Our latest #GOPCThread is up on Twitter today, as we take a look at the impact the coronavirus has had on public finances in Ohio’s legacy cities.

Not on Twitter, the thread is available online , as well as below.

Greater Ohio Policy Center Read on Twitter

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

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

*Click Image for Story Link. Image Source: Springfield News Sun.*

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

*Click Image for Story Link. Image Source: Athens Messenger.*

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

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

*Click Image for Story Link. Image Source: wdtn.com*

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.

*Click Image for Story Link. Image Source: sanduskyregister.com*

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

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

*Click Image for Story Link. Image Source: richlandsource.com*

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.

*Click Image for Story Link. Image Source: National League of Cities*

You too can take action to encourage lawmakers to provide and distribute state and local government funds

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

#GOPCThread: Municipal Financial Health of Ohio's Legacy Cities During COVID-19

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