Budget Myth and Budget Fact #5: The Banks

The Myth: If only the County were to cease the Banks Riverfront project, it could put those dollars into its general fund to avoid the cuts that are being discussed.

The Facts: For a whole host of reasons, the dollars being invested on the Banks can not be applied to County's general fund problem. So even if the County announced the cessation of the Banks Project tomorrow, it would not generate a nickel to help the County's general fund deficit.

The primary sources for the initial phase of the Banks development are as follows: federal and state grants specifically earmarked for the Banks, Tax Increment Financing funds (allowable only downtown or on the Banks), the Developer Contribution, the City of Cincinnati contribution, a State Infrastructure Bank loan, an Urban redevelopment loan, and parking revenue (which are limited by bond covenants for riverfront development obligations). In addition, to the extent County staff and preparatory work is being done on the Banks, it is paid for from the separate Stadium fund--not the County's general fund. (And the current county commission has reduced that amount as well in recent years).

The one thing all these sources have in common is that none can legally or appropriately be spent on general operating costs of the County.

Bigger picture, the Banks is part of the solution to the budget problems--which is being driven largely by revenue paralysis. If we grow our economy through development such as the Banks, new housing, growing tourism, developments such as we're seeing in Kenwood, etc., then we grow our way out of the problem.

On the other hand, if we shut down those growth opportunities simply to pay the costs of our basic operations, we trigger a downward economic spiral with no end in sight.