Financial cutbacks are probably the norm in many of California’s cities and counties, including Kings County and Lemoore.

County officials say that the coronavirus (COVID-19) has been the scourge of 2020. The pandemic has limited close physical contact, closed businesses, increased unemployment, infected many with disease, and has created an overall sense of fear and dread.

Kings officials also say that even if the threat of the virus disappears soon, Kings County and its residents are likely to feel its economic impact for some time to come.

Like many in the private sector, COVID-19 has negatively impacted Kings County's fiscal health. Revenue projections are down significantly thanks to the virus. As a result, Kings County is currently working to reduce its expenditures to meet the revenue losses expected in the next fiscal year, which starts on July 1, 2020.

While it is undecided at this point what actions will be necessary to reduce costs in the next fiscal year, the county’s elected supervisors have voluntarily decided to take a pay cut effective with the next pay period. Board members say they will give back five percent of their pay. In taking this action, the supervisors are sending the message that there are possible tough times are ahead, and “we all play a part in rebuilding our economy and community. If we work together, we can recover and succeed.”

Kings County isn’t alone.

The California Local Government Finance Almanac predicts local governments – cities and counties – are likely to take a hit during the pandemic. However, a small town like Lemoore, while already experiencing financial difficulties, might be better off than a city like Las Vegas, a city almost entirely dependent on the tax revenue from casino gambling.

In nearly every city, local officials count on their share of property and sales taxes to help keep their communities afloat. Lemoore’s 2019-20 budget called for $2.5 million in property taxes and nearly $2 million in sales taxes to maintain the city’s coffers.

It could also mean a reduction in the workforce. “We’ve already had a reduction of three full-time positions and were assessing more,” said Lemoore City Manager Nathan Olson. “We were already looking at cutbacks, and COVID-19  just compounded the impact.”

Additional revenue comes from licenses and permits, charges for service, a variety of fees, fines and penalties, and other miscellaneous sources. Olson told The Leader that the city’s sales tax revenues and fuel tax receipts could take a dramatic hit. “We’re still going through the numbers,” he said.

A shutdown of many non-essential businesses in Lemoore could very well affect local sales taxes, a key revenue source in the health of any city or town.

In just one example, Lemoore’s Golf Course, due to the coronavirus, has been shut down, putting a strain on the city’s finances. City officials, according to its most recent budget, proposed a $1.2 million operating budget, but with little or no income coming in, maintaining the golf course could put a strain on the city’s overall finances.

There may be good news on the horizon for local golfers. “I’m trying to get it reopened, but I can’t go against the governor’s executive order." Olson has been discussing options with Kings County officials. “I’m trying to get it open with restrictions," he said.