For Counties, The Coronavirus Brings Major Budget Problems

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For Counties, The Coronavirus Brings Major Budget Problems
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As more people seek help from programs like SNAP, 'counties are on the frontlines having to provide that right up front,' an official explains. But, 'we don't have the revenue sources that normally would cover that.'

The nation's counties say they are facing major challenges meeting the demands of the coronavirus pandemic. Local governments are seeing a steep rise in the number of people seeking help from programs like Temporary Assistance for Needy Families and Supplemental Nutrition Assistance Program .

With the pandemic, Teryn Zmuda, an economist with the National Association of Counties says,"Budgets and the financial viability of our counties is being hit hard at the local level." Counties rely mostly on sales and property taxes for their revenue. Both are likely to take a big hit from the economic downturn that's resulted from the pandemic.

In the Chicago area, Cook County board president Toni Preckwinkle says her county has a reserve fund that can cover at least two months of expenses."But clearly, when the economy falls off a cliff, even people who have the recommended reserves are challenged," she says."Crunch time for us I think is May." Her staff is working on new budget projections that may leave the county with some tough choices.

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