A public hearing Wednesday will kick off Cincinnati City Council's budget process for the next fiscal year, which begins July 1. Council has until June 30 to approve a budget, and will spend the next few months hearing from residents and city departments to prepare for the vote.
Budget, Finance and Governance Committee Chair Jeff Cramerding says he expects a budget deficit again this year, with expenses coming in higher than projected revenue.
"We barely have the resources necessary to provide basic city services," Cramerding told WVXU. "This has been a very long term problem that goes back decades. We do see upturns and downturns with the economy, which impacts our earnings tax, which is our biggest revenue source ... but overall, the city's budget is in a very difficult position, and we need long term remedies to address that."
Last year, Council approved a budget with 2% cuts to most departments to fill a deficit. Cramerding says this year, departments have been asked to estimate 5% cuts.
"That's part of the [city] manager's budget process — she can see what cuts would look like and how that would affect basic city services," Cramerding said. "As the manager composes her budget, if there's a need, some departments might receive more resources. And if a department is underperforming, or maybe that's just not the priority that it once was, other departments will could see broader and larger cuts."
Cramerding says in addition to public hearings, City Council relies on the Community Perceptions Survey to help determine how residents want to see tax dollars spent.
Expected budget timeline
City Council will hear from residents first, at three public hearings in March:
- Wednesday, March 4 at 5:30 p.m. at City Hall Council Chambers (801 Plum Street)
- Wednesday, March 11 at 5:30 p.m. at North Avondale Recreation Center (617 Clinton Springs)
- Monday, March 16 at 5:30 p.m. at Sayler Park Recreation Center (6720 Home City Ave)
Then, department heads will present their needs and budget requests to Council at several meetings in March and April. Council will then vote on a policy motion in mid-April; that's the document City Manager Sheryl Long will use to create the first draft of the budget.
Long is expected to transmit her first draft to Mayor Aftab Pureval by the third week of May. The mayor and city manager typically hold a joint press conference to publicly release the first budget draft.
A final public hearing is expected the first week of June. Residents also can give feedback on the budget proposal during regularly scheduled meetings of the Budget and Finance Committee (Mondays at 1 p.m.) and the full City Council (Wednesdays at 1:30 p.m.).
Though City Council has until June 30 to vote on the final budget, typically the final vote occurs in mid-June.
Understanding the city budget
Where can I see budget information online?
Documents are published on the city website under the Finance & Budget page: Cincinnati-oh.gov/finance/budget
Once the city manager and mayor release their budget draft, they will be available on that page.
There also are links to prior years' recommended and approved budgets.
Why does a new budget start in July instead of January?
The city budget is based on fiscal year rather than calendar year. Fiscal year 2027 (often abbreviated as FY27) begins July 1, 2026 and ends June 30, 2027.
Where does city income come from?
The majority of revenue comes from income taxes, also called earnings taxes. Here's the breakdown of revenue for FY26 (the current budget):
- Earnings taxes: 65.1%
- Property taxes: 8.4%
- State shared revenue: 2.8%
- Casino tax: 1.7%
- Investments: 4.4%
- Parking meters: 0.3%
- Other revenues: 17.3%*
* Includes: license and permit fees; admission taxes; short-term rental excise taxes; buildings and inspections fees and permits, etc.
The current city income tax is 1.8% of gross earnings and the revenue is divided into three categories:
- 1.55% for the general fund
- 0.15% for permanent improvements (capital)
- 0.1% for maintenance of city infrastructure
The most significant change to city revenue in recent years is a reduction in the Local Government Fund (state shared revenue). The state imposed cuts to this fund about a decade ago; the amount allocated to Cincinnati in FY26 (about $16.2 million) is a 60% reduction compared to 2011 ($40.7 million).
What makes up most of the budget?
Of the general fund, 80.9% goes to personnel and benefits. And, 83.6% of city employees are represented by labor contracts negotiated with a union.
Who decides how to spend taxpayer money?
The process begins with City Manager Sheryl Long, who will work with her team to prepare the first draft of a budget. That draft is passed along to Mayor Aftab Pureval, who has the option to make any changes before it goes to Council.
Council has ultimate authority over the budget and must reach a majority agreement (five of nine members) to approve the spending plan.
How does a biennial budget work?
The city budget technically covers two years at a time, but Council still votes to approve funds every year.
Last year, Council approved a budget for fiscal year 2026 and fiscal year 2027. This year, Council will vote on a "budget update" to account for differences in actual revenue compared to expected revenue. Practically speaking, however, significant changes are typical in a budget update year.
What's the difference between operating and capital budgets?
The operating budget includes the services provided by the city, like police officer patrols, filling potholes, trash collection and operating the water treatment system. It includes wages for city employees and the cost of supplies needed to deliver services. The operating budget includes the general fund, where City Council has the most flexibility in funding decisions.
General fund dollars can be used for capital projects, but capital dollars cannot be used for operating expenses.
The capital budget covers purchasing or improving city assets like buildings and vehicles. It includes assets that cost at least $10,000 and last at least five years. The capital budget includes some cash and some borrowing.
The overall capital budget includes restricted funds like Metropolitan Sewer District capital improvements, the convention center and stormwater management.
The city also can take on debt for capital projects, but the amount of debt is limited by the amount of revenue expected from taxes — the city has to bring in enough money to make payments on the debt. If the city wanted to take on more debt for capital projects, Council would have to approve an increase in taxes. Right now, the city issues bonds based on property taxes.
The city can't issue bonds on assets not owned by the city; that also applies to city-owned buildings with long-term leases like Music Hall's 100-year lease. Playhouse in the Park is another example of a city-owned building that can't use bonded capital for improvements because of long-term use agreements.
Where can I learn more?
https://www.cincinnati-oh.gov/budget/budget-engagement/
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