The first wave of the fiscal impact survey concluded in December 2020. A total of 94 budget officers from across the region responded to the survey.
Key takeaways:
- COVID-19 is having a major impact on local government budgets: 20% of respondents indicate they will not be able to balance their budget this fiscal year; an additional 20% indicated only a “maybe”.
- 80% of respondents indicate revenue declines from COVID-19, with the biggest losses coming from service fees, and sales, occupancy, and fuel / motor vehicle taxes.
- Local governments have employed several strategies to deal with budget issues stemming from COVID-19. Nearly 40% of respondents have dipped into “rainy day” funds and 28% plan to do so in the future. Many agencies indicated decreasing services and deferring maintenance and capital expenditures; one in every eight have resorted to layoffs and furloughs.