Arlington County Rethinks FY2021 Budget Due To Coronavirus

ARLINGTON, VA — Arlington County Board Chair Libby Garvey called the Fiscal Year 2021 Budget Proposal County Manager Mark Schwartz submitted in February "no longer very relevant" in light of the current coronavirus crisis.

"We have temporarily suspended budget work sessions, while the manager and our management and finance staff work through substantial and as yet unclear changes to both projected revenues and projected expenditures," Garvey said, at a Saturday morning Boardmeeting.

Schwartz disagreed with Garvey's assessment that the FY2021 Proposed Budget was no longer relevant.

"We have unknown revenue impacts," he said. "Right now, we're in the point of the year where we're talking about transient occupancy taxes and meals tax. We expect all those taxes to be significantly down, those receipts."

According to Schwartz, the county treasurer has already announced that she would waive penalties and filing deadlines for those types of taxes.

He told Garvey he was committing to submit a new budget proposal by April 1.

"It will be a very small document, but it will speak to increased demands in certain areas coupled with less revenues," Schwartz said. "As we've mentioned many times before, we do have budget reserves available of significant amounts. We also, similar to what we did as an organization after 9-11, we will be immediately prioritizing PAYGO (pay-as-you-go) projects and capital projects if we need to take funds from there to spend on needs that have arisen."

Regarding projects like Lubber Run Community Center and the Long Bridge Aquatics & Fitness Center and Park Expansion, Schwartz hoped that construction would continue on those, but the County may have difficulties finding workers for them.

"Even if we are able to complete them, there's absolutely no way that we would be able to open them as previously scheduled," he said.

In addition, even though Fort Myer Construction is still working on the Columbia Pike Widening Project, Schwartz said there was no guarantee that would be completed as scheduled.

At the meeting, Schwartz acknowledged the seriousness of the current crisis and the challenge it presents for Arlington.

"The economic impact right now, it's safe to say we don't know, but we know it's going to be significant," he said.

As an example he told the Board that the hotel occupancy rates in the county are at 2-3 percent, with one hotel even closing its doors on Friday.

"We've received a number of requests for assistance through our Department of Human Services for rent assistance, help with utility costs, and food," Schwartz said. "I would say that all of our utilities — Washington Gas and Virginia Power — have committed to not shut off service and we are also not enforcing any water shutoffs or diminishing of service on the County side."

On Friday night, Schwartz allocated $100,000 from the County Manager Contingent Fund for additional funding to the Arlington Food Assistance Center, which has been finding it difficult to keep its shelves stocked with the food it needs.

"That could be just the beginning, but we shall see," he said.

Dr. Reuben Varghese, the County’s public health director, confirmed the first instance of local transmission of the new coronavirus, also known as COVID-19.

"We now have evidence without being able to find a known source of transmission," Varghese said. "Completely expected to occur here and the measures we're taking are the appropriate ones to eep physical distances to reduce that germ spread."

The County Board practiced social distancing at its Saturday meeting, as a way to emphasize the importance of this practice in response to COVID-19. Board members sat six feet apart, as did the few people in attendance. Likewise, hand sanitizer had been placed at the entrance to the board chamber.

“What is clear is that for some time life will be very different for all of us. This pandemic is a serious public health crisis. Everyone in our community, of all ages, must practice sensible social distancing and stay at home as much as possible,” Garvey said. She also stressed that not just the elderly or sick, but anyone can catch or spread COVID-19 to others, so Arlington residents need to take social distancing seriously.

Arlington County Police are enforcing the restriction no more than 10 people in bars, restaurants, gyms, and theaters.

The Board continues to encourage restaurants with dining-in facilities to voluntarily switch to carryout and delivery only.

"Fortunately, many have already reconfirmed their operations and closed entirely to comply with this request," Garvey said.

Arlington County does not have the authority to order restaurants to close their dining-in facilities, but the Board has asked them to do so. As Garvey said, some businesses have complied and the County posted a list online of restaurants that have switched to carryout or delivery or closed their doors completely.

"This county is determined to do all that we can within the limits of our legal authority and financial resources to help families cope with the financial strain," Garvey said.

Related: Arlington Coronavirus Updates: Here's What You Need To Know