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COMPTROLLER MYCHAJLIW WARNS LEGISLATURE ON SALES TAX DECLINE AND INCREASING HOSPITAL COSTS


August 18, 2016

COMPTROLLER MYCHAJLIW WARNS LEGISLATURE ON SALES TAX DECLINE AND INCREASING HOSPITAL COSTS

Sales tax revenue decreased for the first six months of the year, while a payment owed to the hospital could be millions of dollars higher

(Buffalo, New York) – Erie County Comptroller Stefan I. Mychajliw sent yet another warning to the Erie County Legislature to curb spending and cut costs, considering sales tax revenue decreased for the first six months of the year, while the payment Erie County owes to Erie County Medical Center (ECMCC) is expected to increase by millions of dollars.

Overall sales tax collections for the first six months of the year, from January to June, remain down -0.19%.  To date, Erie County is down $395,134 in total collections from 2015. 

In order to meet budget, Erie County’s sales tax collections must grow by 3.15% or there will be a $7,518,689 hole in the 2016 operating budget.

To make matters worse, the upcoming Intergovernmental Transfer payment owed to ECMCC could be several million dollars higher than expected.  Recently, staff from the Office of Erie County Comptroller and hospital administrators met to discuss exactly what will be owed for the upcoming IGT payment.  This year, the county has budgeted $16.2 million for that payment. 

“Just like the families we serve, Erie County must honor its obligations, pay our bills, and cut spending if dark days are ahead.  Spending in Erie County government increased $90 million since January 1st, 2012.  Wasteful spending like $75,000 on a plastic bag study add up and hurt the budget, especially when sales tax collections are down and hospital payments are expected to increase.  It appears the county credit card is at its maximum limit.  Time for the county to reduce spending and live within its means,” said Comptroller Mychajliw.

In his letter to the Erie County Legislature, Comptroller Mychajliw also updated the Legislature on sales tax receipts for the month of June 2016.  There was a slight 1.99% increase in revenue compared to June of 2015.

Click here for a PDF of the Press Release and Letter.

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