Cincinnati Recreation Commission reports $1.5 million FY2025 overspend; council strips CRC items from omnibus budget ordinance

The Cincinnati Recreation Commission told the Budget & Finance committee on Wednesday that it overspent its fiscal 2025 operating budget by roughly $1.5 million and that the bulk of the overrun was in labor-related line items. The council voted to remove CRC-related transfers from a midyear budget ordinance and asked the commission and administration to return with a plan.

The overspend was discussed at a council hearing where Daniel Betts, director of the Cincinnati Recreation Commission, said, "we overspent at the tune of, over a million dollars." Jeanette, the commission's chief financial officer, told council that labor accounted for the largest share: "Labor is about 935,000 of that, 1.5 ask, that's in the ordinance at this time. 230,000 of it relates to a law that was recently passed where we have to maintain AED machines at all of our outside facilities..."

Council members emphasized the need for stronger monitoring and clearer controls. Council member Mark Jeffries asked for a breakdown of the overrun and asked whether the administration should approve the full supplemental request before CRC demonstrates corrective actions. Council member Walsh pressed on timing and asked why council should approve funding now if CRC could identify internal offsets. Walsh asked whether the overspend occurred after the February FAO (financial adjustment) deadline; Betts and Jeanette said the unanticipated costs materialized after the February estimate period and became apparent between February and June.

In discussion, CRC said it has identified about $465,000 in full-time-equivalent hiring that can be deferred to help close the gap and said it will increase local-level budgeting oversight at recreation centers by working directly with service-area coordinators to review part-time complements. Betts said the commission is also reducing travel and training line items and reviewing utility and fleet expenses. He said the commission will not lay off staff or reduce service levels as a result of the corrective measures: "I think it's important to also note... we do not provide any pink slips or layoffs as a result of this overspend and the shortage. I think it's also important to state that there is no anticipated shortage in service," Betts said.

Council members asked for a clearer corrective plan before approving CRC-related transfers. Council member Mark Jeffries moved to hold only the CRC portions of the omnibus midyear budget adjustment ordinance so the remainder of the ordinance could proceed; Council member Walsh seconded the motion. The council amended the ordinance by striking the CRC transfers; the amendment passed in a roll-call vote. Administration said it would prepare a B version of the ordinance without the CRC items and work with CRC to return to council with the requested analysis and a timeline for follow-up.

Clarity on funding sources and amounts was provided in committee discussion: the CRC shortfall is being addressed in the ordinance through transfers and appropriations from two restricted revenue funds—"recreation special activities fund 03/23," identified in the hearing as supporting programming fees and childcare, and the municipal golf fund. Staff explained those funds have available balances but emphasized the transfers would draw down those reserves used for future programming.

The council directed CRC and the administration to return with a more detailed corrective plan describing (1) precise monthly monitoring/check-in proposals (for example monthly or quarterly reporting), (2) the exact hiring deferrals and other line-item offsets that will be used to close the gap, and (3) confirmation that service levels will be maintained. No final appropriations for the CRC portion were approved at Wednesday's meeting; the commission will present a revised plan for council review.

Background: Council raised that pools were open longer this summer and that returning lifeguards received higher hourly rates, both of which increased labor costs; Jeanette cited AED replacement costs (batteries/new units) and rising utilities and fleet repairs as additional contributors. The administration and CRC said they had internal conversations and board-level review about oversight failures and corrective steps. The commission said it will be ready to report back with more precise numbers and the proposed monitoring changes.

The action taken at the meeting was procedural: council amended and passed an amendment removing CRC items from the omnibus ordinance so CRC and administration can return with a more detailed remedy. No layoffs or program eliminations were approved or ordered at the hearing.

Ending: Council and CRC officials agreed to follow up; the administration said a B version of the ordinance without CRC transfers will be ready for a subsequent meeting and CRC staff will provide the deeper analysis requested by council.