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City councils

Toledo Mayor's Final Budget Leaves $30.2 Million Deficit

Strategic Insights

— 2 min read

Toledo Mayor Carty Finkbeiner has submitted his last proposed budget, which includes a $30.2 million deficit that will likely be the responsibility of the incoming Mayor Mike Bell and the new City Council to solve. The budget calls for $241.2 million in spending, including hiring 40 police officers and 40 firefighters, but only has $211 million in revenues. Mayor Finkbeiner advocates for a tax increase to cover the deficit, but members of council are skeptical and have promised in-depth hearings on the proposed budget.

Key Takeaways:

  • The proposed budget has a $30.2 million deficit, which is the largest in Toledo's history.
  • The budget calls for hiring 40 police officers and 40 firefighters, but only has $211 million in revenues.
  • Mayor Finkbeiner advocates for a tax increase to cover the deficit, including a $16 monthly trash fee and elimination of the income tax credit.
  • The budget also reflects the end of some concessions given in negotiations by police officer and firefighter unions, including deferred compensatory time.
  • Council members are skeptical of the mayor's budget numbers and have promised in-depth hearings on the proposed budget.
  • Mayor-elect Bell has left his options open on tax increases, but has not committed to supporting them.
  • The City Council must approve a balanced budget by March 31.
  • The budget assumes the elimination of 40 refuse collector jobs as the city moves to automation of trash collection.
  • The administration used information acquired in its discussions with economists during negotiations on police and fire contracts this year, rather than relying on outside economists.
  • Mayor Finkbeiner has claimed that Toledo is the "leanest" city in terms of numbers of city employees in Ohio, and as safe and clean as any comparable city in the United States.

Statistics:

  • The proposed budget has a $30.2 million deficit.
  • The budget calls for $241.2 million in spending, including hiring 40 police officers and 40 firefighters.
  • The budget only has $211 million in revenues, based on economic projections for the auto manufacturing sector and on warnings from Lucas County and Ohio of cutbacks in property taxes and the Local Government Fund.
  • The proposed tax increase would raise about $18 million a year, which is about $7 million more than the 2010 proposed cost of operations.
  • Cutting all remaining positions in the general fund (145) would save only about $7 million.
  • The administration used $1.4 million for police deferred compensatory time and $700,000 for fire deferred compensatory time in the budget.

Sources:

  • "Mayor turns in proposed budget with $30.2 million deficit" by Tom Troy, The Blade, Nov. 17, 2009
  • "Mayor Finkbeiner turns in budget with $30.2 million deficit" by Tom Troy, The Blade, Nov. 17, 2009

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