Planning for the Unknown: Local Government Strategies from the Fiscal Year 2021 Budget Season in Response to the COVID-19 Pandemic

Abstract

This article outlines how counties and municipalities in North Carolina prepared their fiscal year 2020–21 budgets amid the uncertainties of the COVID-19 pandemic. In response to an April 2020 survey, 92 percent of jurisdictions reported anticipating a general-fund shortfall for FY 2021, and over 20 percent expected shortfalls exceeding 10 percent of their general funds. Over three-quarters of jurisdictions reported not budgeting for any new positions, and over half instituted hiring freezes. This research presents important insights into how counties and municipalities prepared for the recession and highlights the differences and similarities of those strategies.