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Budget Gap Threatens Streetcar

By German Lopez · April 24th, 2013 · City Desk

After years of delays and obstructionism, an April 16 memo from City Manager Milton Dohoney Jr. revealed a $22.7 million budget gap is threatening to put an end to the streetcar project, prompting Vice Mayor Roxanne Qualls to call for a public hearing to address the issue.

In the city manager’s memo, the city says it could bring down the potential budget gap to $17.4 million with budget cuts, but the rest would have to come from new funds. The memo says the budget gap is a result of construction bids coming in $26 million to $43 million over budget.

The memo says the city will continue working with “federal partners” to find solutions, but it makes no specific proposals — a sign the project will likely require new city funds and private donations to close the gap.

In response, Qualls, a Democratic mayoral candidate who has long supported the streetcar, in a statement called for a public hearing on April 29.

The statement says the meeting will help clarify what would happen with allocated funding if the project falls apart.

Qualls told CityBeat it’s too early to jump to conclusions about the project’s fate, but she says it’s time to have a serious discussion.

At the public hearing, council members and the public will have time to ask questions. 

“Fundamentally, it’s an issue of what are the costs but also what are the benefits,” she says. “We need to clearly outline both for the public.”

But opponents, including Democratic mayoral candidate John Cranley, have responded to the budget gap by criticizing the streetcar project. Cranley, a longtime opponent of the streetcar, called for the project’s end in a statement April 17. 

“The streetcar has been a bad idea and a bad deal for the people of Cincinnati from the beginning. ... Ms. Qualls has already voted to raise property taxes three times to pay for the project. When is she going to say ‘enough is enough’?” 

A statement from Cincinnatians for Progress defended the streetcar, despite the higher costs now facing the project: “Even at a slightly higher cost, the economic benefits of the system far outweigh these costs.”



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