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Youngstown's general fund on target this year, but deep cuts expected in 2019
YOUNGSTOWN
The city’s general fund is on pace to finish the year without a deficit, but deep cuts are expected for 2019.
Through the first nine months of the year, the city has spent about 72 percent of its $33.1 million general-fund budget, according to a report given Tuesday by Kyle Miasek, interim finance director, at a city council finance committee meeting.
“We’re living within our means,” Miasek said. “We expect 2018 is going to come in on budget. We need to do a better job next year, given that the budget is going to be a whole lot tighter. We need to make tough decisions.”
But as he begins to build the city’s 2019 budget – which doesn’t have to be approved by city council until March 31 – Miasek said, “It’s not easy. Most likely there will be significant cuts to the budget.”
City council approved a balanced 2018 budget with a $12,000 expected surplus after the city initially had a projected $2.3 million deficit. City officials made a number of cuts and used one-time revenues to largely make up the shortfall.
A financial expert hired by the Mayor Jamael Tito Brown administration, however, projects a $16 million deficit by 2023 if the city doesn’t make changes to its financial situation, including a $2.22 million deficit by the end of 2019.
In addition to that, the closing of Northside Regional Medical Center will result in a loss of about $900,000 annually in income taxes to the city. Miasek said he’s hopeful about 25 percent of that amount will be saved by former Northside employees finding employment in the city, but it’s still a devastating blow to the general fund.
The city’s decision earlier this month to remove a firetruck from service and demote nine firefighters will save money.
Miasek projected a savings of $280,446 in 2019 in salary and other benefits as well as an overall fire department reduction in overtime and not having to pay to repair a firetruck.
Miasek said the city administration met with the firefighters’ union to talk about potential givebacks, but the union declined to give any.
The administration plans to meet with other unions about concessions, he said.
Also Tuesday, the firefighters’ union proposed fees and taxes that could generate money for the city’s fire and police departments.
Christopher Weaver, the union’s secretary, gave the presentation. While he provided monetary figures, Weaver said he was open to any suggested amounts.
The proposals included:
A fee for Youngstown State University students per semester. Weaver suggested $75. This would be only for the fire department and a possible emergency medical service created by the department.
A 5-percent public-safety tax on hotel stays.
A 5-percent public-safety tax on ticket sales at the Covelli Centre and the Youngstown Foundation Amphitheater under construction.