A year ago, Cuyahoga County government braced for a crushing financial blow from the coronavirus pandemic.
But the county came out ahead at the end of 2020, thanks to federal stimulus money and staff furloughs.
For instance, when many restaurants and businesses closed last spring, local governments expected sales tax collections to plummet throughout the year. But the county鈥檚 sales tax revenues for 2020 were only 2.7 percent below estimates, county finance officials told Cuyahoga County Council Monday.
Fiscal Officer Michael Chambers credited last year鈥檚 stimulus packages 鈥� the initial and 鈥� with keeping the local economy moving.
鈥淏ack when we were going through this, as you know, the state auditor, everybody was telling us to cut 20 percent, cut now, and hopefully come in better,鈥� he said. 鈥淎nd we鈥檙e glad to say that we did, and we did come in better. Without that $3 trillion being added to the economy, this could have been a lot different.鈥�
Now the county plans to reimburse employees who took last year鈥檚 80-hour furloughs, said county spokeswoman Mary Louise Madigan.
Two Republican council members, Nan Baker and Jack Schron, urged budget officials to find a way to pass some money on to the taxpayers who help fund county government鈥� particularly since voters approved a property tax increase last year.
鈥淭his would be a great time to find a way to maybe go back to the taxpayers who are writing the checks to us and provide them with some kind of a relief,鈥� Schron said.
Between the federal intervention and county cutbacks, the general fund added $52.8 million to its cash reserves, .
The general fund started 2020 with $139 million in reserves, which grew to $192 million by year鈥檚 end. Without CARES Act funds and furlough savings, the reserves would have fallen to $103 million, the report says.
In addition to regular costs, the general fund made $19.8 million in one-time payments for a few major projects, including property taxes and bond debt at the publicly owned Hilton Cleveland Downtown.
The year-end picture was tighter in the county鈥檚 health and human services fund, which ended 2020 with $14 million in reserves. Without furloughs and the CARES Act, that balance would have been just $1.8 million, according to the county.
Last year, Cuyahoga County received $215.5 million in direct CARES Act funding. County officials designated about half of it for eligible staff costs and spent much of the rest on personal protective equipment, building retrofits and community aid.
Another wave of federal COVID-19 relief funding is coming. Officials expect the county to receive a total of $240 million over the next two years as part of the American Rescue Plan.
