Cincinnati’s Budget Situation Grows More Desperate

Cole, Harris creating fiscal crisis to justify tax hike
New Council member Greg Harris
has chosen to join Council coalition
spending Cincinnati into a $40 million hole

The budgetary mess created by City Council played out as fully expected over the past few weeks when four City labor unions rejected proposed furloughs that would have saved $4.2 million this year.

In June, Budget Committee Chairman Laketa Cole led a slim Council majority to patch the City’s $20 million budget hole by spending reserves down by $10 million, and claimed budget cuts of another $10 million including the entirely illusory savings from furloughs. Council violated its own rules requiring six votes to raid the reserves in order to continue the irresponsible spending unabated.

The rejection of the furlough days by the labor unions means that Council implemented less than $5.8 million in cuts for 2009, to fill the $20 million hole. COAST and Councilmember Chris Bortz reported here and here that the City is avoiding substantive budget cuts and inevitably preparing the City for a massive 2010 tax increase. The City administration has projected a shortfall of $40 million for next year.

COAST has asked Council candidates to take a pledge against raising taxes or imposing new fees during the coming Council term. To date, Council members Chris Monzel and Leslie Ghiz have taken the pledge along with challengers Charlie Winburn, George Zamary and Amy Murray.