Richard Sheridan: Strickland’s Budget Is One Time Fix, New Taxes Or Big Spending Cuts Needed By 2011

In the latest issue of State Budgeting Matters, Richard Sheridan, tells how that Governor Strickland balanced his 2009-2010 budget — without new taxes or without significant cuts in spending. Sheridan says Strickland is using one time measures to temporarily increase state revenue, but, by 2011, Ohio will have no choice but to either increase taxes or dramatically cut spending.

The Tax Reduction Act of 2005, phased in over five years, is having a big impact on state revenue. Sheridan says, “The phased-in tax reductions will be complete by FY 2010 and so the state tax forecasts for FY 2011 are essentially foretelling what will become the pattern for state tax revenues into future years even after an economic recovery. What this suggests is that after FY 2011 the state will either have to make significant reductions in all categories of state spending, because of the reduced state tax levels as well as the elimination of federal funding that is expected to be used to ‘buoy up’ the forthcoming biennial budget, or increase state tax revenues.”

Strickland balanced his budget proposal using fee increases and one time measures — federal stimulus money, and $5.8 billion in “one time, non reoccurring, revenue enhancements.” These enhancements include almost one billion from the “rainy day fund,” (completely exhausting that fund), $2.7 billion from the “State Fiscal Stabilization Fund for Title XIII,” $800 million from “Education Grants From Title IX,” and a $200 million loan from the School Facilities Commission. Sheridan list nine one-time sources of income that Strickland is tapping. It’s a mystery to me, how the state can make a one-time extraction of money from these funds.

Sheridan says that tax receipts in December were $24.5 million below revised estimates and that by the end of June, he is predicting, the total shortfall will be in excess of $325 million.

Ohio has changed the formula for revenue sharing with local governments and Sheridan is predicting major shortfalls will negatively impact local budgets. He says, “With the exception of federal economic stimulus aid expected when Congress agrees on a final measure, local units of government can expect little help from the state in addressing their own funding problems and social and health service-providing agencies may be especially hard-hit.

Sheridan describes the budget process: “For the next five months (or more) it will wend its way through the legislative process, beginning with extensive hearings in five subcommittees of the House Appropriations Committee and ending with a budget produced by six legislators sitting on a conference committee to resolve differences that emerge between the Democratically-controlled House of Representatives and the Republican controlled Senate.”

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Dayton History Web-Site Has Great Content — Makes It Easy To Research Dayton History

I just found a great web-site that has tons of information about Dayton History. The site, called Dayton History Books Online, is somewhat misnamed because it contains a wealth of material — articles, pictures, videos — in addition to books. I’m very impressed with the quality of its content. This site has been going since 2004. I can’t believe it’s taken me five years to find it.

In the short time I spent on the site, I read about the following:

  • An experimental high school, Moraine Park School, that started in 1918 and lasted into the 1920’s. The site posts original documents written by students and teachers of the school telling of the schools progressive philosophy — no grades, project based learning, etc.
  • The Hewitt Soap Company, a long time Dayton company that started in 1897 at 333 Linden Ave and went out of business in 2004. The site says, “It once employed over 400 employees, and spread around its profits into the Dayton area, donating to many charitable causes largely unnoticed, the unspoken effect of the Hewitt Soap Co upon the Dayton area has been immense, its silent passing leaving a vacuum within the social and economic sectors of the local community.”
  • John Patterson’s work at NCR, as published in a Forbes Magazine article in 1918. The title of the article is, “How the National Cash Register Company’s Founder Makes Workers Happy and Efficient”
  • An interesting diary entry telling what Dayton was like in 1840 — written by Michael Ohmer in 1901.

There is a ton of interesting material on this site and I plan to return often. There is an extensive message forum that has good discussions about specific questions about Dayton history.

Here is what the site says about itself: “Curt Dalton, a local author who has written several books about Dayton’s history, saw a need to make books and other materials about Dayton available to children and the general public. He knew that the material had to be in a format that could easily be read and searched, to enable visitors to use the information in homework and personal projects. What better way than through the world wide web?

“On October 24, 2004 ‘Dayton History Books Online’ opened with a list of twenty books and booklets that could be read, searched and printed out. As of February 1, 2009 there are 327 books/booklets/articles available online, consisting of 13,329 pages of text, with more added every month. A new feature, called Dayton Speaks, has 47 audio oral histories that can be listened to online. We also celebrate having over 1.8 million hits on the site! Though the site is really only a hobby of Curt’s that’s gotten out of hand, through the collaboration of local libraries, universities, archives, businesses and individuals, he hopes to make accessible online as many historical publications about Dayton as he possibly can. You can contact him at cdalton@woh.rr.com if you have any questions.”

Here is a 1930’s video showing the famous roller coaster at Lakeside Park:

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Henry Giroux: President Obama Must Address The Plight of Poor Children

A thoughtful article in Truthout today written by Henry Giroux, Locked Out and Locked Up: Youth Missing in Action From Obama’s Stimulus Plan, says, “Children have fewer rights than almost any other group, and fewer institutions protecting these rights.”

Giroux writes, “The notion that children should be treated as a crucial social resource … appears to be lost,” and asks, “What is one to make of a society marked by the following conditions:

  • Almost 13 million children in America live in poverty – 5.5 million in extreme poverty.
  • 4.2 million children under the age of five live in poverty.
  • 35.3 percent of black children, 28.0 percent of Latino children and 10.8 percent of white, non-Latino children live in poverty.
  • There are 9.4 million uninsured children in America.
  • Latino children are three times as likely, and black children are 70 percent more likely, to be uninsured than white children.
  • Only 11 percent of black, 15 percent of Latino and 41 percent of white eighth graders perform at grade level in math.
  • Each year 800,000 children spend time in foster care.
  • On any given night, 200,000 children are homeless – one out every four of the homeless population.
  • Every 36 seconds a child is abused or neglected – almost 900,000 children each year.
  • Black males ages 15-19 are about eight times as likely as white males to be gun homicide victims.
  • Although they represent 39 percent of the US juvenile population, minority youth represent 60 percent of committed juveniles.
  • A black boy born in 2001 has a 1 in 3 chance of going to prison in his lifetime; a Latino boy has a 1 in 6 chance.
  • Black juveniles are about four times as likely as their white peers to be incarcerated. Black youths are almost five times as likely and Latino youths about twice as likely to be incarcerated as white youths of drug offenses.

Giroux writes, “Obama’s message of hope and responsibility seems empty unless he addresses the plight of poor white youth and youth of color and the growing youth-control complex. The race to incarcerate – especially youth of color – is a holdover and reminder that the legacy of apartheid is still with us and can be found in a society that now puts almost as many police in its schools as it does teachers, views the juvenile justice system as a crucial element in shaping the future of young people, and supports a crime complex that models schools for poor kids after prisons.”

Other excerpts:

  • Instead of being viewed as impoverished, minority youth are seen as lazy and shiftless; instead of recognizing that many poor minority youth are badly served by failing schools, they are labeled as uneducable and pushed out of schools; instead of providing minority youth with decent work skills and jobs, they are either sent to prison or conscripted to fight in wars abroad; instead of being given decent health care and a place to live, they are placed in foster care or pushed into the swelling ranks of the homeless. Instead of addressing the very real dangers that young people face, the punishing society treats them as suspects and disposable populations, subjecting them to disciplinary practices that close down any hope they might have for a decent future.
  • Children have fewer rights than almost any other group, and fewer institutions protecting these rights. Consequently, their voices and needs are almost completely absent from the debates, policies and legislative practices that are constructed in terms of their needs.
  • As the protocols of governance become indistinguishable from military operations and crime-control missions, youth are more and more losing the protections, rights, security or compassion they deserve in a viable democracy.
  • Rather than dreaming of a future bright with visions of possibility, young people, especially youth marginalized by race and color, face a coming-of-age crisis marked by mass incarceration and criminalization, one that is likely to be intensified in the midst of the global financial, housing and credit crisis spawned by neoliberal capitalism.
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