![Strong first quarter revenues have helped cushion Cleveland's city budget from the full financial blow of the coronavirus, Mayor Frank Jackson said Wednesday. [Nick Castele / ideastream]](https://npr.brightspotcdn.com/dims4/default/e63808a/2147483647/strip/true/crop/1200x675+0+0/resize/840x472!/format/webp/quality/90/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2Flegacy%2Fuploads%2F2020%2F6%2F24%2F0605cleflag.jpg)
Cleveland鈥檚 more than 6,500 workers are safe from layoffs for now, despite budget losses from the coronavirus, Mayor Frank Jackson told employees Wednesday.
The city鈥檚 2020 budget was written with a possible recession in mind and Jackson鈥檚 administration has been managing costs as COVID-19 chips away at revenue, Jackson said in a 45-minute briefing on the city鈥檚 finances at Cleveland Public Auditorium.
About 36 minutes into the mayor鈥檚 discussion of the city鈥檚 budget position, he paused as he looked out on the audience.
鈥淚鈥檒l get to the punch line, so as you understand the punch line: Right now, you ain鈥檛 getting laid off,鈥� he said, said to applause from staff.
Cleveland has found other ways to cut back. The city has suspended non-critical hiring and delayed police and fire cadet classes, Jackson said.
But if the economic downturn drags on, Jackson may have to start cutting payroll.
鈥淪o we鈥檙e working hard to ensure to ensure that that scenario does not happen,鈥� he said. 鈥淏ut a lot of it鈥檚 out of our control, and let me just point out this. As I said to you, this pandemic is not over.鈥�
Other local governments haven鈥檛 been so fortunate during the pandemic. Cuyahoga County expects to miss out on $76 million in revenue this year, as COVID-19 shutdowns dry up sales tax income. Many county employees must take 10 furlough days over the next several months.
Cleveland officials had also tried to limit overtime, though this spring鈥檚 protests proved to be an exception. The city spent $3 million on overtime pay during the May 30 demonstrations and in the week after, Jackson said.
The city began the fiscal year with a $37.5 million rainy day fund and another $43 million in unencumbered cash, which is cushioning the blow of the pandemic-driven economic freeze, Jackson said.
In April and May, general fund expenses exceeded revenues by a combined total of $26.3 million, according to budget numbers Jackson read during the presentation. But thanks to a strong first quarter 鈥� before the pandemic set in 鈥� Cleveland鈥檚 year-to-date deficit stands only at about $4.5 million, he said.
Event cancellations and minimal hotel bookings have hurt Cleveland鈥檚 admissions and bed tax revenues. City agencies that rely on fees 鈥� like water, utilities and the airport鈥攈ave also seen a dip in revenue, Jackson said.
