West Lake Norman News

What started as a smooth budget process in Catawba County is now an effort to find ways to adjust to a multi-million dollar shortfall for the 2020-21 fiscal year budget.

The shortfall is attributed to COVID-19 impact on sales tax, property tax and revenue from county building services. Initial estimates placed the shortfall at $6 million, which the Hickory Daily Record reported is 2% of the county’s budget.

As of now, raising sales tax is not an option leaving the county to look at other ways to bring the budget in line with expected revenue which is a guessing game both short and long term at this point, according to the Hickory Daily Record.

County Manager Mick Berry told the County Board of Commissioners that it takes two months to determine the monthly sales tax and the county was still waiting to find out revenue from March and April, according to the Hickory Daily Record. That leaves the county waiting to not only determine the impact coronavirus has had on the sales tax to date but also the impact leading into the next fiscal year. The new fiscal year begins July 1.

“The world turned upside down and with is our budget turned upside down,” Berry said according to the Hickory Daily Record.

The good news in relation to budgeting for the county is there is no expectation of the coronavirus impacting the current fiscal year budget.

There are a couple of options policymakers to stabilize expenses, including delaying capital projects. Parks will be impacted with the main item a delay in opening the county parks seven days a week, according to the Hickory Daily Record. Education would also be impacted with cuts ranging from dropping the 2.8% increase in spending per pupil to 2%. There is also a discussion on delaying construction at Maiden Elementary School. 

The Hickory Daily Record reported Commissioner Sherry Butler considered the possibility that home school and virtual school might rise in popularity, which would make putting school construction off the right choice.  

Commissioner Dan Hunsucker suggested using the rainy day fund to bridge the gaps as needed for the budget.

“You’re not going to get a rainier day than now,” he told the Hickory Daily Record.