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Is State In A Position To Give Jamestown  Additional Aid?

Jamestown will, again, likely receive additional money from New York state to balance its budget for 2018.

We wonder how the state will do so while dealing with a projected budget deficit that could be as high as $4 billion, according to state Comptroller Thomas DiNapoli, but it’s hard to argue with the fact that two state decisions have made the additional aid necessary, at least temporarily.

The first decision was the cut in state aid to the city after the 2008 recession. Jamestown took a bigger hit than many cities because of its ownership of the Board of Public Utilities. The second decision was the Public Service Commission’s most recent BPU electric rate increase decision which changed the way off-system sales can be spent and inadvertently created a situation it is difficult for the city to continue asking for a revenue-sharing payment from the utility. The first $1.225 million in profits are moved into an overhaul reserve fund, with all off-system sales profits in excess of $2.25 million to be credited to customers bills through a fuel adjustment charge in the previous year.

Given lackluster demand for energy in the last couple of years, the electric division isn’t generating the amount of profits it used to, and it will take a large increase in sales to generate the type of profits necessary for the BPU to be able to afford a revenue sharing payment. Mayor Sam Teresi didn’t ask for the payment in either the 2017 or 2018 budgets.

The city was already struggling to make ends meet in the best of times. While the city has shot itself in the foot dozens of times over the years, the two state decisions didn’t help the situation. City officials can make a convincing case for state help — but such help may not be available forever if DiNapoli’s dismal financial projections become a reality.

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