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Ohio Auditor Seeks Court-Appointed Receivership for East Cleveland Under New Law

A receiver would assume broad fiscal powers over the city’s finances.

Overview

  • Auditor Keith Faber on Monday asked Attorney General Dave Yost to start legal proceedings enabled by a statute that takes effect Tuesday.
  • The attorney general must petition the Ohio Court of Claims before any receiver is appointed, and no filing has been announced.
  • Faber cited prolonged fiscal distress, noting a current 13-year emergency and a prior 17-year stretch from 1988 to 2006.
  • He reported operating deficits in 10 budgeted funds, bills being held for lack of cash, unpaid lawsuit settlements, and the absence of a recovery plan.
  • If approved, a receiver could impose cost reductions and enforce a financial recovery plan as East Cleveland’s population has declined to a little over 13,000.