Budget office previews biennial plan; public safety, earnings tax and railway revenue drive spending

Dr. Dudas, a budget official, told the Budget and Finance Committee that the city is preparing a biennial budget for fiscal years 2026'27 and summarized key figures from the current fiscal year 2025 budget, including an approved general fund of $527 million and an all-funds operating budget of $1.3 billion.

The overview matters because public safety consumes the largest share of the general fund and the city has received a one-time boost of Cincinnati Southern Railway revenue that is limited to infrastructure projects. "Our goal, is to pass a structurally balanced budget," Dr. Dudas said, describing the administration's aim for revenues to meet or exceed expenditures when the biennial plan begins.

Dr. Dudas said general fund revenue for fiscal 2025 came in at $570 million and that the earnings tax is the single largest revenue source, followed by property tax. He said public safety'police, fire and the emergency communication center'accounts for just over 64% of general fund spending and that personnel and benefits make up more than 80% of general fund expenditures.

On capital and all-funds totals, he reported a capital program of about $620 million in addition to the $1.3 billion operating budget, producing an all-funds total just over $1.9 billion. The general capital resources for fiscal 2025 were about $105 million, Dr. Dudas said; the Department of Transportation and Engineering received the largest share of those general capital dollars, primarily for street and bridge projects.

Dr. Dudas provided specifics on the Cincinnati Southern Railway distribution: the city received $29.2 million for fiscal 2025, about $2.8 million more than under the prior lease arrangement, and the funds are restricted to existing city infrastructure projects. "That funding is limited, now to be used on existing city infrastructure projects," he said, noting that transportation and engineering received the largest allocation but that parks, recreation, public services and health also received portions of the money.

He described labor and bargaining-unit exposure in the general fund: more than 82% of general fund employees are represented by bargaining units, naming the FOP and IAFF as the two largest units and AFSCME and building trades as other sizable units that will have upcoming negotiations.

On grants to community organizations, Dr. Dudas outlined the leverage-support program. The application window is open from Feb. 17 through March 23; eligible organizations must demonstrate at least a three-year track record, not be debarred from contracting with the city and request awards normally between $50,000 and $500,000. "Only in extraordinary circumstances would awards in excess of $500,000 be granted," he said. Four funding categories this year are arts, economic development and neighborhood support, environment, and equity and inclusion. Three program categories'homelessness and eviction prevention, human services and violence prevention, and workforce programming and poverty reduction'were moved to a human services fund managed by United Way.

The schedule Dr. Dudas described calls for three public budget hearings (the current meeting, March 3 at the Dunham Rec Center and March 12 at the Evanston Rec Center), a deeper virtual budget basics session on March 5, department presentations in Budget & Finance starting March 17 for three weeks, a council budget policy motion in early April to guide administration recommendations, the city manager's recommended biennial budget transmitted in May and council deliberations aimed at passage by June 18 (statutory deadline June 30).

Next steps: the budget office will include a list of leverage-support recipients in the city manager's recommended biennial budget in May, and any awards will be subject to council approval and appropriation in June. Questions about the leverage-support application were directed to Tanya Smith in the City Manager's Office.