COUNTY COMPTROLLER WITH TROUBLING UPDATED SALES TAX LOSS PROJECTIONS

Additional Federal COVID Recovery Dollars Will Be Needed To Avoid Massive Cuts To County Budget

(ERIE COUNTY, NY) – Erie County Comptroller Stefan Mychajliw sent a letter to Erie County lawmakers, updating them on the potential budget impact if sales tax revenue was to drop between 50% and 80% from March through June, 2020.  If Erie County experienced this worst-case scenario, an 80% loss in revenue would equal $127,933,095.00.

“I have been providing updates to county legislators on a regular basis on what our losses could be, so that they can prepare for the worst,” said Comptroller Mychajliw.  “Having said that, I have called on our leaders in Washington to include federal aid to local governments in the next stimulus package to help offset the anticipated losses.”

In March, Comptroller Mychajliw advised legislators that sales tax revenue losses could be from $15,991,637 and $79,958,184. 00. As the impact of Coronavirus continues to be felt, some governments are anticipating losses that could go even higher.  Westchester County, similar in size to Erie County, is anticipating losses in sales tax revenue to be from $90-$160 million.

“Our local and state officials are also now sounding the alarm and asking for more help from Washington,” added Comptroller Mychajliw.  “It’s important we are a unified voice, to make certain our leaders in Washington understand just how dire the situation is.”

          “The state now has about a $15 billion deficit, somewhere between a $10 and $15 billion deficit.  I don’t have any funding to do what I normally do.  I normally fund schools.  You’ll see a 50% cut in education.  You’ll see a cut to hospitals, in the midst of all of this.”

                                                                                    -Source:  Governor Andrew Cuomo, April 19, 2020

                        “Erie County could lose upwards of $140 million of revenues.  This is significant. It’s greater than what we have in our piggy bank.”

                                                                              -Source:  Erie County Executive Mark Poloncarz,April 17,2020

As Comptroller Mychajliw has noted, the $159 million in federal assistance to Erie County can only be used on COVID-relate expenses.  “I have been reaching out to our federal delegation asking them to provide additional assistance.  I am again urging our federal lawmakers to act swiftly and with certainty to provide additional relief to local governments.  Without that assistance, our cities, towns, villages and school districts will experience potentially devastating impacts to their budgets.”

To read a copy of the letter, please click here

To read how the loss in revenue could impact your community, click on link below:

2019-COVID-Analysis Municipalities (2).xlsx