By: Mark Glennon*
Illinois municipalities are facing average revenue losses of 20% to 30% for the period from March 1, 2020 to July 24, 2020 compared to the same period last year, thanks to the pandemic and resulting recession.
That’s according to a survey conducted by the Illinois Municipal League. Eighty-seven percent of respondents reported shortfalls.
Revenue sources have been hit to different degrees, as shown on the chart below:
How will they make up for the lost revenue? Overwhelmingly, survey respondents said they were looking at reducing personnel and/or services, cutting or delaying capital expenditures and drawing down reserves. Interestingly, very few said they were looking at increasing taxes or fees.
Keep in mind, however, that the COVID recession has persisted after the survey end date of July 24 with no clear end in site, so further impact looms.
Chicago will be a separate story unto itself. We will hear about it as “budget week” kicks off on August 31.
*Mark Glennon is founder of Wirepoints.