Covered by Documenters Barbara Phipps (notes), Dorothy Ajamu (notes) and Marvetta Rutherford (live-tweets)
Incentivizing poverty wages
Members of Cleveland City Council spent roughly eight hours Dec. 4 discussing dozens of pieces of legislation ahead of the final meeting of the year. One piece brings changes to the city’s job creation incentive program. The committee approved it – and full council passed it later that night – despite concerns about the program undermining a living wage for workers.
Council President Blaine Griffin told council members that the grants and other tools the city used to fund the old program expired. He said the city needed a new tool with more flexibility. The new program will provide tax credits to companies creating 50 or more full-time jobs paying no less than the city’s median wage. According to presenters from the Department of Economic Development, the city median wage is $33,678 annually or $16.19 per hour.
Council Member Charles Slife asked that they use the county median wage, which he estimated at $55,000 annually or $26 per hour, to ensure the companies getting the Cleveland tax breaks pay a living wage.
Council Member Stephanie Howse-Jones agreed. “I do not think we should incentivize people for poverty wages,” she said.
Howse-Jones put forward an amendment to raise the minimum pay to match Cuyahoga County’s median wage.
In response, Kate Warren, special assistant to the chief of integrated development, said raising the minimum may deter companies that were willing to pay an amount between the city and county median.
Council Member Kerry McCormack said the change might drive companies to take their business outside the city limits. He told council members an amendment was added in a previous committee meeting to incorporate community benefits agreements into the program.
Griffin added, “I’m already starting to get some calls and texts in. People are already saying that this would actually kill a couple of deals that are on the table already.”
Howse-Jones withdrew her amendment.
Ending with a surplus
Council members also discussed freeing up surplus funds totaling $56 million from the city’s operating budget for other uses.
Chief Finance Officer Ahmed Abonamah said that $10.1 million would go to the Division of Streets and $10 million to a new Human Resources (HR) software system. He said another $10 million would go to the West Side Market, pending separate legislation.
Council Member Michael Polensek questioned the price tag of the HR software.
Abonamah said that there is a high upfront cost, but it will speed up the city’s hiring process since much of it is currently done by hand. He said council approved a new HR software system in 2021.
Council Member Richard Starr expressed frustration that Abonamah had told council members last January that council getting an extra $5 million from the city’s casino revenue funds would create too large a gap in the city budget when there is now an approximately $56 million surplus.
Abonamah said that a surplus is not guaranteed every year. He said that some of the extra funding was a result of vacant positions.
Griffin said that council can decide how to use money that has not been designated for a specific purpose.
Legislative marathon
Additional legislation approved in committee and passed at that evening’s City Council meeting included:
- Nearly $4.5 million for social workers from the Cuyahoga County Alcohol, Drug Addiction, and Mental Health Services Board for the Department of Public Safety’s co-response program
- An increase in the maximum age for new police trainees from 39 to 54
- $400,000 to MomsFirst for a year-long contract with the goal of reducing infant mortality
- Over $500,000 for prosecutors of domestic violence and sexual assault cases as well as for a victim advocate from the Cleveland Rape Crisis Center to support victims of crime as they navigate the court system
Read more from Documenter Barbara Phipps:
Read more from Documenter Dorothy Ajamu:
Read the live-tweet thread from Documenter Marvetta Rutherford:
Suggested Reading
What is prevailing wage and how does it work in Ohio?
Prevailing wage laws include hourly wages, benefits and overtime paid to workers for publicly funded construction projects.