When Voinovich became mayor Cleveland was in default. To reduce administrative costs, he organized an Operations Improvement Task Force made up of local private industry executives, the start of Cleveland's Public-Private Partnerships. The city reorganized 10 city departments and set up a new accounting system with internal auditing capability. Highlights of the Voinovich administration included neighborhood revitalization which started with the Lexington Village housing project; $149 million in Urban Development Action Grants leveraged $770 million in private investment; and $3 billion of construction underway or completed. Also during Voinovich's tenure, the National Civil League gave Cleveland its All-American City Award in 1982, 1984, and 1986. Voinovich also supported the development of NORTH COAST HARBOR, the ROCK AND ROLL HALL OF FAME AND MUSEUM, and the Great Lakes Science Museum.
An efficient administration in place, Voinovich negotiated a satisfactory debt repayment schedule in Oct. 1980, allowing Cleveland to escape from default (city finances were still supervised by the state of Ohio). Voinovich arranged for capital improvements to strengthen the operation of Cleveland's municipal light plant (renamed Cleveland Public Power). However, the city's economy continued to decline along with the national recession and federal funding was cut. The mayor sought an increase in the city income tax from 1.5% to 2% which voters approved in Feb. 1981. After completing his term as mayor, Voinovich was elected governor of Ohio in Nov. 1990 and 1994.