Our economic activity came to an abrupt halt at the beginning of March, and as each day passes, the likelihood of a severe recession increases due to the coronavirus pandemic. However, most current budget and finance officers have not had to contend with deep downturns over the past decade.
On April 28, presenter Andrew Belknap, senior vice president of Management Partners, covered the first principles of cutback budgeting in the webinar, Budgeting During a Crisis. Belknap briefly discussed initial projections about potential financial impacts of COVID-19 on cities; explored phases of response, from forecasting to cutbacks to policy solutions; reviewed a sample forecasting tool to help project the impact of the COVID-19 downturn; and shared strategies for addressing the emergency.
Belknap could not stress enough that local governments have and will continue to be hit hard—there will be furloughs and there will be layoffs. Below, he shared how the coronavirus will have a staggering impact on all municipal employment from a recent National League of Cities survey.
Our financial world is uncertain, and the 2020-21 budget picture is unclear, so Belknap briefly shared a four-step COVID-19 recession response plan that can form the foundation of a local government’s plan to address the crisis. ICMA has assembled these four steps into a printable infographic for our readers, so download, print, and share with your teams today!
For more on budgeting during a crisis, listen to the teleconference and download the presentation slides from the webinar by visiting our Local Gov Life Episode 08 page.