Coronavirus Pandemic Takes Toll on Montgomery City Revenue

The coronavirus pandemic is taking a bite out of Montgomery’s city revenue. Mayor Steven Reed has presented a breakdown of figures comparing revenue raised from alcohol, lodging, gasoline and sales and use taxes from this fiscal year to last.

In all four categories, May was the worst month. The good news is that revenue has improved.

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Lodging tax revenue for October 2019 – July 2020 (City of Montgomery)

However, lodging tax collections are still down nearly 20% overall since last October. In May, lodging tax revenue was down 76.5% as people stopped traveling and taking overnight stays.

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Gas tax revenue for October 2019 – July 2020 (City of Montgomery)

Gas tax collections are down 3.16% overall after experiencing a drop of 37.65% in May.

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Sales tax revenue October 2019 – July 2020 (City of Montgomery)

The other two categories are on the plus side overall. Sales tax revenue is up 3.71%, rebounding from an 18.1% decline in May.

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Alcoholic Beverage Tax October 2019 – July 2020 (City of Montgomery)

Alcoholic beverage tax collections are up 5.39% overall following a drop of 14.83% in May.

City Council President Charles Jinright told Alabama News Network that the overall loss of revenue will significantly affect next year’s budget.

“It’s going to be somewhere in the neighborhood of 10-12 million dollars less than last year’s budget. The budget for last
year was $259 million. This budget is going to be somewhere in the neighborhood of $247- $249 million. I’d say probably closer to 247,” Jinright said.

When asked whether the budget cuts could include layoffs, Jinright says the city is already under a hiring freeze. But he says the council is still awaiting revenue numbers for the rest of the fiscal year, which ends September 30.

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