Though the pandemic-induced shutdowns slowed revenue streams for many local governments, those shortfalls were less severe than initially feared. Now, city, county, and state governments are awash with cash as the economy continues a strong comeback.
In 2020, the inaugural COVID-19 pandemic year, the City of Dothan estimated over $6 million in revenue losses in a report to the U.S. Treasury Department based on the Treasury’s formula. Nationally, state and local governments reported more than $117 billion of revenue losses, according to an Associated Press analysis of Treasury data. More than two-thirds of those reporting their revenues showed at least some losses.
Funds allocation - Explanation of how revenue replacement funds were allocated Recovery funds for pension - Whether Fiscal Recovery Funds used to make a deposit into a pension fund Part of the quick pace of Dothan’s return to normal, like much of the nation, lies in federal dollars meant to lessen COVID-19’s toll on individuals and local and state governments. In addition to stimulus checks, paycheck protection loans, and an expanded Child Tax Credit, hefty amounts of dollars were sent to governments last year in order to help the economy rebound a little quicker.
The City of Dothan received the first half of its $12 million allocation last year and reported that $827,000 was initially appropriated to clean water projects. Those priorities include $5 million for a water tank and water lines down U.S. 231 South all the way to the county’s distribution park and another $1 million to purchase property for future industrial development.