BUFFALO, N.Y. (WBEN) - Local governments continue to plan for an uncertain financial future.
In the Town of Amherst, Supervisor Brian Kulpa said the loss in sales tax revenues, court fees, clerks fees, and even money normally generated through the town's ice rink have forced them to cut jobs and consider borrowing in the future to overcome the more than $7.38 million deficit.
"March came in like an anvil and once the COVID situation set in, forced us to start re-thinking 2020's budget," Kulpa told WBEN. "It was sort of like a dual-existence. We were trying to manage our 2020 budget....and at the same time prepare for what 2021 was going to bring in and what you were going to have to do in 2021 to account for the issues in 2020. I feel a little schizophrenic about it."
View the operating budget for the Town of Amherst
The town was forced to layoff many workers, though Kulpa said they had to pay 60 percent of their unemployment. Amherst also stopped hiring, which Kulpa said mitigated additional shortfalls.
When preparing for 2021, Kulpa said that people should expect it to be an anomaly and that future years will be more like years pre-pandemic.
"We're going to be borrowing at less than one percent," Kulpa said. "It's akin to running your household. If you empty your bank account and have to make a payment it's going to be difficult. If you keep your bank account and borrow on your credit card to get you through to next year, it's not ideal but if you're paying less than one point interest then it makes sense to borrow and not try to run the town on vapors."
Over the summer, local government officials pushed for Congress to pass a stimulus bill which could aide local governments. Kulpa wished the Senate passed the House bill that would have included more than $40 million alone for Amherst.
"We wouldn't even be having this conversation," he said. "Next year would look normal. We'd go into it doing our normal infrastructure work. I wouldn't be talking about a tax increase in Amherst because we wouldn't have a deficiency borrowing to deal with."
Kulpa said they have to make a decision by November 9 in order to lock in the tax rates for the entire town. But if the federal government still gives a stimulus package to local governments next year, there's a concern that the taxes imposed on small businesses will be inflated and hurt them more than what was ultimately needed.
Erie County Executive Mark Poloncarz unveiled his proposed 2021 budget on Thursday and said the budget does not allow for the county to move ahead with major projects like "ErieNet", the proposed internet backbone in rural communities. Poloncarz said CARES Act funding could help move that project ahead and said it's important for the region because more people are working remotely in the pandemic.
