Birmingham suspending pay raises for city employees due to losses from COVID-19 pandemic

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BIRMINGHAM, Ala. (WIAT) — In Birmingham, pay raises for city employees are being suspended because of the coronavirus pandemic.

On Tuesday, Mayor Randall Woodfin said the city has a looming $75 million decrease in revenue for the 2021 fiscal year due to businesses forced to close during the pandemic, affecting the sales tax collected by the city.

“Since businesses have had to close, we’ve lost a decrease in occupational taxes,” Woodfin said. “We’ve seen a decrease in sales taxes.”

The city is projected to have lose $18.2 million this year.

The city is also suspending cost-of-living adjustments and longevity pay for its employees. Approximately 70% of the city’s budget is earmarked for employee salaries and benefits.


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