Cuyahoga County faces several vital decisions in the months ahead. Here are five things that advocates need to know:
1: The 40-year sales tax extension and where the money goes
Cuyahoga County voters extended the 0.25 percent sales tax for another 40 years. It was initially passed by the Cuyahoga County Commissioners in 2007, and prior to the extension, was set to expire in 2027. That is general fund revenue so does not have a specific allocation or purpose. In the past, these funds were used to pay back bonds used to build the convention center. The quarter-percent sales tax brings in at least $62 million per year which could be used for debt service or alternative items eligible for General Fund, such as mental health services. Paying for the new jail will be a top fiscal priority for the county, but because this sales tax is general fund revenue, it doesn’t have to be used for items directly related to the criminal legal system.
The quarter-percent sales tax brings in at least $62 million per year which could be used for debt service or alternative items eligible for General Fund, such as mental health services.
2: The levies over the coming years
The Health and Human Services levy on the March 2024 ballot is a renewal, not a tax increase. Four of the past five county levies have been increases, bringing in more resources to address growing needs. The last county-wide renewal levy benefitted Cuyahoga County Port Authority and passed in 2022 with 67 percent of the vote.
- The Cleveland Metroparks, a replacement levy, passed in 2022 (Issue 5 passed with 76 percent of the vote).
- The other Health and Human Services Levy passed in 2020 was a replacement and an increase (Issue 33 passed with 70 percent of the vote)
- Cuyahoga County Community College was a renewal, with a small increase (Issue 5 passed with 61 percent of the vote)
- The Cuyahoga County Public Library levy was an additional 1-mill levy on top of its existing levy (Issue 70 passed with 60 percent of the vote)
As shown by their overwhelming passages and support, Cuyahoga County voters have been extremely committed in supporting these levies. This record also speaks to voters’ understanding of these institutions' important impact on county residents' overall quality of life. County officials are mindful that every levy impact property taxes, so it has real costs for residents.
Cuyahoga County voters have been extremely committed in supporting these levies.
Anything that influences property valuations or property tax collections can impact these county-wide levies and county revenue. That includes new or extended TIF districts and changes made by the State Legislature, such as expansion of the homestead exemption. The delicate balance between the revenue streams that are coming in and the current fiscal climate is something advocates should watch closely.
3: The Cuyahoga County Investment Advisory Committee (IAC)
The Investment Advisory Committee (IAC) is one of the most important meetings you've likely never heard of. Members are the county executive, the County treasurer, and a County Council member. Today, that seat is filled by District 6 County Councilman Jack Schron. As mandated by Ohio Revised Code Section 135.341, the IAC meets every quarter to discuss the state of the county's finances. At these meetings, the public can hear information including county fund balances. These fund balances demonstrate how much money is being saved and earning interest.
The county budget tells you how and what will be spent. The IAC meetings tell you why.
The public can also learn about high-level fiscal discussions, including the county's investments, the return on those investments, and other information impacting the county's fiscal state. Important topics such as workforce, labor shortages, interest rates, and economic forecasts from the Federal Reserve Bank are presented in plain language for the public. These meetings are live-streamed and recorded on the Cuyahoga County YouTube page. We must pay attention to the county's finances to know how the national economic environment shapes the county's decisions. The county budget tells you how and what will be spent. The IAC meetings tell you why.
4: The aging demographic across the county
The county is getting older. Baby Boomers are retiring at an unexpectedly rapid pace. The need to support caregivers who will find themselves caring for parents and children will increase. Investing in housing and public transit will become increasingly important, because it will affect individuals from multiple generations. The county was wise to create a Department of Housing and Community Development and create the position of a Special Advisor for Transportation. These will be critical topics to address as the city's demographics and the county change. Because of the state of the current national fiscal environment, people are watching their finances exceptionally closely. With new leadership in the city and the county, a civic window of opportunity exists to explore progressive policy change on the social drivers of health, and how these changes will affect different demographics. Advocates can and should be an essential part of those conversations.
5: Regularly check the County's financial state
The county is mandated by law to produce financial reports that track revenue and fund balances regularly. Monthly: On the 15th day of every month, the Cuyahoga County Office of Budget and Management sends a report to the Cuyahoga Council with a record of how much money came in from the Sales Tax in the preceding month. This is a requirement by law, specifically County Code §701.07(C).Quarterly: The Office of Budget Management creates a Quarterly Report, which provides the balances of the General Fund and the Health and Human Services Levy Fund and projected revenues.Annually: By the end of March at the latest, the Office of Budget and Management releases the "Results of Operations." This comprehensive document is a complete fiscal overview of the past year, including General Fund balances, county debt, and projections for the current and future years. This report is generally presented to the County Council in March and is a must-watch for advocates, regardless of your area of interest. These are all public documents and are posted on the county website. Cuyahoga County is constantly making decisions that will impact residents for decades to come. By increasing civic awareness, advocates can play a critical role in advancing their respective causes to improve the lives of Cuyahoga County residents.
