BUFFALO, N.Y. — The Erie County Executive has submitted a deficit remediation plan to the legislature to recoup a projected deficit of $137.8 million in the county.
The vast majority of the deficit comes from sales tax as a result of NY Pause orders in response to COVID-19. Sales tax losses make up $105.6 million of the total projected deficit.
“Putting this plan together required input from county Commissioners and Department Heads as well as from elected officials and other offices. It was not easy but I would like to thank all who participated and offered constructive ideas to help move the county forward through these unprecedented times,” said County Executive Mark Poloncarz. “These gap-closing measures are a mix of things that we can do at the county level, including using some fund balance, making departmental cuts, and closing out some projects. However, federal funding like the CARES Act is also a key component to addressing this issue. Erie County, like counties nationwide, needs another round of federal stimulus to help our economic recovery and I urge the President to work with House and Senate leadership to pass another package. If they do so we can avoid the many proposed cuts to services and staff.”
The largest spot where the county's proposed plan wants to make up this funding is in departmental cuts across the government. Poloncarz's plan expects to cut $40 million from the county's deficit by eliminating or modifying some positions within the government, reducing or eliminating some administrative lines and controlling vacancy's for unfilled positions.
Jail Restructuring
In a news conference on Thursday afternoon, the County Executive announced the cuts include a "major restructuring of the Sheriff's Jail Management Division",
This plan to reduce costs came from the Sheriff's Department, and will see most inmates transferred to the more modern Alden Correctional Facility.
Poloncarz says these changes essentially close the downtown Buffalo holding center.
However, Erie County Sheriff's Office spokesman Scott Zylka says the Holding Center will not be shut down entirely. It will still have specialized units and anyone who is taken into custody will still be processed through there before being taken out to Alden.
According to Zylka, the Sheriff's Office was able to arrive at the plan because there has been a steady decrease in the population of inmates over the last five years.
As well, Bail Reform, which allows more people to be issued appearance tickets instead of being held before they appear before a judge is also another “spoke in the wheel,” according to Zylka.
In terms of jobs, the number of part-time jail guards will be reduced by more than 40, and full-time staff by about 20, although the later will be done mostly through retirement and attrition (where someone leaves and isn’t replaced).
"I don't think anyone (full time) is actually going to be sent out the door,” Zylka said.
Those moves are expected to save more than $8.5 million annually.
However, by consolidating jail operations, the cost of medical service and staff will also be reduced by close to $1.8 million, bringing to the total savings to more than $10 million.
Other Reductions
The Department of Social Services came up with a plan with more than $20 million in cost reductions, the Board of Elections has cost reductions listed of $1.3 million and the Erie County District Attorney's Office has a reduction plan totaling more than $800,000.
In addition, the deficit reduction plan relies on tapping $25 million in surplus revenue.
Other areas impacting the county's deficit are an expected cut in state aid by $28.7 million, hotel occupancy by a reduction of $9 million, clerk fees are expected to decrease by $3.9 million.
In late 2019, the legislature passed a measure designating $24 million of funding from the previous year to be used to remedy potential deficits in 2020. An additional $5 million which was originally slated for COVID-19 expenses was added to the $24 million.
The County also plans to use over $25 million from a fund balance, or 'rainy day fund..' This money is proposed to be used to close budget gaps on a monthly basis. The plan also cuts some old capital projects that are lower priority that are unlikely to be used. That will cut about $5 million from the deficit.
The plan highlights a projected $16 million savings in healthcare savings in the county. The majority of which comes from retirees who aren't getting many procedures done because they aren't available during the coronavirus pandemic.
The County Executive's plan also expects to use around $15 million from the CARES Act for payroll expenses for county employees who were dedicated to responding to the COVID-19 pandemic.
In the plan, the County also said that another COVID-19 spending package could be passed in the federal legislature to help ease the burden on state and local governments.
This plan to remedy the deficit comes after a call from Erie County comptroller Stefan Mychajliw called for a comprehensive plan to asses the deficit last month.
Also on Thursday, Poloncarz once again called for financial help from Washington D.C.
To read the entire plan Poloncarz sent to the legislature, click here.