Will the People’s Budget empower Clevelanders, or imperil city services? Analysis

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Will the People’s Budget empower Clevelanders, or imperil city services? Analysis
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As Cleveland closes in on its vote for a proposed participatory budgeting charter amendment, cleveland.com/The Plain Dealer sought to explain how the resident-led process would work. January 23, 2023.

The dollar amount for PB ramps up over the first three years, but by the fourth, the city would be required to set aside the equivalent of 2% of the general fund budget to pay for projects selected by residents, including teenagers and others who are shut out of regular elections. While dozens of U.S. cities have used PB over the last decade or so, they devote far less money to the effort, relative to their budget, than Cleveland’s 2% proposal. In fact, research conducted by the city of Burnsville, Minn. found in PB case studies of 18 U.S. cities – including Chicago, Detroit, Boston, San Francisco and Philadelphia -- that the average municipal investment in the model is just 0.

Another stark difference between Cleveland’s proposal and other major U.S. cities with PB is the permanency of Cleveland’s plan through its enshrinement in the charter. PB would be required every year in Cleveland, even if an emergency or economic downturn squeezes the budget. That study, which looked at New York City turnout, found the average traditional-voting probability rose by 8.4 percentage points for people who participated in PB. And the impact was found to be higher for young people, those with less education or income, Black voters, and those who are the minority race of their neighborhood. Opponents emphasize how a person’s increased voting probability isn’t the same as an 8% bump to the city’s overall turnout rate.

Opponents of PB say the budget just can’t realistically absorb the equivalent of a 2% redirect to PB, and even if it could, layoffs would likely result, because the city spends most of its budget on personnel, who deliver city services. A large share of U.S. cities with PB use it to exclusively decide a portion of capital spending, though some, like Cleveland’s plan, have also used it to fund programs. Program funding could be used to augment city staff or hire outside nonprofits and other contractors to deliver programs.

Others, like Los Angeles, use federal community development block grants, she said. If that were the case here, residents, not City Hall, would decide how to allocate those funds, without affecting the general fund as much as alternatives would. However, using Cleveland’s CDBG money for PB could result in a hit to routine funding provided to community development corporations.

In the worst-case scenario for PB supporters, City Hall could actively seek to hamper it. Legal loopholes might be one path to do so. Martin and Welle say that’s not the case. They say that seeking bids and determining who will implement the projects will be left to the city, in processes that would still require approval from the Board of Control, and compliance with all other guardrails usually required.

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