Budget Basics

Approved FY 2022 Budget

Budget & Finance Committee
Public Hearing
April 4, 2022
 Approved FY 2022 All Funds Biennial Budget

Change From
FY 2020 FY 2021 Update
p FYp2022 FY 2021 Update Approved FY 2023
($ in Millions) Approved Approved Approved Change Change Approved
Operating Budget
General Fund(1) $397.1 $393.7 $440.6 $46.9 11.9% $442.6
Restricted Funds (2)
$746.0 $724.4 $770.9 $46.5 6.4% $723.6
Subtotal Operating Budget $1,143.1 $1,118.1 $1,211.5 $93.4 8.4% $1,166.2

Capital Budget
General Capital Budget $63.5 $57.3 $85.1 $27.8 48.5% $53.9
Restricted Funds Capital $224.2 $130.1 $184.9 $54.8 42.1% $192.9
Special Revenue/Matching Capital $8.3 $13.5 $39.7 $26.2 194.1% $5.6
Subtotal Capital Budget $295.9 $200.8 $309.7 $108.9 54.2% $252.4

Total All Funds Budget $1,439.0 $1,318.9 $1,521.2 $202.3 15.3% $1,418.6

(1)
The Approv ed FY 2020 and the Approv ed FY 2021 Update General Fund amounts do not include $16.7 million and $17.4 million respectiv ely in Health Department funding that is transferred to the Cincinnati Health District
Restricted Fund.
(1)
The Approv ed FY 2022 and FY 2023 General Fund amounts do not include $16.6 million and $18.1 million respectiv ely in Health Department funding that is transferred to the Cincinnati Health District Restricted Fund.

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 OPERATING BUDGET
General Fund Expenditures – $461.3 million

Police
Police35.4%
35.4%

Fire 26.3%
Fire 26.3%

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 OPERATING BUDGET
General Fund Expenditures
Where does the money go?
Public Safety and Non-Public Safety
Personnel and Non-Personnel

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General Fund Revenues of $461.3 million in FY 2022

So where does the money come from?

Earnings Taxes
60.1% Investments
Amercian Rescue Plan Act
Property Taxes 0.9%
14.6%
6.3% State Shared Revenues Casino Tax
Parking Meter Other Revenues
2.5% 1.7%
0.3% 13.6%

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General Fund Revenue
• Earnings Tax
• 1.8% of gross salaries, wages, other personal services
compensation and business net profits
• All earnings derived in City regardless of residency.
Rule is first where you work, then where you live
• By Charter, Earnings Tax is split as follows:
• 1.55% General Operating
• 0.15% Capital
• 0.10% Infrastructure
• FY 2022 Estimated General Fund Earnings Tax
• $277.1 million or
• 60.1% of General Fund Revenue

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 Current Ohio Major City Income Tax Rates

• City of Cleveland  2.50% ‐‐ Passed .5% increase 2016, effective 2017 

• City of Dayton 2.50% ‐‐ Passed .25% increase 2016, effective 2017 

• City of Columbus 2.50% ‐‐ Passed .5% increase 2009, effective 10/1/09

• City of Toledo 2.25% ‐‐ Renewed temporary levy of .75% effective 2017 

• City of Cincinnati 1.80% ‐‐ Last increase 1988 for .1%; Last decrease 2020 .3%

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General Fund Revenue

• FY 2022 General Fund Earnings Tax Estimate

Reduced
• Impact of Remote Work / Hybrid Work Environments
• State Legislation Changes on Municipal Income Tax
Withholding Requirements
• State Legislation Changes That Allow Remote Workers
to Request Refunds of Income Taxes Paid to the City
During CY 2021
• Legal Challenges

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General Fund Revenue

• FY 2023 General Fund Earnings Tax Estimate

• Income Tax Revenue Uncertainty from FY 2022
Continuing into FY 2023
• The University of Cincinnati (UC) Economics Center is
reviewing income tax data and trends this spring.
• Revised FY 2023 Income Tax Forecast to be provided
by early May

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Estimated FY 2023 General Fund Budget Deficit

• FY 2023 General Fund Budget Deficit of $17.2

million
• Assumes use of $66.0 million of American Rescue Plan
(ARP) funds
• Deficit may decrease if forecasted revenues increase or
additional American Rescue Plan funding is used.
• Deficit may increase if forecasted revenues decrease.
• Departments are preparing budget reduction scenarios
to close the deficit.

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General Fund One-Time Sources for FY 2022 and FY 2023

• American Rescue Plan (ARP) Funds are being used for:

• Revenue Replacement
• COVID-19 Related Eligible Reimbursements

• FY 2022: $67.5 million total in ARP funding received from

the Federal Government used to balance the budget

• FY 2023: $66.0 million total in ARP funding received from

the Federal Government used to balance the budget

• Due to the uncertainty of income tax revenues, the

Administration is recommending the second tranche of ARP
funds be preserved for FY 2023, FY 2024, and FY 2025
operating expenses.
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 QUESTIONS? COMMENTS?

Please visit our website:

http://www.cincinnati-oh.gov/finance/cincinnati-budget-engagement/

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