Mayor Justin Bibb is trying hard not to let Cleveland’s rare budget good fortune turn into a spending free for all. As City Hall gears up to hammer out the 2026 spending plan, he is pitching the city’s extra cash as a shield for essential services, not a roulette stack. The message: protect safety forces and modernize city operations, sure, but do it without gambling away the cushion. With the council and the administration set to volley amendments in the coming weeks, residents will soon see how much of the surplus actually gets put to work.
The latest numbers show roughly $91 million in carryover from 2025, a one-time boost that finance staff stress should not be mistaken for money Cleveland can count on every year. Chief Financial Officer Paul Barrett told reporters the balance was padded by stronger than expected tax and fee collections, a few timing quirks, and accelerated billing, and he is urging caution on how it is used. City Council starts formal budget hearings next Tuesday and must approve a final plan by April 1, as reported by Ideastream Public Media.
Bibb has been repeating the same refrain for weeks, casting the carryover as a safety net instead of a slush fund and warning against quick hits that drain reserves for short term wins. “Let me be clear – I will not support any legislation that unnecessarily dips into the city’s rainy-day fund, carryover balance, or any other reserves, putting our financial health at risk,” he said in a statement from the mayor’s office. The administration is also flagging ongoing negotiations with more than 30 unions and other long term obligations that could squeeze future budgets, according to a statement from the City of Cleveland.
What’s in the numbers
City officials say the plumped up 2025 revenues trace back to a handful of one time and timing-related factors: a modest uptick in income tax collections, savings created by unfilled positions, and roughly $21 million recovered after the city outsourced EMS billing. At the same time, the Bibb administration points to new pay hikes that are here to stay, including a 3% across the board raise for city workers and a 21% bump for firefighters, which helps with recruitment but also locks in higher costs going forward. Those details were laid out in the city’s budget briefing, according to Ideastream Public Media.
Where the mayor wants to spend it
Bibb’s wish list tries to split the difference between restraint and targeted investment. His American Rescue Plan Act proposal steers roughly $40 million into education, jobs, and modernization projects that City Hall argues will pay off in long term growth. The plan is carved into buckets like Education for Everyone and Inclusive Economic Recovery, along with $4 million to update the city’s 311 system and other City Hall technology and to launch a civic participation pilot program. Those priorities are outlined by the City of Cleveland.
What to watch
On the other side of the bargaining table, council members are expected to line up amendments for neighborhood projects and participatory budgeting, testing how far they can push that one time carryover. Bibb has already signaled that he will fight efforts to use the surplus to cover ongoing expenses, arguing that is how you end up with a budget hangover a year or two down the road. The coming hearings, public testimony, and final round of negotiations will reveal whether the mayor’s caution or the council’s local wish lists carry the day, a tension Cleveland 19 highlighted in airing the mayor’s recent comments…