Local leaders discuss financial impact of COVID-19

JACKSON, Tenn. — The first ever virtual Madison County Commission meeting tackled big issues affecting residents, specifically the financial impact of coronavirus on Madison County.

West Tennessee Healthcare CEO James Ross presented a bleak picture.

“The month of March was an $18 million loss. We have furloughed over 1,200 employees,” Ross said. “And that number continues to climb.”

Much of that decline is due to elective procedures being cancelled throughout the entire hospital system.

Ross added that West Tennessee Healthcare has received $12 million in stimulus money they don’t have to pay back. The hospital system isn’t the only one suffering.

Madison County Finance Director Karen Bell said the retail scene is hurting as well.

“March U.S. retail sales is 8.7 percent down, which is the largest drop in recorded history,” Bell said.

Long term, county and state revenues will drop even more. Some tax revenues, like the business tax, are projected to drop by more than a third.

“They’re expecting a 30 percent drop in that, and that again is anticipating that all of the businesses open back up,” Bell said. “And as we all know, many of them will not be able to open up after this.”

“I’ll just be honest with you. I don’t know what our revenues are going to be. We’ve asked people to cut, but we have so much uncertainty right now,” Madison County Budget Committee Chairman Doug Stephenson said.

Much of Monday’s meeting was accepting federal and state grant money, as well as approving capital projects that committees had already discussed.

Those projects include a new HVAC system at Alexander Elementary and a new intercom system at North Side High School, totaling about $2 million. Also among those projects is a COVID-19 response project with emergency management for roughly $50,000.

Until they get more specific numbers on revenue, the county’s finances will be tight.

“We need to make sure we are using every penny in a wise way,” Stephenson said.

The state will have March revenue numbers later in this spring.