Toledo has cut deficits for years with the help of what's known as the budget stablization, or rainy day, fund. At one point, the fund had $14 million in it.
But first, Mayor Jack Ford and then Carty Finkbeiner tapped that fund to help balance the deficit. But Toledo zeroed out the rainy day fund in 2009, leaving nothing for next year.
City council president Joe McNamara says, "When you dip into the rainy day fund, it shows you don't have stability in the budget." That hurts the city's bond rating, which means higher interest rates on money the city borrows.
But Toledo can still balance its budget without a rainy day fund by saving millions using an automated trash system, combining certain city and county services, and hiring more firefighters to cut down on overtime and more auditors to collect back taxes.
Councilman George Sarantou even suggests across-the-board cuts in city government. He said, "Let every department have a cut of, say, 5 to 10 percent to get us through this crisis."
Carty proposed $30 million in tax hikes to balance next year's budget. But council and mayor- elect Mike Bell aren't going that direction.
Bell will look at combining some city and county services, setting new priorities and challenging certain budget assumptions the Finkbeiner administration has made in the budget. But the rainy day fund is dry and Mike Bell cannot do anything about that.
