Some trustees of the Greater Cleveland Regional Transit Authority are rethinking their decision to seek a sales tax increase in May rather than November next year.
Trustees decided earlier this summer to place a levy on the May ballot to relieve growing financial pressure. They were expected to set the amount at Tuesday’s board meeting. Instead, they held off on that decision and debated whether they were ready to go to the ballot with their first levy since 1975.
Officials from Cleveland and Cuyahoga County, which appoint most of RTA’s board, wanted more time to refine the agency’s “value proposition,” Board President Paul Koomar said Tuesday. Trustees opted to decide on the levy by November this year.
CEO India Birdsong Terry has been discussing the tax increase with a list of civic and business leaders, she said. That includes Mayor Justin Bibb and Cuyahoga County Executive Chris Ronayne, who appoint most of the RTA board.
She told trustees that a May election would be best financially for RTA because the added revenue would arrive sooner. But by waiting until November next year, RTA would have more time to make its case to voters, she said. Plus, more people will show up for the fall election.
Emily Garr Pacetti, a trustee appointed by Ronayne, argued for more time. RTA will need that time to get the city, county, grassroots groups, businesses and foundations on board with the agency’s vision for the future, she said.
“When we go out and make a case to increase sales tax at a time when people are strapped, I want to be very informed when we do that,” she said.
Another trustee, Emily Harper, invoked Bibb’s 2021 campaign slogan in pushing to go to the voters in May.
“How much goodwill are we going to burn with the public if we kick this down the road further?” she said. “I’m thinking of the person who appointed me to this seat. Cleveland can’t wait.”
RTA faces a fiscal cliff in a few years. The agency projects to end 2029 with a general operating balance of just $2.5 million — a fraction of the roughly $30 million it spends on operations every month. Earlier this month, Terry decided to delay another round of service cuts until next year.
The agency draws its largest portion of revenue from a 1% sales tax in Cuyahoga County. Trustees have been weighing whether to raise that tax as high as 1.5%.
