BY LISA DONOVAN
The Cincinnati Enquirer
Negotiations are under way between some Cincinnati City Council members who support boosting Cincinnati's ticket tax and members of the sports and entertainment industry who would be hit by the hike.
The ticket (or admissions) tax hike, whose revenues would be used to make good on a $100 million promise to pay for Cincinnati's crumbling schools, was headed for approval Wednesday by city council. But last-minute talks postponed council action.
"We're holding it to see if there is an opportunity to reach an agreement with the sports and entertainment industry that would allow us to fulfill our obligation and avoid a divisive ballot fight," said Mayor Roxanne Qualls, who supported raising the tax.
A coalition of opponents, including council members as well as representatives in the sports and entertainment business, vowed to reverse the tax hike, should it pass, through a ballot initiative. The proposal calls for raising the 3 percent admissions tax to 4.25 percent for 11 years, starting in 1999, before gradually returning it to 3 percent in 2020.
Out-of-town entertainers -- from musicians to visiting athletes -- also would be subject to the city's 2.1 percent earnings tax.
The tax applies to a range of venues, including movie theaters, private golf courses, and Bengals, Reds and University of Cincinnati sports events.
In addition to Ms. Qualls, council members Minette Cooper, Bobbie Sterne, Dwight Tillery and Tyrone Yates had supported the measure.
Proponents argue that the ticket tax hike provides a steady funding stream and that the burden on those affected is minimal. Mr. Tillery criticized Ms. Qualls, saying he felt "betrayed" by the delay, which he thinks amounts to a full retreat.
"I was all prepared to go ahead and support the ordinance . . . today. I was stunned to find out the mayor was negotiating with Jeff Berding."
Mr. Berding, director of community affairs for the Cincinnati Bengals, said he had been talking with members of council to continue working on a funding plan. "We want to work with the mayor and members of council to secure a funding commitment."
Ms. Qualls said waiting at least a month -- the next time the full council meets -- to discuss a compromise doesn't hurt anyone looking for the best way to fix the schools.
Details of any compromise plan were not available Wednesday night, and it was unclear whether the entertainment coalition would push for a portion or all of an alternative plan introduced by council members Charlie Winburn, Phil Heimlich, Jeanette Cissell and Todd Portune.
The alternative plan includes:
$44.9 million that would come from anticipated growth in admissions tax revenues as a result of the construction of two new stadiums. Proponents think the new sports arenas will draw larger crowds.
Slowing the growth of spending from the proposed 2.5 percent increase in 1999 to 2.1 percent for that same year. Assuming 3 percent growth in spending after 1999, it is projected that $1.4 million would be saved for the next 21 years. That would result in $29.4 million going to schools.
In other business Wednesday, council:
Voted 7-1 to approve an ordinance permitting a downtown African-theme street festival the same weekend as the Coors Light Festival at Cinergy Field. Officials and organizers hope the Ujima Cinci-bration, set for July 24-26, will be an answer to the violence that broke out in the downtown last year during the music festival weekend at the ballpark. In addition to the downtown event, concentrated along Fifth Street between Race and Sycamore streets, there will be neighborhood activities, too. The only council member to vote against the measure was Mr. Heimlich, who has continuously argued that safety officials issued a report in May stating there wasn't enough time to organize a safe, family-oriented event this year. Mrs. Sterne was not present for the vote.
Will move ahead with further appeals of a federal lawsuit challenging Cincinnati's 1995 campaign-spending limits law. In a 6-3 vote, council members decided to continue appealing the case to the U.S. Supreme Court.
The 1995 campaign-spending law set a limit of about $140,000 for council candidates, far less than many candidates have spent on council campaigns in recent years. The law was challenged in U.S. District Court by former Republican council candidate John Kruse. Mr. Kruse won in district court, and a three-judge panel of the appeals court agreed.
This means the city will take up an offer from John Bonifaz, a lawyer for the Boston-based National Voting Rights Institute, which has represented the city, to do the work for free.
