City Manager Milton Dohoney Jr. on Nov. 24 unveiled his 2013 budget plan. The proposal, which must be approved by City Council and the mayor, seeks to close a $34 million deficit while avoiding major cuts and layoffs. The proposed budget will only set the city’s course until mid-June, when the city will transition into establishing budgets based on fiscal years.
The biggest deficit plug will come from privatizing parking services, which the city manager’s office says will bring in $40 million in one-time revenue and additional revenue over 30 years as part of a long-term contract. About $21 million of the lump-sum payment will be used to close the 2013 budget deficit.
In the past, Councilman P.G. Sittenfeld voiced concerns about privatizing parking: “I’ll await more details, but it seems penny-wise and pound-foolish to forgo a steady revenue stream for a lump-sum payment.
Cincinnati needs a structurally balanced budget and can’t keep relying on one-time sources.”
Another concern is whether the city’s current parking employees will be laid off if parking services are sold. Dohoney said the deal for privatization will require the winning bidder to interview all American Federation of State, County and Municipal Employees (AFSCME) workers. Full-time workers who do not join the winning bidder will be hired in other parts of the city government. “No AFSCME employee will be placed on the street if they are full-time as a result of this effort,” Dohoney claimed.
The rest of the deficit plug will come in cuts, cost shifting, savings, revenue, embedded growth and one-time sources.
Among these, notable items include the elimination of the Mounted Patrol for the Cincinnati Police Department (CPD) and a $610,770 reduction in Human Services Funding. A few departments and programs, including the CPD, will face further minor cuts.
The city manager’s office claims the changes in the budget are necessary mostly due to changes at the state level. Specifically, the state government cut the Local Government Fund by 50 percent and eliminated the tangible personal property tax reimbursement and estate tax; altogether, losing these sources of revenue cost Cincinnati $22.2 million in the 2013 budget.