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County NewsNACo’s new report, Running on Fumes: Impact of COVID-19 on County Finances, details the pandemic’s budgetary consequences.County budgets may see $144 billion hit from COVID-19
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County News Article
County budgets may see $144 billion hit from COVID-19
Counties nationwide could see a $144 billion hit to their budgets through the end of 2021 due to the coronavirus pandemic, according to a new report “Running on Fumes: Impact of COVID-19 on County Finances,” released by NACo.
The estimate includes anticipated increases in expenditures, lost sales tax revenue, lost revenue from charges and fees, lost business license tax revenue and lost income tax revenue. The estimate does not include potential lost revenue from property taxes or from state sales or income taxes that are shared with counties.
Learn More
Read Running On Fumes: Impact of COVID-19 on County Finances
An additional $54 billion in property tax revenue is at risk in states where counties have not yet collected any or all property tax revenue.
Meanwhile, county budgets are being stretched to the limit, fielding 911 calls, overseeing emergency operation centers and administering human service programs for millions of newly unemployed residents.
Even before the novel coronavirus pandemic began, counties invested in community health services and hospitals – nearly $100 billion each year. Now, county budgets are being stretched thin as they work with nearly 1,000 county-supported hospitals and 1,900 local public health authorities to fight the virus.
Preliminary estimates from NACo show counties could expect a nearly $30 billion increase in expenditures, should the pandemic last through FY2021.
This would translate into the median county spending 8 percent of its resources responding to COVID-19, with some counties spending more depending on their responsibilities. NACo estimates that 76 counties could spend half of their budgets fighting coronavirus.
Furloughing employees to help stem losses is all part of the mix. Due to the rising costs of battling COVID-19 and revenue losses, many counties have had to furlough or lay off employees, on average laying off about 6 percent of the workforce, although some counties are seeing even higher numbers. Franklin County, Pa. has furloughed 25 percent of its workforce or 2,000 of about 8,000 employees.
NACo’s new report, Running on Fumes: Impact of COVID-19 on County Finances, details the pandemic’s budgetary consequences.2020-04-22County News Article2020-04-30
Counties nationwide could see a $144 billion hit to their budgets through the end of 2021 due to the coronavirus pandemic, according to a new report “Running on Fumes: Impact of COVID-19 on County Finances,” released by NACo.
The estimate includes anticipated increases in expenditures, lost sales tax revenue, lost revenue from charges and fees, lost business license tax revenue and lost income tax revenue. The estimate does not include potential lost revenue from property taxes or from state sales or income taxes that are shared with counties.
Learn More
Read Running On Fumes: Impact of COVID-19 on County Finances
An additional $54 billion in property tax revenue is at risk in states where counties have not yet collected any or all property tax revenue.
Meanwhile, county budgets are being stretched to the limit, fielding 911 calls, overseeing emergency operation centers and administering human service programs for millions of newly unemployed residents.
Even before the novel coronavirus pandemic began, counties invested in community health services and hospitals – nearly $100 billion each year. Now, county budgets are being stretched thin as they work with nearly 1,000 county-supported hospitals and 1,900 local public health authorities to fight the virus.
Preliminary estimates from NACo show counties could expect a nearly $30 billion increase in expenditures, should the pandemic last through FY2021.
This would translate into the median county spending 8 percent of its resources responding to COVID-19, with some counties spending more depending on their responsibilities. NACo estimates that 76 counties could spend half of their budgets fighting coronavirus.
Furloughing employees to help stem losses is all part of the mix. Due to the rising costs of battling COVID-19 and revenue losses, many counties have had to furlough or lay off employees, on average laying off about 6 percent of the workforce, although some counties are seeing even higher numbers. Franklin County, Pa. has furloughed 25 percent of its workforce or 2,000 of about 8,000 employees.

About Mary Ann Barton (Full Bio)
County News Editor & Senior Writer
Mary Ann is the County News editor and senior staff writer and is returning to NACo after previously working at the association. She comes to NACo after covering local news for Patch.com in Northern Virginia.More from Mary Ann Barton
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Finance, Pensions & Intergovernmental Affairs Steering Committee
All matters pertaining to the financial resources of counties, fiscal management, federal assistance, municipal borrowing, county revenues, federal budget, federal tax reform, elections and Native American issues. Policy Platform & Resolutions 2022-2023 2022 NACo Legislative Prioritiespagepagepage<p>All matters pertaining to the financial resources of counties, fiscal management, federal assistance, municipal borrowing, county revenues, federal budget, federal tax reform, elections and Native American issues.</p>
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County News Editor & Senior Writer(202) 942-4223
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