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St. Joseph city budget impacted by coronavirus shutdown

With residents staying home, they are not paying sales taxes which accounts for an estimated 24 percent of the city's general income.

Posted: Apr 23, 2020 10:16 AM

(ST. JOSEPH, Mo.) City leaders received the not-so-surprising news Wednesday that the COVID-19 economic shutdown will impact the budget. 

With residents staying home and not paying sales taxes which accounts for an estimated 24 percent of the city's general income.

During the shutdown, city staff fears a 20 to 30 percent drop in that revenue. City manager Bruce Woody says the lost revenue could impact the city's general services all across the board.

"That's a major impact to the primary fund source that pays for salaries and capital expenses for the most basic of services: public safety and street maintenance," Woody said. 

Before the COVID-19 pandemic hit, sales tax revenue was actually up by about four percent from last year.

City council members will be looking at these numbers hard as they develop next year's budget which starts July 1.

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Rain chances continued on Tuesday afternoon for northwest Missouri and northeast Kansas. Shower chances continue throughout the day Tuesday and into Wednesday morning. Wednesday we will see cooler temperatures across the area with highs only in the lower 40's. Temperatures will be on the mild side in the 40s and 50s into the later half of the week.
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