Mayor Larson Gives Update on City Budget

DULUTH, Minn.– Duluth Mayor Emily Larson says most of the city’s COVID-19 budget shortfalls projections from April are in their predicted range right now.

Larson and her team made headlines when they said the city could see a budget shortfall of $20-40 million for 2020. And with two additional months of data, the predicted loss of revenue is now around $25 million, which is still significant.

Duluth’s Tourism Tax revenue is expected to lose $6 million this year, a 50 percent decrease from the city’s original 2020 budget.

“I feel confident about the numbers we are giving you for June 22nd. In large part because what we projected on April 27th has rung for the most part very very true,” said Mayor Larson.

The city is also hoping to get $6.5 million from the cares act but that money can only be used to reimburse the city for non-COVID-19 expenses. The state legislature still needs to approve those funds.

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