WRAL Investigates

Wake County faces huge blow to budget, hiring freeze begins

Coronavirus is tearing through local businesses and government budgets. These government budgets are stretched thin during the pandemic -- like many of our own.

Posted Updated

By
Cullen Browder
, WRAL anchor/reporter & Maggie Brown, WRAL Multiplatform producer
WAKE COUNTY, N.C. — Coronavirus is tearing through local businesses and government budgets. These government budgets are stretched thin during the pandemic -- like many of our own.

At a time when arguably funds are needed the most, hiring freezes and a 1.5% percent across the board and budget cuts will begin automatically, according to Wake County manager.

Wake County says 40% of sales tax revenue didn't come in the month of March because of all the businesses in the county that are closed.

David Ellis, Wake County manager, said that the county had to start the budget over from scratch once it realized the impact of this pandemic.

The county's $13 million dollar budget shortfall will extend through June.

"Just the quickness of the economic change here in Wake County and nationwide has been a huge challenge," Ellis said.

The impact of this loss will extend into next fiscal year. the county is projecting a $48 million budget gap, which calls for each department to carve out a 7% pay cut.

These pay cuts leave tax payers in Wake County worried.

Gremaine Fodor, a Wake County taxpayer, said that "people are going to take the hit for this for a long time."

Some taxpayers worry about cuts to services that they need, but others worry about any potential tax increase on already struggling families.

Alex Mercer, another Wake County taxpayer, does not think increasing taxes on residents should be a solution.

"Tax increases need to be the last line of defense, not the first," he said.

Ellis told WRAL News he agrees with taxpayers like Mercer.

"When you look at the economy, when you look at the unemployment rate, when you look at what's going on, not only globally, nationally, but also locally - I don't believe this is the time to come forward with a tax increase.

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