|
COVID-19 Pandemic Drives Budget Adjustments
At Tuesday's Budget Committee meeting, the Board got its first look at some of the impact on the County's finances. I argued for the elimination of all of the non-pandemic related new spending in the original budget, spending reductions and focusing resources on the pandemic response. There are still many unknowns, but a revised budget will be available to the public on April 7th.
The original FY 2021 Advertised Budget included (and the Board authorized over my objection) an up to 5% tax increase in real estate taxes on the average homeowner. The advertised budget also included 117 new staff positions and over a hundred million dollars in new spending programs. I unsuccessfully argued against the tax rate increase and much of the new spending; this all took place before the pandemic.
It is too early to truly gauge the impact of the pandemic on County revenue or expenditures, but it will be significant. We hope not as significant as the $650 M shortfall we faced in 2009. The county budget presentation
here
does a good job of describing the revenue impacts. The unknowns are not just the actual fiscal impact by month/quarter, but the breadth and length of the pandemic's impact on our economy. I expect the revenue shortfalls to be in the $100M range if the economy gets moving again in the summer. We lost $25m alone in investment income due to the drop in interest rates.
As I argued when the original advertised budget was released, our taxpayers cannot afford a 5% plus increase on top of the 25% over the last 5 years. With the pandemic it is even clearer we cannot increase the burden on our taxpayers, and just as we did in as in 2009, we have some difficult decisions to make. These are the same difficult decisions our residents and businesses are making as they try to navigate this pandemic with decreased resources and increased costs.
The County Executive will release a revised budget on April 7
th
. I urged the County Executive to do the following in the revised budget:
- to cut the new positions and over $100M in new spending in the advertised budget
- to delay infrastructure projects, except road construction, where possible including the police body camera program which has a significant price tag
- to review and refocus the tens of millions in the Consolidated Community Funding Pool on support to nonprofits that are responding to the pandemic
- to refocus and increase support to our non-profits that are providing basic needs like food, utilities and rent for those impacted by the pandemic
- to not balance the FY21 budget using reserves - save them for, if, and when truly needed
I continue to support the County Executive's hiring freeze and direction to agencies to limit expenses to those of a critical nature. I also support the County Executive's decision to reinstitute a formal mid-year review. The true impact of the pandemic on the County's finances will not be accurately known for some time and adjustments will be necessary.
There are still many unknowns, but the adjusted budget will be publicly available for comment on April 7th. County staff are working hard to establish ways for constituents to provide testimony during the public hearings on April 14-16th. On April 7th, you will be able to view the adjusted FY 2021 advertised budget as well as provide comments via mailed written testimony, online written testimony, phone, video testimony, and in-person testimony while maintaining social distancing orders. If you have comments about the budget now, you can share them with the entire Board by emailing [email protected] .
Micro-Loan Program Proposed for County Small Businesses
Our over 3,400 small businesses in Fairfax County make up 94 percent of all businesses in the County. We are working on a program that would help businesses cover the gaps due to the pandemic, so they remain viable.
The County Executive is currently looking at a local micro-loan program. The current proposal is for a maximum loan of up to $30,000 for businesses and non-profits that are local to Fairfax County and have fewer than 50 employees at all locations. It would be a six-year loan with a 3.75 percent interest rate. The goal of this fund wouldn't be to compete with the loans already offered by the Small Business Administration (SBA), but to help those local businesses whose needs or model may not be covered under a federal loan. The details for this program will come back before the Board at the April 14th meeting. If you are a small business or nonprofit owner, I would encourage you to review and consider the SBA's significant and loan and grant resources.
For the direct help to our nonprofits and small businesses, the Fairfax County Economic Development Authority has compiled a
Resource Hub. This is in addition to the
State and
Federal resource sites.
Parks Closures
Many of you have contacted my office to share your concerns and disappointment about the Fairfax County Park Authority closing parking lots and other crucial aspects of our parks system. I am continuing to work with the Park Authority to re-evaluate its decision that limits the opportunity of our residents to exercise and get fresh air while maintaining social distancing.
During Governor Northam's press conference Monday, he gave multiple examples of outdoor areas and activities that should remain open. Specifically, Governor Northam mentioned how beaches will stay open for fishing and exercise while practicing social distancing and golf as long as the clubhouse is not used. Most of our Virginia state parks have remained open. The Governor and the Fairfax County Health Department have made it clear that going outside and visiting is okay if we are not touching the same equipment and have adequate social distancing.
I am encouraging the Park Authority to re-open garden beds, parking lots at parks, and golf courses (pre-pay, walkers only, no clubhouse) to help relieve the mental health side effects of staying at home. The County (including Fairfax County Public Schools and Park Authority) must give our residents as many opportunities as possible to safely get outside. Our Governors in Maryland and Virginia have stressed that safely practiced outdoor recreation time is essential to health and well-being and I agree.
Yard Waste and Trash Update
Temporary changes have been made to your trash and recycling collection. As of Monday, March 30, yard waste will not be collected at curbside in bags and glass will not be collected at our purple, glass-only bins. This change has been made in response to the current public health emergency. The number of workers available to collect, transport and distribute your trash has been diminished because of the disruption caused by the COVID-19 pandemic. Also, crew sizes have been reduced to ensure social distancing.
Yard waste can be placed in the trashcan, but not left on the curb in bags or bundles.
Residents are encouraged to manage yard waste on their property by mulching, backyard composting, or not generating yard waste at all if possible. Yard waste and glass can also be taken to the I-95 landfill or the I-66 transfer station.
Residential Drop-off Facilities at I-66 Transfer Station and I-95 Landfill Complex also have been revised:
- Facilities will open to general public from 8 a.m. to 4 p.m. Administrative buildings are closed.
- Household hazardous waste and e-waste stations are closed at the I-95 landfill complex. These services remain available at the I-66 transfer station.
- Commercial Cash (non-residential) receipts are no longer accepted on Sundays. Only receipts from residential customers will be accepted on Sundays.
- Donation Stations at both locations are closed.
Please note that these changes are temporary and will be restored when this public health emergency is over. For further information, please read the announcement on these changes
here.
Governor Northam's Executive Order
On Monday, Governor Northam issued Executive Order 55 (
you can read here)
which included additional restrictions on residents' movements. This order raised a number of questions including why until June 10 - a Wednesday, 70 days in the future. County staff and members of my office are still working to decipher the Governor's actions. Here is what I can say for now:
The Governor's Executive Order 55 contains additional restrictions on residents' movement and additional mandatory closures, all of which will continue through June 10, 2020, unless rescinded or amended by further Order. It is important to note, that only some of the restrictions, however, are punishable as a class 1 misdemeanor if they are violated.
The Order contains a provision (paragraph 1) requiring everyone to remain at their place of residence unless going out for one of several enumerated reasons, such as to buy groceries, attend medical appointments, take care of other persons or visit family, engage in outdoor activity, including exercise, or to travel to work. This provision is NOT enforceable as a class 1 misdemeanor; the goal is voluntary compliance. Thus, law enforcement officers will not have the authority to detain or arrest individuals violating this provision.
The Order contains several provisions that will be enforceable as class 1 misdemeanors, those are:
Paragraph 2 - this is mostly a reiteration of the restriction on public or private gatherings of more than 10 people. The order clarifies that it applies to all types of gatherings, including religious events, celebrations, parties, etc., indoor or outdoor, and it specifically exempts businesses permitted to be open pursuant to Executive Order 53 and the gathering of family members who live in the same residence.
Paragraph 3 - Institutions of higher education must cease in-person classes and cancel all other gatherings of over 10 people. Those locations may continue to operate to perform essential functions, such as remote learning and research, but must adhere to social distancing.
Paragraph 4 - Effective April 1, private campgrounds must cancel all reservations of less than 14 nights.
Paragraph 5 - Closure of all public beaches except for exercise and fishing.
The provision of health care or medical services, access to essential services for low-income residents, such as food banks, media operations, law enforcement and the operation of government all continue to be exempt from the Order.
Please continue to proactively practice social distancing for the health of our community.
Federal Paycheck Protection Program
The application for the Paycheck Protection Program has recently been released. According to the Treasury Department, the program provides small businesses and non-profits (up to 500 employees) with funds to pay up to eight weeks payroll cost and other expenditures. You can find the program overview
here, application
here, information for lenders
here, and information for borrowers
here.
COVID-19 Update
As of Wednesday, April 1, 2020 at 11:30 am, 43 new cases and three deaths were reported in the Fairfax County Health District. To date, there have been 288 confirmed positive COVID-19 cases and five deaths in the Fairfax County Health District. The Center for Disease Control and the Fairfax County Health Department continue to encourage residents to practice social distancing and routine hand washing.
Additionally, the Dulles Expo Center in Fairfax County and George Mason University in Fairfax City have been identified as field hospital sites to help accommodate the expected hospitalization increase.
|
