Ithaca Common Council approved a measure that amends the 2026 city budget, cutting several funding lines to fill a multi-million-dollar funding deficit at the Wednesday council meeting.
In a unanimous vote, the alderpersons approved the plan to amend the budget originally proposed by City Manager Deb Mohlenhoff at the Oct. 21 council meeting.
The original shortage, which amounted to $2.1 million, occurred after an accounting error when the revenue data was not transferred to the budget dataset due to a “synchronization error” with the software — according to Mohlenhoff. This shortage constrained the city’s expenditures for the next year by $2.1 million.
During the public comment section of the Wednesday meeting, Mohlenhoff faced criticism from the public over the accounting error and the financial struggles of the city.
“Terminate Miss Mohlenhoff. I can give you 2.1 million reasons why you should do that," said James Smith, an Ithaca paramedic for Bangs Ambulance.
The original budget allocated $112.89 million to the city to cover operating expenses, services, and finance projects —an increase of $6.1 million from the 2025 budget. Mohlenhoff previously told The Sun that the increases were due to labor contracts that Ithaca signed with several worker unions, which required wage increases for workers. These unions provide public services to the city.
“The city cannot carry out its work or meet the needs of the public without our employees,” Mohlenhoff said.
An amendment to the budget that reduced city expenses by $2.4 million, based on recommendations from Mohlenhoff, was approved in a unanimous vote.
Mohlenhoff recommended cutting down on itemized funding from different city agencies. Some of the largest recommended cuts include $145,000 from the Department of Public Works, $15,000 from city advertisement, $10,000 from Ithaca Fire Department and $20,000 from the Ithaca Police Department.
Mayor Robert Cantelmo also proposed an amendment to eliminate the capital projects general fund, which was slated to go to three new IPD cars, a tracker for the Ithaca Youth Bureau and new security cameras for public safety. Cantelmo said that these short-term investments were not beneficial for city finances. The motion passed unanimously.
Alderpersons were not optimistic about the budget, and many presented their own reservations about the budgeting process.
“I wish there were different choices that were given for us to consider,” said Alderperson David Shapiro (D-Third Ward). “I will plan to vote for this but I do this very begrudgingly."
After the cuts were passed, the city ended with a small surplus in the budget, giving the city additional funding to approve a series of budget amendments. However, many still failed to gather enough support from the council.
Alderperson Clyde Lederman ’26 (D-Fifth Ward) addressed a funding shortage for the Tompkins Consolidated Area Transit in an attempt to challenge Cornell’s reluctance to take on the bus operator's debt.
TCAT faces a $1.5 million budget deficit and, if not addressed, bus routes or schedules could be cut or reduced. Under TCAT’s existing system, the three existing underwriters responsible for assuming TCAT’s debt would need to contribute $500,000 each to cover the gap. The underwriters are the city, Tompkins County and Cornell.
Under Lederman’s conditional retention amendment, the city sets aside $500,000 for the TCAT, but will only pay the lowest amount committed by the other underwriters.
According to TCAT General Manager Matthew Rosenbloom-Jones, who spoke at the meeting, the University has only agreed to pay TCAT $31,000 of the $500,000 asked to address the funding shortage for operating costs.
The alderpersons criticized Cornell’s low contribution compared to the initial ask from TCAT. Cantelmo referred to the University’s offer as an “abysmally low, embarrassing, unhelpful, austerity-minded, insulting [and] parasitic offer.”
The amendment passed in a 10-to-one vote, with Alderperson Margaret Fabrizio (D-Fifth Ward) voting against the measure citing concerns about increasing the economic burden of the city.
“I think that the ask amounts to putting a bandaid on a very large wound,” Fabrizio said. “I am very worried about being asked next year for more millions of dollars.”
Alderperson Ducson Nguyen (D-Second Ward) proposed a new parking fee system for Stewart Park. The system included a $15 resident pass and parking for $2 per hour. The motion failed by a five-to-six margin. It was supported by Alderperson Phoebe Brown (D-First Ward), Shapiro, Alderperson Patrick Kuehl ’24 (D-Fourth Ward), Nguyen and Alderperson Kayla Matos (D-First Ward).
Nguyen’s second amendment, advocating for $18,000 in funds for the Friends of Stewart Park for park operating costs and projects, was rejected in a vote of nine-to-two with Nguyen and Cantelmo voting in favor.
Alderperson Pierre Saint-Perez J.D. ’24 (D-Third Ward) proposed $50,000 in additional funds for Tompkins Public Library to operate on Sundays. The amendment passed in a 10-to-one vote, with Kuehl voting against it.
Fabrizio proposed eight amendments to the budget, from which only one passed. The first amendment removes $115,697 in funding for the vacant role of new parks manager. This passed eight-to-three with Nguyen, Matos and Kumar voting against.
The council also unanimously approved an amendment to the city charter that changes the date when local authorities consider penalties for delinquent taxes. The change pushes the date from Oct. 1 to July 1 of every year.
Cantelmo proposed the re-appointment of Loretta Epthimiatos as commissioner, which passed unanimously, as well as the appointment of Lisa Collins as commissioner to serve on the Ithaca Housing Authority Board until Oct. 17, 2030. This passed by a margin of nine-to-two, and was opposed by Kuehl and Brown.
A final vote on the amended budget will be held on Nov. 12.
Gabriel Muñoz is a member of the class of 2026 at the College of Arts and Sciences. He serves as city editor for the 143rd editorial board. He previously served as city editor for the 142nd Editorial Board and news editor for the 141st Editorial Board. He can be contacted at gmunoz@cornellsun.com.
