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CLEVELAND FEATURED STORIES
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“Our 2012 budget is conservative, but will allow us to provide necessary services our residents needs, and allows us to reinstate some services and activities that were previously cut. It is a sound budget and is a testament to Mayor Jackson and this council’s commitment to moving Cleveland forward.”
Cleveland City Council passes balanced 2012 budget
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CLEVELAND (March 26, 2012) – Cleveland City Council, following two weeks of daily budget hearings and reconciliation to carefully review Mayor Frank G. Jackson’s budget estimate, passed the $507 million 2012 City of Cleveland
General Fund Budget on Monday, March 26 during council’s 7 p.m. meeting.
Council budget hearings began on Tuesday, Feb. 21 and continued through Thursday, March 1. During the two week process, members of council heard testimony and questioned city officials from all departments and divisions including public safety, public health, public works and public utilities.
Council made five amendments ($1 million) to the budget, including:
• $50,000 for the hiring of a consulting firm to inventory potential landmark buildings
• $500,000 dedicated to maintenance for minor repairs for equipment, plumbing and electrical for recreation centers
• $250,000 for the hiring of five inspectors for occupied properties to help identify housing code violations
• $175,000 for rent for the Family Justice Center within the Galleria auxiliary office space
• $50,000 for the purchase of computer software to track and document demolition projects for prosecution and/or billing
Cleveland has weathered recent years of financial hardships better than most major cities in the U.S. While many were hit hard by the recession, Cleveland’s economic environment is improving with one of the nation’s fastest job growth rates and an unemployment rate of 7.1 percent, the 6th lowest rate in the U.S.
“It is Cleveland City Council’s responsibility, per charter, to examine the city's operations through hearings and approve the operating budget for the city,” said Cleveland City Council President Martin J. Sweeney. “Our 2012 budget is conservative, but will allow us to provide necessary services our residents needs, and allows us to reinstate some services and activities that were previously cut. It is a sound budget and is a testament to Mayor Jackson and this council’s commitment to moving Cleveland forward.”
The 2012 budget contains the following measures, which help ensure the public’s needs are met while maintaining a balanced budget:
• Maintain same staffing level as the 2011 operating budget
• Restore recreation center operations to full service (i.e. Saturday hours, pool hours and playground programs and activities)
• Callback of 20 police officers from layoffs
• A three percent wage increase commencing on April 1, 2012
• A two percent increase in income tax revenue
• A $12.6 million reduction of Local Government Fund revenue
• A $5.5 million reduction of Commercial Activity Tax revenue
• $1 million reduction in Tangible Personal Property Tax revenue
• Elimination of most vacant positions
• Continuation of hiring freeze, except for critical positions
• Full year of the $3.8 million bed tax as a result of the Medical Mart agreement
• Supports downtown public safety needs required by a 24/7 day-a-week Casino
• Consumes most of a $16.8 million carryover from 2011
• Refrains from using a $13 million “rainy day” fund
• Uses $12.1 million received from the sale of the old convention center to Cuyahoga County
While Council has approved the 2012 City of Cleveland General Fund Budget, the Jackson Administration and Council are already working to address concerns for 2013 which include:
• A 27th pay period which is approximately $13 million
• Stadium debt service of $10.5 million
• Loss of excise tax ($6 million) and loss of estate tax in 2014 ($3-4 million)
• Potential property tax loss with 2012 full valuation
• Labor agreement negotiations 4/1/13
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