Tough Economic Times Offer Cincinnati a Path to Greatness

As Mark Twain once said, things happen in Cincinnati later than everywhere else. The economic recession hit home in Cincinnati just weeks ago with a Finance Report, based on first quarter tax payments to the City, showing a $20 million deficit for the balance of this year and a $40 million deficit for 2010. This bad news arrived with the report of the City Pension Board which predicted a $1 billion deficit in the fund providing retirement benefits to city workers. The pension fund's liability, soon to be more than the total value of the fund, will require far greater contributions to the system, at a time when we have much less money. Like too many other governments, businesses and households, the City of Cincinnati had for too long spent more than we took in each year, and did not save for long-term liabilities and financial emergencies that have now come due.

We should use these tough times as an opportunity to focus on our future, and what is needed from City government to arrive at that vision.

For starters, we should acknowledge the problem. Like many families, our appetite for public services is greater than our ability to pay for them. We cannot continue to spend more each year than the City takes in from tax revenue. Of primary concern should be the net loss of nearly 8,000 jobs over the previous 5 year period and the continuing erosion of market share for new office, industrial and residential projects. The results are an alarming loss from our tax base, and show the need for different economic development strategies.

An overwhelming 87% of Cincinnati voters believe that the city "has lost out on opportunities to areas such as Northern Kentucky, Mason and West Chester" versus a mere 10% who believe that the city "has been successful in maintaining existing businesses in the city and attracting new businesses and jobs to the community."

We already have a roadmap in place. An economic growth strategy called GO (Growth+Opportunity) Cincinnati identified specific development recommendations. Such as:

* To capture a greater share of projected new job creation in the region, the City should target business attraction, retention and workforce development initiatives to stimulate growth in targeted business and industry sectors.
* Expand private-sector investment through an expanded Catalytic Development Corporation structure that will concentrate development expertise and financial resources in target economic opportunity areas;
* Create a Development Authority to consolidate and enhance public development functions and improve positioning for new investment;
* Aggressively pursue a streetcar system to link Downtown and Uptown, the City's two leading job creation areas

If we act, the business leaders and consultants who authored the report believe that Cincinnati could gain nearly 5,000 new jobs, capture a greater share of the nearly 45,000 regional jobs projected to be created though 2014 and capture a net revenue increase of more than $146 million.

Can we do it? Cincinnati has always been a city of potential -often unrealized, but with potential for greatness nonetheless. This is a great place to live and call home. As detailed often, most recently in the Agenda 360 report, we have "great neighborhoods, a strong business community, stunning natural beauty, affordable housing and a great quality of life." Most people who live in Cincinnati, whether if born here or a later arrival, love this home of ours. We have strong civic pride and can tell folks what is so great about Cincinnati.

Now, many City and civic leaders are working to ensure that Cincinnati becomes a City of Reality where good ideas happen and population and business growth result. And we should be clear - to do so will require change and sacrifice. The modern world will not allow status quo thinking.

We already are blessed with the benefits of being a Top 10 market for Fortune 500 companies, with nine such businesses having a headquarters here. Yet, despite our geographic proximity to the US population centers, transportation assets like the Ohio River and a great airport, world class culture & arts institutions and nationally-reknowned universities, we continue to lag in job growth behind cities that do not match our advantages.

So we must work harder and focus on what it takes to grow jobs and attract new headquarters and business operations, creating new businesses and helping already present businesses expand. One requirement is to make Cincinnati a regional, state and national leader in attracting world-class professional talent to come here for our high quality of life and career opportunities.

My agenda for the balance of this year includes the following action steps to make Cincinnati the Midwestern destination for business growth and development:

* Achieving tax reform that lowers the cost of doing business here to help make Cincinnati a destination for businesses seeking to grow;
* Getting a new Board appointed to the Port Authority and finding the funding source in order for the Port to implement our GO Cincinnati economic development strategy through site acquisition and pre-development;
* Supporting and engaging our leading corporations and business institutions to recruit growing businesses to the City;
* Ensuring that City budget cuts do not impact that quality of life fundamental services that help Cincinnati attract and retain businesses, their employees and families;
* Keeping The Banks private development and riverfront park on track and on budget to provide the large-scale downtown entertainment district that we currently lack;
* Opposing efforts to institute more government bureaucracy and regulation that drive businesses out of the City, and use the deficit to streamline business processes that are good for business and save money in the process;
* Working with Mayor Mallory to find a way to build the streetcar without using General Fund money needed for police, fire and other basic services;
* Moving panhandlers off the streets and into service providers that can end their cycle of dependency;
* Continuing to support law enforcement to be innovative in fighting crime and maintaining public safety and order that give people confidence in the City.