While some governments have already instituted significant staff cuts, most will not feel the full impact of pandemic budgets until the 21/22 budget year and beyond. While home prices have remained stable or risen in some places, experts estimate local governments will face between a 5 and 40% decline in revenue based on reliance on tourism and sales taxes. Governments are offering retirement packages and instituting hiring freezes and furloughs in the hope of avoiding layoffs. Many staff close to retirement are choosing to leave rather than face belt-tightening (especially because unlike the 2008 recession their 401Ks are doing well). While this may create opportunities for fresh ideas and new leadership, it will also create stress and the loss of institutional knowledge. Tools like CityGrows that help teams to do more with less are going to be even more important going forward.

Most communities are facing the loss of local businesses, high unemployment, and the potential for evictions and continued economic disruption in tourism, restaurants, hospitality, and performing arts. Many who have been working from home may continue to do so full or part time, impacting large and small downtowns, commercial real estate, and government operations. Ensuring that zoning and permitting happens efficiently (our core mission at CityGrows) will help to keep construction jobs functioning smoothly and creating needed local income. The new stimulus funds should help keep some businesses afloat, but many will not make it through.