City of Birmingham Facing ‘Economic Crisis’ Over Falling Revenue From Pandemic
Birmingham can expect an $18.3 million budgetary shortfall for the 2020 fiscal year because of the pandemic, Finance Director Lester Smith told the City Council Tuesday. And he warned that the economic impact on the city’s FY 2021 budget could be nearly four times that. Mayor Randall Woodfin, calling the situation an “economic crisis,” said that the dip in revenue means “painful” budget cuts are likely on the way. The COVID-19 pandemic and the city’s subsequent “shelter-in-place” order led to a significant drop in business tax revenue for the city, Smith said. That revenue, which includes sales, use and occupational taxes, typically accounts for 81.3% of the city’s overall budget. Read more.