Mayor Finkbeiner plans to eliminate part of income tax credit to help plug budget hole
2/12/2009The city of Toledo s has to slash more than $14 million from its budget not the previously announced $8.1 million Mayor Carty Finkbeiner announced during a press conference Thursday.
Mr. Finkbeiner said the city has already cut $25 million from its budget during the past 25 months and slashing another $14.26 million will mean a 15.6 percent of Toledo s budget during that period.
"We have analyzed, I believe, how that hole could be closed in every way shape and form," the mayor said at the Main Toledo-Lucas County Public Library downtown.
The mayor said the "hole has been plugged" with several measures, including layoffs of some supervisory workers, budget reductions for the police and fire departments, and eliminating 50 percent of the income tax credit with other cities.
He said no police or firefighters would be laid off. However, the number of sworn officers will decrease in 2009 with planned retirements.
Since the inception of an income tax, the city has granted a 100 percent credit to residents who work outside Toledo and pay taxes to the city where they work. The credit allows some city residents not to pay any income taxes to Toledo. The change would generate about $5.2 million, Mr. Finkbeiner said.
It would affect about 19,000 people, said City Finance Director John Sherburne.