like to seriously disagree with you” based on first-hand knowledge, namely a drop-off in clients at her employee benefit and financial planning firm.

“We are losing people all the time,” she said.

Mr. Schiller’s suggestion of a full statutory review of tax expenditures, along with his other contentions, did garner some agreement among Democrats on the panel.

Responding to a question from Rep. Michael Skindell (D-Lakewood), the witness questioned the tax overhaul approach of eliminating the corporate franchise tax, likened to “Swiss cheese” because of the numerous exemptions that were in place. He said the state should have instead closed those “loopholes” in the tax and retained it along with the CAT.

Tax And Services Survey: Members of the Campaign to Protect Ohio’s Future said at a later news conference that a survey the group commissioned with Hart Research Associates out of Washington, D.C. shows most Ohio voters would be amenable to tax changes such as those proposed by Policy Matters Ohio if it meant that government service cuts could be avoided.

Pollster Guy Molyneux said voters favored a “balanced approach” to the state’s budget crunch and that state and local taxes were at the bottom of a list of concerns topped by the economy (62%), education (33%), government spending 29% and health care (26%). Only 14% of respondents said taxes were their chief concern.

“People are not very worried about tax rates in Ohio right now,” Mr. Molyneux said.

Among the key findings of the telephone survey, conducted March 6-9 among 602 registered voters and with a margin of error at plus- or minus-4.1 percentage points:

57% favor a budget proposal that would “roll back some recent cuts in state income taxes, increase income taxes on those with incomes over $200,000, and increase some business taxes to avoid service cuts.” Most voters said income taxes (57%) and sales taxes (61%) are “just about right or too low to support public services,” while 51% said their property taxes are too high.

More than half of the respondents said it was “totally unacceptable” to: cut social services affecting abused and neglected children; cut funding for Pre-K through 12th grade schools; eliminate services for people with mental illness.

“These findings show that Ohioans want a balanced approach to help families that are struggling to make ends meet in this crisis,” Campaign Co-Chairwoman Gayle Channing Tenenbaum said.

“The public realizes that failure to maintain adequate funding in key areas would take away help that people need. This would work against the goal of creating jobs and strengthening the economy.”

Tax Presentation: Separately, Tax Commissioner Rich Levin on Wednesday gave an informational presentation to the House Ways & Means Committee.

He described in detail aspects of the state and local tax base in Ohio and the principles of a high quality tax system: equity, neutrality and simplicity. (Department of Taxation Documents)

by Amanda Woodrum, in The Akron Beacon Journal 

Public transportation is not a priority in Ohio’s $7.6 billion transportation budget. Habitually, we spend less than 1 percent of our state transportation dollars on public transit, giving us the low ranking of 40th in the nation for our relative commitment to transit. Per person, Indiana spends 3.6 times more, Michigan nearly 10 times more and Pennsylvania 33 times more than Ohio on public transit.

Transportation spending should better reflect the positive role public transit can play in creating a more equitable, vibrant and sustainable Ohio.

In this recession, investing in mass transit can be one part of a much-needed economic infusion for Ohio. Public transportation is not only more energy-efficient than passenger vehicle transportation, it also spurs economic development, employs people, assists firms and workers with transportation needs by providing a low-cost commuting option, reduces urban sprawl and congestion, increases urban vitality, and is far less harmful to the environment than having every commuter drive a car.

The Surface Transportation Policy Project estimates that investments in public transportation create nearly 19 percent more jobs than new roads or bridge projects create. Plus, Ohioans are currently sending at least $8 billion out of our state’s economy each year to import fuel for highway travel, and Ohio ranks an unfortunate fourth in the nation for the amount of carbon we emit.

Approximately 83 percent of Ohioans drive in their car alone to commute to work. Last year’s high summer gas prices tipped family budget scales and lured many Ohio drivers to mass transit in order to lower their cost of commuting. At the same time ridership was increasing, however, rising fuel prices and declining state investment were forcing cuts to our already inadequate level of public transit services in Ohio.

Currently, our regional transit systems receive only 4 percent of their support from the state, forcing local authorities to levy property and sales tax measures to support transit. These levies are difficult to pass and unreliable in a flagging economy.

In order for public transportation to become a viable option for Ohioans — to commute to work, to make trips to the doctor, or to pick up groceries — riders need to feel confident they can rely on transit to get where they need to go, when they need to get there. Our survey of local transit directors revealed just how essential these services are to riders throughout the state.

To create an adequate funding source for a reliable public transportation system in Ohio, we should amend the provision in Ohio’s constitution that prohibits our gas tax revenues from going toward nonhighway purposes, and allow 20 percent of the state motor fuel tax to go into a Transit Trust Fund dedicated to supporting mass transit in Ohio.

We should also use federal transportation dollars more wisely, directing them toward mass transit whenever it makes sense to do so; fund the Clean and Green Initiative, a five-year plan to purchase 500 electric or biofuel propulsion buses; retrofit existing buses with emissions-reducing equipment; and demand that businesses seeking public economic development incentives locate near job centers where our work force can access them by public transit.

Recent discussions of big new investments in trains to connect some of our large cities are exciting. Maintenance and expansion of buses and regional transit lines within our communities are essential. Ohio needs a 21st century transportation system for a 21st century work force, and a commitment from our leaders to move us in that direction.

REPORT: “Restoring America’s Manufacturing Leadership through Energy Efficiency”
March 25, 2009

Full Report

by Amy Hanauer and Roberta Garber, in The Cleveland Plain Dealer 

The just-passed federal American Recovery and Reinvestment Act will relieve need and help halt the
economic hurricane that is devastating Ohio. Lower-income families and distressed communities
have been especially hard hit by layoffs and foreclosures and have fewer paths to recovery. The
stimulus provides a long-overdue chance to make a down payment on a more prosperous, equitable
and sustainable state for all Ohioans, something our organizations have advocated for years. Smart
targeting and good oversight will ensure that the stimulus funds do the most to revitalize Ohio
communities.

Stimulus resources offer new hope for Ohio. The plan includes funding for renewable energy
investments, home repair and weatherization, worker training for the jobs of today and tomorrow,
infrastructure improvements and pre-school programs. These will provide immediate spending and
put Ohioans back to work, which is crucial in this downturn, but they also represent long-term
investments in a stronger economy.

Trained workers will better meet the skill needs of employers and be more likely to earn enough to
support their families; children who have attended preschool will require less remedial education;
weatherized homes will use less energy and save families money; and improved public transit and
infrastructure will attract new economic development to Ohio’s urban and rural core communities.

The stimulus funds offer new opportunities to rebuild Ohio sustainably by creating quality local
green-collar jobs, training workers for the renewable energy economy and incorporating standards of
energy efficiency in development. All of these will help to reduce greenhouse gas emissions and 
dependence on foreign oil.

As Ohio prepares to spend stimulus resources, we want to point to a number of principles that the
state should embrace to ensure that the spending is effective, efficient, accountable and green. Doing
so will generate the maximum return in the form of jobs, income and a more environmentally sound
Ohio…

Full Article (PDF version)

Click on the individual counties below for local information

Click here for state totals

Read our report Foreclosure Growth in Ohio 2009

Ohio’s foreclosure crisis continued to worsen in 2008, setting a new record with 85,782 new foreclosure filings, according to the annual study issued by Policy Matters Ohio. Ohio saw a 1.2 percent increase from 2007 and a 70 percent increase from 10 years ago. The latest numbers indicate that there was one foreclosure filing for every 60 housing units in the state last year. Foreclosure filings grew by an average of 4.9 percent in counties with populations of 50,000 or less, and state-wide have more than quintupled since 1995 for all counties. Cuyahoga County led the state once again in foreclosure filings per person and Allen County led in foreclosure filing growth from 2007. The report calls for more state action in resolving the foreclosure crisis that continues to hurt communities.

Press Release

Full Report

View our map of Ohio County foreclosure filings (1995-2008)

¡Bienvenida! - We’re thrilled to welcome (back) Wendy Patton as a new Senior Associate out of Columbus, focused on federal policy, particularly as it relates to making Ohio’s economy greener while building and retaining employment here. Wendy studied and worked at Kent State in the 1970s and received her masters degree in regional planning and economic development from the University of California at Berkeley in 1985. Her career spans several states and sectors, including a previous stint at Policy Matters and work for two Ohio governors, a union, and several academic entities: the common thread is devotion to a vibrant and inclusive economy. We’re also delighted about the impending arrival of Shanelle Smith, who has a BA from Kent State and an MA from University of Toledo, both in political science. She has interned with the Center on Budget and Policy Priorities and the Ohio Civil Rights Commission, and was president of Kent’s NAACP chapter. Shanelle is part of the growing field capacity of the Apollo Alliance in the Midwest and will be coordinating the work of the Ohio Apollo Alliance, housed out of Policy Matters’ Cleveland office. Amanda Woodrum in our Columbus office was promoted to Researcher.

(Not) just our opinion - We scored a hat trick on Ohio’s op-ed pages this week with Amanda Woodrum’s guest piece on mass transit in the Akron Beacon Journal, Amy Hanauer’s op-ed (along with ally Bobbie Garber of Community Research Partners) on getting the most out of the stimulus bill in the Cleveland Plain Dealer, and Zach Schiller’s piece on state tax policy, due to run soon in the Dayton Daily News. Editorial pages have also been highlighting our work, from the Beacon Journal, to the Columbus Dispatch to others around the state.

Not to be missed -  Policy Matters is moderating a forum on green-collar jobs at the City Club of Cleveland on Wednesday April 29 at noon, speaking on foreclosures and communities at the Miami Valley Fair Housing Conference on April 2 in Dayton, speaking at a Labor Economy Summit at Cleveland State on April 24 , and sponsoring the second conference on Labor in the New Energy Economy in Cleveland on May 18. Last month we held a briefing for legislators, which highlighted the revenue losses stemming from the 2005 tax changes, and documented that those changes have not improved the state economy as promised. Find a powerpoint and two reports providing the numbers here.

Testimonials - David Rothstein, Zach Schiller and Amanda Woodrum have all submitted official remarks to the legislature in the past few weeks, David on regulating credit cards on campuses and protecting renters who’ve been foreclosed upon, Amanda on the need to invest in mass transit, and Zach on the failures of the 2005 tax overhaul, which is depriving the state of needed revenue while failing to improve our economy. The press characterized these grillings as evincing “spirited debate.”

Another record year (sigh) - Ohio set a new record in 2008 with 85,782 new foreclosure filings, according to our latest study. This represented a staggering 70 percent increase over a decade ago, and a slight 1.2 percent increase from last year. Cuyahoga County led the state once again in foreclosure filings per person and Allen County led in growth compared to the previous year. The report calls upon the state to better regulate loan servicers, consider moratoriums on foreclosures, and develop plans for vacant and abandoned properties.

Committing to commuters - Public transportation could be a low-cost, environmentally friendly alternative to passenger-vehicle transportation, but the state hasn’t made the commitment. We rank 40th among states in share of transportation spending devoted to public transit. A misguided constitutional provision means that not a penny of state gas tax revenue can be spent on public transit, while 18 percent of such revenue goes to transit in the country as a whole. Even as demand for mass transit rose during last summer’s gas price spikes, commitment went down. We surveyed local transit agencies and analyzed national data, concluding that transportation spending should better reflect the positive role public transit can play in creating a more equitable, vibrant and sustainable Ohio. We recommend fixing the constitution and devoting 20 percent of Ohio’s gas tax revenues to an Ohio Transit Trust Fund.

Getting the most out of the recovery -  With billions of dollars in federal Recovery Act spending coming to Ohio, we partnered with Community Research Partners to urge investments in programs that will give struggling low-income families and unemployed workers new opportunities to succeed economically. We asked Governor Strickland and Ohio legislators to ensure that stimulus money helps stabilize the economy and benefits those hurt most by the recession. This is a once-in-a-generation opportunity to make a down payment on an economy that will work better for all of us and we hope to help lawmakers make it as inclusive, green, efficient and accountable as possible.

The road to Copenhagen - With support from the Energy Foundation, we’re working with federal legislators and grassroots groups to identify policies that can protect Ohio’s industrial base while promoting good green jobs as both the planet and the debate about climate change heat up….The word on the streets is that the road to Copenhagen (where the next international climate agreement will be negotiated) runs through the Midwest (Ohio!). Policy Matters is working from Ohio communities to Capital Hill to map out policies that protect and promote Ohio jobs.

Packing up -  After a fire in our Columbus office, our allies at Community Research Partners offered us space in their downtown suite. Our Columbus team can now be found at 300 E. Broad Street, Suite 490, Columbus, Ohio 43215, 614-221-4505. Stop by and say hello. Thanks to all the generous friends who reached out to help.

That’s all!
The Policy Matters Ohio Team

 Policy Matters has organized and hosted four Progressive Scholars conferences (Kent State University, Oberlin College, the University of Akron, and Otterbein College) and a symposium on the economics of criminal justice (Kent State University).