JOHNSON CITY, Tenn. (WJHL) — Johnson City leaders are working on coming up with a budget for the next fiscal year.
The City Commission held a virtual budget workshop Thursday afternoon.
Coming up with the next budget will not be an easy task thanks to the COVID-19 pandemic, which is expected to slash sales tax revenues.
“For the balance of the current fiscal year — April, May, and June — right now, we’re figuring sales (tax revenue) to be down 35 to 45 percent,” said City Manager Pete Peterson.
The city’s March sales tax revenue numbers are expected to come out next week. Peterson said the March numbers may be a “false positive” because the first two weeks of the month “were really good.”
April’s sales tax revenue figures, which Peterson said will be the best indicator of the city’s economic situation, won’t come out until June 20.
Mayor Jenny Brock said the situation is fluid and called for more support from the state.
“I think we are all going to have to be vigilant in our efforts to influence the state to help as much as possible,” Brock said. “Perhaps there’s going to be more federal funds coming out to help local government, we don’t know and none of this could materialize.”
Brock cautioned that the next budget will be “bare bones.”
