Because it is, in case we hadn’t mentioned it before.
Houston Mayor Sylvester Turner said Monday that the coronavirus crisis will impact “every facet of city governance” and require furloughs of city workers, though he declined to say how many employees would be forced to take unpaid leave.
Even before U.S. oil reached a lowpoint of minus-$40 a barrel Monday, city officials were preparing for Houston’s tightest budget ever, thanks to a precipitous drop in sales tax revenue and an already sharp plummet in oil prices.
The fresh collapse of the oil market prompted Turner for the first time to acknowledge that city employees would be furloughed, and the city would defer a number of payments, for the fiscal year that begins in July.
“It’s not any more unique than what other cities are facing across the country. But it’s real in the city of Houston,” Turner said. “I’m not trying to hide it. These are the realities. This will be the worst budget that the city will deal with in its history.”
Turner declined to provide further details about the scale of the furloughs or what level of budget cuts he expects city departments to undergo. He did say cadet classes would be deferred due to the economic crisis but did not specify whether he was referring to fire cadets, police cadets or both.
Houston Controller Chris Brown said the city’s budget situation likely will prove “equal to or worse than” the Great Recession in the late 2000s. In the fiscal year that began in July 2011, then-mayor Annise Parker laid off 764 city employees to close a $100 million budget gap.
We’ve known this is coming. We won’t have a starting point for exactly how bad it is until the Comptroller releases the March sales tax data, but I think we can all agree that it will be Very Bad. We need sufficient testing so we can begin to reopen things in a safe manner, but the only way out of the hole we’re in is going to be help from the federal government. Which, if we learned anything from the 2009 recession, should be obvious, in that the resulting deep cuts to state and local governments in the years following the initial downturn acted as a huge drag on the economic recovery, offsetting stimulus efforts to a large degree. There’s still hope for that to happen in another round of coronavirus response money, if only because keeping the economy from completely capsizing is in the Republicans’ interests in a way it wasn’t in 2009-2010. But until then, expect there to be a whole lot of doom and gloom.