Policy Matters has conducted research on payday lending in Ohio for the last four years. Our initial research found that the payday lending industry grew from just over 100 stores in the mid‐1990s to more than 1,600 stores in 2007. Stores were present in 86 of Ohio’s 88 counties. Our concern with Ohio’s prior Check Cashing Lending Law, legalizing payday lending in 1996, was that lenders could charge an annual percentage rate (APR) of 391%, $15 for every $100 borrowed. Our research found that a basic family budget for families making under $45,000 a year would leave them ill‐equipped to pay back a payday loan given the short time frame and high cost of the loan. …

Full Testimony

Despite having one of the best-crafted payday lending laws in the nation, Ohioans are still paying triple-digit interest rates on payday loans. This report confirms initial findings that payday lenders in Ohio are deliberately circumventing the new Ohio Short-Term Loan Act, which among other protections instituted a maximum 28 percent annual interest rate on loans. All payday lenders surveyed continue to make loans due on the borrower’s next payday, which is typically less than or equal to fourteen days away. This is not in compliance with the Short-Term Loan act, which guaranteed borrowers at least 30 days to pay back loans and established other consumer protections to keep borrowers out of the debt trap.

Press Release

Executive Summary

Full Report

Ohio’s cost of electricity, pegged at 8.96 cents per kilowatt hour in the latest release from the Energy Information Administration, is 10 percent lower than the national average of 9.86 percent. However, most of our electricity is generated with one of the cheapest fuels – coal – and in the 21st Century we can expect to see changes. Coal itself will increase in cost as new technologies to scrub and sequester its high carbon content are mandated to curb global warming. To maintain competitiveness during transition, Congresswoman Marcy Kaptur of Ohio’s Ninth District (Toledo) proposed in the “American Clean Energy and Security Act of 2009 (Title I: Clean Energy) a ‘Renewable Energy Borrowing Authority’ for Midwestern and Northeastern states, capitalized at $3.5 Billion, to help plan for and finance new energy assets for the state. Policy Matters Ohio took a closer look at the regional power authorities to better understand the proposal.

We found that within a diverse federal system of utilities, ‘Federal Power Marketing Administrations’ (FPMAs), set up originally to sell power from federal dams, oversee service territories that cover three quarters of the nation; that the (weighted) average cost of electricity in cents per kilowatt hour is 26% higher in states outside these service territories, and that Ohio and the rest of the Midwest and Northeast are on the outside. While Ohio’s rates are currently competitive, having a FPMA service territory and financing could be an economic development asset in the transition to a clean energy economy.

Read about the proposal, the history of FPMAs and comparison of rates here:

Renewable Energy Borrowing Authority

The 2009-2010 Assets & Opportunity Scorecard, released today by Policy Matters Ohio and the Corporation for Enterprise Development (CFED), raises concerns about the financial security of Ohio families. The United States as a whole does a poor job compared of relieving poverty, reducing debt, and ensuring health insurance and retirement. The state earned an overall grade “C”, in the middle among states, for its policies and outcomes to support financial security. Policy Matters Ohio suggests targeted policy changes that could improve Ohio’s rankings and improve well-being in the future, including the adoption of a refundable earned income tax credit; the provision of universal, high-quality early childhood care and education; and, the enforcement of payday lending laws passed by the legislature and affirmed by the voters, but currently being circumvented.

Press Release

Ohio Scorecard Companion

Full CFED Scorecard

Ohio needs a 21st century transportation system for a 21st century work force. Having a strong public transportation system is in the public interest.  Mass transportation offers mobility to Ohioans without automobiles, provides an economical option for commuters, eases congestion, reduces overall energy use and carbon emissions, and adds to the appeal of urban communities.  Mass transportation is of vital importance to those who can’t afford to own, operate and maintain their own personal vehicle, have disabilities, or are past the age when they can drive safely.  For others, public transportation represents an important alternative choice for commuting and travel, even if a car remains part of their total transportation mix. …

Full Testimony

Postal Regulatory Commission
Field Hearings on Optimization and Consolidation Initiative
Independence, Ohio
Testimony by Pamela Rosado Outreach Coordinator, Policy Matters Ohio
September 16, 2009

Read Testimony

Ohioans are out of work at rates not seen for more than a quarter century. Many who are working have had to accept cuts in pay, reductions in hours or unpaid furloughs. Some have stopped seeking work because they fear no jobs exist, others hang on to part-time jobs though they want and need full-time employment. Wages are not rising, and for black workers, wages have dropped sharply, leading to unprecedented gaps between black and white wages and between the wages of black workers in Ohio and the nation. Learn more here about the dismal State of Working Ohio 2009.

Press Release

Executive Summary

Full Report