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The loss of sales tax revenues for counties across New York state is being projected to be 9% to 10% because of the coronavirus pandemic.
On Wednesday, the New York State Association of Counties (NYSAC) hosted a digital press conference with Erie County Executive Mark Poloncarz and Dutchess County Executive Marcus Molinaro. The online event was hosted by Stephen Acquario, NYSAC executive director, who said that later in the day NYSAC would be releasing a report on the economic impact of COVID-19.
Acquario said the economic impact of COVID-19, so far, has resulted in a $3.5 billion loss in revenues, which includes sales tax, occupancy tax and mortgage recording tax. He said the impact of the virus has also led to higher spending, potential decrease in state revenues and the loss of businesses for counties. He added that the 9% to 10% loss in sales tax revenues is around a $2 billion decrease.
“Counties need a federal stimulus package to address the losses,” he said.
Poloncarz said Erie County is looking at a $200 million deficit in its 2020 budget because of the coronavirus.
“We are in a significant financial situation here,” he said.
Molinaro called on Congress for direct aid to counties to help local governments deal with the fallout from the coronavirus.
“Without that aid … we will have significant instability at (the county) level and that is something we can’t afford to have happen.”