Winnipeg, MB – The City of Winnipeg has released the Financial Status and Forecast Report to June 30, 2020 and also updated its analysis of the potential economic impacts of the COVID-19 pandemic on Winnipeg. Both of these reports are being presented at the meeting of the Standing Policy Committee on Finance (SPC-Finance) on September 15, 2020.
The second quarter financial status and forecast report for 2020 discloses a projected deficit in the tax-supported operating budget (General Revenue Fund) of $0.7 million and a total shortfall for all City departments to be $29.9 million, as at June 30, 2020. Transit is now projecting a shortfall of $29.1 million, which is a further increase from the last quarterly report that forecasted a year-end shortfall of $26.1 million.
Without the strategic measures, or ‘levers’, implemented to date, the projected total shortfall for all City Departments would have been $67.5 million.
“We can see through the second quarter of 2020 that the City’s COVID-19 Crisis Cash Flow Management Plan has been effective at stabilizing the City’s operations during this pandemic,” said Councillor Scott Gillingham, Chairperson of the Standing Policy Committee on Finance. “However, we also know the pandemic has caused a significant drop in transit ridership and revenues for Winnipeg Transit. The financial situation for Winnipeg Transit will be an ongoing concern as we continue to assess the long term impact the pandemic may have on transit ridership levels.”
The City’s economic analysis on the impacts of COVID-19 uses new economic data to report on the early impacts of the pandemic on business, employment, housing, and other areas. The economic analysis also proposes forecasted scenarios for unemployment rates and GDP growth that anticipates a range of plausible outcomes for the course of the pandemic.
“The data we have today shows that the initial impact of the pandemic on lives and livelihood in Winnipeg is real and quite substantial,” said Tyler Markowsky, City Economist for the City of Winnipeg. “Overall the economy has seen a historic shock, and specific citizens and industries have been hit at a historic rate.”
Reflecting substantial impacts on businesses, the economic analysis shows a significant decline in employment across most industries but especially in accommodation/food services and transportation. The analysis shows harsh impacts for our citizens, especially among young, female, and those who are most financially vulnerable. Data shows a decline in immigration, which has caused a decline in Winnipeg’s population growth expectation. The amended population growth for 2020 now estimates a population of 771,400 in Winnipeg at the end of the year. This is a decrease of 3,300 people when compared to the previous population forecast for 2020.
The City’s financial update and the economic analysis are publicly available through the Decision Making Information System (DMIS).