Missouri County Expecting 25% Budget Cut Due To Shutdowns

Many people have given their opinion that private business “should have” been prepared for the nationwide shutdowns. For some reason, their economic opinions suddenly stop when the news of how devastating these shutdowns have been to their own local governments.

These shutdowns will hurt local governments for years to come. Just like this county out of Missouri.

Franklin County officials are nervously awaiting the monthly sales tax report from the state of Missouri expected next week.

With many Franklin County businesses being closed for the past six weeks, the amount of sales taxes collected is projected to be much lower, which in turn affects the county’s general revenue, roads and bridges, and law enforcement funds.

Presiding Commissioner Tim Brinker says the loss of sales taxes is expected to have a 20 to 25 percent impact on the county budget.

According to the 2020 county budget, sales taxes are the single largest source of revenue and account for 59 percent of all regular operating revenue. The 2020 budget, estimated at $27.1 million, would be collected in sales taxes in 2020.

Source: Emissourian.com

 

 

Published by Hoosier Econ

Located out of Central Indiana. Blogger of economics, politics and societal trends.

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