Cincinnati Mayor Aftab Pureval says it's time to raise the city's income tax. Pureval says the new revenue would target public safety and disrupting poverty.
Pureval announced the plan after being sworn-in Tuesday for a second four-year term.
"It's never easy, and it's never simple, to bring new taxes to our residents," Pureval said. "But this is something I believe we must do, and this Council has the credibility to make difficult decisions to secure the financial future of our city."
It's not yet clear how much the proposed increase would be. Pureval says a full plan will be ready in the next two months.
"It's really critical that we use these 60 days to have a conversation with the community about the investments that they're interested in the city making," Pureval said. "Of course, top of mind for us is public safety."
Pureval said he also wants some of the new revenue to support minority-owned businesses.
"We are not going to back off an inch from our inclusion goals and policies — no, we will push further," he said.
Cincinnati voters would have to approve any tax increase; Ohio has elections in May and November this year. City Council would need to send a ballot measure to the Board of Elections by Feb. 4 to have it appear on the May primary ballot.
The current earnings tax in Cincinnati is 1.8% of gross earnings. The revenue is divided into three categories:
- 1.55% for the General Fund
- 0.15% for permanent improvements (the Capital Budget)
- 0.1% for maintenance of city infrastructure (the Capital Budget)
A few years ago, the mayor appointed a panel of business and community leaders to evaluate the city's financial health and recommend action. The Futures Commission report, released nearly two years ago, included recommendations for two income tax increases:
- 0.1% increase for economic development
- 0.05% increase for public safety
Council member Jeff Cramerding, chair of the Budget Committee, says he has been talking with the mayor's office about putting the tax increase on the ballot in the spring. He says the Futures Commission recommendation is "the beginning of the conversation."
"The city's budget is perilous; I have made that argument repeatedly," he told WVXU. "Over the next four years, I think there's a very real possibility of a recession, and if that comes, with our current budget situation, I believe that we're looking at drastic cuts and layoffs. I would like to be proactive and avoid that."
The police and fire departments already make up 61% of the city's General Fund. The police budget has increased 42% over the last 10 years, and the fire budget has increased 62%, compared to a General Fund increase of 51% during that time.
Inauguration Day
Nine City Council members also took the oath of office Tuesday, but only one for the first time: Ryan James.
Jan-Michele Lemon Kearney will continue as vice mayor and Scotty Johnson has been appointed president pro tempore, replacing Victoria Parks, who did not run for re-election this term.
The swearing-in ceremony also included regular business required at the start of every term, including adoption of the rules of Council.
Each Council member declared their "successor designee," the person or persons on Council who will appoint their replacement if they don't complete their term.
Mayor Pureval adjusted the City Council committee structure for the new term, as well:
- The Budget, Finance and Governance Committee is chaired by Jeff Cramerding
- The Climate, City Service and Infrastructure Committee is chaired by Meeka Owens
- The Economic and Cultural Opportunity Committee is chaired by Jan-Michele Lemon Kearney
- The Housing and Growth Committee is chaired by Mark Jeffreys
- The Public Safety and Quality of Life Committee is chaired by Scotty Johnson
- The Youth and Human Services Committee is chaired by Anna Albi
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