City of east cleveland ohio

OHIO COURT OF CLAIMS APPOINTED RECEIVER

STABILIZE OPERATIONS

ELIMINATE FISCAL BUDGET DEFICITS

DEVELOP A FIVE-YEAR FISCAL PLAN

The City of East Cleveland, located in Cuyahoga County, Ohio, has experienced significant financial and operational hardships over the past several decades. These challenges have been driven by a combination of population loss, erosion of the City’s tax base, widespread property abandonment, aging infrastructure, and, most significantly, prolonged fiscal distress and financial management challenges. The City has experienced recurring periods of fiscal emergency spanning more than four decades, demonstrating the persistent nature of its financial difficulties. In 2025 alone, East Cleveland experienced three separate administrations, with each transition presenting additional operational and financial challenges.

In response to the City’s longstanding fiscal difficulties, the State of Ohio amended applicable law to provide for the appointment of a financial receiver. In February 2026, George E. Shoup III was appointed as the first financial receiver of a municipality in the State of Ohio, representing a significant step toward establishing greater financial stability and accountability within the City.

Since the appointment, the Receiver and his team at DSI Civic have worked collaboratively with City officials and the state to stabilize municipal operations and address the underlying financial and operational issues that have contributed to East Cleveland’s recurring fiscal emergencies. The overarching objective of the Receivership is not only to address the City’s immediate financial challenges, but also to establish a sustainable financial and operational framework that will allow the City to provide essential services while ultimately breaking the longstanding cycle of fiscal distress.

Through the combined efforts of City personnel and the Receivership team, progress has been made toward reducing operating costs, strengthening financial oversight, identifying additional revenue opportunities, and addressing the City’s approximately $4 million operating budget deficit. These efforts represent important steps toward achieving a structurally balanced budget and establishing a more sustainable financial foundation for the City going forward.