CHARLOTTE, N.C. — The health impacts of the coronavirus will be lasting, and so will the financial burdens. For the City of Charlotte, the virus has caused a $21.8 million shortfall, or gap in the budget for the fiscal year 2021, according to City Manager Marcus Jones.
Now, it's up to him and his team to come up with the money.
The proposed budget would not include an increase in property taxes, according to Jones. No city workers would be laid off, nor furloughed.
However, the city will implement a hiring freeze, with the elimination of 26 vacant positions that were up for grabs.
"We know that we can get through this maybe better than any other city our size," Jones said as he addressed the council.
The hiring freeze would not impact Charlotte-Mecklenburg Police Department nor Charlotte Fire Department. They would still be able to hire and recruit.
Jones said his team worked hard to pinch the pennies and see what the city could do to make up for the loss in funds.
With the hiring freeze, and departments keeping a close eye on their expenses, the city can create $8.5 million. Roughly $11 million will come from shifting around specific funds, while $3.5 million will come from added revenue, according to Jones.
"We preserve core services in this budget, we are not laying off employees," he said.
The city will not dip into its rainy day fund either, according to Jones.
The proposed budget would still include a $50 million dollar affordable housing bond, and $14 million dollars would go towards street projects to mitigate congestion.
"We have a stable organization, a resilient organization, but maybe, more importantly, an adaptable organization," Jones said.
However, organizations and programs, like the Arts and Science Council could take a hit.
The ASC asked the city for $7 million dollars in the budge, but will only get $3.2 million under the new budget plan. That's the same amount that it got last budget cycle, Jones noted.
Jones said all other partners with the city would receive the same amount of money — and no more — than they did in the last budget for fiscal year 2020.
This is just a budget proposal. It would still need to be passed by the council.
On May 11, there will be a public hearing on the budget followed by budget adjustments on May 20. Straw votes on the proposed budget will take place on May 27.
Fiscal year 2021 starts July 1, 2020.
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