Mayor Bibb Calls for Commitment to Structurally Balanced Budget: Opposes Risky Budget Amendments from City Council

For the last three years, my administration has delivered structurally balanced budgets, ensuring the taxpayers of Cleveland and their investments were being responsibly stewarded without putting undue risk to our operations. A structurally balanced budget was a mandate from City Council that I took seriously upon entering office in 2022. This fiscal prudence has led to upgrades to our bond rating, growth of our emergency cash reserves, and increased interest earnings that help support vital city services.  

Today, the members of City Council have broken from this trend and have produced a budget that spends more money than we make. The Finance Committee passed an amendment to the 2025 budget to pay for these imbalances by withdrawing money from our carryover balance, which is meant to serve as a critical lifeline in times of economic crisis.  

As we reviewed the City Council’s proposed amendments to the 2025 budget (totaling $22,712,474), we must recognize the importance of safeguarding our financial reserves. My administration proposed reconciliatory items in the amount of $15,207,000 – more than two-thirds of the primary request from City Council – and the largest amount proposed during the budget reconciliation in the city’s history. 

The Neighborhood Equity Fund requested by City Council has an unspent amount of $6.4M. These are dollars that Council has let sit idle for two years, having not been put to work since they were allocated in 2023. In addition, we are currently in negotiations with over thirty unions, and with pay raises projected to exceed $45 million over the next three years, the implications for our budget are significant. By preserving our financial reserves, we ensure that the city can weather these economic storms without compromising essential services and the stability of our workforce. 

While these funds are vital for supporting key projects and programs, we must resist the temptation to dip into our rainy-day fund, carryover balance, and reserves. Pulling from any of these funds will not only result in a budget that is structurally unbalanced but will put the city at additional financial risk. 

We find ourselves in a time of unprecedented uncertainty. We face potential federal grant funding cuts, a troubling decline in our population, and the looming threat of state and federal legislation that could have severe financial implications for our residents. Each of these challenges could cost us tens of millions, putting additional strain on the general fund which is already under pressure. 

Let me be clear – I will not support any legislation that unnecessarily dips into the city's rainy-day fund, carryover balance or any other reserves, putting our financial health at risk. Our carryover balance is meant to ensure that in cases of emergency, we have cash available to support our community, it is not intended to finance special projects. This is dangerous and irresponsible, and at a time of grave uncertainty in federal funding, we cannot in good conscience support it.