Throughout the process of trying to balance the budget, the Administration has continued to demand increased revenue with little or no conviction, to cut costs. Numerous times, the Mayor has gone back to Council demanding increased taxes and fees to supplement the budget. He has threatened to layoff police officers and after issuing pink slips, gone back to Council demanding more revenue. We are now 4 full months into a year in which it was well recognized there was a budget deficit. We are now at crunch time and to save the 150 police from being laid off, the Mayor again has gone to Council demanding more revenue.
We sit poised, waiting for their decision at the meeting this evening. What will they do, allow the layoffs? Increase the refuse fee? Cut the reciprocity?
Is there a grand scheme in all this? Well, here is a theory worth considering.
1. Whether Carty runs again or not, he intends to be a force in the political scene of Toledo.
2. He has always had the support of the fire and police unions. To stay politically powerful, he needs their continued support.
3. The only way to balance the budget is to increase revenue or cut spending. To cut spending effectively, he must negotiate down the contracts with the police and fire and do away with the extremely generous packages which he gave them previously.
4. If he cuts their benefits, he would lose their support.
How can he maintain the police and fire support and still balance the budget?
1. Give the pretense of negotiating contracts
2. Give the pretense of cutting costs
3. Delay the process to the last possible moment to increase the fear
4. Plan to layoff a ridiculous number of police to scare the electorate
5. Plan to layoff a ridiculous number of police to force Council to increase revenue to ensure this does not happen
Would the Mayor do this? Sadly, I believe he has.
Tuesday, April 28, 2009
Monday, April 27, 2009
Lucas County and Regionalism
There is much talk of regionalism, the advantages, the need, the importance for growth. Those who so often profess the need for regionalism could create true regionalism in Lucas County.
Due to the imbalance of population in Lucas County, it is virtually impossible for the surrounding communities to elect a County Commissioner; our three Commissioners always end up being Toledoans.
With true regionalism, the outlying communities would have a Commissioner represent them in Lucas County and by so doing; we would see a growth of new ideas and opportunities.
It’s time to begin the process in sincerity by Districting Lucas County in a way to give regional representation to the county. I suggest the following:
· County Commissioner pay be reduced to $60,000 per year
· Lucas County be split into 4 districts as noted on map:
· Districts 1, 3, and 4 each have 1 Commissioner
· District 2 (Toledo) would have 2 Commissioners
By implementing Districts for Lucas County, we will open the door and invite true regionalism. We need representatives from our successful Lucas County communities.
Due to the imbalance of population in Lucas County, it is virtually impossible for the surrounding communities to elect a County Commissioner; our three Commissioners always end up being Toledoans.
With true regionalism, the outlying communities would have a Commissioner represent them in Lucas County and by so doing; we would see a growth of new ideas and opportunities.
It’s time to begin the process in sincerity by Districting Lucas County in a way to give regional representation to the county. I suggest the following:
· County Commissioner pay be reduced to $60,000 per year
· Lucas County be split into 4 districts as noted on map:
· Districts 1, 3, and 4 each have 1 Commissioner
· District 2 (Toledo) would have 2 Commissioners
By implementing Districts for Lucas County, we will open the door and invite true regionalism. We need representatives from our successful Lucas County communities.
Sunday, April 26, 2009
Letter to Gov. Strickland, Charter Schools, #2
I emailed you on April 14th, regarding Charter Schools. Our grandson received horrible treatment by teachers in the Toledo Public School system and no one cared. As a result, he was enrolled in a Charter School, Wildwood Environmental Academy and has excelled. My question was this: why is he worth less to the state of Ohio than a child enrolled in public school? I did not receive a reply to this question.
I now have a second question, have you visited any of the Charter Schools to see first hand why parents choose to enroll their children in an alternative educational program? I would like to invite you to visit Wildwood and see how much they accomplish with so little funding. Our Grandson will attend Knight Academy next fall. It is operated by St. Francis DiSalle. I extend an invitation for you to visit the school he will attend next year. This would be an eye opener for you and your staff if you were will to visit with an open mind. Please advise when you would like to visit, I will contact the schools and make the arrangements for you.
I await your replay and acceptance of this offer. In Toledo, your biased opinions are affecting 3000 children.
I now have a second question, have you visited any of the Charter Schools to see first hand why parents choose to enroll their children in an alternative educational program? I would like to invite you to visit Wildwood and see how much they accomplish with so little funding. Our Grandson will attend Knight Academy next fall. It is operated by St. Francis DiSalle. I extend an invitation for you to visit the school he will attend next year. This would be an eye opener for you and your staff if you were will to visit with an open mind. Please advise when you would like to visit, I will contact the schools and make the arrangements for you.
I await your replay and acceptance of this offer. In Toledo, your biased opinions are affecting 3000 children.
Thursday, April 23, 2009
Tough Decisions in Tough Times
This is a difficult time in Toledo and City Council has many tough decisions to make. How can you balance the budget effectively and prepare for the future of Toledo.
Regardless of the decisions made, votes taken and outcome, it is essential to acknowledge the sincere, honest effort each Council representative puts into the decisions made. Thank you for all your hard work on behalf of the residents of Toledo in such a stressful time.
I offer the following…
Increasing revenue through additional taxes, fees, or assessments may, in the very short term, solve the issue; however, in the long term, it will further alienate residents and businesses and continue the exodus from Toledo.
What are the alternatives?
First, and foremost, reducing the police force by 150 is surreal, unacceptable and irresponsible. There are 3000 employees in Toledo and for a division of 650 to lose 20% of their staff is unimaginable and unreasonable. If the Federal Government is allowing the funds for 40 police officers, why then are the cuts necessary.
The Mayor is taking this approach for 2 reasons, one to force concessions from the Unions and (2) to force Council to bend in his direction of continuing increases in taxes, assessments and fees. Don’t weaken and don’t yield. He is wrong, if he threatens until hell freezes over, he is still wrong.
If 150 more must be cut, take them from unessential services. There are private organizations, which would take on the recreation services and many other services the city now pays to provide. Utilize the private sector.
The Unions are saying they are trying to negotiate the contracts, but also are saying the will not offer concessions. Concessions are not an option they are an essential necessity. The contracts need to be more in line with the private sector. It is a bitter pill to swallow as it was for those of us who work in the private sector and had to also swallow that pill, but that is the medicine needed to fix this economic epidemic. Don’t look for more revenue you must require responsible contracts.
If staff has been cut to 32 hours per week, if refuse collection crews have cut routes and overtime by the rolling pickup schedule, and our employment rate is only 5% higher than the low of 7.5% in 2005, it does not seem possible the gap in the deficit is as great as the Mayor suggests. What has been offered to prove the deficit amount?
Before jumping into privatization of refuse collection, carefully check the numbers. In February, I provided a study of the cost of private companies versus city service and it does not bear out a savings. The study was prior to the changes in crew sizes, changes in routes and rolling schedules (which I consider long overdue).
I DON’T BELIEVE IT!
The budget which is reviewed in a PDF file can be provided by the treasurer in an excel spreadsheet which could easily be assessed and used to determine what is causing the gap. Request and .xls format you can analyze. If you already have one, please forward so I can review. I would like to do a study of the data.
In the end, when the economy improves and one reflects on this very difficult time, I ask this: if the fire protection fee reimbursement ordinance passes, if the refuse fee increase passes, if reciprocity is cut, and city government sees the income continue from these sources, will they continue or will they be discontinued. As with the ¾% temporary tax, the revenue will be used and become necessary. But what then, will we lose more residents due to the increased cost and will we lose more businesses, as more fines, taxes and assessments are set? Will our home insurance rates be increased to cover the decision by Council to bill back the charges for fires and other fire department services?
Why do we pay income tax? When will Toledoans see relief?
Suggestion: Go back about 15 years, 30 years and 45 years and look at a budget and what services were offered in those years. Compare the services and see what changes can be made. I finally realized that so many services we offer in the City started out as a very nice program provided by the private sector and non-profits and seemed like such a good idea, the City took over the programs. We can no longer keep absorbing all the programs that seemed so valuable. Even something as small as the Easter egg hunt… any church in a neighborhood offered egg hunts, why in the world did the City support one also? The church on Strayer Rd. dropped 20,000 eggs from a helicopter!!! Why did the City even consider do an egg hunt? Not only was it a waste of our funds, but also of personnel, printing and advertising.
In this difficult time, get back to basics, police, and fire and refuse collection. These three budget items are first and always attacked in a budget crunch with the intent to frighten residents and Council into compliance to the will of the Mayor. Be tough, be firm and be careful.
With sincerity, I offer thanks for your willingness to represent us in such a difficult environment.
Regardless of the decisions made, votes taken and outcome, it is essential to acknowledge the sincere, honest effort each Council representative puts into the decisions made. Thank you for all your hard work on behalf of the residents of Toledo in such a stressful time.
I offer the following…
Increasing revenue through additional taxes, fees, or assessments may, in the very short term, solve the issue; however, in the long term, it will further alienate residents and businesses and continue the exodus from Toledo.
What are the alternatives?
First, and foremost, reducing the police force by 150 is surreal, unacceptable and irresponsible. There are 3000 employees in Toledo and for a division of 650 to lose 20% of their staff is unimaginable and unreasonable. If the Federal Government is allowing the funds for 40 police officers, why then are the cuts necessary.
The Mayor is taking this approach for 2 reasons, one to force concessions from the Unions and (2) to force Council to bend in his direction of continuing increases in taxes, assessments and fees. Don’t weaken and don’t yield. He is wrong, if he threatens until hell freezes over, he is still wrong.
If 150 more must be cut, take them from unessential services. There are private organizations, which would take on the recreation services and many other services the city now pays to provide. Utilize the private sector.
The Unions are saying they are trying to negotiate the contracts, but also are saying the will not offer concessions. Concessions are not an option they are an essential necessity. The contracts need to be more in line with the private sector. It is a bitter pill to swallow as it was for those of us who work in the private sector and had to also swallow that pill, but that is the medicine needed to fix this economic epidemic. Don’t look for more revenue you must require responsible contracts.
If staff has been cut to 32 hours per week, if refuse collection crews have cut routes and overtime by the rolling pickup schedule, and our employment rate is only 5% higher than the low of 7.5% in 2005, it does not seem possible the gap in the deficit is as great as the Mayor suggests. What has been offered to prove the deficit amount?
Before jumping into privatization of refuse collection, carefully check the numbers. In February, I provided a study of the cost of private companies versus city service and it does not bear out a savings. The study was prior to the changes in crew sizes, changes in routes and rolling schedules (which I consider long overdue).
I DON’T BELIEVE IT!
The budget which is reviewed in a PDF file can be provided by the treasurer in an excel spreadsheet which could easily be assessed and used to determine what is causing the gap. Request and .xls format you can analyze. If you already have one, please forward so I can review. I would like to do a study of the data.
In the end, when the economy improves and one reflects on this very difficult time, I ask this: if the fire protection fee reimbursement ordinance passes, if the refuse fee increase passes, if reciprocity is cut, and city government sees the income continue from these sources, will they continue or will they be discontinued. As with the ¾% temporary tax, the revenue will be used and become necessary. But what then, will we lose more residents due to the increased cost and will we lose more businesses, as more fines, taxes and assessments are set? Will our home insurance rates be increased to cover the decision by Council to bill back the charges for fires and other fire department services?
Why do we pay income tax? When will Toledoans see relief?
Suggestion: Go back about 15 years, 30 years and 45 years and look at a budget and what services were offered in those years. Compare the services and see what changes can be made. I finally realized that so many services we offer in the City started out as a very nice program provided by the private sector and non-profits and seemed like such a good idea, the City took over the programs. We can no longer keep absorbing all the programs that seemed so valuable. Even something as small as the Easter egg hunt… any church in a neighborhood offered egg hunts, why in the world did the City support one also? The church on Strayer Rd. dropped 20,000 eggs from a helicopter!!! Why did the City even consider do an egg hunt? Not only was it a waste of our funds, but also of personnel, printing and advertising.
In this difficult time, get back to basics, police, and fire and refuse collection. These three budget items are first and always attacked in a budget crunch with the intent to frighten residents and Council into compliance to the will of the Mayor. Be tough, be firm and be careful.
With sincerity, I offer thanks for your willingness to represent us in such a difficult environment.
Wednesday, April 22, 2009
Fire Protection, Insurance and Another Money Grab
I'm mad as hell and don't want to take it anymore. This is insane. Has Mike Craig never purchased house insurance? When we purchase home insurance, a portion of the decision of the rate is based on whether your community provides fire protection and they even ask how far from your house is a hydrant located. If close and the community provides fire protection, the rate is lower. Absolutely, if the insurance companies start getting billed for the service we pay taxes to provide, the insurance companies for everyone in Toledo will be raised to cover the cost.
I am so sick and tired of this I would like to scream. Have the guts to renegotiate the contracts, cut services temporarily in non-essential areas and move forward when the economy improves. By the time the fire department starts seeing the little bit of revenue from this money grab, the economy will have improved.
Dumb... dumb and dumber!
I am so sick and tired of this I would like to scream. Have the guts to renegotiate the contracts, cut services temporarily in non-essential areas and move forward when the economy improves. By the time the fire department starts seeing the little bit of revenue from this money grab, the economy will have improved.
Dumb... dumb and dumber!
Sunday, April 19, 2009
Thursday, April 16, 2009
Trash Tax and Class Action
To all in Toledo, if the Trash Tax is deemed unconstitutional by the courts (will take about another 2 to 3 years) would you want a refund? Or would you say, "gee, the City stole that money from me, it was not legal, but they need to keep the money, I don't want a refund". How many of you go back to the checkout at the store when they charge you too much for an item? Well, if you want a refund if the tax is deemed unconstitutional, you need to fill out and mail a protest form... today! If you do, let us know so we can keep a list to join you in the class action. Here is a link to the form: TRASH TAX PROTEST
Then email and advise you protested: TRASHTAX@GMAIL.COM
Then email and advise you protested: TRASHTAX@GMAIL.COM
Letter to Gov. Strickland, Charter Schools
Well, to send an email to Governor Strickland, one must plough through the State of Ohio website, then fill out a form, then "submit" the email. When finished, you have no record of sending the email. I find this appalling that there is no email address for the Governor to send from your personal email. Anyway, I wanted to copy the Governor on the email regarding charter schools. It was sent to every Ohio Senator and Ohio Representative (excluding Teresa Fedor - her only concern is the Teacher's Union). Did anyone else catch the report on MSNBC about Charter Schools... Ohio was referenced along with Governor Strickland's intention to cut spending for students of Charter Schools. We hit the national news again.
This is the email sent to the Governor:
Dear Gov. Strickland,
The following email was sent to every State Senator and State Representative excluding Senator Fedor as I know she opposes Charter Schools in any format. I am beginning to believe you, as Governor, are more concerned with protecting the teacher's union that advancing the education of our children. I would be amazed if you ever visited a Charter School. By the way, you met our Grandson by chance at McDonalds in Maumee, OH. He also was stuck in the ruling of no free weather days and wrote you a letter about it. I was disappointed at the reply, it was a canned "no answer" reply, he deserved better. Here is the email I sent:
I don't understand the thought process on Charter Schools by Governor Strickland who professes to be concerned with the education of our children. Why is a child who attends a charter school worth less to the state than a child in a public school? Or is the funding a way to destroy charter schools and end the threat of competition to public school systems within the state. President Obama recognizes this is the only hope we have of improving our schools systems, if the charter schools are squelched and choice is removed from parents essentially forcing placement in substandard public schools, we will continue on the road to complacency. A child in a charter school does not take one cent from public schools, rather the money follows the child. This is disgraceful.
I speak from experience which was bitter and painful as I watched our bright, delightful grandchild tormented and abused in first and second grade in public school and no one cared. He has blossomed, grown and flourished in the Charter School program. The teachers and administrators respond to concerns by listening and with caring. They offer suggestions and accept recommendations leaving behind the hidden agenda of protecting the school system and not the child.
I ask again, why is this child worth less (or shall we say "worthless) to the State of Ohio because he attends a charter school. Protect the choice of school selection and equalize the funding for charter schools.
I'm very displeased
This is the email sent to the Governor:
Dear Gov. Strickland,
The following email was sent to every State Senator and State Representative excluding Senator Fedor as I know she opposes Charter Schools in any format. I am beginning to believe you, as Governor, are more concerned with protecting the teacher's union that advancing the education of our children. I would be amazed if you ever visited a Charter School. By the way, you met our Grandson by chance at McDonalds in Maumee, OH. He also was stuck in the ruling of no free weather days and wrote you a letter about it. I was disappointed at the reply, it was a canned "no answer" reply, he deserved better. Here is the email I sent:
I don't understand the thought process on Charter Schools by Governor Strickland who professes to be concerned with the education of our children. Why is a child who attends a charter school worth less to the state than a child in a public school? Or is the funding a way to destroy charter schools and end the threat of competition to public school systems within the state. President Obama recognizes this is the only hope we have of improving our schools systems, if the charter schools are squelched and choice is removed from parents essentially forcing placement in substandard public schools, we will continue on the road to complacency. A child in a charter school does not take one cent from public schools, rather the money follows the child. This is disgraceful.
I speak from experience which was bitter and painful as I watched our bright, delightful grandchild tormented and abused in first and second grade in public school and no one cared. He has blossomed, grown and flourished in the Charter School program. The teachers and administrators respond to concerns by listening and with caring. They offer suggestions and accept recommendations leaving behind the hidden agenda of protecting the school system and not the child.
I ask again, why is this child worth less (or shall we say "worthless) to the State of Ohio because he attends a charter school. Protect the choice of school selection and equalize the funding for charter schools.
I'm very displeased
Tuesday, April 14, 2009
Charter Schools
I don't understand the thought process on Charter Schools by Governor Strickland who professes to be concerned with the education of our children. Why is a child who attends a charter school worth less to the state than a child in a public school? Or is the funding a way to destroy charter schools and end the threat of competition to public school systems within the state. President Obama recognizes this is the only hope we have of improving our schools systems, if the charter schools are squelched and choice is removed from parents essentially forcing placement in substandard public schools, we will continue on the road to complacency. A child in a charter school does not take one cent from public schools, rather the money follows the child. This is disgraceful.
I speak from experience which was bitter and painful as I watched our bright, delightful grandchild tormented and abused in first and second grade in public school and no one cared. He has blossomed, grown and flourished in the Charter School program. The teachers and administrators respond to concerns by listening and with caring. They offer suggestions and accept recommendations leaving behind the hidden agenda of protecting the school system and not the child.
I ask again, why is this child worth less (or shall we say "worthless) to the State of Ohio because he attends a charter school. Protect the choice of school selection and equalize the funding for charter schools.
I speak from experience which was bitter and painful as I watched our bright, delightful grandchild tormented and abused in first and second grade in public school and no one cared. He has blossomed, grown and flourished in the Charter School program. The teachers and administrators respond to concerns by listening and with caring. They offer suggestions and accept recommendations leaving behind the hidden agenda of protecting the school system and not the child.
I ask again, why is this child worth less (or shall we say "worthless) to the State of Ohio because he attends a charter school. Protect the choice of school selection and equalize the funding for charter schools.
Friday, March 27, 2009
RC 2723.03 (Ohio Revised Code)
Here is the Code... note, no mention of FEE
Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.
Effective Date: 10-01-1953
Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.
Effective Date: 10-01-1953
Lawsuit Ruling 2/23/2009
IN THE COURT OF COMMON PLEAS OF LUCAS COUNTY, OHIO
Karen Shanahan,
Plaintiff, Case No. CI0200802348
vs. OPINION AND JUDGMENT ENTRY
The City ofToledo, Hon. Charles J. Doneghy
Defendant.
This proposed class-action matter is before the Court on: 1) the motion of the
plaintiff for class certification; and 2) the motion of the plaintiff to stay a decision on class certification and for partial summary judgment. Upon review of the amended pleadings, memoranda and representations of the parties,and applicable law,the Court finds that it, first, should over rule the plaintiffs motion for partial summary judgment, second, should overrule at this juncture the plaintiffs motion for class certification, and, third, should overrule the motion to stay as moot.
I. FACTUAL BACKGROUND The defendant, the City ofToledo ("City"), first by administrative decision and later by action of the City's council, enacted It an additional tax to collect refuse" (the "Tax"). At all times relevant,the plaintiff, Karen Shanahan,was a property owner in the City who was required to and did pay the Tax. (A.CompLparas.4-5,7-8,16.) The plaintiff alleges that the City's enactment of this Tax was and is unlawful and unconstitutional. (A.Compl.para.2.)The plaintiff seeks certification of a proposed class of approximately 100,000 members who are: current and past property owners and tenants who are, were or will be required to pay a tax on their property (owned or leased) for refuse collection without voter approval by referendum and/or without lawful and constitutional action by City council. (A.Compl.paras.710,21-23,35-37.) The plaintiff now asks the Court to stay ruling on her class-certification motion until the Court issues a summary judgment decision addressing whether the Tax is properly classified as a "tax" or instead as a "fee.'
II. DISCUSSION
A. SUMMARY JUDGMENT: "TAX" OR "FEE"
In opposing class certification, the City argues that the plaintiff has failed to comply with the jurisdictional requirements which R.C. 2723.03 places on any plaintiff who seeks to recover payments of, or to enjoin operation of, illegal or unconstitutional "taxes or assessments." In her summary judgment motion, the plaintiff argues that the Tax is, in reality, a fee. Thus,the plaintiff contends that R.C. 2723.03 has no impact on the instant action.
In relevant part, R.C. 2723.03 reads as follows: "* **If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall no be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid." (Emphasis added.) The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a "tax," fall with in the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v.Tracy(1963), 75Ohio St.55,56-57, 191N.E.2d839. See, also, Gottlieb
v. S.Euclid, 157OhioApp.3d250,2004-0hio-2705,810N.E.2d970,at'30 (finding R.C.2723.03 applies to license "fees").Accordingly,the Court finds that the plaintiffs motion for partial summary judgment is not well-taken.
B. CLASS CERTIFICATION
Civ.R. 23 governs when a court properly may certify a class. Gottlieb v. S. Euclid, 157 Ohio App.3d250,2004-0hio-2705, 810 N.E.2d970,at ..] O. The rule sets forth the following seven requirements:
"(1) an identifiable class must exist and the definition of the class must be unambiguous; (2)the named representatives must be members of the class; (3)the class must be so numerous that joinder of all members is impracticable; (4) there must be questions of law or fact common to the class; (5)the claims or defenses of the representative parties must be typical of the claims or defenses of the class; (6) the representative parties must fairly and adequately protect the interests of the class;and(7)one of the three Civ.R.23(B)requirements must be satisfied." (Emphasis
added.) Id.
In an action for damages, lithe trial court must specifically find, pursuant to Civ.R. 23(8), that questions of law or fact common to the members of the class predominate over any questions affecting only individual members and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy." (Emphasis added.) Id. The proponent of the class must establish all these factual and legal requirements. Id. at ~ 11. The trial court has broad discretion, but must apply carefully and rigorously the requirements, when determining whether to certify a class. Id.at'9,citing Hamilton v.Ohio Sav. Bank, 82 Ohio St. 3d67, 70,1998-0hio-365, 694 N.E.2d 442.
In this case, the plaintiff asserts that she satisfies all the requirements of Civ.R. 23. The City counters that the plaintiff has failed to establish the requirements of R.C. 2723.03 for challenging the Tax in this case, that she fails to propose a class that is limited to property owners who have satisfied those requirements, and, thus, she is not entitled to class certification at this juncture. The Court agrees.
The court in, Gottlieb v. S. Euclid, 157 Ohio App.3d 250, 2004-0hio-2705, 810
N.E.2d970,ruled that R.C. 2723.03 is the proper vehicle to challenge the collection of "taxes and assessments." Id.at28. In order to maintain a damages action for recovery of surcharges,the statute "requires a plaintiff to allege and prove that he filed a written protest and notice of intention to sue at the time of paying the tax or assessment." (Emphasis added.) Id. If the taxpayer fails to comply with these requirements, courts will bar his her recovery action. Id. And,if the taxpayer does not limit the proposed class to other taxpayers who also have complied with the statute, the court should not certify the class as the class does not meet the numerosity requirement.
Additionally, Ohio courts find that claims for injunctive and/or declaratory relief relating to improper taxes and assessments are unnecessary if a trial court finds that the case not properly maintainable as a class-action for damages. Id. at ....... Ordinarily, Ohio courts require that actions seeking only to enjoin allegedly unlawful or unconstitutional taxes and fees should be brought as individual actions, because class certification is not the "superior method for dealing with such claims. Id.
"[C]ertification of the cause as a class action prior to the determination of the constitutionality of the statute may result in unnecessary discovery procedures and the unjustified and unnecessary expenditure of judicial time and energy needed to determine a class action. ***We must be ever mindful of the policy behind a class action lawsuit, Le., to simplify the resolution of complex litigation,not complicate it unnecessarily." (Citation omitted.) Id.
In the instant case, the Court finds that the plaintiff has provided no evidence that she has complied with R.C. 2723.03. Accordingly, the Court finds that it should not certify even a properly proposed class at this juncture.
JUDGMENT ENTRY
The Court hereby ORDERS that the plaintiffs motion for partial summary judgment is overruled. The Court further ORDERS that the plaintiffs motion to stay ruling on class certification is overruled as moot. The Court further ORDERS that the plaintiffs motion for class certification is overruled. The Court further ORDERS that this case is assigned for pretrial on
pc: Keith J. Wicklund/Scott A. Ciolek
Anthony J. DeGidioKeith J. Winterhalter
Karen Shanahan,
Plaintiff, Case No. CI0200802348
vs. OPINION AND JUDGMENT ENTRY
The City ofToledo, Hon. Charles J. Doneghy
Defendant.
This proposed class-action matter is before the Court on: 1) the motion of the
plaintiff for class certification; and 2) the motion of the plaintiff to stay a decision on class certification and for partial summary judgment. Upon review of the amended pleadings, memoranda and representations of the parties,and applicable law,the Court finds that it, first, should over rule the plaintiffs motion for partial summary judgment, second, should overrule at this juncture the plaintiffs motion for class certification, and, third, should overrule the motion to stay as moot.
I. FACTUAL BACKGROUND The defendant, the City ofToledo ("City"), first by administrative decision and later by action of the City's council, enacted It an additional tax to collect refuse" (the "Tax"). At all times relevant,the plaintiff, Karen Shanahan,was a property owner in the City who was required to and did pay the Tax. (A.CompLparas.4-5,7-8,16.) The plaintiff alleges that the City's enactment of this Tax was and is unlawful and unconstitutional. (A.Compl.para.2.)The plaintiff seeks certification of a proposed class of approximately 100,000 members who are: current and past property owners and tenants who are, were or will be required to pay a tax on their property (owned or leased) for refuse collection without voter approval by referendum and/or without lawful and constitutional action by City council. (A.Compl.paras.710,21-23,35-37.) The plaintiff now asks the Court to stay ruling on her class-certification motion until the Court issues a summary judgment decision addressing whether the Tax is properly classified as a "tax" or instead as a "fee.'
II. DISCUSSION
A. SUMMARY JUDGMENT: "TAX" OR "FEE"
In opposing class certification, the City argues that the plaintiff has failed to comply with the jurisdictional requirements which R.C. 2723.03 places on any plaintiff who seeks to recover payments of, or to enjoin operation of, illegal or unconstitutional "taxes or assessments." In her summary judgment motion, the plaintiff argues that the Tax is, in reality, a fee. Thus,the plaintiff contends that R.C. 2723.03 has no impact on the instant action.
In relevant part, R.C. 2723.03 reads as follows: "* **If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall no be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid." (Emphasis added.) The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a "tax," fall with in the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v.Tracy(1963), 75Ohio St.55,56-57, 191N.E.2d839. See, also, Gottlieb
v. S.Euclid, 157OhioApp.3d250,2004-0hio-2705,810N.E.2d970,at'30 (finding R.C.2723.03 applies to license "fees").Accordingly,the Court finds that the plaintiffs motion for partial summary judgment is not well-taken.
B. CLASS CERTIFICATION
Civ.R. 23 governs when a court properly may certify a class. Gottlieb v. S. Euclid, 157 Ohio App.3d250,2004-0hio-2705, 810 N.E.2d970,at ..] O. The rule sets forth the following seven requirements:
"(1) an identifiable class must exist and the definition of the class must be unambiguous; (2)the named representatives must be members of the class; (3)the class must be so numerous that joinder of all members is impracticable; (4) there must be questions of law or fact common to the class; (5)the claims or defenses of the representative parties must be typical of the claims or defenses of the class; (6) the representative parties must fairly and adequately protect the interests of the class;and(7)one of the three Civ.R.23(B)requirements must be satisfied." (Emphasis
added.) Id.
In an action for damages, lithe trial court must specifically find, pursuant to Civ.R. 23(8), that questions of law or fact common to the members of the class predominate over any questions affecting only individual members and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy." (Emphasis added.) Id. The proponent of the class must establish all these factual and legal requirements. Id. at ~ 11. The trial court has broad discretion, but must apply carefully and rigorously the requirements, when determining whether to certify a class. Id.at'9,citing Hamilton v.Ohio Sav. Bank, 82 Ohio St. 3d67, 70,1998-0hio-365, 694 N.E.2d 442.
In this case, the plaintiff asserts that she satisfies all the requirements of Civ.R. 23. The City counters that the plaintiff has failed to establish the requirements of R.C. 2723.03 for challenging the Tax in this case, that she fails to propose a class that is limited to property owners who have satisfied those requirements, and, thus, she is not entitled to class certification at this juncture. The Court agrees.
The court in, Gottlieb v. S. Euclid, 157 Ohio App.3d 250, 2004-0hio-2705, 810
N.E.2d970,ruled that R.C. 2723.03 is the proper vehicle to challenge the collection of "taxes and assessments." Id.at28. In order to maintain a damages action for recovery of surcharges,the statute "requires a plaintiff to allege and prove that he filed a written protest and notice of intention to sue at the time of paying the tax or assessment." (Emphasis added.) Id. If the taxpayer fails to comply with these requirements, courts will bar his her recovery action. Id. And,if the taxpayer does not limit the proposed class to other taxpayers who also have complied with the statute, the court should not certify the class as the class does not meet the numerosity requirement.
Additionally, Ohio courts find that claims for injunctive and/or declaratory relief relating to improper taxes and assessments are unnecessary if a trial court finds that the case not properly maintainable as a class-action for damages. Id. at ....... Ordinarily, Ohio courts require that actions seeking only to enjoin allegedly unlawful or unconstitutional taxes and fees should be brought as individual actions, because class certification is not the "superior method for dealing with such claims. Id.
"[C]ertification of the cause as a class action prior to the determination of the constitutionality of the statute may result in unnecessary discovery procedures and the unjustified and unnecessary expenditure of judicial time and energy needed to determine a class action. ***We must be ever mindful of the policy behind a class action lawsuit, Le., to simplify the resolution of complex litigation,not complicate it unnecessarily." (Citation omitted.) Id.
In the instant case, the Court finds that the plaintiff has provided no evidence that she has complied with R.C. 2723.03. Accordingly, the Court finds that it should not certify even a properly proposed class at this juncture.
JUDGMENT ENTRY
The Court hereby ORDERS that the plaintiffs motion for partial summary judgment is overruled. The Court further ORDERS that the plaintiffs motion to stay ruling on class certification is overruled as moot. The Court further ORDERS that the plaintiffs motion for class certification is overruled. The Court further ORDERS that this case is assigned for pretrial on
pc: Keith J. Wicklund/Scott A. Ciolek
Anthony J. DeGidioKeith J. Winterhalter
Refuse Fee Lawsuit - CALL to ACTION
If you believe the Refuse Fee is not a legal form of revenue for the City or if you want to protest this additional fee, it is requested you file a formal protest when you pay the bill or send it to the City. Join the fight, be included, let your voice be heard. Here is the format for the protest:
Date _________________
Pursuant to Ohio Revised Code § 2723.03, I hereby notify the City of Toledo that I am paying the “refuse fee” under protest. Whether construed as a “tax,” “fee,” or “assessment,” the “refuse fee” is unlawful for the following reasons:
The “refuse fee” essentially functions as a property tax; and
The Ohio Constitution requires a referendum before such an assessment may be levied.
For the reasons stated above, I intend to sue under Revised Code §§ 2723.01-2723.05 for the purpose of recovering this unlawful appropriation in its entirety.
Sincerely,
___________________________
Name
___________________________
___________________________
___________________________
Street Address
Date _________________
Pursuant to Ohio Revised Code § 2723.03, I hereby notify the City of Toledo that I am paying the “refuse fee” under protest. Whether construed as a “tax,” “fee,” or “assessment,” the “refuse fee” is unlawful for the following reasons:
The “refuse fee” essentially functions as a property tax; and
The Ohio Constitution requires a referendum before such an assessment may be levied.
For the reasons stated above, I intend to sue under Revised Code §§ 2723.01-2723.05 for the purpose of recovering this unlawful appropriation in its entirety.
Sincerely,
___________________________
Name
___________________________
___________________________
___________________________
Street Address
Refuse Fee and Court
Another court date today and I wonder if, as before, the attorneys will meet in chamber with the Judge, return to the courtroom and we leave with no action. The request for class action was denied at this point as "moot" and I have no idea what is next. The original attorney on the case, KURT WICKLUND has moved on to another firm and had to remove himself from the case. He spent a tremendous amount of time working on the case and we owe him a debt of gratitude for taking on the case that no one else wanted to touch. SCOTT A CIOLEK continues to carry the torch along with the newest attorney to the case, ANTHONY J DEGIDIO. They have now filed an appeal on the class action decision:
3/24/2009: Title : PLD:DOCKETING STATEMENT, PURSUANT TO APP R 3(G) AND 6TH DIST LOC APP R 3(C)
Today is about:
THE COURT HEREBY ORDERS THAT THE PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT IS OVERRULED. THE COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION TO STAY RULING ON CLASS CERTIFICATION IS OVERRULED AS MOOT. COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION FOR CLASS CERTIFICATION IS OVERRULED. FURTHER ORDERED THAT THIS CASE IS SET FOR
A PRETRIAL CONFERENCE ON MARCH 27, 2009 AT 2:00 P.M.
If anyone would like to come and observe the legal system at work, you are welcome.
LUCAS COUNTY COURT OF COMMON PLEAS, JUDGE: CHARLES J. DONEGHY
3/24/2009: Title : PLD:DOCKETING STATEMENT, PURSUANT TO APP R 3(G) AND 6TH DIST LOC APP R 3(C)
Today is about:
THE COURT HEREBY ORDERS THAT THE PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT IS OVERRULED. THE COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION TO STAY RULING ON CLASS CERTIFICATION IS OVERRULED AS MOOT. COURT FURTHER ORDERS THAT THE PLAINTIFF'S MOTION FOR CLASS CERTIFICATION IS OVERRULED. FURTHER ORDERED THAT THIS CASE IS SET FOR
A PRETRIAL CONFERENCE ON MARCH 27, 2009 AT 2:00 P.M.
If anyone would like to come and observe the legal system at work, you are welcome.
LUCAS COUNTY COURT OF COMMON PLEAS, JUDGE: CHARLES J. DONEGHY
Refuse Fee Continuing Update
RE: “REFUSE FEE” City of Toledo
963.03. Frequency of collection; garbage and rubbish disposal fee.
(b) After April 30, 2008 for the periodic disposal of garbage and rubbish from any dwelling, restaurant, retail store, apartment house or office building, the property owner shall pay a monthly refuse fee based on the following schedule, provided that where the structure consists of multiple units, the monthly fee shall be per unit:
The City of Toledo passed this ordinance through council as a “FEE” and refused to classify it as a tax which requires passage by vote of the residents in an election. Now in court documents, the City is referring to it as a “TAX” in an attempt to enforce RC2723.3 of the Ohio Revised code. Had the protest been filed, the City could argue it was not allowed as a protest because this is a “FEE” and would not refer to it in court documents as a “TAX”. This is a purposeful misrepresentation of the Ordinance designed to prevent any action by any citizen against the “FEE”.
Rather than determine the merits of the Ordiance and whether it is a legal form of revenue for the City, the courts, attorneys and City Law department prefer to focus on the technicallity of RC2723.3 and whether a protest was required. It is not addressing the issue of the revenue.
As a resident of Toledo, I followed the regulations which offer no requirement to file a protest under the written regulation of RC2723.3 to protest a “FEE”. Though I contend it is a “TAX”, the written ordinace by which I must act states it is a “FEE” and the written Code does not address a fee. Therefore, I refuse to file a formal protest against the City of Toledo in accordance with RC2723.3 which states:
Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.
Effective Date: 10-01-1953
Now the court is citing a lawsuit from 1963 stating a “licensing fee” fits in the context of RC2723.03 which therefore also regulates “fees”.
The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a"tax," fall within the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v. Tracy (1963), 75 Ohio St.55,56-57, 191 N.E.2d839.
This is not a “licensing fee”, this a a revenue grab by the City, wrapped in a cloak of a broad reaching “fee”. This regulation does not afford me that privilege against a “FEE”. Further, it is obvious that RC2723.03 exits to make it virtually impossible for a citizen to counter illegal revenues by a municipality of the type passed by the City of Toledo.
963.03. Frequency of collection; garbage and rubbish disposal fee.
(b) After April 30, 2008 for the periodic disposal of garbage and rubbish from any dwelling, restaurant, retail store, apartment house or office building, the property owner shall pay a monthly refuse fee based on the following schedule, provided that where the structure consists of multiple units, the monthly fee shall be per unit:
The City of Toledo passed this ordinance through council as a “FEE” and refused to classify it as a tax which requires passage by vote of the residents in an election. Now in court documents, the City is referring to it as a “TAX” in an attempt to enforce RC2723.3 of the Ohio Revised code. Had the protest been filed, the City could argue it was not allowed as a protest because this is a “FEE” and would not refer to it in court documents as a “TAX”. This is a purposeful misrepresentation of the Ordinance designed to prevent any action by any citizen against the “FEE”.
Rather than determine the merits of the Ordiance and whether it is a legal form of revenue for the City, the courts, attorneys and City Law department prefer to focus on the technicallity of RC2723.3 and whether a protest was required. It is not addressing the issue of the revenue.
As a resident of Toledo, I followed the regulations which offer no requirement to file a protest under the written regulation of RC2723.3 to protest a “FEE”. Though I contend it is a “TAX”, the written ordinace by which I must act states it is a “FEE” and the written Code does not address a fee. Therefore, I refuse to file a formal protest against the City of Toledo in accordance with RC2723.3 which states:
Action to enjoin the collection of taxes and assessments must be brought against the officer whose duty it is to collect them. Actions to recover taxes and assessments must be brought against the officer who made the collection, or if he is dead, against his personal representative. When they were not collected on the county duplicate, each corporation or board which is entitled to share in the revenue so collected must be joined in the action. If a plaintiff in an action to recover taxes or assessments, or both, alleges and proves that he or the corporation or deceased person whose estate he represents, at the time of paying such taxes or assessments, filed a written protest as to the portion sought to be recovered, specifying the nature of his claim as to the illegality thereof, together with notice of his intention to sue under sections 2723.01 to 2723.05, inclusive, of the Revised Code, such action shall not be dismissed on the ground that the taxes or assessments, sought to be recovered, were voluntarily paid.
Effective Date: 10-01-1953
Now the court is citing a lawsuit from 1963 stating a “licensing fee” fits in the context of RC2723.03 which therefore also regulates “fees”.
The Supreme Court of Ohio has ruled that license "fees," even though legally distinguishable from a"tax," fall within the meaning of words "taxes and assessments" as used in the statute. Paramount Film Distributing Corp. v. Tracy (1963), 75 Ohio St.55,56-57, 191 N.E.2d839.
This is not a “licensing fee”, this a a revenue grab by the City, wrapped in a cloak of a broad reaching “fee”. This regulation does not afford me that privilege against a “FEE”. Further, it is obvious that RC2723.03 exits to make it virtually impossible for a citizen to counter illegal revenues by a municipality of the type passed by the City of Toledo.
Sunday, February 01, 2009
Privatizing Refuse Collection
With the need to invest in new refuse collection equipment, ($12.2 million for 40 trucks), this is the optimum opportunity to consider privatizing (sub-contracting) refuse collection in Toledo. The Mayor was quoted in the Blade Article, 1/30/09 (Blade Article) that there would be an estimated savings of $3.6 million if refuse collection was privatized (sub-contracted). I have long advocated the switch to sub-contracted refuse collection to save cost and used the information provided in the Blade Article and other data to study the effects of such a change. It may be overly optimistic to expect a 31% savings by switching service to the private sector based on the following data.
In an analysis of the 2008 Budget, the actual expenditures from 2004 though 2007 and 2008 budget for the Refuse Department are listed with an estimated per cent of savings if $3.6 million is an accurate amount as quoted by the Mayor:
Per Cent Savings by Privatization
$10,324,386 34.9% 2004 Expenditure
$10,840,653 33.2% 2005 Expenditure
$11,348,331 31.7% 2006 Expenditure
$11,716,547 30.7% 2007 Expenditure
$11,348,181 31.7% 2008 Budget
(The above expenditures include all expenses associated with refuse collection in the 2008 Budget such as: Buildings, Capital, Maintenance, Office Supplies, Salaries and Benefits. See Google spreadsheet “ Toledo Refuse Cost “ for line item expenditures.)
One method of calculating savings is to figure the cost per household; however, there are different calculations by the City of the number of households. Councilman Collins stated in 2008 there were 91,000 households, the City website quotes 114,000 households (Solid Waste Deparment Webpage); therefore, both are shown in the calculation of annual cost per household:
Total Annual Budget 114,000 91,000 Explanation
$11,348,181 $99.55 $124.71 City collection per year per unit.
$7,748,181 $67.97 $85.14 City collection less $3.6 million savings
$23,256,000 $204.00 $255.56 Private at $17 per month
$20,520,000 $180.00 $225.49 Private at $15 per month
A sample of fees for Ohio Cities shows the annual fee for city operated and city sub-contracted service ranges from $64.44 to $200.04 per year. For Privatized collection, the rates range from $120.00 to $210.00 per year. Most of these cities have a more limited program of refuse collection than Toledo.
Private or Contracted Refuse Collection Cost
Per MO//Per Year
Stow OH 16.67 //200.04
Brunswick, OH 13.50 //162.00
Aurora, OH 13.90 //166.80
Mentor, OH 5.37 // 64.44
Parma, OH 7.11 // 85.32
City Collection Rate
Akron OH 10.80 //129.60
Sylvania, OH 10.00 //120.00
Barberton,OH 11.30 //135.60
Canton, OH 12.40 //148.80
Cuyahoga Falls 17.50 //210.00
Warren, OH 14.12 //169.44
Supporting Documents:
Stow OH
Brunswick OH
Sylvania OH
Parma OH Ref Pg 11
These numbers do not support a savings through subcontracting refuse collection in Toledo. However, several questions remain to be answered:
1. Are all expenses associated with refuse collection in Toledo charged to that department?
2. What type of service was included in the bids received by the Mayor?
3. How many households are in Toledo?
4. What is the basis for the claim of a $3.6 million savings quoted by the Mayor?
5. In the information received, what was the total annual and monthly fee quoted to the Mayor?
Is it time to privatize refuse collection and can it be successful? In reviewing the data, one would conclude it would be cost effect to keep the current form of service even if we do spend the $12.1 million for new equipment; however, a thorough study is crucial.
City Council must be diligent to ensure accurate data is used to make an informed decision. If the Administration is not forthcoming in providing all necessary detail to make an informed decision, Council must demand this information so they can analyze and justify any decision. If the above information is complete and accurate, Toledo will be better served by keeping the current form of refuse collection.
In an analysis of the 2008 Budget, the actual expenditures from 2004 though 2007 and 2008 budget for the Refuse Department are listed with an estimated per cent of savings if $3.6 million is an accurate amount as quoted by the Mayor:
Per Cent Savings by Privatization
$10,324,386 34.9% 2004 Expenditure
$10,840,653 33.2% 2005 Expenditure
$11,348,331 31.7% 2006 Expenditure
$11,716,547 30.7% 2007 Expenditure
$11,348,181 31.7% 2008 Budget
(The above expenditures include all expenses associated with refuse collection in the 2008 Budget such as: Buildings, Capital, Maintenance, Office Supplies, Salaries and Benefits. See Google spreadsheet “ Toledo Refuse Cost “ for line item expenditures.)
One method of calculating savings is to figure the cost per household; however, there are different calculations by the City of the number of households. Councilman Collins stated in 2008 there were 91,000 households, the City website quotes 114,000 households (Solid Waste Deparment Webpage); therefore, both are shown in the calculation of annual cost per household:
Total Annual Budget 114,000 91,000 Explanation
$11,348,181 $99.55 $124.71 City collection per year per unit.
$7,748,181 $67.97 $85.14 City collection less $3.6 million savings
$23,256,000 $204.00 $255.56 Private at $17 per month
$20,520,000 $180.00 $225.49 Private at $15 per month
A sample of fees for Ohio Cities shows the annual fee for city operated and city sub-contracted service ranges from $64.44 to $200.04 per year. For Privatized collection, the rates range from $120.00 to $210.00 per year. Most of these cities have a more limited program of refuse collection than Toledo.
Private or Contracted Refuse Collection Cost
Per MO//Per Year
Stow OH 16.67 //200.04
Brunswick, OH 13.50 //162.00
Aurora, OH 13.90 //166.80
Mentor, OH 5.37 // 64.44
Parma, OH 7.11 // 85.32
City Collection Rate
Akron OH 10.80 //129.60
Sylvania, OH 10.00 //120.00
Barberton,OH 11.30 //135.60
Canton, OH 12.40 //148.80
Cuyahoga Falls 17.50 //210.00
Warren, OH 14.12 //169.44
Supporting Documents:
Stow OH
Brunswick OH
Sylvania OH
Parma OH Ref Pg 11
These numbers do not support a savings through subcontracting refuse collection in Toledo. However, several questions remain to be answered:
1. Are all expenses associated with refuse collection in Toledo charged to that department?
2. What type of service was included in the bids received by the Mayor?
3. How many households are in Toledo?
4. What is the basis for the claim of a $3.6 million savings quoted by the Mayor?
5. In the information received, what was the total annual and monthly fee quoted to the Mayor?
Is it time to privatize refuse collection and can it be successful? In reviewing the data, one would conclude it would be cost effect to keep the current form of service even if we do spend the $12.1 million for new equipment; however, a thorough study is crucial.
City Council must be diligent to ensure accurate data is used to make an informed decision. If the Administration is not forthcoming in providing all necessary detail to make an informed decision, Council must demand this information so they can analyze and justify any decision. If the above information is complete and accurate, Toledo will be better served by keeping the current form of refuse collection.
Thursday, January 29, 2009
IF I WERE MAYOR COMMENTARY
The Toledo Free Press published an interesting series of articles, which asked local politicians and high school students what they would do “If they were Mayor”. After analyzing the comments, I have a three-part commentary on the results of the review with an assessment of these comments. After listening to Politicians comments on being Mayor over the past years, it is frustrating that in this time, there is so little process offered by any of the possible candidates to move us forward.
Just stating, “green energy” does not explain how a Mayor can move this initiative forward. Being interested in “education” does not explain how a Mayoral candidate can effect improvements in education or explain how to implement the “Toledo Promise”. These are “hot buttons” of interest to the electorate, but we need solutions not just “hot buttons”.
Almost completely ignored was the infrastructure, refuse collection and safety issues. Nor was there mention of how they would balance the budget or create a “business friendly” environment in our Community. We need a cohesive government, but there were no suggestions on how or on what issues the potential candidates would work with City Council. There was no content on how to handle these problems.
It is disappointing to have so little content on how to manage Toledo. We need a candidate who has the courage to face the hard issues, fix the budget and begin reducing fees and fines, which have been created to enhance revenue. It is our right and expectation as voters to demand real answers not just open-ended rhetoric with lofty goals.
There was a great deal of information presented in paragraphs by the politicians and students. I consider this important enough to analyze, categorize and tally the comments to make it easier to assimilate the information. This has been accomplished in three separate commentaries.
Commentary One is a summary of the politician’s comments. It reduces their paragraph responses to bullet points and a category assigned to each comment. Finally, a tally of the categories for each comment by author is included.
Commentary Two contains suggestions on how to achieve some of the points offered by the politicians. These suggestions are essential for the success of Toledo.
Commentary Three lists the main ideas of the many High School student comments. This list gives insight into the fears, hopes, dreams and desires of our students and helps us understand what is important to our youth. Along with the list of student concerns is a brief commentary on what our government must address if we are sincerely interested in recognizing our youth to avoid “brain drain” and thus help ensure a positive future for Toledo.
As we move forward with this campaign to elect a Mayor, we must ask the hard questions. Just listing “hot buttons” without solutions, processes or programs to effect change is not acceptable.
Please read and review the analysis of the three commentaries.
Just stating, “green energy” does not explain how a Mayor can move this initiative forward. Being interested in “education” does not explain how a Mayoral candidate can effect improvements in education or explain how to implement the “Toledo Promise”. These are “hot buttons” of interest to the electorate, but we need solutions not just “hot buttons”.
Almost completely ignored was the infrastructure, refuse collection and safety issues. Nor was there mention of how they would balance the budget or create a “business friendly” environment in our Community. We need a cohesive government, but there were no suggestions on how or on what issues the potential candidates would work with City Council. There was no content on how to handle these problems.
It is disappointing to have so little content on how to manage Toledo. We need a candidate who has the courage to face the hard issues, fix the budget and begin reducing fees and fines, which have been created to enhance revenue. It is our right and expectation as voters to demand real answers not just open-ended rhetoric with lofty goals.
There was a great deal of information presented in paragraphs by the politicians and students. I consider this important enough to analyze, categorize and tally the comments to make it easier to assimilate the information. This has been accomplished in three separate commentaries.
Commentary One is a summary of the politician’s comments. It reduces their paragraph responses to bullet points and a category assigned to each comment. Finally, a tally of the categories for each comment by author is included.
Commentary Two contains suggestions on how to achieve some of the points offered by the politicians. These suggestions are essential for the success of Toledo.
Commentary Three lists the main ideas of the many High School student comments. This list gives insight into the fears, hopes, dreams and desires of our students and helps us understand what is important to our youth. Along with the list of student concerns is a brief commentary on what our government must address if we are sincerely interested in recognizing our youth to avoid “brain drain” and thus help ensure a positive future for Toledo.
As we move forward with this campaign to elect a Mayor, we must ask the hard questions. Just listing “hot buttons” without solutions, processes or programs to effect change is not acceptable.
Please read and review the analysis of the three commentaries.
IF I WERE MAYOR COMMENTARY No. ONE, Review of Comments
A summary of the responses by the politicians offers open-ended rhetoric with lofty goals and sweeping praise of Toledo potential. Each expounded on the need for jobs, growing the economy, offering alternative energy, and improving education; however, no one offered a platform of processes to attain such lofty goals or reach Toledo potential.
The tally by classification has (24) references stressing the qualities or lack of qualities of Toledo; because Ludeman solely focused on Mayoral qualities, “ethic”, was second followed by education. There was very little reference to infrastructure and safety, which is surprising since these are two of the major mandates of the city.
Finally, there was no mention of refuse collection or recycling even though it has been the center of debate and controversy since the refuse fee was passed 2 years ago and the refuse department is preparing to spend millions of dollars to invest in new equipment.
Tally by classification (click on image to enlarge)
Politician/Comment/Classification
Collins/Future of Toledo/Vision
Collins/Opportunity for academic, economic and cultural advancement/Growth
Collins/Join together (regionally)/Vision
Collins/Realistic goals/Vision
Collins/Location 2nd to none/Vision
Collins/Crossroads of America and Canada/Vision
Collins/Adjust from an industrial/manufacturing economy/Economy
Collins/To research, development and service economy are limitless/Economy
Collins/Excel in the areas of alternative energy and biological/pharmaceutical development./Green
Collins/Void of respect, communication and trust/Vision
Collins/Unable to partner with our neighbors/Vision
Collins/Ensure we will provide for future generations (children)/Vision
Konop/Don’t like what we see/Vision
Konop/Lead country in solar technology and manufacturing/Green
Konop/Children and displaced workers receive quality college education free/Education
Konop/Bolster work force to draw employers/Jobs
Konop/Envied by neighbors/Vision
Konop/Pass torch from “good ol’ boys” network/Ethic
Konop/Scratch each other’s backs/Ethic
Konop/Fight for Toledo/Vision
Konop/Stand up to special interests/Ethic
Konop/Make sure your voice is heard/Social
Ludeman/Encouraged by many to run, needs ½ million to run/Ethic
Ludeman/High financial cost of high profile race/Ethic
Ludeman/Toledo wants change/Vision
Ludeman/Qualities needed for mayor:/Ethic
Ludeman/Conservative, specifically – financially/Ethic
Ludeman/Allegiances should be to citizens and taxpayers/Ethic
Ludeman/Background rooted in business community/Vision
Ludeman/Run city like a business not a political team or sports team/Ethic
Ludeman/Surrounded by good staff, hard workers/Ethic
Ludeman/Delegate, not control, tempo of work force/Ethic
Ludeman/Be honest, admit mistakes, move on/Ethic
Ludeman/Have faith, treat others well/Ethic
Ludeman/Have good, solid working relationship with City Council/Ethic
Ludeman/Need “change” in City Council at next election/Ethic
Ludeman/Replace those who have proved they are self-serving/Ethic
Ludeman/Issues change with time, core values should not./Ethic
Moody/Hard working and innovative/Vision
Moody/Confront and overcome challenges/Vision
Moody/Don,t rely on Federal Government to bail us out/Vision
Moody/Listen to suggestions and recommendations of neighbors/Ethic
Moody/Jobs/Jobs
Moody/Form team to work with current economic development agencies/Growth
Moody/Create environment in which business can flourish/Business
Moody/Get out of the way of business/Business
Moody/Create right environment for growth/Growth
Moody/Promote home ownership/Social
Moody/Prevent neglect and decay of homes/Infrastructure
Moody/Promote public safety/Safety
Moody/No government subsidies to accomplish the above/Ethic
Moody/Properly manned police force/Safety
Moody/Punish criminals to discourage repeat offenses/Safety
Moody/Much to be done/Vision
Moody/Infrastructure/Infrastructure
Moody/‘Brain drain’/Social
Moody/entertainment/Social
Moody/Tourism desirability/Social
Moody/Education/Education
Moody/Public perception/Social
Moody/Population flight/Social
Sarantou/3 issues will dominate/Vision
Sarantou/Economy/Economy
Sarantou/Energy/Green
Sarantou/Education/Education
Sarantou/Toledo hit hard by economy: lost jobs, employers and wealth/Vision
Sarantou/Seize opportunity; diversify economic base and work force/Business
Sarantou/Growing reputation as solar energy hub/Vision
Sarantou/Private sector encouraged by UT/Business
Sarantou/Intensify work to become world leader in alternative energy/Green
Sarantou/Must confront education obstacles and opportunities/Education
Sarantou/Support UT efforts to support region and educate work force/Education
Sarantou/Face challenges of K-12/Education
Sarantou/Quality schools are prerequisites to future success/Education
Sarantou/Anticipate future trends/Vision
Sarantou/Willingness to take risks/Vision
Sarantou/Conviction to make difficult decisions/Ethic
Wilkowski/Running to bring jobs back to Toledo/Jobs
Wilkowski/Real plans and best team to implement/Vision
Wilkowski/Rebuild Toledo, create construction jobs/Infrastructure
Wilkowski/Re-power our homes and business with clean energy/Green
Wilkowski/Revitalize manufacturing through solar panel manufacturing/Green
Wilkowski/City has done nothing to spur growth of clean energy economy and green collar jobs/Green
Wilkowski/Economic opportunity begins with education/Education
Wilkowski/Put college in reach of everyone/Education
Wilkowski/“Owens Success” “UT Guarantee” for education/Education
Wilkowski/“Toledo Promise”/Education
Wilkowski/Every graduating public student receives tuition-free Ohio college education/Education
Wilkowski/Community where/Vision
Wilkowski/Industry wants to invest/Growth
Wilkowski/Family wants to live/Social
Wilkowski/Young people want to stay/Social
The tally by classification has (24) references stressing the qualities or lack of qualities of Toledo; because Ludeman solely focused on Mayoral qualities, “ethic”, was second followed by education. There was very little reference to infrastructure and safety, which is surprising since these are two of the major mandates of the city.
Finally, there was no mention of refuse collection or recycling even though it has been the center of debate and controversy since the refuse fee was passed 2 years ago and the refuse department is preparing to spend millions of dollars to invest in new equipment.
Tally by classification (click on image to enlarge)
Politician/Comment/Classification
Collins/Future of Toledo/Vision
Collins/Opportunity for academic, economic and cultural advancement/Growth
Collins/Join together (regionally)/Vision
Collins/Realistic goals/Vision
Collins/Location 2nd to none/Vision
Collins/Crossroads of America and Canada/Vision
Collins/Adjust from an industrial/manufacturing economy/Economy
Collins/To research, development and service economy are limitless/Economy
Collins/Excel in the areas of alternative energy and biological/pharmaceutical development./Green
Collins/Void of respect, communication and trust/Vision
Collins/Unable to partner with our neighbors/Vision
Collins/Ensure we will provide for future generations (children)/Vision
Konop/Don’t like what we see/Vision
Konop/Lead country in solar technology and manufacturing/Green
Konop/Children and displaced workers receive quality college education free/Education
Konop/Bolster work force to draw employers/Jobs
Konop/Envied by neighbors/Vision
Konop/Pass torch from “good ol’ boys” network/Ethic
Konop/Scratch each other’s backs/Ethic
Konop/Fight for Toledo/Vision
Konop/Stand up to special interests/Ethic
Konop/Make sure your voice is heard/Social
Ludeman/Encouraged by many to run, needs ½ million to run/Ethic
Ludeman/High financial cost of high profile race/Ethic
Ludeman/Toledo wants change/Vision
Ludeman/Qualities needed for mayor:/Ethic
Ludeman/Conservative, specifically – financially/Ethic
Ludeman/Allegiances should be to citizens and taxpayers/Ethic
Ludeman/Background rooted in business community/Vision
Ludeman/Run city like a business not a political team or sports team/Ethic
Ludeman/Surrounded by good staff, hard workers/Ethic
Ludeman/Delegate, not control, tempo of work force/Ethic
Ludeman/Be honest, admit mistakes, move on/Ethic
Ludeman/Have faith, treat others well/Ethic
Ludeman/Have good, solid working relationship with City Council/Ethic
Ludeman/Need “change” in City Council at next election/Ethic
Ludeman/Replace those who have proved they are self-serving/Ethic
Ludeman/Issues change with time, core values should not./Ethic
Moody/Hard working and innovative/Vision
Moody/Confront and overcome challenges/Vision
Moody/Don,t rely on Federal Government to bail us out/Vision
Moody/Listen to suggestions and recommendations of neighbors/Ethic
Moody/Jobs/Jobs
Moody/Form team to work with current economic development agencies/Growth
Moody/Create environment in which business can flourish/Business
Moody/Get out of the way of business/Business
Moody/Create right environment for growth/Growth
Moody/Promote home ownership/Social
Moody/Prevent neglect and decay of homes/Infrastructure
Moody/Promote public safety/Safety
Moody/No government subsidies to accomplish the above/Ethic
Moody/Properly manned police force/Safety
Moody/Punish criminals to discourage repeat offenses/Safety
Moody/Much to be done/Vision
Moody/Infrastructure/Infrastructure
Moody/‘Brain drain’/Social
Moody/entertainment/Social
Moody/Tourism desirability/Social
Moody/Education/Education
Moody/Public perception/Social
Moody/Population flight/Social
Sarantou/3 issues will dominate/Vision
Sarantou/Economy/Economy
Sarantou/Energy/Green
Sarantou/Education/Education
Sarantou/Toledo hit hard by economy: lost jobs, employers and wealth/Vision
Sarantou/Seize opportunity; diversify economic base and work force/Business
Sarantou/Growing reputation as solar energy hub/Vision
Sarantou/Private sector encouraged by UT/Business
Sarantou/Intensify work to become world leader in alternative energy/Green
Sarantou/Must confront education obstacles and opportunities/Education
Sarantou/Support UT efforts to support region and educate work force/Education
Sarantou/Face challenges of K-12/Education
Sarantou/Quality schools are prerequisites to future success/Education
Sarantou/Anticipate future trends/Vision
Sarantou/Willingness to take risks/Vision
Sarantou/Conviction to make difficult decisions/Ethic
Wilkowski/Running to bring jobs back to Toledo/Jobs
Wilkowski/Real plans and best team to implement/Vision
Wilkowski/Rebuild Toledo, create construction jobs/Infrastructure
Wilkowski/Re-power our homes and business with clean energy/Green
Wilkowski/Revitalize manufacturing through solar panel manufacturing/Green
Wilkowski/City has done nothing to spur growth of clean energy economy and green collar jobs/Green
Wilkowski/Economic opportunity begins with education/Education
Wilkowski/Put college in reach of everyone/Education
Wilkowski/“Owens Success” “UT Guarantee” for education/Education
Wilkowski/“Toledo Promise”/Education
Wilkowski/Every graduating public student receives tuition-free Ohio college education/Education
Wilkowski/Community where/Vision
Wilkowski/Industry wants to invest/Growth
Wilkowski/Family wants to live/Social
Wilkowski/Young people want to stay/Social
IF I WERE MAYOR, COMMENTARY NO. 2, BUSINESS, BUDGET, ETC.
Government always lags behind private industry and so Toledo has lagged in the contracts with the city employees. In the 1980’s when the US was experiencing growth and a great economy, business was generous with benefit packages and pay. So likewise, governments passed on these generous packages. However, over the past decades, businesses pulled away from the benefit packages requiring employees to pay portions of their medical plans, co-pays for doctor visits and prescriptions and eliminating retirement plans. Additionally, pay increases dropped to the point they did not even cover the increased liabilities of the employees.
As employees in the private section lost benefits, pay increases and were required to pay more into their medical programs, it became increasingly difficult to pay more in taxes. It is an unpleasant task to require concessions from employees whether in the private sector or public office; but as the private sector has made such demands, it is now time for Toledo to do the same. We can no longer sustain the contracts in place and must work to adjust them within the limits of the City budget.
One of the most common phrases repeated by candidates for office is that we must become more “business friendly”. However, there are few suggestions on how to reach that goal. Even in speaking to small business owners, it is difficult to reach a consensus other than the complaints about the number of regulations, inspections and fees, which must be paid. If we are more “business friendly”, it can be expected we would draw more business.
We also need to be "citizen friendly". Over the past four years, we have witnessed numerous punitive programs, which affects Toledoans. Rather than improve the sequencing of traffic lights to improve safety, red light cameras were install to increase revenue. Rather than focus on the essentials of the budget, a "refuse fee" was imposed to increase revenue and fines imposed against residents who put the trash out too soon. Now there is talk of a plastic bag tax to increase revenue. It is time to eliminate these and other punitive fees, cut the 3/4% temporary tax and focus on the essential services required in the Municipal Code. Eventually the economy will improve and if we work to improve our "friendliness", we will be in a position to take advantage of the improved economy.
The following suggestions are offered as a way to bring the budget into alignment to revenue, to become more business and citizen friendly and move forward for the future of Toledo:
·Business: Less regulations
·Business: Less frequent inspections
·Business: Have one office for all permits required to start a business
·Business: Make it easier to schedule inspections
·Business: Lower permit and inspection fees, eliminate unnecessary inspections
·Business: Allow more “cart” vendors along the streets approaching 5/3 Field before and after games.
·Business: Encourage more oversized signs downtown (such as in Times Square)
·Budget: Eliminate fees to generate income such as red light cameras.
·Budget: Privatize refuse collection
·Budget: End the 3/4% income tax
·Budget: Wean the Toledo Zoo off public funding, they should become self sustaining
·Budget: Stop development studies of Southwyck, the city can do nothing, it is privately owned.
·Budget: Decrease City employee benefits
o Have employees pay towards their medical benefits
o Have employees pay a co-pay for doctor visits and prescriptions
o Reduce the number of paid holidays
o Stop paying the 10% employee portion of PERZ (some progress has been made in the most recent contract negotiations, a start, but not enough)
o Reduce required City portion of PERZ payment from 14% to 10%
·Budget: Put the budget in spreadsheet form on the internet for easy analysis and review
·Budget: Hold a “fire” sale of all abandoned property
o When the home is repaired or torn down, give a $500 incentive
o Reduce permits and fees needed to demolish the building
·Budget: Bid out to the private sector the demolition of buildings
·Budget: Don’t put the name of the Mayor on Toledo signs
·Budget: Invest in a Waste to Energy form of trash disposal
·Budget: Establish and adhere to a baseline % of expenditure for the different segments of the budget
·Fire: Reevaluate the number of fireman per shift
·Fire: Eliminate the ambulance service, put it back to the private sector
·Fire: Eliminate the EMS service, put it back to the private sector
·Police: Put a cap on Command officers in the police department
·Police: Hire police from the Owens Tech police degree program
·Safety: Improve the traffic light sequencing to prevent intersection crashes
·Safety: Reinstate the Gang taskforce.
·Safety: Increase the number of speed limit signs along the highway.
·Streets: Put a list of all roads scheduled for repair on the Internet
o List estimated repair dates
o Date request was made
o Estimate cost of repair
o Show date of completion
· Streets: Have a form on the Internet that can be filled out for potholes
o Put the data on line to lessen duplication of requests
o Prioritize the repair schedule on the internet
·Streets: Study more durable construction material for roads and potholes.
·Region: Focus on 2 industries a month and work to bring them into the region.
·Region: Create an office of regional planning where businesses can communicate their needs and get assistance in finding the optimum location for their needs.
·Beautification: Ask organizations to work on the flower beds
·Beautification: Have contests with the Greenhouses in Toledo to beautify the Gateways
·Beautification: Organize youth by area to help clean their neighborhood streets.
·Government: Be customer friendly at One Government Center.
As employees in the private section lost benefits, pay increases and were required to pay more into their medical programs, it became increasingly difficult to pay more in taxes. It is an unpleasant task to require concessions from employees whether in the private sector or public office; but as the private sector has made such demands, it is now time for Toledo to do the same. We can no longer sustain the contracts in place and must work to adjust them within the limits of the City budget.
One of the most common phrases repeated by candidates for office is that we must become more “business friendly”. However, there are few suggestions on how to reach that goal. Even in speaking to small business owners, it is difficult to reach a consensus other than the complaints about the number of regulations, inspections and fees, which must be paid. If we are more “business friendly”, it can be expected we would draw more business.
We also need to be "citizen friendly". Over the past four years, we have witnessed numerous punitive programs, which affects Toledoans. Rather than improve the sequencing of traffic lights to improve safety, red light cameras were install to increase revenue. Rather than focus on the essentials of the budget, a "refuse fee" was imposed to increase revenue and fines imposed against residents who put the trash out too soon. Now there is talk of a plastic bag tax to increase revenue. It is time to eliminate these and other punitive fees, cut the 3/4% temporary tax and focus on the essential services required in the Municipal Code. Eventually the economy will improve and if we work to improve our "friendliness", we will be in a position to take advantage of the improved economy.
The following suggestions are offered as a way to bring the budget into alignment to revenue, to become more business and citizen friendly and move forward for the future of Toledo:
·Business: Less regulations
·Business: Less frequent inspections
·Business: Have one office for all permits required to start a business
·Business: Make it easier to schedule inspections
·Business: Lower permit and inspection fees, eliminate unnecessary inspections
·Business: Allow more “cart” vendors along the streets approaching 5/3 Field before and after games.
·Business: Encourage more oversized signs downtown (such as in Times Square)
·Budget: Eliminate fees to generate income such as red light cameras.
·Budget: Privatize refuse collection
·Budget: End the 3/4% income tax
·Budget: Wean the Toledo Zoo off public funding, they should become self sustaining
·Budget: Stop development studies of Southwyck, the city can do nothing, it is privately owned.
·Budget: Decrease City employee benefits
o Have employees pay towards their medical benefits
o Have employees pay a co-pay for doctor visits and prescriptions
o Reduce the number of paid holidays
o Stop paying the 10% employee portion of PERZ (some progress has been made in the most recent contract negotiations, a start, but not enough)
o Reduce required City portion of PERZ payment from 14% to 10%
·Budget: Put the budget in spreadsheet form on the internet for easy analysis and review
·Budget: Hold a “fire” sale of all abandoned property
o When the home is repaired or torn down, give a $500 incentive
o Reduce permits and fees needed to demolish the building
·Budget: Bid out to the private sector the demolition of buildings
·Budget: Don’t put the name of the Mayor on Toledo signs
·Budget: Invest in a Waste to Energy form of trash disposal
·Budget: Establish and adhere to a baseline % of expenditure for the different segments of the budget
·Fire: Reevaluate the number of fireman per shift
·Fire: Eliminate the ambulance service, put it back to the private sector
·Fire: Eliminate the EMS service, put it back to the private sector
·Police: Put a cap on Command officers in the police department
·Police: Hire police from the Owens Tech police degree program
·Safety: Improve the traffic light sequencing to prevent intersection crashes
·Safety: Reinstate the Gang taskforce.
·Safety: Increase the number of speed limit signs along the highway.
·Streets: Put a list of all roads scheduled for repair on the Internet
o List estimated repair dates
o Date request was made
o Estimate cost of repair
o Show date of completion
· Streets: Have a form on the Internet that can be filled out for potholes
o Put the data on line to lessen duplication of requests
o Prioritize the repair schedule on the internet
·Streets: Study more durable construction material for roads and potholes.
·Region: Focus on 2 industries a month and work to bring them into the region.
·Region: Create an office of regional planning where businesses can communicate their needs and get assistance in finding the optimum location for their needs.
·Beautification: Ask organizations to work on the flower beds
·Beautification: Have contests with the Greenhouses in Toledo to beautify the Gateways
·Beautification: Organize youth by area to help clean their neighborhood streets.
·Government: Be customer friendly at One Government Center.
IF I WERE MAYOR, COMMENTARY No. 3, Students
The Free Press received responses from a number of High School students who listed their concerns which are classified and tallied in the example. From the list, the students most frequently mentioned social amenities, community and safety. Safety and social issues were among the lower concerns of the Politicians. The contrast equates to a disconnect between the Politicians and the students. So much has been made of “brain drain” of our youth leaving Toledo, perhaps it’s time we listen more intently to their issues.
Click on image to enlarge
Click on image to enlarge
Sunday, November 02, 2008
Economy, Wealth and Gini
Approximately 40% of those filing tax returns did not pay any federal income tax because these wage earners did not earn enough income to require income tax payments. Over the past 2 decades, the disparity between average middle-income wages and executive pay jumped from 27 times the average income to 270 times the average income. The theory of trickle down economics to encourage economic growth from business is not working, growth is slowing, wages are stagnant, employee benefits declining. It is incomprehensible to Main Street America that executives of failed institutions are earning tens of millions of dollars a year while Main Street wages remain stagnant. Main Street America is losing expendable income needed to support businesses.
The Obama tax plan would lower the tax burden so the Average Joe, including “Joe the Plumber”, would have an increased opportunity to buy that small business he desires and would stimulate entrepreneurship. As Main Street America sees less available income and more income needed for basic needs, i.e., food, clothing, fuel, home, medical costs, insurance and of course, taxes, there is little left. The American Dream is dissolving.
The trend in the United States which is eroding the middle class is moving more towards the economic inequality of Mexico as the Gini Coefficient Index documents.
A Well-Established Trend (http://www.sustainablemiddleclass.com/Gini-Coefficient.html)
The Gini Coefficient for the United States has risen steadily since 1967. If the current trend continues, the United States will reach a Gini Coefficient of 0.546 in about 37-years, or 2043. This coefficient is equal to the one Mexico had in year 2000. Unless the United States breaks this trend, the American middle class will be a thing of the past.
Notice that the Gini Index for the United States is closer Mexico's than it is to Canada's
Data Source: U.S. Department of Labor, Census Bureau Income Statistics
Japan 24.9
Sweden 25.0
Germany 28.3
France 32.7
Pakistan 33.0
Canada 33.1
Switzerland 33.1
United Kingdom 36.0
Iran 43.0
United States 46.6
Argentina 52.2
Mexico 54.6
South Africa 57.8
Namibia 70.7
US Gini Coefficients, Year 1970-0.394; 1980-0.403; 1990-0.428; 1994-0.456
Other Research (W.Kitterer[4]) also shows, that in perfect markets inequality does not influence growth. In real markets redistribution contributes to growth.
Considering the inequalities in economically well developed countries, public policy should target an ‘efficient inequality range’. The authors claim that such efficiency range roughly lies between the values of the Gini coefficients of 25 (the inequality value of a typical Northern European country) and 40 (that of countries such as China and the USA).
“As of 2006, the United States had one of the highest levels of income inequality, as measured through the Gini index, among high income countries, comparable to that of some middle income countries such as Russia or Turkey,[15] being one of only few developed countries where inequality has increased since 1980.[16]”
America needs to find a direction back to a sustainable middle class. John McCain in 2001 and 2002 agreed the Bush Tax Plan was detrimental to the middle class. We have waited 20 years for trickle down economics to work, it is not working and now it is time for our government to take a lead in restoring Main Street America. When 40% of wage earners do not earn enough to support federal income tax we are in serious jeopardy.
NOTES (researched through Wikipedia)
4 # ^ Wolfgang Kitterer: Mehr Wachstum durch Umverteilung? (More Growth through Redistribution?), 2006
15 # ^ a b "CIA. (June 14, 2007). Field Listing - Distribution of family income - Gini index. Factbook". Retrieved on 2007-06-20.
16 ^ a b Weeks, J. (2007). Inequality Trends in Some Developed OECD countries. In J. K. S. & J. Baudot (Ed.), Flat World, Big Gaps (159-174). New York: ZED Books (published in association with the United Nations).
The Obama tax plan would lower the tax burden so the Average Joe, including “Joe the Plumber”, would have an increased opportunity to buy that small business he desires and would stimulate entrepreneurship. As Main Street America sees less available income and more income needed for basic needs, i.e., food, clothing, fuel, home, medical costs, insurance and of course, taxes, there is little left. The American Dream is dissolving.
The trend in the United States which is eroding the middle class is moving more towards the economic inequality of Mexico as the Gini Coefficient Index documents.
A Well-Established Trend (http://www.sustainablemiddleclass.com/Gini-Coefficient.html)
The Gini Coefficient for the United States has risen steadily since 1967. If the current trend continues, the United States will reach a Gini Coefficient of 0.546 in about 37-years, or 2043. This coefficient is equal to the one Mexico had in year 2000. Unless the United States breaks this trend, the American middle class will be a thing of the past.
Notice that the Gini Index for the United States is closer Mexico's than it is to Canada's
Data Source: U.S. Department of Labor, Census Bureau Income Statistics
Japan 24.9
Sweden 25.0
Germany 28.3
France 32.7
Pakistan 33.0
Canada 33.1
Switzerland 33.1
United Kingdom 36.0
Iran 43.0
United States 46.6
Argentina 52.2
Mexico 54.6
South Africa 57.8
Namibia 70.7
US Gini Coefficients, Year 1970-0.394; 1980-0.403; 1990-0.428; 1994-0.456
Other Research (W.Kitterer[4]) also shows, that in perfect markets inequality does not influence growth. In real markets redistribution contributes to growth.
Considering the inequalities in economically well developed countries, public policy should target an ‘efficient inequality range’. The authors claim that such efficiency range roughly lies between the values of the Gini coefficients of 25 (the inequality value of a typical Northern European country) and 40 (that of countries such as China and the USA).
“As of 2006, the United States had one of the highest levels of income inequality, as measured through the Gini index, among high income countries, comparable to that of some middle income countries such as Russia or Turkey,[15] being one of only few developed countries where inequality has increased since 1980.[16]”
America needs to find a direction back to a sustainable middle class. John McCain in 2001 and 2002 agreed the Bush Tax Plan was detrimental to the middle class. We have waited 20 years for trickle down economics to work, it is not working and now it is time for our government to take a lead in restoring Main Street America. When 40% of wage earners do not earn enough to support federal income tax we are in serious jeopardy.
NOTES (researched through Wikipedia)
4 # ^ Wolfgang Kitterer: Mehr Wachstum durch Umverteilung? (More Growth through Redistribution?), 2006
15 # ^ a b "CIA. (June 14, 2007). Field Listing - Distribution of family income - Gini index. Factbook". Retrieved on 2007-06-20.
16 ^ a b Weeks, J. (2007). Inequality Trends in Some Developed OECD countries. In J. K. S. & J. Baudot (Ed.), Flat World, Big Gaps (159-174). New York: ZED Books (published in association with the United Nations).
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