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Cleveland council amends 2025 budget to add $4.6 million for neighborhood equity fund
Summary
The City Council committee approved amendments to Ordinance 156-2025 to transfer an additional $4.6 million from unencumbered carryover to the Neighborhood Equity Fund and to codify a set of targeted appropriations, with officials debating fiscal risk and neighborhood need.
Council members on the Finance, Diversity, Equity and Inclusion Committee voted to amend Ordinance 156-2025 and approved an additional $4,600,000 transfer from the city's unencumbered cash balance to the Neighborhood Equity Fund, increasing the fund total to $10,200,000.
The amendment was presented verbally and read into the record by committee staff; it was moved by the committee chair and seconded by Councilman Carey McCormick. After discussion, the committee approved the amendment by voice vote.
The amendment directs that the additional $4.6 million be taken from the city's unencumbered cash balance (carryover) and specifies several targeted appropriations in section 2 of the ordinance. The text read into the record lists line-item additions including $100,000 for auxiliary police; $650,000 for additional recreation instructors; $67,500 for a full-time small business mentor-prote9ge9 position; $49,000 for carbon monoxide and smoke detectors; $63,750 for a translation liaison; $63,750 for an LGBTQIA+ liaison; $10,200,000 to the Neighborhood Equity Fund; $113,000 for schools-as-neighborhood-resources; an increase of 11 EMS headcount positions; and $500,000 for Youth Opportunity Unlimited programming. The amendment also includes standard language about unencumbered balances at year-end and references sections 39 and 41 of the city charter to govern transfers and the mayor's control of the expenditure budget.
Councilman Carey McCormick, who seconded the initial transfer amendment, framed the change as a direct investment in neighborhood priorities: "These are additional dollars to neighborhood investment fund. These dollars go directly into neighborhood projects like playgrounds, parks, roads, neighborhood safety cameras, speed tables," he said.
Finance Director Gentile cautioned that moving $4.6 million from carryover creates a structural change and raises risks for the year ahead: "This will make the budget structurally unbalanced," he said, citing potential increases to pension contributions, changes to bond tax status that would raise borrowing costs, possible reductions in federal grants and ongoing union negotiations that could increase personnel costs over multiple years.
Council members debated the tradeoff between reserves and neighborhood investments. Councilman Mike Polinsic emphasized the council's fiscal restraint and defended the amendment's one-time use of carryover, saying the council's adjustments were made with an eye toward both reserves and neighborhood needs. Councilman Kevin Conwell and other members urged the administration and the council to ensure the funds are deployed quickly and equitably.
Following committee discussion the ordinance as amended was approved and will be forwarded for full Council consideration and signatures.
Votes at the committee were taken by voice; the committee chair called for those in favor and'the "ayes have it." No roll-call tally was read into the committee record.
Why it matters: The transfer directs capital to neighborhood-level projects and services that council members said residents requested in block-club and ward meetings. Finance staff warned that the use of large unencumbered carryover reduces the cushion available for unforeseen fiscal risks later in 2025.
