How will Cincinnati plug $32M budget gap? Higher parking and other fees, but no job cuts

When acting City Manager Patrick Duhaney presented a proposed city budget Thursday at 3 p.m., he answered a key question: How will Cincinnati close a gap between spending and revenue that had grown to $32 million?

Less than a month before resigning amid a battle with Mayor John Cranley, then-City Manager Harry Black warned the city would face a $23.4 million deficit for the fiscal year that starts July 1. Black wanted the police and fire departments to slash spending by 6 percent and all other departments to cut 12 percent from their budgets.

There are no cuts to the police and fire departments in Duhaney's proposal. Indeed, there are no job cuts or furloughs for any city employees in the budget, although an unspecified number of vacant jobs won't be filled. No pools, parks or recreation centers will be shuttered either.

There's nothing in the proposal "that will impact the level of service citizens have come to expect from the city," Duhaney told reporters at City Hall.

But the city would take in millions in new fees. It would get $2.8 million or 135 percent more from parking meters through "dynamic pricing" charging more at peak hours, as well as new revenue from putting "the boot" on cars whose owners have three or more unpaid tickets.

(While there is no property tax in the proposal, remember that City Council voted in December to raise property taxes to support the capital budget.)

Building permit and inspection fee increases will result in an additional $5.2 million (up 42 percent) for the city. In addition, the budget proposal calls eliminating $9.4 million of the shortfall by cuts to departments outside of public safety.

Duhaney suggests cutting spending to about 30 outside groups by 25 percent or 50 percent resulting in $2.5 million in savings. Here are a few of the proposed cuts:

Centrifuse would lose all $360,000 in city funding.

would lose all $360,000 in city funding. Summer Youth Jobs Initiativ e loses $62,500, resulting in $187,500 in funding.

e loses $62,500, resulting in $187,500 in funding. The $50,000 Engage Cincy Challenge Grant will be completely cut.

will be completely cut. Regional Economic Development Initiative ( Redi Cincinnati ) funding is cut in half to $125,000.

) funding is cut in half to $125,000. The African American Chamber of Commerce funding is cut in half to $162,500.

funding is cut in half to $162,500. Mortar's city funding will be cut in half to $32,500.

city funding will be cut in half to $32,500. CityTech would lose all of its $250,000 in city funding.

would lose all of its $250,000 in city funding. The city funding for the Greater Cincinnati Redevelopment Authority would drop 28.6 percent to 500,000.

would drop 28.6 percent to 500,000. The City Human Services Fund administered by the United Way would drop 15.8 percent to $2.6 million.

administered by the United Way would drop 15.8 percent to $2.6 million. The Violence Prevention Program administered by United Way would be cut 25 percent to $187,500.

administered by United Way would be cut 25 percent to $187,500. The Center for Closing the Health Gap funding would be cut 25 percent to $562,500.

funding would be cut 25 percent to $562,500. Cincinnati Union Bethel would lose all $35,000 of city funding.

"Without question, these agencies provide valuable services to the community," Duhaney said. "However, this is one of the few areas where we could look to reduce spending, without jeopardizing key city functions."

City Council must past a balanced budget by June 30, the last day of fiscal 2018.

The city manager's budget proposal usually is the starting point for City Council and the mayor to begin budget negotiations.

In December City Council pledged $50 million to three major projects. The projects are:

The Western Hills Viaduct: $33 million.

New firefighter training facility: $10 million.

Upgrades to firehouses: $7 million.

In response, Black asked City Council to raise property taxes. Council agreed to raise the capital portion of the tax. The owner of a $100,000 house will pay an extra $31 each year to cover the hike. This is projected raise about $7 million each year.

More: A dire budget projection - and looming layoffs - in midst of City Hall war over the city's manager's job

More: Wednesday: Cincinnati council spends $50M. Thursday: Higher taxes needed?

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