A citizen-led ballot initiative that would鈥檝e given Clevelanders the option to propose and vote for projects using a portion of the city鈥檚 budget has failed.
Cleveland residents narrowly voted down the participatory budgeting proposal, also known as Issue 38, 51.06% to 49.94%. The ballot initiative, brought forth by the grassroots coalition People's Budget Cleveland, known as PB CLE, conceded defeat after Cuyahoga County Board of Election results poured in early Wednesday morning.
鈥淭his isn't the end of the story for building resident power in our city,鈥� said PB CLE campaign manager Molly Martin in a written statement. 鈥淚nstead, this is an early chapter in a much longer story to put the needs of our communities at the center of policymaking rather than corporate interests.鈥�
PB CLE initially partnered with Mayor Justin Bibb to propose a participatory budgeting pilot program earlier this year using $5.5 million of the city鈥檚 federal stimulus dollars allocated by the American Rescue Plan Act. The proposal, which some council members criticized as undermining the city鈥檚 representative democracy, was ultimately killed by city council.
PB CLE was determined to see its vision realized and spent months drafting legislation and collecting signatures to get Issue 38 on the November ballot, which would have codified participatory budgeting in the city鈥檚 charter. The amendment would have eventually given the equivalent of 2% of the city's general fund budget, roughly $14 million, to the participatory budgeting process.
Both the city council and Mayor Justin Bibb expressed concern about the charter amendment. Whereas Bibb supported a pilot program, which would have tested how participatory budgeting could work, he said he did not find a permanent measure 鈥渇inancially responsible.鈥�
More concerning, some council members said, was the hole the program would have left in the city's budget. After PB CLE's proposal was set for the November ballot, Cleveland City Council President Blaine Griffin warned of a 鈥渄evastating impact on the city鈥� that could potentially lead to 鈥渕assive layoffs.鈥�
Council had said a $14 million budget reduction could prevent the hiring of 140 police officers and eliminate the entire departments of public health, aging and building and housing and cause staffing cuts to the division of recreation staff and half of the emergency medical services. PB CLE鈥檚 leadership has called those allegations 鈥渋naccurate, misleading scare tactics.鈥� They pointed to the potential to use some of the city鈥檚 capital funds, which does not affect staffing or salaries, though there is disagreement between council and PB CLE over whether or not participatory budgeting can use the capital budget or not.
City council led the charge on the 鈥渘o鈥� campaign with radio advertisements, billboards, signs and a debate with PB CLE organizers. The Council Leadership Fund, a political action committee controlled by Griffin that funded 鈥渧ote no鈥� efforts, raised more than $95,000 in September and October ahead of the election, campaign finance records show.
"Our voters鈥� commitment to Cleveland鈥檚 future and commitment to responsible governance is truly commendable 鈥� and this body does not take your votes and your faith lightly," Cleveland City Council said in a written statement Wednesday morning. "City Council is grateful for the people's trust, belief, and partnership in democracy."
The written statement also acknowledged the desire from some residents and organizing groups, like PB CLE, for more community involvement and said they will "continue improving" those efforts in the future.
"Issue 38 revealed we need to do more work on civic engagement, participation, and awareness. We will build coalitions to make this happen," the statement said. "We are indebted to you 鈥� the voters 鈥� for your commitment and willingness. We will continue working with labor, partners, and most importantly our residents for a better Cleveland for all.
Other groups, including labor unions representing the city's fire, police, emergency medical service workers and more, also opposed the measure, echoing elected officials' statements about how the reduction in the overall city budget would affect the city's workforce as departments struggle to retain and recruit employees.
After Issue 38's defeat, city council will maintain full control of the more than $710 million general fund budget. In early 2024, the mayor will submit a proposal and will be the subject of weeks-long city council hearings with various city departments before council members amend and ultimately approve the budget.
