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New industries reshape Northeast Ohio’s identity as the region strives to compete in a global marketplace. We explore some of these markets in our
ECONOMIC OUTLOOK
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here just might be a brighter tomorrow on the horizon. Just ask those working in clean energy, exports, medical devices, flexible electronics or any of the other emerging fields that are expected by some to be the building blocks of the region’s future. Despite the deepest recession in recent history, there’s
been an undercurrent of innovation and progress taking place in Northeast Ohio. And now, many hope those efforts and opportunities will rise to the surface in 2011 and beyond. To read more about Northeast Ohio’s emerging sectors and their short- and long-term outlooks, see Page 13.
INSIDE Year in review From American Greetings’ announcement that it is considering a headquarters move from Brooklyn, to Cleveland casino plans and The Decision, we look back at the stories, deals and people who mattered in 2010. See the review on Page 9.
Cities brace for impact as budget cuts loom Local governments fear state may whack key cash streams By JAY MILLER jmiller@crain.com
Like a driver sliding out of control on an icy road, county and municipal officials across the region are girding for a collision with the new governor and General Assembly. Gov.-elect John Kasich and the Legislature are expected to curtail or kill two key sources of local revenue as they grapple with a state budget gap estimated to total $8 billion to $10 billion. The two revenue streams — the state local government fund and the state estate tax — account for more than 10% of many municipal budgets. Mr. Kasich has made it clear he will not raise taxes to help close the budget breach and that no expenditure — including money to support local governments — in the $50 billion state budget is likely to avoid cuts. In addition, the new governor has talked about eliminating the state estate tax, a significant source of income for some communities, to make the state more attractive for business investment. “His intent is to make it a less burdensome tax state,” said Cleveland Mayor Frank Jackson. “All this (budget cutting) is being pushed down from the federal government See BUDGET Page 18
Ohio’s jobs numbers likely to be sobering
STEVE BENNETT ILLUSTRATION
Reporting model altered for accuracy
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By DAN SHINGLER dshingler@crain.com
Entire contents © 2011 by Crain Communications Inc. Vol. 32, No. 1
Ohio is about to find out it doesn’t have as many jobs as it has been reporting — by a factor that will dwarf the state’s meager job gains in 2010, says economist George Zeller. Mr. Zeller, who tracks job and tax data for Cuyahoga County and other local entities, said the hit will come when the federal government revises its national jobs data next month. The nation will lose 366,000 jobs from its total count, the feds have said — but Ohio alone will lose about 100,000 from its count of 5.01 million in See JOBS Page 6