BUFFALO, N.Y. — Local governments have really been struggling to cover lost revenue from sales tax and other traditional sources as they try to maintain essential services.
Erie County lawmakers and budget officials on Thursday discussed where things stand at this point and going forward.
There seems to be agreement from most parties at the budget table that Erie County has come up with an effective plan to cut the projected hole of nearly $138 million in county finances ripped open by the COVID crisis.
But they are still looking for some details and fine tuning to make sure it stays on track.
When County Executive Mark Poloncarz came out with that plan just a week ago, the biggest hurdle was how to overcome a loss of over $105 million in sales tax lost due to the COVID shutdown. Also, toss in lost clerk's office fees and expected cuts in state funding.
To deal with all that, they did come up with various reductions by trimming back operations at the Erie County Holding Center, cuts in Social Services and other departments, as well as leaving some unfilled county jobs vacant. There was praise but also some spending scrutiny.
Democratic Legislator Kevin Hardwick pointed out: "We dodged a bullet I think. I hope we did, anyway, because again we don't know. ... It could get worse. But I think we did the right thing. The county executive did the right thing."
But Legislator Joseph Lorigo of the Conservative Party pressed for an answer on how the county planned to spend more of its allotment from the federal CARES act which helped local governments cover COVID costs. He asked: What do you anticipate spending the $25 million on for the rest of the year?"
Erie County Deputy Budget Director Benjamin Swanekamp responded: "So we are still stockpiling (personal protective equipment) for the fall. There is a very good chance of a resurgence of COVID in the fall, and we want to have everything on hand for it if that happens.
"There are additional various infection control measures across the county. That's anytime the public is interfacing with county employees ... as well as there are ongoing efforts to shift payroll costs over there. Folks doing COVID work substantially."
But here in June there's already a red flag about what could happen in 2021 and beyond.
County lawmakers and the administration seem to agree they don't want to see the county government payroll gutted with any significant layoffs.
But now they're getting a grim glimpse into the future from the county budget office. The biggest concern again is a sales tax hit, according to Swanekamp.
"Depending on how the economy recovers, and we'll see how the sales tax comes in the rest of the year, we are still probably looking after close at another loss that could be as high as $100 million in the 2021 budget,: Swanekamp said.
"Unemployment in Erie County is still at 26 percent ... the unemployment figure. It's gonna be a long term recovery and not a one time thing, so we're trying to put the county in the best position to move into what has to be done to the 2021 budget."
Legislators tossed around ideas, such as keeping more of the county workforce on remote-linked home duty. Or the county doing more borrowing to cover costs.
Some veteran lawmakers such as Republican John Mills do worry about tapping and further depleting the county's reserve funds with references to the 2005 red green budget crisis.
"It would be inappropriate," he said. "It would be dangerous to go back to those days. Deficit funding ... if we have to do it, we have to do it. We can't decimate that fund balance."
It remains to be seen what else will happen or not happen in Washington to help local governments. And again a potential state budget cut of 20 percent will hit hard.
Whatever the case, Erie County lawmakers are expected to vote by June 25 on this plan.