Free Money 2

At first glance, it looks like the counties and cities are about to receive a windfall of money from the state to help with the Chinese corona virus. But a closer look at the stipulations on the money shows that the money is really no help where local governments need the most help.

Local governments are going to see a huge loss in revenue for the last four months of the fiscal year from the state mandated shutdowns. Sales tax will be way down, hotel/motel tax will be way down, costs and fees associated with the court systems will be hit especially hard. Local governments who are dependent on those revenues will be in a real jam.

Fortunately for Loudon County, there is a fund balance to fall back on, at least temporarily. But where local governments really need help is with their general funds to continue to pay the bills and provide services. Loudon County will receive $911,000.00 from the state. Unfortunately, we can't use it where we need it the most. The state dictates how the money must be used. You can see the list below.

All the permitted uses are fine but certainly not things essential to maintain county operations. None of the permitted uses listed below will help prevent potential property tax increases.

Only in government, during worldwide crisis, could officials come up with ways to spend millions of dollars on things not needed and provide no money for the most basic essentials.     

I'm sure we'll find ways to burn the money.


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4/20/20