Cleveland Mayor Frank Jackson last week proposed a $512 million fiscal 2012 budget that allows the city to avoid layoffs and service cuts if unions agree to new contracts.

The yet-to-be negotiated contracts include neither large pay cuts or big raises, local reports said.

The budget relied in part on using $12 million that Cuyahoga County got for the sale of its convention center to cover a $28 million shortfall. It also relies on the sale of land and features higher employee health insurance contributions.

Cleveland has a number of downtown projects on the table, including a new casino, a new medical merchandise mart and convention center, and a large retail and residential development called the Flats East Bank.

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