NewsCoronavirus

Actions

Wyandotte County projects up to $20M revenue shortfall

Posted at 5:25 PM, Apr 21, 2020
and last updated 2020-04-24 16:55:23-04

WYANDOTTE COUNTY, Kan. — Wyandotte County has been the hardest hit metro county during the coronavirus pandemic, with more cases as a percentage of the population than any other community.

Now, Wyandotte County's Unified Government is looking at a $15 million to $20 million revenue shortfall in the current budget year.

In a typical year, the NASCAR Cup Series Kansas 400 race attracts 80,000 fans to the county. But this past Friday, NASCAR canceled its early May race in Martinsville, Virginia.

While NASCAR hopes to have racing sometime in May, but without fans in the stands, this year's Kansas 400, scheduled for May 31, is in doubt.

"NASCAR has equated that to the equivalent of a Super Bowl in a community,” said UG spokesman Mike Taylor. “We get thousands of people with their expensive RVs. They camp days before the race. The hotels out there are all full. There's sales tax from beer and gasoline and food for the cookouts. Yeah, that would be a major hit if we don't have those fans here.”

Long before the pandemic hit, UG Chief Financial Officer Kathleen Von Achen estimated there would be a $3.8 million shortfall in the current 2020 budget year.

She also suggested the government cover that shortfall with a one-time payment from its reserve fund.

Now, Von Achen predicts a $15 million to $20 million revenue shortfall for 2020.

Additionally, the UG has a low A1 credit rating, which affects its ability to borrow money at the best interest rates for capital-improvement projects.

Johnson County has the highest rating possible at AAA and Kansas City, Missouri, government has a AA rating.

In the last credit rating posted on the UG's website from 2018, the bond-rating agency Moody's said, "The profile faces significant constraints arising from the Unified Government's elevated fixed costs comprised of outsized debt and pension burdens, in addition to extensive ongoing capital needs associated with citywide deferred maintenance and the sewer enterprise EPA consent decree."

Despite its fiscal challenges, the UG has provided additional funding to the health department where walk up COVID-19 testing at its Ann Avenue headquarters in downtown Kansas City, Kansas, has been increased to Monday through Friday.

"We're also doing some pop-up testing clinics in various neighborhoods where we think people may not be able to get down here to the health department," Taylor said.

Elizabeth Groenweghe, the UG’s chief epidemiologist, said that because the county is the state’s hardest hit, they need more resources and assistance to contain COVID-19. She also said the county needs to continue increasing testing.

While Wyandotte County struggles with the pandemic, so far, the UG has not cut jobs or services. Taylor said all UG departments will need to cut expenses to actual 2019 levels to prevent other cuts within the county.

The federal government also has sent additional money to the UG, in part, with more Community Development Block Grant funding.

There also are new small business loan opportunities, in part, due to the UG’s partnership with a venture capitalist group to underwrite those loans.

The American Royal still plans to host this year's World Series of Barbecue at the Kansas Speedway.