Mecklenburg touts financial ‘resilience’ in proposed budget. Tax rates won’t change.

County Manager Dena Diorio wants Mecklenburg to pull $52 million from its rainy day funds to overcome anticipated budget shortfalls amid the coronavirus pandemic in the upcoming fiscal year.

Tax rates wouldn’t change in Mecklenburg, Diorio told commissioners on Friday as she outlined her proposed $1.9-billion budget for fiscal year 2021 — a modest increase of $5.6 million, or 0.3%, compared to 2020.

“We cannot repeat the funding decisions that set the progress of the county back,” Diorio said of budget choices made in the 2008 recession. “The time is now to apply our lessons learned. Mecklenburg County government is resilient.”

Mecklenburg County commissioners won’t vote on the budget until June 2. Before then, they’ll parse through details at a series of budget workshops and a public hearing.

They’ll have to grapple with shrinking revenue typically generated from Mecklenburg’s sales tax and interest on investments.

Sarah Cunningham, the county’s chief financial officer, said COVID-19 could depress those revenues into the first half of fiscal year 2021 before returning to normal. Projections show sales taxes 4% — or, roughly $7.5 million — lower than in 2020 for Mecklenburg, Diorio said.

In a presentation last month to commissioners, Cunningham said Mecklenburg was in a “strong” financial position as the coronavirus pandemic began — with $259 million in reserves at the start of the fiscal year.

Here’s how different areas of the Mecklenburg’s 2021 budget fare under Diorio’s recommendation:

Education

Charlotte-Mecklenburg Schools would receive $523.5 million, an increase of 4%. That’s tied to additional mental-health support, building maintenance, enrollment growth at charter schools, and special education, among other categories.

The county’s Meck Pre-K program will see a $5.5 million funding jolt, adding 20 new classrooms and accommodating about 350 more students. Total funding for early childhood education and Meck Pre-K would be $42 million, according to Diorio.

And Central Piedmont Community College would get about $42 million, an increase of 3%, to cover campus maintenance and insurance, among other costs.

Affordable housing

New investments of $4 million are earmarked for the region’s affordable housing crisis, with $3 million for rental subsidies and $1 million for home repairs.

Recent studies have shown Charlotte needs between 24,000 and 34,000 more affordable housing units — though county leaders say the pandemic has exacerbated housing insecurity and could lead to a spike in homeless residents.

Racial disparities

Diorio emphasized Friday that black residents have been disproportionately impacted by the coronavirus pandemic.

Data from Mecklenburg County showed black residents accounted for 43.9% of 1,587 confirmed COVID-19 cases locally through Thursday. By comparison, black residents make up only 32.9% of Mecklenburg County’s population, according to U.S. Census estimates.

“Mecklenburg County is committed to doing its part in helping to reduce racial disparities in the community by providing support to programs and initiatives that help to close gaps where they exist,” Diorio said.

New investments of $2.5 million would be distributed across programs to spur economic mobility and reduce food insecurity, including food deserts where residents lack access to healthy food options found in supermarkets or large grocery stores.

Parks and greenways

Diorio recommended new investments totaling $5.2 million, with $2.8 million allocated for the new Eastway Regional Recreation Center.

“The county’s parks and greenways have been a tremendous resource during the pandemic, as many relied on those areas as an outlet for exercise,” Diorio said.

The county’s total budget for Park and Recreation would be about $41 million.

Arts funding

The Arts & Science Council would get an additional $900,000 to support three grant programs. Those initiatives will support new artists, as well as grassroots arts, science and history organizations.

The ASC would receive a total of $2.95 million from the county.

But some county commissioners have been opposed to using taxpayer money to support the struggling arts scene, especially after residents voted against a sales tax referendum last November. If approved, it would have pumped $22.5 million annually into the local arts sector.

This story was originally published May 1, 2020 at 3:20 PM.