BUFFALO, N.Y. (WBEN) - Town officials in Erie County are optimistic about news of federal relief coming to local governments.
"It really is relief," Amherst Town Supervisor Brian Kulpa said. "Last year we were suffering with revenue deficits caused by pandemic shutdowns. That revenue deficit was probably about as high as $10 million and we had to incur a decent amount of cost cuts during the year. But we still left the year with a $6 million deficit borrowing. For us, this shuts the door on that $6 million deficit and we would use it to immediately retire the deficiency note, which would hypothetically allow us to return the money we would have been using and allocating for 2021 to pay back that deficit."
More than $792 million is being proposed for Erie and Niagara County under President Biden's American Rescue Plan, a $350 billion relief package for state and local governments. The Town of Amherst is expected to receive $14 million. Smaller towns like Eden are due to receive about $1.4 million.
"We were lucky to have recovered quite nicely last year in regards to our revenues," Eden Town Supervisor Melissa Hartman said. "We were probably not as bad off as we originally thought maybe when we did our budget."
Hartman said Eden couldn't hire new police officers after some retired and their recreation program was negatively impacted.
This isn't the first time local governments were promised millions in relief from the federal government. Last May, House Democrats passed a $375 billion relief package for local governments, only for it to die in the U.S. Senate.
Local officials believe this time it's different. While both supervisors didn't directly attribute it to the balance of power in the federal government, a democrat-controlled presidency and Congress is likely one of the key reasons why it's more likely.
"There is a way to pass a package without having to negotiate with both sides," Hartman said. "I am confident in following the national news that we should be able to receive something. I don't know if $1.4 million for the Town of Eden will be the final number or if that will decrease. Either way, any funding that can go directly to municipalities to help offset some of the revenue loss as well as the expenses for COVID will be a relief."
"Is it too good to be true? Look, I don't want to count anything until it's done," Kulpa said. "Both offices (of Higgins and Schumer) have been in contact with me and have walked me through this process and have reasons for optimism. Like I said, I'm grateful that every municipality in Western New York is on the list of places that had recognized deficiencies due to COVID. We would be ecstatic if we're able to cover the 2020 deficit with it."
The House is expected to vote on the funding in the next couple weeks.
