COVID takes a big bite out of county budget

Fairfax County Chief Financial Officer Joe Mondoro and Mason Supervisor Penny Gross speak at a virtual Mason District Budget Town Hall.

A virtual budget town hall hosted by Mason Supervisor Penny Gross revealed how much Fairfax County’s economic picture has been upended by the coronavirus pandemic.

At the last Mason District budget town hall, on March 12, County Executive Bryan Hill and Chief Financial Officer Joe Mondoro, spoke about proposed pay increases for employees, new affordable housing initiatives, more funds for early childhood education, and expanded library hours, much of it paid for by proposed tax increases.

All that is gone, as a revised budget for FY 2021, released earlier this month, projects the county’s response to COVID-19 will cost more than $150 million.

The board will adopt the revised budget on May 12. Public hearings are scheduled for April 28-30. People can submit testimony by phone, video, or email.

The county stands to lose some $100 million due to decreased revenue from sales taxes, transient occupancy taxes, and other sources

“Essentially, we have no growth from last year on the revenue side,” Mondoro said.

The county is expecting $200 million from the federal CARES Act and hopes to receive more, Mondoro said.

The stimulus money, which must be spent by Dec. 31, will be used for personal protective equipment, expanding the county’s teleworking infrastructure, and basic needs for residents, such as assistance for food, housing, and utilities.

The stimulus funds “can’t be used to make up for lost revenue, which is what we need,” Mondoro said, and can’t be used for recurring expenses, such as employee pay raises.

Related story: Revised county budget drops tax increases

The previous budget called for 177 new staff positions. The revised budget funds just 20 new positions, including one in the Elections Office and the rest in the Health Department.

All proposed new programs have been scrapped, too. “We’ve taken out just about everything in new spending,” Mondoro said.

The budget includes funding for programs already in the pipeline, such as body-worn cameras for police officers. But the budget only funds phase one of that program, which provides cameras for just three police stations, including the Mason Police Station.

The revised budget for Fairfax County Public Schools also severely cuts back on new spending proposals and eliminates compensation increases.

The revised FCPS budget does provide funding to cover enrollment increases, however, said Leigh Burden, assistant superintendent for financial services.

It calls for $8.4 million in COVID-related expenses, such as summer school, instructional technology, and potential changes in the school calendar, Burden said. It also includes $12 million for various strategic initiatives, such as dropout prevention, additional special education support, instructional aides, and additional social workers.

Related story: Revised school budget reflects impact of COVID-19

Gross said she’s gotten lots of calls from the public about why the county temporarily stopped picking up yard waste during the pandemic.

Gross said that was done to protect the health of county employees and because staff was reduced to accommodate employees with health issues, childcare issues, and those who live in households with a compromised family member. Social distancing also was an issue for employees who ride in the same truck and work together at the composting facilities.

“This was a difficult decision,” Gross said. “Regular trash pickup is essential; yard waste is not a public health issue.”

Gross has also received lots of complaints about the removal of the purple glass recycling bins. This program also had to be temporarily suspended because of staffing issues.

“This was one of the most popular programs we ever put in,” she said, and so much glass was dropped off, the bins had to emptied every three days, which was burdensome with fewer staff. The bins will be returned when things get back to normal.

Meanwhile, residents either have to put empty glass containers in their trash cans or haul them to one of the county’s recycling sites.

The county’s new microloan program for small businesses hurt by the pandemic officially starts April 28, Mondoro said. The $2.5 million program is funded from the county’s Opportunity Reserve Fund.

Mondoro predicts demand for the zero-interest microloans will be so high, the $2.5 million will run out quickly, so a second round is anticipated.

The Board of Supervisors will also consider creating a similar loan fund to help nonprofits assisting people unable to pay for food, rent, and utilities.

Related story: Supervisors approve microloans for businesses

Because homeless shelters aren’t equipped to implement social distancing easily, Mondoro said, the county is renting “a significant number of hotel rooms” for shelter residents and for people who are sick with COVID or at risk of contracting the disease. The county also repurposed two hypothermia centers to provide homeless people with places they can go during the day with restrooms and showers.

The original draft budget would have set aside one cent from a proposed three-cent increase in property taxes to support the development of new affordable housing.

“Housing is one of our most critical issues, Gross said. “It’s heartbreaking to see the revised budget with the extra cent gone that would have provided $25 million for affordable housing.”

The revised budget does include efforts to retain existing affordable housing and would facilitate the use of county-owned land for privately developed affordable housing.

The lack of affordable housing is making it more difficult to reach students via distance learning, said school board member Ricardy Anderson (Mason). Many students living in shared housing didn’t receive the learning packets mailed by FCPS, and the lack of access to technology made it difficult for teachers to communicate with parents.

“That left a good portion of students in Mason District out of distance learning,” Anderson said. “I’m worried those gaps are going to grow.”

Gross urges anyone with immediate needs to call Coordinated Services Planning, 703-222-0880, to be connected with the right resources. The call center is open 8 a.m.-4:30 p.m., Monday-Friday.