Why Ginther wants to increase Columbus' rainy day fund
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Amid broad economic uncertainty, Columbus Mayor Andrew Ginther wants to save tens of millions more for the city's rainy day fund.
Why it matters: In good times, a rainy day fund may seem like a large pool of unused funds — but without it, city services and essential operations are at risk and Columbus has less financial leverage.
State of play: Ginther recently announced a goal of increasing the city's economic stabilization fund, as it's formally known, to $140 million by 2032, more than 10% of its current general fund budget.
- Columbus currently has about $109 million in the fund, with an existing goal of $114 million by the end of 2027.
- The proposal came days after Ginther proposed a $2.8 billion capital budget for 2026, and its resolution had a first reading at a Sept. 14 city council meeting.
What they're saying: Ginther has called the fund "one of our proven fiscal tools to deliver results for our residents and protect city finances."
- "Columbus is healthy, growing and financially strong, and I am committed to ensuring that vitality remains for the foreseeable future."
Between the lines: With billions planned in spending and plenty of projects and services in need of money, why does Ginther want to increase unused funds?
- Because, like people across the country, he says Columbus is preparing for an uncertain economic future.
Flashback: The fund began with $4 million in 1988, and the last time the city needed it was during the economic crisis caused by the Great Recession.
- At the height of the 2009 recession, the city used around $30 million to plug gaps, even while reducing services.
- During the same period, Ohio spent nearly all of its $1 billion fund under the same economic strains.
What they did: When Columbus voters approved an income-tax rate hike in 2009, the city began rebuilding the fund, which had reached as little as $15 million.
- Since then, officials have targeted and hit goals of $50 million in 2013, $75 million in 2018, $80 million by 2020 and $90 million by 2024, now aiming for $114.4 million by 2027.
Follow the money: The cash also helps open up funding options.
- It contributes to Columbus' AAA bond rating, which allows it to borrow huge amounts at lower rates and saving millions more.