After more than 10 years of economic growth — the longest expansion in 166 years — the wheels have fallen off the U.S. wagon due to the COVID-19 pandemic.
The United States officially entered a recession in February, according to the National Bureau of Economic Research.
The good news is that although the economy was sent into a tailspin overnight, economists say it’s already beginning to pick up steam now that businesses are opening back up.
Clearly, Iola city council members are counting on it.
On Monday, they gave the green light to consider pay raises averaging almost 9% to city employees for a total of $450,000.
SUCH REWARDS seem beyond comprehension to those who have been walloped by the pandemic.
Most everybody — retailers, restaurateurs, the radio station, movie theater, convenience stores, those in the oil industry, the college, hospital and this newspaper — have had to pull their belts tight to weather the storm.
For some, it’s only because of federal relief that they’ve been able to keep their doors open.
Nationally, unemployment is about 13.3%. About one-fourth of the labor market — 30 million jobs — have been lost in three months.
In Kansas, revenues are down by more than 20% from one year ago, a difference of $114 million.
Budget experts predict Kansas will fall $1.27 billion short of earlier projections for fiscal year 2021, which starts July 1.
Likewise, cities are reading the tea leaves.
In Topeka, officials are anticipating taking anywhere from $2 million to $7 million from their reserves to balance their 2020 budget and have made all sorts of cuts including asking 285 non-union employees to take five unpaid days off.
Looking at a best-case scenario that the worst of the pandemic is behind it, Lawrence officials are expecting an $8 million shortfall from the three-month slowdown and are trimming expenses.
Manhattan, same thing, with a promise to keep its mill levy and payroll flat, as well find ways to further reduce expenditures.
Wichita is looking at a $28 million deficit to finish this fiscal year and into the next. Wichita Mayor Brandon Whipple admits he has no ready answers; only the resolve to make “less bad decisions.”
