Mayor Mark Mallory announced revisions to the city manager’s budget plan today that will reduce the amount of layoffs by making several additional cuts, particularly in funding that goes to outside agencies, and using recently discovered revenue.
Mallory’s changes will restore 18 firefighter positions, 17 police positions, three inspector positions at the Health Department and two positions at the Law Department, reducing the total layoffs to 161, with 49 of those being police positions and 53 being firefighter positions.
To balance out the restored positions, the mayor is suggesting closing down two more recreation centers: Westwood Town Hall Recreation Center and Mt. Auburn Recreation Center. He is also suggesting cuts to the mayor’s office budget ($32,000) and outside agencies ($1.3 million), including the Cincinnati Center City Development Corporation (3CDC), the Greater Cincinnati Port Authority, the Center for Closing the Health Gap, the Cincinnati USA Regional Chamber of Commerce and the African American Chamber of Commerce.
Mallory’s revised budget plan also makes use of about $500,000 in revenue that was not located in time for City Manager Milton Dohoney’s budget proposal.
Mallory justified the cuts by saying public safety must come first, but he says he would keep the funding under better circumstances.
“The progress we have seen in our city cannot stand on its own without an emphasis on public safety,” he said.
The budget will have to be enacted by June 1 to give the
city 30 days to implement the changes before fiscal year 2014, which
begins July 1.
Mallory stressed that the city’s $35 million operating budget deficit is being driven by a few outside factors, including reduced state funding, court challenges holding up the parking plan and the recent economic downturn.
Gov. John Kasich has cut local government funding by about half in his state budget plans, which Dohoney estimated cost Cincinnati about $22.2 million in 2013 (“Enemy of the State,” issue of March 20).
The city was planning to make up for some of that lost funding by leasing its parking assets to the Port Authority and using the funds to help balance the deficit and fund development projects around the city, including a downtown grocery store (“Parking Stimulus,” issue of Feb. 27). But opponents of the plan, who say they are cautious of parking rate hikes and extended parking meter hours, have successfully held up the plan in court and through a referendum effort.
Cincinnati’s population has steadily decreased since the 1950s, which means the city has been taking in less tax revenue from a shrinking population. That was exacerbated by the Great Recession, which further lowered tax revenue as people lost their jobs and cut back spending.
Still, the city has run structurally imbalanced budget since 2001, according to previous testimony from Budget Director Lea Eriksen. The previous budgets were balanced through one-time revenue sources, but Dohoney told media outlets last week that, barring the parking plan, those sources have run out.