Explanation
BACKGROUND: This legislation authorizes the Columbus City Auditor to change the funding source for some of the social service contracts authorized under ordinance 0571-2020. The funding source for 24 of 44 contracts will be changed from Emergency Human Services (EHS) funding (Hotel/Motel excise tax) to CARES Act funding. Due to the economic impact of the coronavirus, actual Hotel/Motel excise tax collections are anticipated to be significantly less than anticipated. The general fund portion of the funding will not change.
The economic fallout of the coronavirus has impacted Ohio and the national economy at historic levels. Ohio’s unemployment rate has risen to 16.8%, an increase of 11% versus pre-coronavirus levels. Similarly, Columbus’s unemployment level has risen to 13.7%, an increase of 9.5% versus pre-coronavirus levels. The travel and tourism sector of the economy has been disproportionately impacted and is experiencing an unprecedented contraction in business due to the COVID-19 pandemic. Marriott, a bellwether for the industry, recently projected a 75% decrease in global revenues and a 90% decrease in domestic (U.S.) revenues. The Airline industry has been similarly impacted with domestic U.S. flights decreasing 70% over pre-coronavirus levels. The aforementioned economic impacts to the travel and tourism have resulted in a significant decrease in 2020 Hotel/Motel excise tax proceeds, which in turn has drastically reduced funding available for social service contracts.
For 2020, it was estimated that $2,723,000.00 of EHS funds would be available for social service contracts (ordinance 2927-2019). Of this amount, $2,232,453.50 was legislated in ordinance 0571-2020 for Department of Development contract modifications to social service agencies selected through a competitive process in 2018.
Since ordinance 0571-2020 passed Council on April 20, 2020, the department has executed 20 out of 44 contracts. These contracts will remain as origin...
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