Rainy Days in Cleveland

Cleveland Mayor Frank Jackson last week said he would need to drain the city’s rainy-day fund in order to help close an estimated $23 million deficit in 2010.

The move would leave $1 million in the reserve fund, which now totals $8 million. Jackson said the money was needed to avoid laying off workers or cutting services. It would be the second time in six years that city officials have used up the fund to achieve a balanced budget.

The City Council will consider the proposal. The council has already approved an $8 monthly garbage fee in 2010 and Jackson has ordered nonunion workers to take 10 furlough days. The mayor is also negotiating with the city’s unions for concessions.

The Cincinnati City Council recently approved a 2010 budget that closed a $51 million shortfall in part with money from the rainy-day fund as well as new fees.

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