The coronavirus crisis is having significant budget impacts in Newtown Township, officials say.
Township Manager Micah Lewis said exact figures demonstrating how much revenue loss the coronavirus crisis has caused the township are not yet available, because it is ongoing.
"It is anticipated that Newtown will see a drastic decrease in Earned Income Tax revenue (1 percent tax levied on income), which is the primary source of revenue in the budget. Additionally, it is anticipated that Real Estate Transfer Tax, building and life safety permit revenue, and Park & Recreation revenue will be drastically decreased," he said.
The township has already taken some steps to offset the anticipated loss in revenue, he said. [For more on that, listen to this podcast: “2020 Road Program Falls Victim to COVID-19”; https://www.johnmacknewtown.info/covidvroads.html]
He noted the township has reached out to the state Department of Community and Economic Development to determine if there are any loans, lines of credit, or other resources available to assist municipalities with operational expenses during the crisis.
The problem is not unique to Newtown Township. [For more on that, read: “Local Governments Seek $1 TRILLION to Avert Layoffs Due to #COVID19”; http://sco.lt/7D3GJU]
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The PA Department of Community & Economic Development estimates that small townships with a population of 3,000 will collect 6% less in Act 15 taxes – mostly Earned Income Tax on employee income – by year end. For Newtown Township, that is an estimated loss of at LEAST $440,000 - perhaps much more - and this does not include an estimated 25% reduction in revenue from fines, licenses, and other fees.
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