With looming revenue losses amid COVID-19 pandemic, Mecklenburg passes $1.9B budget

County leaders approved a $1.9-billion budget that keeps property tax rates stable — even as Mecklenburg faces months of financial uncertainty and crippled revenue streams amid the ongoing coronavirus pandemic.

With little discussion Tuesday, commissioners passed the budget for fiscal year 2021 in an 8-1 vote. Their budget priorities involved millions of dollars in new investments for reducing racial disparities, MECK Pre-K, affordable housing, mental health, and parks and greenways.

Mecklenburg’s budget is a modest increase of only $2.4 million, or 0.13%, compared to fiscal year 2020.

Property owners will continue to be taxed at 61.69 cents per $100 of assessed value.

The county is pulling $52 million from its rainy day funds amid tax revenue shortfalls due to the coronavirus pandemic. That includes $33 million for one-time expenses and $19 million to overcome revenue shortfalls in 2021.

Economic recovery could take much longer than previously anticipated, County Manager Dena Diorio told county commissioners during last week’s budget workshops.

“I have a feeling that we’re going to have some revenue troubles over the course of the year,” Diorio had said. “I don’t have any level of confidence that the revenue is going to rebound over the course of the year. I think we’re going to have two years of sales tax declines before we start to see those rebounds.”

Elaine Powell, vice chair of the county commissioners, had applauded Diorio for her fiscal stewardship.

“I believe we’re heading into very dark times — very dark,” Powell said last week. “I’m concerned.”

Sales tax revenue could be 4% — or, about $7.5 million — less than fiscal year 2020, according to the county’s budget book. And interest on investments could decline by 52%, or $6.2 million.

Adjusting the budget

After Diorio proposed her budget last month, commissioners voted to include $3 million to help eliminate what are known as food deserts in the county, or areas where residents lack access to healthy foods found in large supermarkets or grocery stores.

Commissioners incorporated an additional $2 million to reduce racial disparities in healthcare, including for preventing maternal mortality and supporting mobile health clinics.

And commissioners added $2 million for equity investments at parks and recreational facilities in undeserved areas. That’s on top of the $5.2 million in new investments that Diorio had previously recommended, including $4.6 million for the new Eastway Regional Recreation Center.

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

Charlotte-Mecklenburg Schools will receive about $530 million from the county. But Mecklenburg intends to withhold $11 million in funding until CMS can provide a minimum wage of $15 an hour for employees.

School board chair Elyse Dashew said the district may need to cut roughly 175 jobs to make that raise possible, The Charlotte Observer reported Monday.

The Arts & Science Council will get about $2.6 million from Mecklenburg. Diorio had proposed awarding $900,000 in new funding for the ASC, though $400,000 was slashed — for now — to accommodate increases to other budget categories.

Commissioners temporarily set aside $50,000 intended for cybersecurity consulting costs tied to the Republican National Convention. That funding will be accessible if the RNC can be held in Charlotte amid COVID-19 concerns, according to the county’s budget. But President Donald Trump tweeted late Tuesday that he will move the convention.

This story was originally published June 2, 2020 at 10:01 PM.