COVID-19 Spells Trouble For Town Budgets
by Doug La Rocque
One of the side effects of this outbreak may well be a lack of anticipated revenues for towns, village and cities all across the state. Under Governor Cuomo’s Pause New York Act, all but essential businesses are virtually shutdown. This, according to New Lebanon Town Supervisor Tistrya Houghtling, is going to mean a reduction in sales tax collections that counties typically share with their towns. How much of a loss remains to be seen, but it could be significant.
Also expected to be reduced is the town’s share of mortgage tax collections.
Speaking with The Eastwick Press, Supervisor Houghtling says $650,000 in anticipated town revenue is identified as possibly at risk. According to Ms. Houghtling, estimates are at least 15 to 20 percent of this will be lost during this fiscal year. She says she is taking a more conservative approach, and estimating New Lebanon may lose as much as $260,000 in revenue, and has begun to look at where cuts in this year’s budget are possible.
At the Tuesday, April 14 town board meeting, held via teleconferencing, she asked each department head to take a real hard look at their budgets, to see what they may be able to reduce, or perhaps put off scheduled purchases until next year. At the meeting, the board planned to vote on the purchase of a new backhoe for the highway department, at a cost of $50,000. Because of the revenue concerns, it decided to table any decision on the purchase until the May meeting.
Another major concern for towns is the NYS Consolidated Highway Improvement Program, known as CHIPS. That is money the state sends to the town each year to help pay for local road improvements. While part of New York State’s recently approved budget, it is, according to Ms. Houghtling, one of the areas identified by the state, that is subject to being cut, if fiscal needs so dictate. With the state now experiencing a $10 billion deficit, and Governor Cuomo publically proclaiming on Tuesday “we’re broke,” there is real concern about the future of this funding.
The complete report on the New Lebanon town board meeting will be presented by Michelle Van Horn in next week’s edition.