Erie County makes plans to combat loss of sales tax revenue this summer

Erie County makes plans to combat loss of sales tax revenue this summer

TODAY..

THEGOVERNOR TOUCHEDON THE STRUGGLESTHAT WILL COME WITHBALANCING THESTATE BUDGET..HERE IN ERIECOUNTY...LAWMAKERSTRIED TO GET AHEADOF THE CURVE BYAPPROVING ANEMERGENCYBORROWING PLAN..7 EYEWITNESS NEWSREPORTER MADISONCARTER BREAKSDOWN WHAT THATCOULD MEAN FOR THECOUNTY'S COFFERS.WE ARE NOT GOING TOBORROW 125 MILLIONDOLLARS IN THE SHORTTERM TO GETTHROUGH THIS VERYVERY DIFFICULT TIME.THE PLAN: TO NOTHAVE TO USE THEPLAN.DURING A SPECIALSESSION THURSDAYTHE ERIE COUNTYLEGISLATURE PRE-APPROVED THEAUTHORIZATION TOBORROW 125 MILLIONDOLLARS .RESTAURANTS ARECLOSED, HOTELS ARECLOSED, NO ONE IBUYING A CAR RIGHTNOW AND THAT ISGOING TO HAVE AMASSIVE IMPACT ONTHE ERIE COUNTYBUDGET.RIGHT NOW -- THECOUNTY HAS 235MILLION DOLLARS INTHE BANK.BUT -- SALES TAX ISTHE COUNTY'SPRIMARY SOURCE OFREVENUE.AND WITH MOSTSTORES ANDRESTAURANTSCLOSED, THECOUNTY'S BOTTOMLINE IS TAKING A HIT.AN ANALYSIS DONE BYTHE COMPTROLLER'SSHOWS IF SALES TAXRECEIPTS DROP 10PERCENT BY JUNE,THE COUNTY WILLHAVE A 16-MILLIONDOLLAR DEFICIT.IF SALES TAX IS DOWNBY 50 PERCENT - ERIECOUNTY IS LOOKINGAT AN 80-MILLIONDOLLAR HOLE.ALL THE LEGISLATUREDID TODAY WAS GIVEME THEAUTHORIZATION TOWHEN I SEE FIT TOGO TO MARKET ANDBORROW 125M.REPUBLICAN MINORITYLEADER JOE LORIGOVOTED IN FAVOR,WHILE OPPOSING THETIMING OF THEMEASURE.CALLED A SPECIALSESSION TODAY WHENWE WEREN'TSUPPOSED TO BE HERETHAT SENDS THEWRONG MESSAGE TOTAX PAYERS IN EC,THAT WE'RE RUNNINGOUT OF MONEY, WHENWE'RE NOT.ONLY ONE LEGISLATORJEANNE VINALVOTED NO.THE SALES TAX ISGOING TO BE DOWNPERMANENTLY, ASHORT TERM LOAN -THIS IS NOTAPPROPRIATE FOR IT.THE FEDERASTIMULUS BILL WOULDGIVE ERIE COUNTY159-MILLION TO SPENDON CORONAVIRUSRELATED NEEDS, BUTTHERE IS NOGUARANTEE SALESTAX REVENUE WOULDQUALIFY.CAN WE MAKEARGUMENT TO THEFEDERALGOVERNMENT THAT ALOSS OF SALES TAXREVENUE IS ACORONAVIRUS-RELATED IMPACT, WEMIGHT.

IT ALL DEPENDSON WHAT THE FEDERALGOVERNMENT ALLOWS.GOVERNOR CUOMODOES NOT THINK THEFEDS WILL BE THATGENEROUS.IT DOES ABSOLUTELYNOTHING FOR US INTERMS OF LOSTREVENUEMC: THE LEGISLATUREIS CLOSELYFOLLOWING ALLCORONAVIRUSEXPENDITURES TODOCUMENT IT FORCOVEREDREIMBURSEMENTS.

BUTSAY THOSE EXPENSESARE A DROP IN THEBUCKET COMPARED TOTHE REVENUE LOSSTHAT WILL COME FROMSALES TAX REVENUE.MC, 7EWN.ALSO TONIGHT T