Cuyahoga County projects modest general-fund surplus but falls short of reserve; HHS levy now shows a deficit

Cuyahoga County’s fiscal director told Council members Monday that the county now projects a modest general-fund surplus for 2025 but will likely finish the year below the county’s self-imposed cash-reserve requirement.

The director said other projected revenue totals about $29.2 million and that sales-tax receipts — the county’s largest revenue source at roughly half of general-fund revenues — were 2.3% higher through May compared with last year, narrowing the gap with budgeted expectations. On current projections the director said the county could add roughly $4 million by second quarter if the trend continues.

Still, taking projected revenue and spending together, the director presented a projected general-fund ending cash balance of roughly $132.0 million, about $13.0 million short of the county’s $145.0 million reserve requirement. He emphasized the 2025 budget had been adopted with a $25.0 million structural deficit and that the current projections reflect both that baseline imbalance and first-quarter variances.

The Health & Human Services (HHS) levy fund showed a larger problem. The director…