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Today’s #GOPCThread takes a look at the impact the COVID-19 pandemic has had on public finances. COVID has had a significant impact on all budgets, but for local governments already in the midst of operating with lean finances, these impacts are especially difficult.
In May, GOPC did an internal survey of Ohio’s #LegacyCities and the impact COVID-19 had on communities’ budgets. This review found that cities were furloughing staff and cutting services. #GOPCThread https://bit.ly/39HX3hd
While some of Ohio’s #LegacyCities had reserves on hand, many were already operating with looming deficits – even prior to COVID-19. For most, trimming already lean budgets is difficult. #GOPCThread https://bit.ly/39L5hFm
The May survey found that only three of Ohio’s small #LegacyCities had eliminated/furloughed city staff. As of July, this number has more than doubled to seven. #GOPCThread https://bit.ly/2EEiMer
Nearly every city has reported revenue losses due to COVID-19, with a significant portion lost from the income tax losses. For these small communities, losses range from $2-5M – or around 5-15% of their budgets. #GOPCThread https://bit.ly/339vRql
Though income taxes account for a majority of a local governments’ revenue, other services and fees are also key components. A few small legacy cities have reported a rise in delinquent payments for services such as water and sewer. #GOPCThread https://bit.ly/30e8lq4
With budget shortcomings, local governments have had little choice but to cut. With staff reductions, departments cannot operate at full capacity. This oftentimes reduces services provided to residents. #GOPCThread
In @cityofsandusky, $2.6M was originally allocated for road repairs in the FY20 budget – the largest amount the city has allocated to get ahead on maintenance. Due to lost revenue, this has been reduced to $1M – limiting projects to those most vital. https://bit.ly/2X8ksDe
In other communities, policymakers are faced with tough decisions with where cuts are to be made. These appear to be occurring in nonessential services – such as parks – and in capital improvement projects. Cities are also delaying maintenance and instituting hiring freezes.
Financial assistance will be provided to local governments through federal CARES dollars. In total, the state has received $2.2B – of which, it has distributed $350M to Ohio’s local governments. #GOPCThread https://bit.ly/2DiAEuz
The state is responsible for distributing money to communities with fewer than 500K residents. These dollars are designated for matters related to COVID-19 & cannot recoup the city’s lost revenues. Ohio’s #LegacyCities are utilizing these funds in useful ways. #GOPCThread
In @richlandctyoh, for example, commissioners are considering utilizing $500K of CARES funds to expand mobile WiFi hotspots to school districts throughout the county for educational purposes. #GOPCThread https://bit.ly/30bIA9X
The state can authorize the distribution of additional CARES funding – and should – to Ohio’s communities. In addition, as federal conversations continue regarding additional relief packages, local governments should be included in that conversation. https://bit.ly/2Xr0lAt
You too can take action to encourage lawmakers to provide and distribute state and local government funds
https://bit.ly/39QZkGR
https://bit.ly/3i4rbpY
https://bit.ly/39QZkGR
https://bit.ly/3i4rbpY
Additional financial assistance and flexibility in how those dollars can be used are crucial to the success of Ohio’s municipalities. Communities are in the midst of protecting their residents while they are faced with economic uncertainty. #GOPCThread
As we have seen before, Ohio’s cities are resilient – but they must be provided with the necessary tools and resources so they can continue to prosper, both for their residents and the state of Ohio. #GOPCThread
