"However difficult these cuts appear, we have a powerful tool to help us make thesedecisions. Over the past few months, the City, along with the Center for Priority-Based Budgeting and The Novak Consulting Group, met with citizen groups and community organizations, conducted surveys, and solicited opinions to identify what the community views as six strategic priorities for our city government. Last week, the consultants produced software categorizing each city program according to these priorities. This citizen-driven process will guide us over the coming months as we consider these tough decisions."
Letter to the Editor: City budget reductions will be challenging
Councilwoman Yvette Simpson
Dear Editor:
Recently Cincinnati City Council voted to not increase the operating tax rate for Cincinnati homeowners. Council did, however, increase the capital tax rate to 6.25 mills, allowing for $27.9 million of capital projects in 2013. I supported this proposal. Although we preserved our capital funding, I have concerns about our large operating deficit. On critical matters such as this, it’s especially important for public officials to demonstrate real leadership and be honest about the consequences of every budget decision. These decisions come with a price, but we will face them strategically and thoughtfully, and hopefully we will see Cincinnati’s revitalization continue in the coming years.
The estimated general fund deficit for 2013 will be $34.3 million. A number of factors contributed to this considerable gap. We continue to have a struggling global economy and costs in every sector are rising. The City, with approximately 6,000 employees, continues to see increased health care costs, and unstable fuel prices have a dramatic effect on the city’s large fleet of garbage and recycling trucks, police cruisers, and fire trucks. To make matters worse, our state government has drastically decreased local government funds and eliminated the state estate tax, further decreasing revenues by $10.9 million. Further, unlike last year when a renegotiated contract with Convergys yielded an additional $14.5 million to help plug the deficit, this year there is no multi-million dollar check to bridge the gap. For 2013, we must identify new ways to decrease spending in order to pass a balanced budget.
Identifying where to reduce the budget will be a challenge. Between 2000 and 2011, the City eliminated 930 nonsafety general fund operating employees and reduced nonsafety departments’ general fund operating budget by 27.1 percent. Many departments have been reduced to bare bones. What is left is important, and any cuts or additional fees will have a real impact on the community. Additional budget cuts will not be easy, but they will be made systematically, with a focus on the priorities identified by the community over the past few months. Some services that many rely upon may be cut completely and there will likely be service delays and interruptions in those that remain.
However difficult these cuts appear, we have a powerful tool to help us make thesedecisions. Over the past few months, the City, along with the Center for Priority-Based Budgeting and The Novak Consulting Group, met with citizen groups and community organizations, conducted surveys, and solicited opinions to identify what the community views as six strategic priorities for our city government. Last week, the consultants produced software categorizing each city program according to these priorities. This citizen-driven process will guide us over the coming months as we consider these tough decisions.
In this economy, you might wonder why we chose to raise property taxes at all. I am a property owner myself, and am not a person of great wealth. The increase to the capital rate is slight, but the benefit is significant in that we can leverage this money with bond financing to maximize its impact on the city. The capital fund supports our infrastructure and “bricks and mortar” projects. Without this increase, the City could not offer the same support to our arts and cultural institutions and other projects essential to what makes our city a vibrant and attractive place. Institutions like Music Hall, and projects central to Cincinnati’s revitalization such as The Banks, Smale Riverfront Park, Fountain Square, Washington Park, and the Casino could not have been accomplished without City capital funding. These projects and institutions are an important part of Cincinnati’s past and future, and so we must support them.
These are tough economic times. We heard from many individuals, including retirees on fixed incomes, about their struggles with rising costs and expenses. We listened, we understood, and we came to the best decision we could for our city and its citizens. It’s important for Cincinnatians to hear that the City also has financial struggles, and will need to make adjustments, too. The road ahead may be challenging, but I am confident that we will get through these difficult times and our city will continue to grow and flourish into the future.
Yvette Simpson, Esq. Cincinnati City Councilwoman Vice Chair, Public Safety, Livable Communities committees
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