Restoring Prosperity
The Greater Ohio Policy Center Blog
Governor Strickland spoke to Ohioans on Wednesday, January 28th as he gave the State of the State address. If you would like to read his speech it is available on Ohio.gov. Do you want to know what other people think about his address?
Check out these links to hear fellow Ohioans' opinions:
One Community, a local nonprofit broadband provider in Northeast Ohio, has recently embarked on an initiative to put 50,000 computers in Northeast Ohio schools over the next five years. The Cleveland Plain Dealer highlights the logistics of the plan and potential benefits. Companies like One Community are exactly what Ohio needs to revitalize its economy. Not only is this organization at the cutting edge of technology, it is also dedicated to increasing the well-being of Ohioans. As broadband communication becomes a vital asset, cities and businesses will rely more on companies like One Community to set up the basics of online communication. However, the company takes it one step further by also teaching organizations how to effectively use their new high-speed connections.
One example of how One Community operates occurs in connecting area hospitals to each other.
They put hospital within the same system on a network which allows them to set up VPN connections through the 41 hospital sites without having a charge for setting up point-to-point sites. This results in secure, connected sites at a cheap price. The speed of the connection also allows them to use the internet to share remote diagnostics, live CAT scans, and view live surgeries.
For those of you who still believe that Ohio's economy will rebound on its own you may want to take a look at the U.S. News article, "Wave of Layoffs in U.S., Europe show severity of the recession." It is evident from this article that everyone is bearing the brunt as the international economy is taking nose dive.
During a time of crisis, it is those that embrace change and dare to try new things that come out on top.
Greater Ohio is working at the state level with Administration officials and legislative leaders to craft new solutions that will arrest these trends and restore prosperity to Ohio once again. We see that the drivers of prosperity can be boiled down into four buckets – innovation, human capital, infrastructure, and quality of place. We need to press at the state level for progress in all of those areas simultaneously.
The Restoring Prosperity to Ohio proposes policies recommendations that change the fundamentals of government by encouraging actions such as cluster development (geographic concentrations of interconnected firms/organizations); leveraging anchor institutions (universities and medical institutions); proposing a foreclosure action plan; transformative infrastructure investments; advancing workforce training; and governance reform to promote regional solutions. In order for communities to take advantage of the opportunities that come with this financial downturn, they will first have to take stock of their assets and then develop a strategy to build upon them. There are some communities in Ohio that are already on this path, such as Mansfield, Hamilton and Marion and it is vital that the rest of Ohio follow their lead before it is too late.
Don’t Bail Out ODOT
By Gene Krebs
January 26, 2009
Last spring Governor Strickland appointed me to serve on the 21st Century Transportation Priorities Task Force. During the course of serving on the Task Force’s Economic Development Sub-Committee, we had dozens of meetings and hearings both in Columbus and around the state. We were enjoined not to engage in a management critique of the Ohio Department of Transportation (ODOT). But at no time did ODOT explain to the task force how or why they were running out of money.
Governor Strickland’s charge to the Task Force was clear: Envision and champion the optimum transportation system for Ohio’s future and recommend the resources and financial tools needed to build and sustain it and, to see the Task Force as an opportunity to ask what should be done...and what could be done.
Over the past year, the Brookings Institution and my organization, Greater Ohio, have also developed, as a part of the Restoring Prosperity to Ohio Initiative, policy recommendations that call for transformative infrastructure investments– with the goal of revitalizing the state’s core communities and reinvigorating their economic competitiveness. The Task Force’s report recommendations that call for aligning the policies and practices of state agencies, ensuring the policies and practices are business and user-friendly; launching a Making Regions Matter initiative; and expanding the use of alternative fuels, technologies, “smart growth” solutions and public transit all dovetail with the Brookings Institution and Greater Ohio Restoring Prosperity policy agenda. Specific Task Force-recommended actions with substantial benefits include: developing a “Complete Streets” pilot program; preparing a cost/benefit analysis for transportation projects; integrating multi-modal transportation and land-use plans; and aligning local land use policies by incentivizing and promoting smart growth. We applaud these efforts.
“Fix it First” – that is, dedicating resources to fix existing roads and streets before building new – is another action item that aligns with the ODOT report; however, if we are serious about “fix it first” then we also need to require ODOT to pay for the maintenance of state highways that pass through cities, instead of stopping maintenance at a city’s edge. This suggestion did not make the report. However, it was one of the main points made by Mayor Jay Williams of Youngstown at our Restoring Prosperity Summit held on September 10, 2008. Our initial findings and policy recommendations are contained in a preliminary report that was released at the Summit – Restoring Our Prosperity: The State Role in Revitalizing Ohio’s Core Communities. (You can find the full report at www.greaterohio.org.)
The primary funding mechanism recommended in the Task Force report is an increase in the gasoline tax, with the suggestion that the revenue from that special tax be used to secure bonds as part of a capital bond financing program run by the Ohio Transportation Finance Commission. Both the proceeds of the bonds and the revenue would be made available for all transportation modes. But gasoline consumption is going down; no surprise as Hummers are traded for Hondas. Every time you trade in a car that gets 20 mpg for one that gets 30 mpg, ODOT loses a lot of revenue from you. According to ODOT’s latest business plan there will be a $3.5 billion deficit by 2015 for transportation in Ohio.
Do we really want to increase taxes on a declining revenue source? ODOT would have an even larger vested interest in keeping us in cars and burning as much gasoline as possible. Furthermore, most other states are incentivizing reductions in Vehicle Miles Traveled (VMT’s). Once again, Ohio is heading down a regressive path here.
Since we did not examine ODOT’s management issues, how do we know that there are no cost savings in the ODOT system? How do we know that this increase in gasoline tax, expansion of toll roads and increases in car registration fees generates the right amount of revenue? What is the right amount?
The proof is in the funding. The funding mechanisms recommended by the Task Force will not put Ohio on the path to long-term prosperity. ODOT doesn’t need a bailout. What it needs is greater accountability and performance criteria on infrastructure investments so it is truly transformative in meeting Ohio’s economic, social, and environment/energy goals – all consistent with Greater Ohio’s Restoring Prosperity to Ohio Initiative.
Gene Krebs is Co-Director of Greater Ohio.
Greater Ohio attended the 2009 New Partners for Smart Growth Conference last week which focused on Building Safe, Healthy and Livable Communities. The conference addressed issues many states are facing today as they try to revitalize their economy and become internationally competitive. One breakout session particularly relevant to Ohio and the Restoring Prosperity Initiative was Best Practices: Downsizing Cities to Right Size Sustainable Growth.
The breakout session proposed that "Since vital communities are critical to sustainable growth, a number of older industrial cities are developing innovative planning strategies that downsize communities as the route to long-term economic sustainability and better quality of life." The panel, which included Hunter Morrison from Youngstown State University, discussed downsizing as a land use tool, implementation options, and best practices that are occurring in cities across the country.
Comment from speakers included:
Dan Kildee (speaker): "Population is not a true measure of quality." Qualitative and not quantitative measures are what matter.
Hunter Morrison: Cities that need to right-size are "weak-market cities" with a declining population. It's a regional issue, primarily in Great Lakes states and old industrial core cities. -AND- We need to look to assets and create civic engagement (i.e. accept that we are a smaller city, define our role in a new regional economy, improve communities' image of city, and make a call for action)
Although some cities, such as Youngstown, are embracing the idea of right sizing, it proves to be a controversial issue that requires deliberation and delicate handling. First we need to address the question,
Is it OK to aspire to be smaller?
If so, how can we communicate the concept? Is it effective to use terms such as “right sizing” and “resizing”?
As the Restoring Prosperity to Ohio initiative begins the new year, we are comforted to learn that Ohioans from all areas of society are in support of sustainable development and are eager to see changes in the way the government does business. Just recently, the Cleveland Plain Dealer ran an article by the "Very Rev. Tracey Lind" who imagines the possibilities for Ohio and outlines how we can realize them. "Imagine a place where people, corporations and institutions thrive together. Imagine a metropolitan area where people are healthy because it is home to the world's finest medical care, recreation and local food; where children are well-educated because we boast outstanding universities, colleges and schools; where people are employed in sustainable jobs because we are surrounded by the power of water and wind; and where the quality of life is excellent because we have safe neighborhoods, vibrant faith communities and wonderful cultural institutions. In short, imagine a region that thrives because all of its abundant resources are working together for the common good." Read the full article
One of the biggest barriers to the Restoring Prosperity initiative is the negative perception that Ohioans have about their state. For some reason, Ohioans have forgotten all of the state's great assets and why they choose to live here in the first place. If Ohioans don't take pride in Ohio, how can we expect others to? The first step in revitalizing Ohio is to rebuild the sense of pride that was once prevalent. One blogger, a non-Ohioan at that, has overcome the negativity pervasive in our state and highlights the wonderful attributes inherent in Ohio's culture. Ohioans would do well to think about his article "Ohio with Attitude" and remember why they love this state.
One Ohio city that has taken on the task of redevelopment is Marion, Ohio. Its citizens are working hard to revitalize the downtown area making it a desirable place to live. Lois Fisher, of Lois Fisher and Associates, has focused on redevelopment of the downtown area turning one decrepit building into an outdoor park as well as restoring a building which vacant storefronts into a residential building now completely full. To give you a glimpse of her efforts, we took a video tour of her loft in downtown Marion which exemplifies the potential Ohio cities have if someone takes the time and effort to care.
The inauguration of Obama brings hope to many people. The new president advocates change and a new perspective. During a time when many people face social and fiscal hardships President Obama asks that all people pitch in to help revitalize our economy. As Brad Whitehead, president of the Fund for Our Economic Future, states in a recent op-ed "A Crisis is a Terrible Thing to Waste" This week, we will highlight people/organizations who are doing their part revitalize Ohio's economy. If you know of project occuring in Ohio that deserve recognition please post them! Happy Inauguration Day!
The Cleveland Regional Transit Authority reported an increase in ridership for the sixth consecutive year (Read the article). These numbers indicate that as traveling costs increase, people are turning to alternative modes of transportation. What does this mean for Ohio's economy? The Restoring Prosperity to Ohio initiative advises that if communities and the state want to revitalize, they must first look at the changing economic trends, take stock of the assets that already exist in their communities, and examine how they can use their assets to capitalize on these new developments.Take for example, Akron. Once the rubber capital of the world, it used its rubber background to invest in polymer research. Now, the city is well on its way of overcoming the decline of its manufacturing base and revitalizing its economic grandeur.
The increase in ridership on mass transit indicated that it is time for Ohio to re-evaluate its transportation investments and look multi-modal transportation opportunities in order for the state to stay competitive in the 21st Century.