Youngstown predicts 10-15% revenue loss due to pandemic

YOUNGSTOWN, Ohio -
We are learning more about Youngstown's financial future as city leaders ask some of its employees to "volunteer" for temporary layoffs.
Mayor Tito Brown told 21 News "everything is on the table" when we asked about the potential of permanent layoffs as this pandemic and it's ripple effect on city finances continue.
As we reported earlier this week, Youngstown leaders are asking non-first responders to volunteer for a temporary lay-off.
This would save the city money because the city would not have to pay them. However, those workers would still receive city health care benefits and could apply for state and federal unemployment dollars, including a $600/weekly benefit through the federal government.
The furloughed workers would be guaranteed a return to the job by the end of July. However, Brown said the furloughs may only be the tip of the iceberg and that deeper cuts may be necessary as the city predicts a 10-15% loss in revenue.
"We're looking from now, May and June, we're hoping by July or the end of June we will have a clear picture, a better picture, from our federal government as well as our state government what's going to be the plan for cities and local government who are going to lose revenue because of this pandemic," said Brown.
Across the state there are record high unemployment numbers, the future for city businesses are in limbo, and even gas at the pump isn't selling as it normally would.
"The less gas the people are consuming during this time will affect how many roads we can pave," explained Brown.
Brown said Youngstown isn't the only city feeling the strain.
"I think it's very irresponsible for our federal legislatures to leave cities out there in the lurch during this difficult time," said Brown.
The city has received about $2 million dollars from the federal government, but the money is specifically earmarked for COVID19 expenses, and not revenue loss.
"I've heard other mayor say every expense since we declared a state of emergency is a Covid expense, but when you're talking CDBG dollars, those are HUD funds, you've got to be really straight forward with them," said Brown.
The mayor is looking into the potential of using those dollars towards contact tracing, personal protective equipment for first responder, even efforts to help turn Covelli Centre into a make-shift hospital, if need be.
But what he would also like to see is money from the federal government to help with the city's loss of income tax and other revenue, or less stringent requirements on how the $2 million dollars can be used.
"We continue to hear we're all in this together, they need to show the cities that," said Brown.