Wednesday, January 20, 2021

The Cost of Covid Appearing Now

 I've essayed a good bit over the last year about declining 'income' or tax revenue....which few really grasp the end-zone....cities and municipal areas are going to be short on capital.

Today via HR....they did a brief update on this mess approaching 2021.

Ernst and Young did a analytical study of the state of Hessen (where I live in Germany).  

What they say....based on polling and surveys.....85-percent of towns in the state are already planning an increase on taxes/fees....because of the lack of operating capital.

Garbage collection fees?  In the planning cycle for an increase.....same for street cleaning.

Almost half of cities are planning some type of budget deficit....with roughly one-third of towns talking about shutting down some operations (like pools for example).  Libraries are also on the discussion list.

Youth recreation?  Openly discussed to be reduced.

Street lights being more limited?  That's on the list as well.  

Even Kitas/day-care centers are being reviewed on options.

This being a multi-year situation?  No one suggests that, but I suspect it's probably because they don't want folks to get hyped-up to realize three or four years of 'rough-living' might be in the mix now.  

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