Missouri cities face budget shortfalls amid coronavirus pandemic

As cities reopen and businesses emerge from stay-at-home orders, local governments are figuring out how to manage budgets that are expected to face shortfalls due to the coronavirus pandemic.

WHEN SCHOOL BEGINS INAUGUST.NEW TONIGHT --CITIES STRAPPED FORCASH ARE TRYING TO FINDWAYS TO GET MOREMONEY INTO THEECONOMY -- ALL BECAUSEOF THE COVID-19PANDEMIC.AND AS 41 ACTION NEWSREPORTER ARIELROTHFIELD DISCOVERED --THE FINANCIAL FIX NEEDSTO COME FROM THOSE INHIGHER PLACES.IT'S A TREND THAT HASBEEN HURTING THE CITYOF INDEPENDENCESHOPPERS CHECKING OUTONLINE RATHER THANAT BRICK AND MORTARSTORESAND IT'S BEEN EATINGAWAY AT THE CITY'SBUDGET, WHICH HAS BEENWEAKENED BY THECORONAVIRUS PANDEMICZach Walker/ Independence CityManagerWhat the pandemic broughtabout, Ariel, was a rapiddissension of that alreadydeclining revenue source.

Sowhile the sales tax revenuewas already going down,having all of the businessesshutter or having themoperated in a limited scope,accelerated the revenue losswe were seeing from the retailsales taxTHE CITY IS ESTIMATING A21 PERCENT DECLINE INRETAIL SALES TAXES- ITSPRIMARY FUNDINGSOURCEAS A RESULT OF STORESBEING FORCED TO CLOSETHEIR DOORSAriel RothfieldAND IT'S NOT JUSTINDEPENDENCE41 ACTION NEWS SPOKETO CITIES ACROSS THESTATELEE'S SUMMIT ISPROJECTING A 2 MILLIONDOLLAR DROP, about 10percent IN ITS SALES TAXREVENUWHEREAS KANSAS CITYEXPECTS TO LOSE 9MILLION DOLLARS IN SALESTAX THIS FISCAL YEAR,ALONEDavid Slater/ Pleasant ValleyMayorIf you buy something fromWayfair, you don't pay salestax.

If you buy something fromChina, there's no sales tax.

Sowhat we're trying to do is notonly help our local economy,but help our brick and mortarbusinesses because theyhave to have a leveled playingfieldPLEASANT VALLEY MAYORDAVID SLATER IS THEPRESIDENT OF MISSOURIMAYORS UNITED-A GROUP NOW ASKINGGOVERNOR MIKE PARSONTO CALL A SPECIALSESSION,SO LAWMAKERS CAN PASSA BILL THAT WOULD ALLOWMISSOURI TO COLLECTSALES TAXES FROMONLINE RETAILERS WHODON'T HAVE A STORE INTHE STATEDavid Slater/ Pleasant ValleyMayorThey have to have a sessionon the pandemic becausetheir budget is going to be somessed up.

It's going to beunderfunded and they aregoing to have to make sometough cuts.Part of the COVID is gettingthis use t passed.UNTIL NEW REVENUECOMES IN- CITIES LIKEINDEPENDENCE WILL HAVETO MAKE HARD DECISIONSLIKE CANCELING ITSANNUAL FIREWORKSSHOW TO SAVE MONEYZach Walker/ Independence CityManagerYou can see where that ishitting us in a devastating wayMost cities estimate at least athree-fold increase in whatthey would see in their salestax revenue collection f