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Sep 17 2019

How the Latest State Budget Impacts Ohio’s Women and Working Families

Read the full analysis of the Ohio budget through a gender lens on the Ohio Women’s Public Policy Network’s website.

Ohio’s new two-year state operating budget brought numerous improvements for the livelihood of women, but that’s not to say there weren’t plenty of drawbacks and lack of action on key issues as well.

Progress was made to improve the quality of childcare in Ohio. But there’s more work to be done.

The new state budget allocates $198 million to improve the quality of Ohio’s publicly funded childcare system. This increase in funding will allow improvements in ensuring that workers within the childcare sector are paid fair wages, and will also help to facilitate professional development and facility improvements.  Where the budget falls short is allocating resources to increase the access and affordability of childcare. By increasing the accessibility of childcare, children would enter school well prepared, and parents would have the opportunity to participate in the workforce.  While the DeWine Administration stated that increasing eligibility for childcare was a policy priority, ultimately no funds were allocated to support this endeavor. 

After attempts to restrict access to Medicaid via the inclusion of the “Healthy Ohio” Program in the budget, Medicaid services were ultimately left unharmed.

The provision of the so-called Healthy Ohio Program would have required premiums to access Medicaid, which would have had crucial implications on women, who comprise more than half of Ohio’s Medicaid population. Medicaid has long been a lifeline for women, and the legislature’s decision to ultimately remove the “Healthy Ohio” language was crucial to protect access to the program.

Progress was made towards addressing wage theft, an issue that faces many working-class Ohioans, particularly women and people of color working in low-wage jobs.

When workers are paid less than they were contractually promised, it is known as wage theft. Whether it be through violation of minimum-wage laws, not getting paid overtime, or forcing an employee to work off-the-clock, Ohio clocks in with the second-highest amount of wage theft among the ten largest states. Additional funding was allocated to the Ohio Bureau of Wage and Hour to help address this issue.

The state budget also codified some policies that we expect to negatively impact Ohio women and working-class families. 

By continuing to support a business tax cut known by many public service advocates as the  “L.L.C. loophole,” Ohio loses out on about $528 million per year or $1.1 billion for the duration of every state operating budget where it remains intact. There is little evidence to suggest that this tax break for L.L.C.s has created any significant number of new jobs in the state. Ohio is missing out on billions of dollars of revenue that could have been allocated towards programs to address our school funding crisis, increase childcare assistance eligibility, or invest in a refundable Earned Income Tax Credit (which we’ll discuss in just a moment), to name only a few ways this money could be better spent. 

There were also some issues facing Ohio women and their families that the state budget failed to address, entirely. 

Ohio’s Earned Income Tax Credit remains non-refundable.

One of these crucial areas of inaction was the budget’s failure to make Ohio’s Earned Income Tax Credit (E.I.T.C.) refundable, a policy that would have given a major economic boost to low-income families across the state.

.@PolicyMattersOH led the charge to advocate for a refundable state #EITC during the state operating budget process.

Unfortunately, lawmakers did not answer the call, and Ohio’s state EITC remains non-refundable. #OHBudget — Women’s Public Policy Network (@OhioWPPN) September 10, 2019
Nationally, the E.I.T.C has been crucial in lifting working families out of poverty. However, it is not without its limitations here in the state. The greatest shortfall of Ohio’s state E.I.T.C. is that it is non-refundable. If this gap in anti-poverty policy had been addressed, the state budget would have been able to put money back into the hands of working families. 

Despite the 2020 Census being right around the corner, the bill allocated no funding towards planning or conducting a complete census count in the Buckeye state. 

About $33 billion dollars in federal funding rests upon the outcomes of the U.S. Census, which determines how those federal dollars are dispersed, state-by-state. Without a correct and complete count, the well-being of women and historically undercounted communities, populations which rely heavily on these federal grant dollars, are undermined.

No efforts were made to create a framework for statewide paid family leave. 

Paid family and medical leave policies allow workers to address the needs of their families or their own health without risking their financial health. Currently, only 17% of American workers have access to paid leave through an employer, but lawmakers made no effort through the state budget to increase those statistics here in Ohio… To learn more about the push to bring paid family leave in Ohio, check out the Women’s Public Policy Network’s Paid Leave Advocacy page on their website.   

Read the full analysis of the Ohio budget on the Ohio Women’s Public Policy Network’s website.

Written by Erin Ryan · Categorized: Democracy, Economic Development and Jobs, Gender Equity, Ohio State Budget, Paid Leave, Reports, Taxation, Winning Agenda · Tagged: Budget, earned income tax credit, Ohio, Ohio Budget, ohio wppn, State Budget, taxation, Taxes, women's public policy network, women's rights, Women's Watch

Feb 14 2019

Points to Consider In the Gas Tax Debate

The DeWine administration has raised the alarm about a looming structural deficit in Ohio’s transportation budget. By March 31, lawmakers must enact a two-year transportation budget, which could include new revenue to address the budget gap. Many are calling for a gas tax increase to make up for some or all of the shortfall. Before any solutions are enacted, it’s important for advocates to understand how Ohio currently pays for its transportation infrastructure at the state level so we may seek a solution that balances the needs of the system, its users and taxpayers.

What Progressives Should Know

  • Ohio’s Gas tax – a flat 28-cents per gallon – is low compared to our neighboring states, has not increased since 2005, and is not indexed for inflation.
  • While the miles Ohio drivers travel each year steadily increases, gas tax revenues are flat thanks to lower fuel consumption.
  • Ohio’s gas tax is shared with local governments according to a formula. A 1 cent increase in the state gas tax would generate around $43 million in additional revenue for ODOT, and $24 million to be divided up among counties, townships, cities and villages. 
  • Ohio is 11th in mass transit usage but 45th in state support, spending just $.67 per capita compared to $9 in Michigan and $86 in Pennsylvania. ODOT has estimated the state needs to be spending about $150 million per year on transit. The last state budget spent just $39.5 million on transit, $80 million below what the state itself says is needed.
  • Article XII of the Ohio Constitution limits the expenditure of gas tax revenue to the state’s highway and bridges – pedestrian, bike and transit infrastructure are unlikely to directly benefit from any increase that is passed.
  • The gas tax is regressive, meaning that low income people pay more taxes as a share of their income than people who earn more.

What Progressives should demand

  • A balanced solution that looks at a range of revenue sources to fix our immediate needs, and a commitment to look longer-term at the state’s transportation future with an eye toward a future less dependent on gas taxes
  • Incentives that decrease, not increase, the consumption of polluting fossil fuels
  • A multi-modal approach to moving people and goods that recognizes that transit, rail, air, bike and pedestrian infrastructure can all work to reduce congestion on our roadways
  • A less regressive tax system in which the system is funded by users according to both their system use and ability to pay
  • A commitment by state leaders to aggressively lobby the federal government to address the shortfall in the federal highway trust fund.
To keep up with the debate on Ohio’s transportation budget, follow us on Twitter and sign up for our weekly legislative newsletter.

Written by Terra Goodnight · Categorized: Featured Items, Front Page, Legislative Updates, Ohio State Budget, Statehouse Update, Taxation · Tagged: gas tax, transit, Transportation

Nov 15 2017

Senate Child Tax Credit Leaves Out Struggling Families

I wrote last week about the House tax plan to help working families with the cost of child care. At the time, I noted that the House plan leaves out 818,000 Ohio kids, while creating a brand new tax windfall to high-income families earning up to $300,000. The Senate announced its proposal today, and it somehow manages to be even worse.  The Senate plan would add $1,000 per child to the value of the Child Tax Credit, but like the House, makes the extra amount nonrefundable. As a result, the new credit cannot be claimed if a family has no tax liability, as is the case for a single parent earning minimum wage. Even middle-income families cannot enjoy the full $2,000 per child credit unless they owe at least that much in taxes. As noted before, approximately 818,000 Ohio kids are expected to see little or no benefit from the proposal because of its nonrefundability. Even as the plan leaves out families who are most in need, the Senate extends the credit to even more wealthy families. Today, the value of the credit begins to phase out for couples earning more than $110,000, but the Senate plan would allow families earning up to $500,000 to enjoy the full value of the additional tax savings. And the Senate changes are temporary. Families will see the value of the tax credit shrink starting in 2026, even while the corporate tax reductions will remain in permanent law. 

Written by Terra Goodnight · Categorized: Featured Items, Front Page, Taxation, Women's Watch

Nov 10 2017

House Tax Plan fails to deliver on affordable childcare promise

Since taking office, Donald and Ivanka Trump have often promised that tax reform would provide help to families struggling with the high cost of childcare. The GOP tax plan, released last week, falls far short and actually leaves many families with children worse off.
Note: This post refers to legislation currently pending in the US House of Representatives. A separate bill has been introduced in the Senate and varies slightly from the House version, notably by allowing families earning up to $1 million to claim the Child Tax Credit. The GOP tax plan, currently pending in the US House, would increase the child tax credit (CTC) for working parents from $1000 to $1600 per child. (Unlike deductions, which reduce the amount of income on which you are taxed, tax credits directly reduce the amount of tax you must pay). The existing credit is only partially “refundable”, meaning that families due a tax refund, or who owe less the amount of the credit, only get a fraction of its face value, not to exceed 15 percent of their income over $3000. As a result, families living in poverty are already less likely to benefit than those in the middle class. The additional $600 in the GOP plan is not refundable. Families with no net tax liability (e.g. a single mother working at minimum wage) will see absolutely no additional benefit. At the same time, the plan allows married couples earning as much as $230,000 to receive the full value of the credit, a big increase from today’s $110,000 income limit.
Source: Center on Budget and Policy Priorities
The expanded CTC does not grow over time, so each year it will lose value relative to the ever-increasing cost of child care. The bill also adds a $300 credit for each parent and non-child dependent in a household, but that provision phases out in five years and is also non-refundable, again meaning that its benefit will go primarily to middle to upper income earning families. Combined, these two factors are the reason most analysts show that any tax reduction enjoyed by working families turns into a tax increase within a few years:
Source: David Kamin, How a Tax Cut Turns Into a Tax Increase, 11/2/17
According to a new analysis, the increased child tax credit would provide no relief to the parents of 388,000 Ohio kids, and provide only a fraction of the full benefit for another 430,000 kids in the state. In its plan, GOP leaders ignored Ivanka Trump’s proposed solution, crafted with Sen. Marco Rubio, to increase the child tax credit to $2000 and make it fully refundable. That change could have made a small yet meaningful difference for families struggling to pay the cost of childcare, which in Ohio averages over $11,000 per child. Upon its introduction, Marco Rubio took to Twitter to say the extra $600 does not achieve the President’s goal of helping working families. We agree. When taken in combination with other changes in the GOP plan, working families are likely to be much worse off. While doubling the standard deduction, the bill also eliminates a number of exemptions and deductions that families currently enjoy including a $4050 per family member exemption, as well as deductions for student loan interest, adoption expenses, state and local income taxes and out-of-pocket medical costs. Families with multiple children, or high expenses in one or more of these categories (beyond the amount of the increased standard deduction) are likely to pay more under the GOP plan.
Bottom Line: over time, the GOP proposal to raise the CTC could still mean a tax increase for low-income families, little to no benefit for families in the middle, and a sizable new tax cut for families earning $110,000 to $230,000.
 

Written by Terra Goodnight · Categorized: Featured Items, Front Page, Taxation, Women's Watch

Oct 05 2017

Today’s House budget vote sets up huge cuts, tax breaks

Today, the US House of Representatives will debate and vote on a 2018 Budget Resolution (H. Con Res. 71) that sets the stage for trillions of dollars in cuts to programs people rely on, in order to lay the groundwork for a massive tax cut for the wealthy and corporations. Like its 2017 predecessor which made it possible to repeal the Affordable Care Act with just 50 votes, the 2018 budget resolution similarly containes “reconciliation” instructions that will allow Congress to come back any time in the next year and enact tax breaks and spending cuts with a slim majority of Senators. The House Budget resolution incorporates the same ACA repeal measure that the chamber passed earlier this year – a package which would cause 23 million to lose their health care, eliminates the Medicaid expansion but also caps the traditional Medicaid program at the expense of children, seniors and people with disabilities. The resolution goes even further, however, and makes cuts to Medicare, environmental protection, Pell Grants, student loans, food assistance and many other programs American families depend on for their health, safety and economic security. In total, the package cuts $5.8 trillion from vital programs so that it can later be spent on huge tax breaks for a narrow minority of wealthy individuals and corporations.

Call your Representative today at 1-888-516-5820 and tell them to vote NO on this dangerous budget. 

Written by Terra Goodnight · Categorized: Featured Items, Front Page, Healthcare and Human Services, Taxation

Feb 15 2017

Budget Continues Trend Toward Regressive Tax System, Asks Poorest to Pay More

Last month, Ohio Gov. John Kasich unveiled his last two-year budget proposal, featuring another large cut in the state income tax — $3.1 billion — paid for with new and increased taxes on everyday purchases like cable TV subscriptions, beer, wine, and increased taxation of oil and gas extraction. This is not the first time Kasich has proposed cutting the state income tax — the state’s most progressive tax. The tax is designed so those at the top income level pay the highest rate. The state’s estate tax on inherited wealth was eliminated completely in the Governor’s first budget. Over the past 12 years, Ohio has already reduced tax collections by over $3 billion thanks to repeated cuts to the income tax. Taxpayers in the top 1% of income-earners are keeping an additional $17,500 in their bank accounts every year as a result of Kasich tax policy, and his latest proposal would bring that annual benefit to over $20,000. While $20,000 is still not enough to create one good-paying job, even if you believed that’s how the money would be spent, it is foregone revenue to the state that could be investing it in priorities that really matter. People with low-incomes spend much of their income on things that are taxed. As a result, they pay a much larger share of their income on taxes in states with regressive tax systems that rely heavily on sales taxes to fund state spending. According to the Institute on Taxation & Economic Policy, the poorest 20% of Ohioans pay nearly 12 percent of their income on state and local taxes, compared to just 5.5% paid by the top 1%. We crunched the numbers, and here’s how dramatic the shift has been over the span of the four Kasich budgets: tax_shift_blog Combined, the state’s income and estate taxes have declined from about 46% of state general revenue to just under 30%. At the same time, sales taxes have increased from 43% to over 50%, now picking up the largest share of the cost of state government. share of GRF      

Written by Terra Goodnight · Categorized: Featured Items, Ohio State Budget, Taxation

Feb 13 2017

The Week Ahead at the Ohio Statehouse: Feb. 13, 2017

Happy Monday! It looks to be a busy week at the Ohio Statehouse, with continued hearings on the state budget (see our coverage of that here) while committees work to advance a range of important–and in some cases, dangerous—legislation. Week Ahead
Here are a few things to watch this week and a call to action:
Budget hearings continue this week. The state transportation budget takes center stage, while committees get to work on hearings about state agency funding requests. We continue to encourage you to call your State Representative and let them know which critical needs the state should be funding instead of $3.1 billion in income tax cuts that primarily benefit the wealthy.
The House has put House Bill 36, the so-called “Pastor Protection Act” on the fast-track for passage. HB36 supporters claim the bill will “protect pastors and churches” from participating in any marriage to which they have a religious objection. While there is no evidence that any member of clergy has ever been forced to perform a wedding against their will–both the Ohio and US Constitution already grant this type of religious freedom–the sponsor says the bill is necessary to avoid the hypothetical possibility of lawsuits. Opponents have noted that the bill’s very broad language could have unintended consequences leading to further discrimination.
On Wednesday, the Community and Family Advancement Committee will hold what may be the only hearing featuring testimony from opponents. Anyone wishing to speak against HB36 must submit written testimony by 4pm Tuesday to the Chair’s office. The hearing will be held in Room 114 of the Statehouse, and is open to the public.
Call to Action

Call Speaker Rosenberger and your State Representative at 1-800-282-0253 and ask them to oppose HB 36, legislation which is unnecessary and could have harmful unintended consequences.

Attend the hearing on Wednesday at 4 in room 114 to send a strong message of opposition.

If you are a faith leader, testify in committee or send a statement by 4pm Tuesday to Rep05@ohiohouse.gov.

State Representative Bill Seitz has introduced House Bill 2, which would limit legal remedies for Ohioans experiencing employment discrimination. Among its provisions, HB2 prohibits lawsuits against individual managers and company officials who engage in sexual harassment, discrimination or retaliation. Taking individual employees off the hook could render Ohio’s anti-discrimination law completely unenforceable. The bill will be heard Tuesday at 1:30 in the House Civil Justice Committee.
On Wednesday, Sen Uecker will testify on Senate Bill 28, his proposal to mandate cremation or burial of aborted fetal remains. The bill is a response to a [bogus] video alleged to show Planned Parenthood engaging in the sale of fetal remains, something that investigations—including one by Ohio Attorney General Mike DeWine—found to be untrue. This unnecessary and costly requirement would be another in a long list of efforts to create undue burdens on women exercising their constitutional right to terminate a pregnancy. SB28 gets its first hearing in the Senate Government Oversight & Reform committee on Wednesday at 9:45 a.m.
In more encouraging news, House Bill 1, a bipartisan proposal to address disparities in the handling of domestic violence cases involving unmarried intimate partners, will also be heard in committee this week. HB1 would allow victims of dating violence to seek court-issued protection orders and access to shelter facilities. The hearing takes place on Wednesday at 4pm in the House Civil Justice Committee.

Written by Terra Goodnight · Categorized: Featured Items, Front Page, Legislative Updates, Ohio State Budget, Statehouse Update, Taxation, Women's Watch

Feb 03 2017

Kasich Budget Reveals Misplaced Priorities

This week we got our first look at Governor Kasich’s final two-year budget. Budgets, which govern all state spending for two years, are one of the main ways the executive sets forth his or her priorities for governing. These massive proposals contain not just funding for programs and services, they include a wide array of changes in law. On the whole, Kasich’s budget is decidedly lacking in bold investments. The one objective the Governor appears to have prioritized was further lowering the state’s income tax rates. But while the Governor found billions for a tax cut that primarily benefits the wealthy, no similar investment was proposed to solve the state’s many crippling problems, such as our opioid crisis, crumbling infrastructure and schools.

$3.1 Billion Tax Plan

Kasich’s plan would cut income tax rates across the board and reduce the number of tax brackets. As a result, people making $200,000 and those making $1 million would pay the same tax rate — 4.33%. To cover the $3.1 billion expense, Ohio’s sales tax, oil & gas severance tax, cigarette tax, and beer and wine taxes will go up, and Ohioans will be asked to pay new taxes on cable subscriptions, yard work and home redecorating, among other things. The Dispatch estimates the average Ohioan would pay $4 less as a result of the changes, but the burden of paying for government programs will continue its shift from rich to poor.
NEWS COVERAGE
Columbus Dispatch: Lawmakers warm to only part of Kasich’s tax plan Cleveland.com: Sales taxes would climb, apply to cable, cosmetic surgery, under Gov. John Kasich’s budget Columbus Dispatch: Districts that have lost students face cuts under Kasich plan Cincinnati Enquirer: Tuition freeze, cheaper textbooks in Kasich’s budget
EDITORIAL OPINION
Akron Beacon Journal:  Out of balance, or how the governor‘ s budget plan misses the point

What’s Next?

Today the Governor’s budget proposal goes before the House Finance Committee, who will spend the next month or two holding hearings and making changes before it goes to the Senate.
TAKE ACTION
Want to do your part to advocate for budget policies that actually help? Here are a few things you can do today: Read the budget materials released by the administration. Watch testimony by Budget Director Tim Keen, today at 1pm on OhioChannel.org. Call the office of House Finance Committee Chair Ryan Smith at (614) 466-1366 and ask to received email notifications when Finance committee hearings are scheduled. Contact your State Representative and let them know what priorities they should fund instead of providing another income tax cut that mainly helps the rich. Follow us on Twitter and Facebook.

Written by Terra Goodnight · Categorized: Featured Items, Ohio State Budget, Taxation

Jan 27 2017

IO on the Budget: Ohio Shifts Tax Burden From Rich to Poor

On Monday, Governor Kasich will unveil his last two-year budget proposal. While details are not yet available, Kasich has said he would like to continue to lower the income tax, paid for by raising the sales tax. If Kasich moves in this direction, it would not be the first time he has proposed cutting the income tax — the state’s most progressive tax, designed so those at the top pay the highest rate — and paying for it with increases in the highly regressive sales tax. Why are sales taxes regressive? People with low-incomes spend much of their income on things that are taxed. As a result, they pay a much larger share of their income on taxes in states with regressive tax systems that rely heavily on sales taxes to fund state spending. According to the Institute on Taxation & Economic Policy, the poorest 20% of Ohioans pay nearly 12 percent of their income on state and local taxes, compared to just 5.5% paid by the top 1%. We crunched the numbers, and here’s how dramatic the shift has been in just six years: shares_taxes2 Since Kasich took office, the two lines — representing the share of the total cost of funding state government programs — have crossed paths, with the amount contributed via progressive income taxes declining from 44% to 35%. At the same time, regressive sales taxes have steadily increased, from 43 to 46%, and now pick up the largest share of the cost of state government programs. We’ll be back here Monday with a first look at the Kasich budget for fiscal years 2018-2019.

Written by Terra Goodnight · Categorized: Featured Items, Ohio State Budget, Taxation

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