Cuyahoga County’s 2008 Budget Summary

December 13, 2007

Commissioner Jimmy Dimora

Commissioner Timothy F. Hagan

Commissioner peter Lawson Jones

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General Fund and All Funds Summary

2008 Recommended BudgetGeneral Fund and All Funds Summary

Revenue Estimate 389.1$ million 222.3$ million 611.4$ million 1,492.7$ million

Operating Expenditures 345.9$ million 220.9$ million 566.9$ million 1,435.1$ million

Exhibition Hall Reserve 43.0$ million - 43.0$ million 43.0$ million

Operating Surplus 0.4$ million 1.4$ million 1.8$ million 57.6$ million

Ending Balance 97.6$ million 33.5$ million 131.4$ million 318.2$ million

Balance to Expenditure % 28% 15% 23% 22%

Health & Human

Service Fund

General Fund

Operating

Total All

General Fund Funds

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2008 Budget Parameters

Decisions driven by resources available to finance operations.

Budget based on 2007 expenditure projections minus one-

time expenditures. Included annualized impact of decision

items approved during 2007.

General Fund and Human Service Levy agencies asked to

achieve a 3% reduction target.

Budget does not provide for any salary adjustments.

Budget provides for an anticipated hospitalization increase of

5% and a 1.1% increase in PERS.

Budget provides for a 3% inflationary increase in certain

expenditure categories.

Additional funding requests for $8.1 million were not funded.

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General Fund Operating Revenue Trend

Revenues 2002 2003 2004 2005 2006 2007 2008GF Major Revenue Sources

Property Taxes 21.0 19.6 21.2 21.8 19.7 20.2 18.7Sales Tax 158.4 157.1 165.4 169.0 168.7 171.7 173.6Intergovernmental Revenue 50.7 49.2 47.4 47.8 47.5 47.8 48.0Charges for Services 58.4 65.3 68.2 64.3 58.1 64.0 58.9Investment Earnings 22.0 16.9 11.8 16.5 26.0 26.4 26.4Other Revenue Sources 13.8 18.6 20.7 12.2 15.3 28.3 20.5Total GF Revenue 324.3$ 326.7$ 334.7$ 331.6$ 335.3$ 358.4$ 346.1$ % Change 0.7% 2.4% -0.9% 1.1% 6.9% -3.4%HHS Levy Revenue 136.2$ 135.1$ 194.5$ 192.9$ 196.8$ 225.6$ 222.3$ Total GF & Levy Revenue 460.5$ $461.8 $529.2 $524.5 $532.1 $584.0 $568.4* 2004 Revenue less one time settlement of $9.2 million.** 2007 Revenue less one time property sale of $13.0 million*** 2008 Revenue does not include $43M sales tax increase for proposed Exhibition Hall for the Medical Mart.

2002 2003 2004 2005 2006 2007 2008

$324.3$326.7

$334.7$331.6 $335.3

$358.4

$346.1***

$290.0

$310.0

$330.0

$350.0

$370.0

$390.0

General Fund Operating Revenue Trend

III_ _ $331.2**

II

I_ _ $325.5 *

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Property Tax - $0.4 million decrease based on Auditor’s assessed property values.

Sales Tax - Estimated to be 26.2% higher in 2008 based on 0.25 increase for new exhibition hall.

Intergovernmental – The $19.9 million decrease in intergovernmental is due to one-time TANF dollars received in 2007.

Charges for Services - Increases $16.3 million due to higher solid waste fees, parking fees, sewer maintenance fees, space maintenance fees and hospitalization self-insurance charges.

Miscellaneous – Decreases $17.0 million due to an $11 million property sale included in 2007.

2008 Budget - All Funds Revenue(millions)

2006 2007 2008 '07 - '08 '07 - '08Revenue Source Actual Estimate Budget Change % ChangeProperty Tax $337.4 $366.4 $366.0 -$0.4 -0.1%Sales & Use Tax 168.6 171.7 216.6 44.9 26.2%Other Tax 28.8 29.1 29.7 0.6 2.1%Licenses & Permits 1.5 1.7 1.9 0.2 11.8%Fines & Forfeitures 11.8 14.0 14.5 0.5 3.6%Intergovernmental 549.4 537.4 517.5 -19.9 -3.7%Charges for Services 248.4 269.5 285.8 16.3 6.0%Investment Earnings 27.7 28.7 29.1 0.4 1.4%Miscellaneous 44.2 48.6 31.6 -17.0 -35.0%Total Revenue $1,417.8 $1,467.1 $1,492.7 $25.6 1.7%

Charges for Services

19.1%

Investment Earnings

1.9%Miscellaneous2.5%

Property Tax26.7%

Sales & Use Tax

14.5%

Other Tax2.0%

Licenses & Permits

0.1%

Fines & Forfeitures

0.6%

Intergovernmental35.7%

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General Government – Is expected to drop by $12.1 million due to reductions in the Board of Elections’, Auditor’s and Information Services’ budgets.

Judicial – Increase of $0.7 million.

Social Services – Decrease of $16.5 million due to $4.9 million for Children & Family Services and $20.4 million Employment & Family Services due to revenue reductions.

$7.6 million increase in Public Works is due to Engineer’s road projects.

Debt Service – Includes $7.4 million for a $168 million debt issue during first half. The annualized debt service costs in 2008 will be $10.3 million.

Development – Decreases $6.7 million as focus will be on the Medical Mart project.

Miscellaneous – Increases $13.6 million due to hospitalization and worker’s compensation accounts.

2008 Budget - All Funds Expenditures(millions)

2006 2007 2008 '07 - '08 '07 - '08Expenditures Actual Estimate Budget Change % ChangeGeneral Government $154.2 $166.3 154.0 -$12.3 -7.4%Judicial 303.6 $326.2 326.9 0.7 0.2%Development 15.1 $22.3 15.6 -6.7 -30.0%Social Services 637.4 $660.0 643.5 -16.5 -2.5%Health & Safety 88.7 $87.4 87.3 -0.1 -0.1%Public Works 55.8 $49.3 56.9 7.6 15.4%Debt Service 37.4 $37.8 45.3 7.5 19.8%Miscellaneous 85.1 $92.0 105.6 13.6 14.8%Total Expenditures $1,377.3 $1,441.3 $1,435.1 -$6.2 -0.4%

Social Services44.8%

Development1.1%

Judicial22.8%

General Government

10.7% Health & Safety6.1%

Public Works4.0%Debt Service

3.2%

Miscellaneous1.3%

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Property Tax – Decreasing $9.2 million to satisfy increased debt service requirements of $7 million for ¾ of a year from an anticipated debt issue totaling $168 million.

Sales Tax - Estimated to be 26.2% higher in 2008 due to 0.25% tax increase.

Fines and Forfeitures - $0.5 million higher due to Clerk of Courts’ collections improvement.

Intergovernmental Revenue – $4.6 million increase is related to commercial activity tax reimbursement.

Charges for Services - $5.1 million decrease due to continued decline of real estate fees.

Miscellaneous – Decreasing $8.3 million primarily due to the anticipated proceeds from the sale of the Skilled East property MetroHealth currently occupies of $11 million.

2008 Budget - General Fund Revenue(millions)

2006 2007 2008 '07 - '08 '07 - '08Revenue Source Actual Estimate Budget Change % ChangeProperty Tax $193.4 $216.1 $206.9 -$9.2 -4.3%Sales & Use Tax 168.7 171.7 216.6 44.9 26.2%Licenses & Permits 0.1 0.1 0.1 0.0 0.0%Fines & Forfeitures 9.1 11.2 11.7 0.5 4.5%Intergovernmental 70.5 77.4 82.0 4.6 5.9%Charges for Services 58.1 64.0 58.9 -5.1 -8.0%Other Tax 0.1 0.1 0.1 0.0 0.0%Investment Earnings 26.0 26.4 26.4 0.0 0.0%Miscellaneous 6.2 17.0 8.7 -8.3 -48.8%Total Revenue $532.2 $584.0 $611.4 $27.4 4.7%

Property Tax33.8%

Sales & Use Tax35.4%

Fines & Forfeitures1.9%

Licenses & Permits0.1%

Intergovernmental13.4%

Charges for Services

9.6%

Miscellaneous1.4%

Investment Earnings

4.3%Other Tax

0.1%

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General Government – Decrease of $6.5 million primarily due to the Board of Elections reduction of $4.7 million.

Judicial – Decreases $0.4 million. The Judicial area consumes 48.4% of the General Fund budget.

Social Services – Decreases by $6.3 million. Human Services departments requested to reduce an additional $6.9 million on top of the 3% reduction.

Development – Decreases by $2.5 million because of lower discretionary grant funding and focus on Medical Mart project.

Health & Safety – Decreases by $1.6 million and consumes 14.1% of the budget.

2008 Budget - General Fund Expenditures(millions)

2006 2007 2008 '07 - '08 '07 - '08

Expenditures Actual Estimate Budget Change % ChangeGeneral Fund Operating

General Government $59.3 $63.1 $56.6 -$6.5 -10.3%Judicial 247.5 260.6 259.7 -0.9 -0.3%Development 11.5 9.9 7.4 -2.5 -25.3%Social Services 5.7 5.8 8.0 2.2 37.9%Health & Safety 12.8 2.5 1.8 -0.7 -28.0%Public Works 2.0 2.0 1.6 -0.4 -20.0%Debt Service 6.4 7.1 8.2 1.1 15.5%Miscellaneous 2.7 3.0 2.6 -0.4 -13.3%Total GF Operating $347.9 $354.0 $345.9 -$8.1 -2.3%

HHS LeviesJudicial $16.9 $18.6 $19.1 $0.5 2.7%Social Services 109.0 132.2 123.7 -8.5 -6.4%Health & Safety 73.3 79.1 78.2 -0.9 -1.1%Total HHS Levies $199.2 $229.9 $221.0 -$8.9 -3.9%Total GF & HHS Levies $547.1 $583.9 $566.9 -$17.0 -2.9%

Social Services23.2%

Development1.3%

Judicial48.4%General

Government10.0%

Health & Safety14.1%Public Works

0.4%

Debt Service1.1%

Miscellaneous0.5%

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Staffing Levels

2002 Actual

2003 Actual

2004 Actual

2005 Actual

2006 Actual

2007 Estimate

2008 Budget

Salaries $351.2 $330.6 $363.2 $364.0 $365.4 $407.6 $402.8

% Change -5.9% 9.9% 0.2% 0.4% 11.5% -1.2%

Staffing Level 9,457 8,878 8,993 9,012 9,267 9,526 9,376

% Change -6.1% 1.3% 0.2% 2.8% 2.8% -1.6%

Staffing Levels

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2008 Budget Reduction Targets

General Fund Operating Reduction Amount

Brd of County Commissioners $42,825BOCC Administrative Divisions 1,013,818Central Services 1,861,771Development 246,505Justice Affairs 496,274Justice Systems Management 6,606General Fund/Self Insurance Fund 11,588County Auditor 214,954Court of Appeals 46,790Clerk of Courts 491,788Court of Common Pleas 918,548County Coroner 253,685Domestic Relations Court 204,891Juvenile Court 1,303,108Municipal Judicial Costs 116,649Probate Court 181,416County Prosecutor 694,496County Recorder 250,000County Sheriff 2,129,262Board & Care Of Prisoners 500,000County Treasurer 145,000Board of Elections 525,606Board of Revision 24,604County Planning Commission 48,649Information Services Center 456,185Ombudsman Program 6,359Ohio State University Extension 9,404Public Defender 215,492Soldiers & Sailors Monument 6,162

Total General Fund Operating $12,422,435

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HHS Levy Funds Reduction Amount

Children and Family Services 5,915,180Early Childhood 579,727Family & Children First Council 60,191Executive Office of HHS 3,321,771Senior Adult Services 1,439,108Employment & Family Services 4,086,793Alcohol & Drug Board 311,525Mental Health Board 855,214

Total HHS Levy Funds $16,569,509

Total Budget Reductions $29,233,606

2008 Budget Reduction TargetsContinued