Council Changes 2021 Budget, Passage Soon

Mar 03, 2021

Council gave preliminary approval (second reading) to Mayor Frank G. Jackson’s $1.8 billion projected council budget for 2021, which includes a general operating fund of $665 million.

The ongoing Covid-19 pandemic issued a hit to the city’s revenues.

“Because of our financial vigilance, we were able to balance the budget without laying off city workers or cutting essential city services,” said Council President Kevin Kelley.

Because of the shutdowns due to the pandemic, the city lost an estimated $60 million in income tax revenue as well as revenues from admission, parking and hotel taxes.

Those losses were offset by $60 million the city received in federal funds for COVID relief.
Council, which has authority to amend the mayor’s proposal, did so today adding to the budget among other things:

• Continuation of the home repair program for seniors at $125,000 per ward during 2021.
• Increasing the small capital projects fund from $100,000 to $125,000 per ward during 2021.
• Adding $1 million for the Middle Neighborhood Program to develop geographic interventions and investments to address the needs of these areas.
• Added nearly $387,000 to the city's Municipal Court to hire three additional employees, including an additional magistrate.

Under the charter, after the second reading the budget has to “sit” or “layover” for seven days after publication in the City Record. Council is expected to pass the budget on March 15^th.
Council is required by state law to finalize the mayor’s budget each year by April 1.  Ord. No. 70-2021