Johnson County cuts $20M from budget, furloughs staff as COVID-19 depletes revenues
As the coronavirus pandemic takes its toll on local revenue, Johnson County has furloughed more than 260 employees and has a plan to cut about $20 million from its budget, officials announced Thursday.
But Johnson County commissioners warned that those cuts will likely only begin to address the shortfalls as the outbreak continues to overturn nearly every facet of life.
Scott Neufeld, budget director, estimates the county could lose between $18 million and $38 million in tax revenues. Officials project sales tax revenues will take the biggest hit, although the county could also see a significant reduction on investment income due to the Federal Reserve’s emergency cuts to interest rates.
On Thursday, Neufeld laid out a “blue print” for cutting between $18.8 million and $21 million in expenditures across multiple departments. More than $7.7 million of those savings will come from hiring freezes and furloughs.
Johnson County as of Wednesday afternoon had furloughed 264 employees, many of whom worked at now-closed Department of Motor Vehicle offices, parks and recreation facilities and libraries.
In total, he said the county is initially cutting about 5% from its general fund budget.
“The economy has faltered much more than 5%,” Commissioner Mike Brown told officials on Thursday. “So continue to dig and continue to plan. Because the hole in front of us, we don’t know where the bottom is. But I will assure you it’s much deeper than the 5% where we are.”
Officials estimate sales tax collections could drop as much as 30%, or $16.2 million off the original estimate of $54 million.
The loss in investment interest could total up to $8.1 million, almost all of the originally estimated $9.4 million. Property tax revenue could fall as much as $7.5 million, a 6.8% loss.
Meanwhile, cities across the Kansas City metro are making and planning for similar cuts. Johnson County’s largest city, Overland Park, for example, has furloughed at least 200 part-time workers and has frozen pay raises.
On the front line of the pandemic
Some Johnson County commissioners said they worry the county is moving too quickly to gut the budgets of departments where workers are on the front line of the coronavirus pandemic, such as the sheriff’s office and mental health and public health departments.
“When I see cutbacks in the sheriff’s office, mental health, Med-Act, human services and developmental support, that immediately rings a bell,” Commissioner Steve Klika said. “Those are the areas that need more attention, not necessarily at the moment. But the fallout of what’s going on, we’re going to need continued support and a redirection in those departments to assure citizens’ basic needs are taken care of.”
County Manager Penny Postoak Ferguson assured commissioners that cuts are only being made to services that are lower priorities and are not related to responding to the coronavirus outbreak. She said the county is continuing to make adjustments as more resources are needed.
The sheriff’s office, which has one of the largest budgets, is planning $4 million in cuts, for example. Officials said most of the savings are related to employee vacancies and a reduction in jail inmates. The health department is planning for nearly $390,000 in cuts, while the mental health department is planning to reduce expenditures by $760,000.
Tim DeWeese, mental health center director, said the department has served 13% more clients since the outbreak began, even with services now performed remotely.
He expects demand to continue to increase as the stay at home order lingers and as more residents face a loss in income. DeWeese said the county is responding to more instances of domestic violence and child abuse. He is aware of at least two deaths by suicide in the past couple of weeks.
“As we are able to work with the medical examiner’s office, we expect to see that actual number of deaths by suicide go up,” he said.
The mental health department has 42 vacant positions, he said, but 11 of them are considered critical and will be filled.
“We have adjusted our primary focus as a community mental health center to focus on the emergent needs of our community and clients,” DeWeese said. “We will see a continued increase in those needs. As we begin to recover and move through this, as well as the financial impacts we’ll experience, we’ll see a higher need for us in the future.”
Transportation reductions
Johnson County officials plan to temporarily cut public transportation services by 40% as the majority of riders stay home, said Josh Powers, the county’s business liaison.
Since March 9, Powers said, ridership has dropped 75% on fixed bus routes, with about 400 residents now riding buses each day. People going to work or to shop at essential businesses now make up the majority of riders, he said.
In the same time period, microtransit ridership has dropped 52%. The service allows residents to hail a small van via a smartphone app for a small fee. Powers said about 100 people are using the service each day during the stay at home order.
To abide by social distancing requirements, only one person is allowed per ride.
Beginning April 12, Powers said the county will limit the frequency of bus trips. On the majority of routes, trips will only be made during the morning and afternoon peak hours.
Buses on the two most traveled routes, Metcalf-Plaza and Quivira-75th Street, will continue running all day, but with fewer trips.
Powers said the county is requiring public transportation riders to follow social distancing guidelines of staying six feet apart. County officials are working on providing bus drivers with protective gear, such as masks.
Property appraisal appeals
Johnson County commissioners also said Thursday they will be notifying residents that the deadline for filing property appraisal appeals has been extended to 5 p.m. April 17.
In February, about 200,000 homeowners received county appraisal notices in the mail, with 87% seeing an increase. The vast majority of homeowners saw appraisals rise 10% or less compared to last year, according to the appraiser’s office.
The valuations help determine what residents pay in property taxes.
Homeowners had until March 25 to file an appeal with the county appraiser’s office. But with priorities focused on the coronavirus outbreak, many residents have said they couldn’t meet the deadline and have asked for an extension.
Chairman Ed Eilert and other commissioners have been working with state officials to push the deadline back.
There are three ways to file an appeal. The appraiser’s office recommends submitting appeal applications online at jocogov.org/dept/appraiser/home.
Applications may also be mailed with a postmark on or before the April 17 deadline. Or, appeals can be placed inside the office’s drop box outside the front door at 11811 S. Sunset Drive, Olathe.
This story was originally published April 9, 2020 at 4:11 PM.
