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The Great Lockdown’s Impact on the City of Charlotte’s Budget  


Author:  Whitney Afonso.; Monica Allen.; Richard Carey.


Source: Volume 42, Number 01, Spring 2021 , pp.23-42(20)




Municipal Finance Journal

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Abstract: 

Since the conclusion of the Great Recession, the city of Charlotte has been financially stable and has been one of the fastest growing U.S. cities, with a young, diverse, and well-educated population. However, Charlotte has been affected by the COVID-19 recession like the rest of the country. This paper examines how Charlotte’s budget for FY 2021 has been affected by the COVID-19 pandemic and resulting recession, which began in early 2020. Despite having relatively low reserves, Charlotte crafted the budget so that the level of services was maintained, no existing staff needed to be furloughed or laid off, planned capital investments did not have to be deferred, and the fund balance did not need to be used. However, if the pandemic and/or its economic effects last longer than Charlotte anticipates, the city will face much more challenging decisions for FY 2022.

Keywords: City of Charlotte, municipal finance, COVID-19, budgeting, state and local finance

Affiliations:  1: University of North Carolina School of Government; 2: Mecklenburg County Government; 3: Consultant.

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