NYSAC: Local Governments Will Lose $2B Due to COVID-19 Crisis
The New York State Association of Counties has updated a report detailing the economic impact of the COVID-19 pandemic on county governments, stating that regional governments across New York are now looking at a potential $2 billion loss in revenues
The report’s re-release comes after the state has re-estimated its projected loss of revenues, and also as state Leaders negotiate the final terms of the 2021 budget.
Two weeks ago, state Comptroller Tom DiNapoli’s predicted a $4 to $7 billion loss in state revenue. Gov. Andrew Cuomo has estimated the loss at somewhere between $10 and $15 billion.
"These revenue forecasts are very troubling for local governments and property taxpayers,” said NYSAC President John F. (Jack) Marren, chairman of the Ontario County Board of Supervisors.
"Counties are on the front lines executing this public health state of emergency, while the state manages it and the federal government supports it financially. We’ve never seen anything like this, ever. Our personnel is exhausted, our resources are scarce, but our spirit to defeat this silent enemy remains strong."
NYSAC said its report covered two economic impact scenario. The first assumes a mild recession and a quick recovery. The second takes into consideration a more severe and prolonged recession.
Based on the most recent projections at the state level, the range of impact has doubled to a $2 billion loss in local sales tax revenue, NYSAC said. The report's estimates do not account for the local workforce related revenue losses, and the costs associated with responding to the COVID-19 pandemic.
The report can be found in full here.