City budget committee talks economic impact of coronavirus

JACKSON, Tenn. — The City of Jackson budget committee met Thursday to discuss the impact of the coronavirus and what they could be facing financially.

“In general fund revenues, we could be looking at a range anywhere from four percent to seven percent,” budget committee chairman Paul Taylor said.

Unsurprisingly, there was little good news in the meeting. Tax revenue for the city is expected to go down, and a major impact will be felt on industries, like tourism.

“The revenue stream projections from their surveys and industry leaders was looking like 50 percent down,” committee member Mark Johnstone said.

The city council will have to pass a budget by June 30, even before they have the full numbers on the economic impact COVID-19 will have on the city.

One proposed idea was to make a city budget assuming zero percent growth from the previous year. Now, even that looks like an optimistic scenario.

“To go back again to where we were and start over again in the middle of significant revenue reductions, I don’t see how that could end well,” Taylor said.

In response to the situation, changes are coming for city employees and programs.

“We’re starting with summer programs. Those are all not going to happen this year for several reasons. One is for the safety of our kids, and, two, it’s not revenue generating. It costs us money,” said Jackson Mayor Scott Conger. “I can tell you that every department head, including myself, is going to take a three percent reduction in salary.”

In order to better address the constant updates, the committee plans to meet twice in May and another time in early June.