Across the country, local governments are cutting budgets as the financial impact on businesses and organizations drastically affected by the coronavirus pandemic comes into view – often in red ink.
That’s true here and everywhere. What was unthinkable three months ago is now in front of us. Chattanooga’s tourism is down, and our many businesses that cater to it are slowly trying to come back to life while much of the public remains skittish of returning to eateries, venues and events. Even Chattanooga’s extremely popular Nightfall series is opening this year with “virtual” performances, as social distancing remains the buzzword of the day.
But Chattanooga, thanks to past years and careful budgeting, is in better shape than most cities to weather this COVID-19 downturn. Mayor Andy Berke’s proposed 2021 budget calls for no new taxes, fees or layoffs. It does, however, include just over $8 million in cuts through hiring and pay freezes.
Likewise, it calls for “essentially no improvement work,” aside from an $8.4 road improvement budget, and fewer social initiatives than the administration had hoped to incorporate in 2021.
In New York City, leaders in April announced $1.3 billion – billion with a B – in emergency cuts, along with a hiring freeze and “vacancy reductions.” And that was before Mayor Bill de Blasio starting talking later in the month about the 2021 budget, which calls for $8 billion in cuts.