SLFRF-2025-Recovery-Plan-Performance-Report_Monica-Morton

City-Of-Cincinnati-Ohio_2024-Recovery-Plan_SLT-1806

 

The city council covered a lot of ground about the city’s current and future finances during their two December meetings. The narrative about the projected $30 million budget deficit and the open talk about an earnings tax increase signal where the city government is headed – an earnings tax increase.

The narrative incudes repeated references to how the city no longer has COVID money. “Oh no! What are we going to do without COVID money?”  “I guess we just have to raise taxes. Isn’t it obvious?” At least that is what the politicians will likely be saying.

Keep in mind that, according to the mayor, the city has recovered from COVID. It is one of his major accomplishments. Presumably, that means that all the lost revenues experienced during COVID, are once again filling the city’s coffers.  Since the primary purpose of ARPA funds was “revenue replacement,” that must mean that the problem is solved. COVID money is no loger needed anyway, right?

Also, most people are under the impression that the city received ARPA money based on how much revenue the city was projected to lose as a result of COVID. But that is not how it worked. The ARPA funding was formula based. I haven’t looked at the formula itself, but formula funding is much easier to distribute and less strict about its use. Chances are that the ARPA funding was greater than needed to cover eligible costs and as a result, there was new or extra spending that occurred with COVID money.

So, we need to examine exactly what the city did with our COVID money.  How much of the COVID spending was “a must have” and how much was “nice to have.” The city was required to file annual reports with the federal government about its use of ARPA money. The 2024 and 2025 reports are posted above.

We will be examining the COVID funding issue and reporting back soon.  My sense is that our examination will provide greater clarity, at least for this part of the politicians’ (and the Cincinnati Futures Commission) “tax increase narrative.”

On December 28, 2025, I posted the following update about the city’s 2025 Covid report:

FB 12.28.25 Update about City Covid Report

When was the last time you heard anyone in City Hall criticizing the academic work of the University of Cincinnati for ANYTHING? And on top of that, have at least two members of city council cheering about it? Probably never before.

Well, that is what took place at the December 8^th meeting of city council’s Budget and Finance Committee. The city’s new Finance Director essentially trashed the quality of UC’s economic forecasting and reported that he has instead brought economic forecasting “in-house.”   And you had Councilmembers Cramerding and Jeffreys crow about how great it is that the city has dumped UC.

That was it. No explanation of what the “dissatisfaction” withthe economic forecasting of our university was all about. Obviously, behind the scenes they all talked about it and decided the public did not need to know any more than that. I guess it is none of our business? I wonder what UC thinks about what was said?

I thought it was so outrageous that I’ve written to the Finance Director with a few questions (with a copy to the head of UC’s Economics Center).

In episode 41 of “Citizen Watchdog with Todd Zinser,” which is in the works, we are going to connect the dots about how bringing economic forecasting, in-house, is related to the projected deficit and the future “revenue enhancements,” e.g. tax increases, which were also mentioned quite matter-of-factly by the Finance Director .

UC’s Income Tax Forecast 2020 -2026 ; the Tentative Tax Budget presentation: and the email to the Finance Director follow:

UC’s Income Tax Forecast FY2022-2026

 

Presentation Tentative Tax Budget

 

Email to Finance Director 12.19.25

 

I am including this case in my research library in the folder,” That’s Where the Money Is.”  The folder is a collection of cases of local public corruption from across the U.S.

This case involves the Minneapolis Chamber of Commerce which is not a local government but these days the line between government and non-profit organizations is becoming more and more blurred, especially here in Cincinnati.

Moving forward, we will be including reports about fraud involving non-profits in the folder.

In this case, the guy was very, very greedy. Most embezzlers have some human condition such as gambling or drug addiction, substantial debt, or the need to finance an extramarital affair, or some other secret life. This guy was making $275,000 a year but felt the need to embezzle another $213,000 to fund an even more privileged lifestyle.

He used 5 different embezzlement schemes over the course of several years. which is extraordinary.

By my count, Cincinnati grants funding to almost 200 non-profits (including 2 local Chambers of Commerce) with little or no oversight. As I have stated previously, in my view, the city’s practice of funding so many nonprofits is a high risk for fraud.

 

District of Minnesota _ Former President and CEO of the Minneapolis Regional Chamber of Commerce Pleads Guilty to Fraud _ United States Department of Justice

 

 

Lead_Investigation_Report_9.15.2025

 

I received the GCWW’s lead pipe investigative report today along with many other documents. I have not yet reviewed all the documents but I did review the report. The link above will take you to the report. As soon as I review the other documents, they will also be posted here.

Unfortunately the investigation was a Human Resources matter, i.e. employee disciplinary matter and not a investigation of the entire program. But there is still enough information in the report to trigger important follow up.

My initial take is that the management failures seem more significant than any financial loss or possible criminality of an employee or employees. I think you will see what I mean if you read the report.

Also, the report has a number of gaps that I picked up. There may be more.

1. The report does not say whether anyone has checked the copper inventory. It is like they checked the piggy (lead) bank and not the cash (copper) drawer. If the lack of controls for the copper replacement lines are even half as bad as they are for lead, they need to check the copper inventory ASAP.
2. There is no indication that they are tracking down any of the scrapped lead.  Even the primary attorney conducting the interviews emphasized the seriousness of the improper handling.
3. Also, if the mishandling of the scrap lead does trigger a reporting requirment to the State and the EPA, there is no indication in the report that any reports have been made.

Maybe the other records will answer these and other questions. I hope to get through them soon.

WA public records guidelines may get revamp _ The Seattle Times

 

There is a universal truth: The people inside the government want the people outside the government to only know what they want them to know, unless greater disclosure is compelled, or is likely to be compelled, by a judge.

If you read Beryl Love’s July 1 ,2025 column, he reported that this past summer, in this year’s budget bill, the Ohio legislature made “text messages and emails between lawmakers and their staff exempt from public records request.” My sense is that the law is not that broad and, in any event, does not appear to apply to city councils. Could you imagine? It is bad enough as it is.

If you remember, the “Gang of Five” was uncovered as a result of a public records request for text messages of city council members by a citizen.

I try to keep up with news about Seattle’s government since I have family that live there. It is happening there as well. But people there are putting up a fight against further exempting public records from disclosure.  Good for them.