Well, here's why:
The current distribution of the tax, per the Toledo Municipal Code, is as follows:
1905.14. Allocation of funds.
(c) Allocation of Three-Quarters Percent (3/4%) Tax Increase. Commencing January 1, 2005, one-third of the increase in funds resulting from the continuation (by Ordinance No. 546-04 which was approved by the City's electorate on November 2, 2004), of the prior increase of three-quarters percent (3/4%) in the City's income tax, as originally provided in Ordinance No. 157-82, passed by the Council of the City of Toledo on March 16, 1982, and approved by the City's electorate on June 8, 1982, shall remain in the General Fund for police, fire and other Safety Department responsibilities, one-half (1/2) of said increase shall remain in the General Fund, and one-sixth (1/6) of the said increase shall be allocated to the Capital Improvements Fund.
Since the tax generates about $57.7 million per year, that means:
* $19 million to police/fire/other safety department responsibilities
* $28.75 million to the General Fund
* $9.6 million to the Capital Improvement Fund
But the ballot language that was approved changed the distribution as of January 1, 2009. From the Board of Elections website:
Continuation of a three-fourths percent (3/4%) levy on income (one-third (1/3) to the General Fund for police, fire and other Safety Department responsibilities, one-third (1/3) to the General Fund, and one-third (1/3) to the Capital Improvements Fund), commencing January 1, 2009, and ending December 31, 2012.
That means that the revenue from this tax gets split equally with about $19 million to each category.
Now, it should be easy to see that with the CIP getting more money, the general fund (including police/fire/other safety department responsibilities) gets less - $9.75 million less, to be exact.
So, despite the claim by Council President Mark Sobczak that "(i)t'll be business as usual...", it really won't be if the general fund has to go without approximately $10 million starting in January.
So where will roughly $10 million in cuts come from? Inquiring minds want to know.