June 4: Cincinnati City Council, Budget & Finance Committee meeting
Covered by Documenter Erin Couch (notes)
Last week, Cincinnati City Council wrapped its final budget hearing for its biennial budget. City departments in the general fund will see a 2% reduction in Fiscal Year 2025-26 because federal stimulus money from the COVID-19 pandemic ended. Council worked to close the $10.2 million budget gap in January.
The cuts also affected funds for external organizations that enhance the city’s “well-being and development,” according to the city’s leverage funding program guidelines. Seventy-five nonprofits and businesses applied for consideration this year, and 22 were awarded grants.
Because some organizations use city money to facilitate another grant match, that leaves them at a double-loss.
“At a time in this country when there’s a real and imminent threats to SNAP, the Produce Perks program directly serves SNAP recipients,” said Tevis Foreman, executive director of Produce Perks Midwest, a food insecurity nonprofit whose leverage funds were not continued this year. The nonprofit previously used its $100,000 from the city for a match from the USDA, he said.
This is also the first year the city will spend proceeds from the $1.6 billion Cincinnati Southern Railway sale to Norfolk Southern, which voters approved in 2023.
City budget sees 2% reduction across departments
At last week’s budget hearing, all council members were present. Cincinnati Mayor Aftab Pureval was not in attendance.
The current draft, devised by city manager Sheryl Long, totals at $2.1 billion and includes a $1.3 billion operating budget, and a capital budget totaling $772.2 million.
Council members submitted their final recommendations Friday. According to Council Member Jeff Cramerding, chair of the Budget and Finance committee, council will pass the final budget on June 18, ahead of the June 30 deadline.
A major focus of the budget, according to the city manager’s draft, is the Department of Public Services. It supports everyday services like collecting solid waste, cleaning streets, maintaining city facilities, and clearing snow and ice. DPS will receive the largest overall spending increase in operating funds.
Where will railroad money go?
Each year, the city will receive an approximate $56 million payout from the Cincinnati Southern Railway trust to utilize in the general fund. Money from the program, which the city calls the Cincy on Track Initiative, can only be used on existing city infrastructure projects. The city manager proposed this breakdown:
- Streets and bridges: $34.8 million. Improvements include the Victory Parkway complete street project, State to Central project, speed hump modernization and street rehabilitation.
- Parks: $7.2 million. Money will go toward the Owl’s Nest Park rehabilitation, McEvoy Park renovation, and the Sawyer Point and Yeatman’s Cove bike trail.
- Recreation: $7.6 million. That will fund the Dunham Recreation Center Renovation, outdoor and athletic facilities renovation, and recreation facility renovation.
- Public services: $6.4 million.
The city prioritized neighborhoods with a median annual income of under $50,000, with 51.4% of the money going toward infrastructure projects in those neighborhoods.
Health department investments are also part of Cincy on Track, but the department will be provided with other capital resources for its facility needs, according to the budget draft.
Next steps and follow-up questions
By law, the city must pass the biannual budget by June 30. Council will continue discussions this week.
Questions we’re left with:
- What factors does the city consider when awarding leverage funding to private organizations?
- What city services specifically will see reductions as a result of the budget reduction?
Read more from on this meeting from Documenter Erin Couch:
