Cleveland's Financial Crisis
GGD-96-164R: Published: Aug 21, 1996. Publicly Released: Aug 21, 1996.
- Full Report:
Pursuant to a congressional request, GAO provided information on the city of Cleveland's financial recovery in the 1970's. GAO noted that the city: (1) established several public-private partnerships to deliver more efficient and economical city services; (2) increased income taxes to 1.5 percent to avoid bankruptcy; (3) established a Financial Planning and Supervision Commission to develop a sound financial recovery plan; (4) issued the state of Ohio short-term notes and general obligation bonds to repay its defaulted loans; and (5) set up an improved financial management system to track and control expenditures, reduced its full-time workforce by 1,300 employees, and required the Municipal Light and Power Company and other city enterprises to operate on a self-supporting basis.