Queen City Cash Flow

Cincy has finally passed a budget with the looming holiday finally motivating the city council.

Cincinnati officials plugged the city’s $51 million budget hole for 2010 on Monday night without layoffs, union concessions or a trash collection fee.

The final version, discussed past 10 p.m., avoided the unpaid days that unions had been asked to take just hours before. It did include, however, an assumption that AFSCME will allow the city to delay a $2.5 million longevity pay lump-sum payment to the union to 2011.

It also relies on taking $8.2 million from the city’s working capital reserve fund and more than $23 million in one-time cuts, cuts that will not help the city with any financial problems past next year.

Something needs to be done about adding a revenue stream in the future, said Councilman Cecil Thomas, who added that he was ready to go home for Christmas.

“This does not represent something that we’re all happy about,” said Councilwoman Laketa Cole, chairwoman of the budget and finance committee. “But with leadership comes compromise.”

Councilman Chris Bortz called it “probably the most irresponsible budget we’ve ever passed in this city.”

Councilwoman Leslie Ghiz said: “I’m not saying yes to this piece of garbage.”

The budget ended up passing 5-4.

Among the cuts: 10 unpaid days for Mayor Mark Mallory, council members and their staffs, saving more than $46,000; office supplies, $400,000; and $3 million in overtime, most of which will come from the police department.

Restored: $75,000 for a poison-control hot line; $50,000 for the Greater Cincinnati Film Commission; $337,940 for nature education, which drew a lot of supporters to public budget hearings; and $362,000 in money for social-services agencies.

And therein lies the rub:  the city's borrowing against next year and hoping the economy will improve around here in 2010.  I only see it getting worse, giving the city even lower revenue from property taxes and making next year worse.  A lot of local and state governments are going to be relying on the Obama administration passing some sort of jobs/mini-stimulus bill to get them through 2010.  Barring that, a lot of layoffs are looming in state and local governments come January.