COLUMBUS, Ohio — The City of Columbus is facing a $41.5 million reduction in revenue for the year 2020.
At Monday night's meeting, City Council passed an ordinance to reduce the general fund.
"The global pandemic presented the city with three crises: a health crisis, a human services crisis and an economic crisis," Mayor Andrew Ginther said. "Because our revenue is so closely tied to income tax, the staggering unemployment rate has drastically reduced our revenue for 2020. As we work on our budget for 2021, we need to anticipate this lost revenue that may well continue into the next year.”
Since the coronavirus emerged earlier this year, city leaders have worked to decrease spending through eliminating travel, delaying raises and imposing a hiring freeze on most positions.
Federal money from the CARES Act has helped to offset COVID-19-related expenses in several departments, including public health. As a result, the city has been able to save about $40 million.
The additional shortfall in the general fund will be made up through the use of the basic city services fund, which has a balance of $20.8 million.