Chase Billingham: Budget cuts are coming for Wichita; Washington must help
The staggering economic impacts of the COVID-19 pandemic are just beginning to be understood, not just for individual families and businesses, but also for governments at all levels.
Unlike the federal government, state and local governments must find a way to balance their budgets each year. For Wichita and other cities, this poses an enormous challenge. Major sources of city revenue, especially sales taxes, fees for services, and rental income, will face severe shortfalls. Wichita is projecting a deficit of over $11 million for the coming year, and that shortfall is likely to continue for years to come as the national economic downturn persists.
In the face of such perilous circumstances, it has been refreshing to see city leadership in recent weeks respond with immense dedication, concern, and commitment to softening the impact on the city and its residents. Since April, the Wichita City Council has held several retreats with City Manager Robert Layton and key staff members to discuss possible budgetary responses to the projected shortfall. The first retreats were largely conceptual, but on Tuesday the discussion became very real, as Layton and City Budget Officer Elizabeth Goltry Wadle presented council members with 90 specific proposals to help close the budget gap.
The proposals ranged from negligible spending adjustments all the way up to substantial reductions of city services and staffing. Some of the necessary savings will come easily — the city anticipates lower expenses on fuel, for instance, since gas prices have dropped drastically in recent months. Other savings will hurt a lot, though. These involve cutbacks to critical services, and they will definitely be noticed by residents. Among other items, there are proposals to reduce the frequency of mowing in city parks and rights-of-way, plant fewer trees, buy fewer books and other materials for city libraries, keep pools and splash pads closed for the 2020 season, privatize the management of Century II, shift city employees to a less generous health insurance plan, draw down on city reserves, freeze employee pay, leave vacant positions unfilled, and lay off staff.
Not all of these proposals will become reality, and the duration of the cuts will vary. Some cuts will be restored when the economy improves, while others might become permanent. Ultimately, though, the council will have to make difficult decisions.
It is clear, in watching these budget retreat meetings, that city leaders understand the gravity of the situation they face. The amount of care that they have demonstrated in trying to minimize the impact of the forthcoming cuts on people’s livelihoods, and on the quality of life in Wichita, has been commendable. Nevertheless, the cuts that they will be forced to make will have adverse effects on the pocketbooks of city employees and on the lives of Wichitans.
As local leaders begin to make those tough choices, the federal government can help to ease their burden. While the recent CARES Act provided some funding to local governments (including Sedgwick County), none of that money came to the city of Wichita. Moreover, funds for local governments were primarily for public health responses; the CARES Act did not give local governments much flexibility in using the aid to cover revenue shortfalls.
Major additional federal aid to cities and towns, which employ 14 million Americans, is sorely — and immediately — needed. The budgetary challenges facing Wichita are being seen in municipalities across the country. In order for Wichita and other cities to survive the worst of the impending economic crisis, Congress and the President must act now to provide direct municipal relief.
This story was originally published May 28, 2020 at 11:11 AM.