Cuyahoga County's Financial Crisis
Cuyahoga County is currently facing a complex financial situation marked by a growing budget deficit. Outstanding property taxes have intensified these economic challenges, significantly impacting the Cleveland Metropolitan School District.
When it comes to families in Cuyahoga County, they face pressure from rising living costs and increasing foreclosure rates. These financial struggles threaten the continuity of essential services in the county.
Financial Challenges Facing Cuyahoga County
Cuyahoga County is facing a series of fiscal challenges, including budget deficits, rising costs, and an increase in unpaid taxes. These challenges threaten to impact essential services and programs across the county, affecting everything from education to infrastructure. Some of the financial challenges currently faced by Cuyahoga County include:
Budget Deficits in Cuyahoga County
Cuyahoga County is grappling with a substantial budget deficit projected to reach $25 million by the end of the year, a figure that officials describe as “larger than normal.” This financial shortfall will risk the county’s ability to maintain and fund essential services. [1]
The deficit is attributed to several factors, including stagnant revenue streams, increased operational costs, and a lag in property tax collections, which form a critical part of the county’s budget. It necessitates difficult decisions regarding the allocation of resources and funding cuts across various departments.
Cleveland Metropolitan School District’s Budget Deficit:
The Cleveland Metropolitan School District (CMSD) is experiencing a significant budget deficit, which poses a threat to its school programs and educational offerings.
Although the CMSD has reduced its looming budget deficit by $56 million, new financial projections indicate that the district will still face a deficit in 2028. Instead of being down $96 million, the deficit is now expected to be closer to $39 million. [2]
Key to this financial improvement are recent measures undertaken by CMSD, including $28 million in savings over the next three years through cuts to alternative school calendars. In addition, CMSD plans to tighten individual school budgets as part of the deficit reduction strategy. [2]
Starting in the next academic year, schools will receive separate budgets: one designated for staff and another per student. This change offers schools flexibility in managing their funds, with an option to request additional resources if necessary.
School officials are also examining various options to address the financial shortfall, including potential budget cuts, the revision of school programs, the closure of schools, and more.
Unpaid Property Taxes in Cuyahoga County
Cuyahoga County is facing intensified budgetary challenges due to an increase in unpaid property taxes. This uptick in delinquencies follows a recent countywide property reappraisal, which resulted in an average 32% rise in home values. [3]
The higher tax bills have placed a considerable burden on residents, leading to an escalation in tax defaults. This reduction in tax revenue exacerbates the budget crunch experienced by the county, limiting available funds for essential services. The situation is directly impacting the county’s finances, contributing to an anticipated $19.2 million shortfall in the reserves for the Health and Human Services Levy. [3]
Rising Living Costs in Cuyahoga County
As Cuyahoga County households experience financial strain, they find it increasingly difficult to meet daily needs, contributing to a broader economic cycle of reduced spending power.
Many full-time workers, including food delivery drivers, fast-food employees, home health aides, and even some teachers, struggle to earn enough to meet their essential needs, such as housing, child care, food, transportation, health care, technology, and taxes. These individuals are classified as ALICE, an acronym for Asset Limited, Income Constrained, Employed. [4]
In Cuyahoga County, over 25% of households are identified as ALICE, in addition to the 16% of households living at or below the poverty line. Combined, this means that 43% of households in the county are struggling to meet the basic cost of living. [4]
Support from local government and non-profit organizations is necessary to assist these families, addressing immediate financial needs and providing pathways to recovery and financial stability.
Increase in Foreclosure Filings in Cuyahoga County
Cuyahoga County is experiencing a concerning rise in foreclosure filings, which further strains its financial resources and impacts community stability. This increase is attributed to several factors, including job losses and reduced income.
In April 2024, Cuyahoga County was among the top 10 U.S. counties for foreclosures, with 229 foreclosure starts. [5] As more families face the risk of losing their homes, the local housing market also feels the strain, disrupting economic recovery efforts.
County and city officials are exploring measures to stop foreclosure, such as loan modification programs and foreclosure prevention initiatives, in an effort to stabilize the housing market and support community recovery.
Strategies to Address the Budget Deficit
To address the budget hole, municipalities and school officials are considering a variety of approaches to safeguard essential services while achieving fiscal balance. Here are some measures that may help tackle the cash crisis:
- One proposed strategy to alleviate the budget crunch is to make cuts to out-of-school programs. These programs, which provide essential services to students, are often the first to face scrutiny during budget crunches. Reducing or eliminating funding for these school board programs can free up resources for more critical areas.
- In response to the pressing budget crunch, some school districts are considering layoffs at the central office as a means of trimming expenses. By reducing administrative costs, districts aim to preserve classroom resources and direct funds more efficiently toward student instruction.
- The county has decided to halt hiring for all positions unless they are deemed “mission critical” by Janas. However, hiring for corrections officers and protective services officers will continue up to their authorized levels. [6]
- Each department of the county government has had its budget rolled back to the 2024 expenditure levels. [6]
- In addition, overtime spending is being reduced in three sectors. The Sheriff’s Department decreases deputy overtime by 10%, limiting it to a maximum of $4.8 million annually, and reduces corrections officer overtime by 7%, capping it at $10.4 million annually. The Department of Public Works is also required to reduce overtime for trades and custodial work by 25%. [6]
If you are facing foreclosure or need a bankruptcy attorney in Cuyahoga County, contact Richard West for a free consultation.
Sources:
[1] Kaitlin Durbin, cleveland.com & Kaitlin Durbin, [email protected]. (2024, December 4). Cuyahoga County facing ‘larger than normal,’ $25 million budget deficit in 2025. Cleveland. https://www.cleveland.com/news/2024/12/cuyahoga-county-facing-larger-than-normal-25-million-budget-deficit-in-2025.html
[2] Indriolo, M., & Indriolo, M. (2025, May 15). By cutting calendars and trimming school budgets, CMSD says it reduced a looming deficit by $56 million. Signal Cleveland. https://signalcleveland.org/by-cutting-calendars-and-trimming-school-budgets-cmsd-says-it-reduced-a-looming-deficit-by-56-million/
[3] Kaitlin Durbin, cleveland.com & Kaitlin Durbin, [email protected]. (2025, June 5). ‘I’ve never seen delinquency to this level’: Unpaid property taxes contribute to Cuyahoga County budget crisis. Cleveland. https://www.cleveland.com/news/2025/06/ive-never-seen-delinquency-to-this-level-unpaid-property-taxes-contribute-to-cuyahoga-county-budget-crisis.html
[4] Cliff Pinckard, cleveland.com & Cliff Pinckard, [email protected]. (2025, May 19). How many Cuyahoga County households fall below the cost-of-living threshold? The Wake Up for Monday, May 19,. Cleveland. https://www.cleveland.com/metro/2025/05/how-many-cuyahoga-county-households-fall-below-the-cost-of-living-threshold-the-wake-up-for-monday-may-19-2025.html
[5] Team, A. (2024, May 17). Top 10 U.S. Counties with Greatest Numbers of Foreclosure Starts in April 2024. ATTOM. https://www.attomdata.com/news/most-recent/top-10-u-s-counties-with-greatest-numbers-of-foreclosure-starts-in-april-2024/
[6] Kaitlin Durbin, cleveland.com & Kaitlin Durbin, [email protected]. (2025a, March 24). Cuyahoga County announces immediate budget cuts to hiring, jail overtime amid financial straits. But will it. Cleveland. https://www.cleveland.com/news/2025/03/county-county-announces-immediate-budget-cuts-to-hiring-jail-overtime-amid-financial-straits-but-will-it-be-enough.html
