East Cleveland will ask its voters in November to raise the city’s income tax in a bid to climb out of 14 years of fiscal emergency. The inner-ring suburb of Cleveland is the first city to have its finances overseen by a court-appointed receiver under a new Ohio law.
Financial Struggles
The hike would raise the tax rate from 2% to 2.5%. Based on last year’s collections, the increase could bring in another roughly $970,000. That’s no small amount for a city that owes $2.6 million in unpaid bills, according to the latest monthly report from East Cleveland’s receiver.
Mayor Sandra Morgan argued an income tax hike was “relatively painless” because most taxpayers work in East Cleveland while living elsewhere. The tax rate has stood at 2% since 1982.
Police Staffing Concerns
East Cleveland’s police force also has a staffing problem. The issue came under the spotlight after a Facebook post by a former city staffer took off this week. According to Morgan, there are only 16 officers on the force, and a couple of those are out. The city can staff its patrol shifts with three or four officers, she said.
Original reporting: Signal Cleveland — read the source article.