Hickory Sun

Catawba County finds itself in the unwelcome position of having an estimated budget shortfall of up to $6 million based on a decrease in tax revenue because of COVID-19. 

The county is looking at losses in sales tax, property tax and building revenues for the fiscal year that starts on July 1, the Hickory Daily Record reported on April 21. Although this year is predicted to be fine, the county commissioners find themselves in the position of needing to make cuts rather than rely on a new sales tax.

County Manager Mick Berry said the issue is how quickly the economy recovers, the Hickory Daily Record reported.

Without a crystal ball to look into, the commission is left to make cuts to the budget including capital projects to account for the last revenue, the Hickory Daily Record reported. The commission is also considering cuts to parks as well as education. To help make up for the deficit, there is a possibility of using the rainy day fund.

“We’re trying to measure how big is that wave going to be, when is it going to hit and how far is it going to come inland,” Berry told the Daily Record. “The real issue is how quickly is the economy going to come back? … The reality is none of us really know or understand what that’s going to be like.”