Boone County budget warns of pandemic compounding existing revenue problems

COLUMBIA, Mo. (KMIZ)

Boone County government officials are warning that cuts in staff and services might be necessary down the road if the pandemic-depressed economy does not improve.

The Boone County Commission will hold a public hearing on its 2021 budget at 7 p.m. Tuesday. The draft of the budget, prepared last month by Auditor June Pitchford, says funds now in the budget should cover the county next year.

"However, if the revenue situation does not improve," the county will have to reduce its workforce and services it provides, Pitchford wrote in the budget proposal.

Officials have thus far avoided layoffs by implementing other cost-saving measures this year such as delayed hiring. However, the county is facing two significant revenue losses in the coming year in addition to the COVID-19 pandemic's effect on the economy -- a property tax deferral that will cost about $550,000 and the end of the BJC HealthCare lease of Boone Hospital Center, which will reduce revenue by about $600,000.

The hospital lease ends in April when the county will take over management.

County officials also reiterated concerns about stagnant sales tax revenue attributed to increasing online sales. The budget assumes no sales tax revenue growth or a decrease in revenue.

Since the pandemic, more people are shopping online rather than in stores, and the county is not seeing any sales tax revenue from online purchases.

Boone County Northern Commissioner Janet Thompson explained, “And we are making the choice to shop not locally, but someplace else. We’re making the choice to shop with Amazon or whatever company that doesn’t have that physical nexus. A large portion of our budget is built on tax revenue on sales tax revenue and because the pandemic has exacerbated it. But something that exists beyond that existed well before the pandemic is the internet, and people are making online purchases."

Sales tax is the primary funding source for county services including law enforcement and 911 emergency services. Thompson said, "Not only are we not getting the tax benefits from that, that would support our road systems, our sheriff's department, our election system, our court system, our jail, all of those things. We're not supporting those by not putting back into our system those tax dollars, but we're also not supporting local business.

Boone County Northern Commissioner Janet Thompson says, "Not only do we have a pandemic affecting our revenues as a county and across the country but we also have other issues that are leading us to start looking at how do we, like everyone else in our community, tighten our belts."

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