Cuyahoga County reports $92.4 million 2024 general‑fund shortfall; reserves stay above requirement

Cuyahoga County budget staff told the County Council that the general fund closed 2024 with an operating deficit of $92.4 million, though the county remains in compliance with cash‑reserve requirements.

"The general fund closed 2024 with an operating deficit of $92,400,000," said Walter Parfiaowitz, Director, Office of Budget Management, during the council presentation on the 2024 results of operations. Excluding $65.5 million in American Rescue Plan Act (ARPA) expenditures, Parfiaowitz said, the deficit narrowed to $26.9 million.

Why it matters: The scale of the gap and the use of one‑time federal ARPA dollars affect decisions about the 2025 budget and any near‑term borrowing. Parfiaowitz told council that county revenues totaled about $597.6 million in the general fund while expenditures were roughly $690 million.

Parfiaowitz listed several fourth‑quarter financial moves that shaped the year‑end position: "In fourth quarter, we issued $50,000,000 in bonds for the Rock Hall. We refunded $131,600,000 in bonds related to the Hilton hotel, saving about 4 or 4 and a half million dollars," he said. Staff also reported $14.5 million in authorized bond anticipation notes for Gateway and year‑end reductions of $225.3 million in excess appropriations to ensure audit compliance.

County officials said investment income outperformed budget expectations, helping revenue totals: Parfiaowitz reported interest earnings of about $33 million, roughly $17.3 million above budget. By contrast, sales tax receipts were about $323.3 million—approximately $14.2 million below budget, a 4.2 percent shortfall.

On cash reserves, Parfiaowitz said the general fund ended 2024 with $182.5 million in cash, about $35.2 million above the county's stated reserve requirement of $147.2 million. He added that backing out about $32.6 million of remaining ARPA cash leaves a working balance of approximately $149.9 million, still roughly $2.7 million above the requirement.

The presentation also reviewed other major funds: on an all‑funds basis, county revenue was about $1.788 billion—slightly above budget—while total expenditures were about $1.934 billion, approximately $231 million under budget. Parfiaowitz highlighted variances in special revenue funds (housing HUD grants, road and bridge, juvenile court grants and others) and outlined outstanding county debt of about $1.187 billion as of Jan. 1, 2025, with several maturities coming between 2026 and 2030.

What comes next: The council will receive additional detail in the full report (staff referenced specific report pages during the meeting) and asked staff to provide follow‑up on particular items, including year‑end balances for boards and detailed debt maturity dates. Council members and staff scheduled a mid‑year committee update to review progress on policy and budget actions.