COVID-19 pandemic’s impact on Salt Lake County revenue


A stack of $100 bills (Nexstar, file)

SALT LAKE CITY, Utah (ABC4 News) – Mayor Jenny Wilson announced Tuesday that plunging revenues and unplanned expenses caused by the COVID-19 crisis will require Salt Lake County to cut $77 million from current-year agency budgets and adhere to bare-bones spending plans to maintain core services and avoid layoffs.

Deputy Mayor Darrin Casper, the county’s Chief Financial Officer, estimates losses in the range of $70 to $96 million in tax and operating revenue this fiscal year due to the ongoing pandemic.

While revenues will increase as the economy reopens, state officials say the recovery will be gradual and cannot replace the tens of millions of dollars of revenue lost since the crisis began. At the same time, the County said they must continue to provide critical services and pay fixed costs.

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“Like every other government agency in Utah and across the nation, Salt Lake County faces unexpected and difficult decisions about how to best serve the public with significantly less revenue,” Mayor Wilson said. “It won’t be easy. We have a huge budget hole to fill, while continuing
to provide residents with the quality programs they expect and preparing for whatever might come next.”

Mayor Wilson noted that County officials began freezing discretionary spending and instituted a
hiring freeze early in the crisis to free up resources for a major public health response. “Without
quick thinking by County staff early on, our financial situation would be even more challenging,”
she said. “I’m grateful to all County employees for their dedication and professionalism during
this trying time, and I’m committed to doing all I can to prevent layoffs.”

Casper also detailed the proposed budget adjustments and financial recovery plan during Tuesday’s
Salt Lake County Council meeting. While proposed changes have been crafted to cause the least
impact to the fewest number of residents as possible, cutting nearly $80 million from the
County’s budget will not be easy, according to city officials.

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In addition to the already-made cuts to discretionary spending, the city says the plan calls for drawing down “rainy day” funds, delaying capital projects, and not filling vacant staff positions. Proposed budget reductions for County departments and elected officials’ offices range from 3% to 10%.

Mayor Wilson said, “I want to thank our departments and elected officials who have done the difficult work with their own operations, understanding the reality of this crisis.”

The County has received financial support from the federal CARES Act which provides funding
for the most direct impacts of the COVID-19 crisis. However, the CARES Act funding may not be
used to offset the revenue loss. With its CARES Act appropriation of $203 Million, Salt Lake County says it is supporting local governments within the boundary through a $34 million appropriation from CARES Act funds.

Related: Utah Medicaid program to cover COVID-19 testing for uninsured

Both the County and its municipalities will have their direct COVID-19 costs fighting the disease covered. City officials say this includes items of expense related to contact tracing, quarantine and isolation centers, the purchase of personal protective equipment, running the emergency coordination center, and grants to cities and impacted businesses.


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