Three Cleveland City Council members want to streamline how council spends casino tax money on neighborhood projects.
Council members have long complained that the money moves too slowly and the process for spending it is hard to understand. They introduced legislation Monday spelling out what members would be allowed to spend the money on. The new rules are also aimed at getting smaller amounts from the city coffers to neighborhood groups faster.
Cleveland receives around $13 million each year from a state tax on casino revenues. Council members split around $2 million of that — or 15% — for projects they pick in their wards. Council historically has slated those dollars for such items as food assistance, storefront renovations, home repairs and vacant lot cleanups.
Council members have said City Hall takes too long to get the money into the hands of people they promise it to. That has left businesses and nonprofits waiting months — or longer — to be reimbursed with casino dollars for work they’ve already spent their own money on.
“A lot of folks don’t have the money to put up,” said Ward 5 Council Member Richard Starr, who is sponsoring the measure with Anthony Hairston of Ward 10 and Stephanie Howse-Jones of Ward 7.
New rules would allow upfront payments for smaller projects
The revised rules would allow City Hall to make up-front payments for contracts smaller than $10,000. Recipients of contracts larger than $10,000 would still have to pay for their own work and submit receipts within 90 days to be reimbursed.
“This new process and this new policy that we’re implementing is a better, more efficient way to get things out the door,” Starr said.
Another feature of the new rules is a more extensive list of allowable projects, including health and wellness programs, social services programming, after-school programs, transportation and meals.
Those last points were important for Starr. He said that under council’s current rules, he can pay to send students on a trip to a college or a museum, but he can’t cover their meals or the cost of a bus to get them there.
Council’s cut of casino revenues would stay the same
The legislation does not change the distribution formula for casino dollars. Council will still receive 15% of Cleveland’s casino tax money. The rest of the money goes to general city services.
Starr has pushed for council to receive 50% of the city’s casino funds — an idea that Mayor Justin Bibb’s administration opposes. The council member said he hasn’t given up on getting more money for council, even if this legislation doesn’t do so.
Council members are the “first line of defense” for problems in the neighborhoods, and they should have money available to respond to residents’ needs, Starr said.
“No matter who the residents are, they’re going to reach out to council first, and them doing that, needing our help, needing our assistance, felt important,” he said, “so we need to be able to have dollars in place to help on those initiatives that sometimes are not a top priority.”
Read the new policy below
