City of Columbus Facing $41 Million Reduction in Revenue in 2020
Mayor Andrew J. Ginther and Columbus City Auditor Megan
Kilgore announced that the impacts of COVID-19 have drastically reduced revenue
expectations for 2020. Ordinance 1436-2020 presented to City Council tonight
reduces the city’s general fund by $41.5 million.
“The global pandemic presented the city with three crises: a
health crisis, a human services crisis and an economic crisis,” said Mayor
Andrew J. Ginther. “Because our revenue is so closely tied to income tax, the
staggering unemployment rate has drastically reduced our revenue for 2020. As
we work on our budget for 2021, we need to anticipate this lost revenue that
may well continue into the next year.”
Since the virus was first introduced in Columbus in March,
the city has been working to reduce spending by eliminating travel, delaying
merit raises and imposing a hiring freeze on almost all positions. In addition,
CARES Act dollars from the U.S. Treasury were able to offset expenses related
to COVID-19 in many departments, especially Public Health. Through these strategies,
the city was able to save roughly $40 million. The additional shortfall in the
general fund will be made up by using the basic city services fund that
currently has a balance of $20.8 million.
“We do not know the ultimate economic toll of COVID-19,”
said City Auditor Megan Kilgore. “Many variables will impact tax revenues in
the fourth quarter and beyond, including the spread of the virus, the duration
of the pandemic and behavioral economics such as consumer fear.”
“The difficult reality we face is that during economic
downturns city revenue takes a hit at the same time that people need assistance
the most,” said President Pro Tempore and Finance Chair Elizabeth Brown.
“Despite these challenges, we will continue focusing on providing city services
and programs that support the needs of Columbus residents in the midst of the
ongoing COVID-19 health and economic crisis.”