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Economy and Business

East Cleveland in fiscal emergency
State auditor orders fromation of financial planning commission

Grant Engle
In The Region:

Ohio’s auditor says the city of East Cleveland is in fiscal emergency.

Auditor Dave Yost says the city has failed to produce a feasible recovery plan since being placed in fiscal watch in May. That was a result of the auditor’s office finding that East Cleveland is running a nearly $6 million deficit.

Yost has ordered the formation of a financial planning and supervision committee to approve the city’s next recovery plan.

The seven-member commission will consist of the mayor of East Cleveland as well as the state’s director of budget and management, the state treasurer and the president of City Council. All but the mayor can appoint a stand-in.

The other three members of the commission will be people from the community – meaning they either live in or work in East Cleveland.

Mike Maurer is a spokesman for the auditor’s office. He says there is no timeline for the city’s next proposal or the formation of the commission.

Mike Maurer talks about selecting community members for commission

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“The hardest part of the process is identifying the community members because this is a commitment. They’ll be meeting every month, and they have to submit quite a bit of paperwork to qualify for the position. Among the things is they have to have – not only a connection to the community – but they have to be knowledgeable in financial affairs because they’re going to be contributing in a significant way to the work that has to be done.”

The three community members on the board will be appointed by Gov. John Kasich.

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