Erie County is now officially in a deficit after a declaration on Monday morning by Erie County Comptroller Stefan Mychajliw. Mychajliw made the declaration after projections that the county is facing more than $200 million in revenue shortfalls. More than half of the shortfalls stem from a loss in sales tax revenues due to businesses being shut down. Hotel revenues are nearly non-existent compared to the figures prior to the pandemic.
READ MORE: Deficit declared in Erie County by Comptroller Mychajliw
Erie County is projecting $83 million in the next round of stimulus money, though figures from Higgins’ office project the relief to be $81.4 million in the previous proposal for government relief. Higgins said that the allocations are based on population and need, similar to the formulas used for community development block grants.
Still, Erie County is considering widespread cuts across all departments. Poloncarz has asked all department heads to come up with a plan that would include cuts by 13.1 percent, something the county executive described as a “worst-case scenario.”
Poloncarz must officially submit his plan close the deficit by next Monday. Mychajliw will then be given one week to provide comments on the county executive’s plan. The Erie County Legislature will then have three weeks to implement an official plan. If no plan is created within the three weeks by the legislature, the county executive’s plan will be used.
“If we do receive federal assistance that will help us reduce that 13.1 percent cut to a lower amount which will then ensure that services the public wants are still open,” Poloncarz said. “Whether it be our parks, which we’re still trying to keep open, our libraries…and then essential services that we have to provide under the law.”
The House of Representatives will not be in session this week out of concerns of coronavirus. However, the Senate will be in session. Higgins said that because there is no bill to be voted on, there’s no sense to be there. He acknowledged that the Senate is confirming judges in their session.
“There’s a negotiation going on as we speak relative to a next disaster relief bill,” Higgins said. “This is not stimulus. This is disaster relief. The federal government has to provide the resources to the state and local governments to offset both the expenses their incurring but also the revenues they’re not experiencing.”
Within Higgins’ district alone, there is more than $300 million projected for local municipalities.
In the City of Buffalo, leaders are banking on $65 million in emergency relief as part of Buffalo Mayor Byron Brown’s proposed budget. The last proposal by the federal government would have given the city $142.2 million.
“Nothing is secured right now,” Higgins said. “That represents what was in the last bill until the last hour when states and localities were kicked out.”