Coronavirus Forces Columbia Budget Cuts | KBIA

Coronavirus Forces Columbia Budget Cuts

May 4, 2020

Credit Meiying Wu / KBIA

Declining revenue from sales tax and other sources, along with spending in response to the COVID-19 outbreak, will force city staff and the Columbia City Council to amend the general fund budget for fiscal 2020.

The council will discuss budget adjustments at a work session before its regular meeting Monday night. At the regular meeting, it also will discuss whether to shift federal money from the U.S. Department of Housing & Urban Development toward more help for small businesses and people struggling to keep their housing.

The city is expecting a 7% drop in revenue for the general fund, which pays for the day-to-day operations of city government, including police and fire protection, according to a PowerPoint presentation the council will review Monday. The city expects a 10% drop in sales tax, a 20% drop in license and permit fees and a 30% drop in fines, court fees and other local revenue sources for fiscal 2020.

The city also has paid a little over $1 million in personnel costs and $55,000 in operating expenses as a result of COVID-19 as of Wednesday, according to the presentation.

Columbia was expecting a little over $85.6 million from general fund revenue sources. Now, it is estimating about $79.3 million for the fiscal year that ends Sept. 30.

To read more, visit our partners at the Columbia Missourian.