Wake County orders budget cuts across the board because of coronavirus’ financial hit
Wake County could cut more than $30 million in local government services in the upcoming budget to offset the coronavirus’ financial hit.
The county expects to lose millions in sales-tax revenue because of store closings and people staying home to comply with government orders to stop the spread of COVID-19. County Manager David Ellis has asked all county departments to propose budgets that are 7% less than what they got this year.
While specifics like layoffs and program cuts won’t be known until the formal budget presentation in May, Ellis said he will try to “limit service impacts as reductions are selected.” The current year’s county budget is $1.47 billion.
Ellis pointed to what happened during the Great Recession during the late 2000s when staff was reduced in planning, development, inspections, water quality and environmental health, parks and libraries. Emergency Medical Services pulled an ambulance, and human services positions were cut, leading to higher caseloads for social workers.
Normally, county departments ask for more money each year to expand and improve services. Before the pandemic, this year was shaping up to be no different.
County departments were seeking more than $19.4 million in new spending for the fiscal year that starts July 1 to add, for example, 100 public safety employees and 52 employees in human services and housing.
Now the Wake County Sheriff’s Office must cut $7 million from its budget request. And human services, which includes health and social services, must cut $5.7 million.
Raleigh and the 11 towns in Wake County will also face shortfalls due to lower sales tax revenue. Raleigh has already announced it will not hold a proposed parks bond this year that would have funded the first phase of Dorothea Dix Park and updated the city’s parks and greenway system.
Public school funding
The Wake County Public School System has requested a 6% increase in funding — nearly $30 million — from the county.
“I understand the economic fallout from COVID-19 has likely just begun,” Superintendent Cathy Moore said. “Should it persist, the needs of the community could quickly outpace the county’s resources. That is why I am proposing a budget increase that is much smaller than recent years.”
The school board asked for a $48.3 million increase last year and was nearly “fully funded” with a $45 million increase. But the commissioners raised the property tax rate by more than 10% to cover it and the implementation of voter-approved school and park bonds.
Fully funding the school system’s budget requests was a point of contention during the 2018 county commissioner election and the stated reason several major donors backed four challengers running for the board. Two challengers — Vickie Adamson and Susan Evans — unseated incumbents in those races.
“I’ve known Superintendent Moore a long time, and I’m 100% certain that she is advocating for the best interests of our great public school system’s students, staff and community — while also being mindful of the effects of the pandemic,” Commissioner Chairman Greg Ford said. “Commissioners highly value public education in Wake County, and we will do the best we can under the current circumstances.”
But he doubled-downed on his personal goal of not supporting a property tax rate increase this year.
“For me, raising taxes will not be an option,” he said.
