July 15, 2020
Committee Members Present: B. Harris, P. Stockin, J.
Burdick, D. Fanton, J. Ricci, C. Crandall (Absent: P. Curran)
Others Present: G. Barnes, S. Decker, W. Dibble, K. Graves,
S. Havey, D. Healy, C. Higby, J. Hopkins, C. Knapp, B. Riehle, T. Ross
Call to Order: The meeting was called to order at 1:09 p.m.
by Budget Committee Chairman Brooke Harris.
Sales Tax Report
Ms. Ross distributed the 2020 Allegany County Sales Tax
Report reflecting receipts totaling $11,234,539.91 through July 13, 2020. The
year-to-date figures show an increase of $147,583.11 or 1.331 percent more
compared to last year at this time.
Legislator Healy asked what Ms. Ross would attribute the
increase in sales tax to. He remarked that maybe it was due to us now getting
sales tax revenue from internet sales and also people having stimulus money to
spend. He noted that the local auto dealer has been doing well also. Ms. Ross
stated that both having stimulus money and being able to collect sales tax from
internet sales has helped. Because we don’t have a lot of retail here, we’ve
been somewhat isolated from the big decreases in sales tax revenue that other
counties are seeing.
NYSAC Reports
Committee Chair Harris asked Treasurer Ross to describe the
two reports from NYSAC that are included in the agenda and tell us how they
relate to Allegany County. Ms. Ross stated that the first report is a January
through June 2020 Sales Tax Comparison report. Allegany County is one of only
sixteen counties in the State that has not seen a decline in sales tax revenue for
the period of January through June 2020. The second NYSAC report shows
Estimated Sales Subject to Local Sales Tax by Marketplace Providers and Vendors
with Economic Nexus. Based on what are considered internet-based sales, we have
an additional $882,878 in sales tax. Legislator Harris remarked that the
January through June 2020 Sales Tax Comparison report confirms what was said
earlier about rural counties with fewer retail businesses. Legislator Harris remarked
that once we start opening up and our residents travel out of the County, we
are likely going to see internet sales decrease. We should encourage our
residents to make their purchases at businesses in the County, and if they aren’t
able to do that, we should encourage them to buy online so we at least get the
sales tax revenue. County Administrator Knapp noted that the NYSAC report
doesn’t account for AIM payments. Legislator Healy asked for an explanation of
AIM payments for those who may be watching the meeting and aren’t familiar with the term. Treasurer Ross stated that these are Aid and
Incentives for Municipalities (AIM) payments that are paid to towns and
villages from the State. The Governor changed the revenue source for those
payments. The payments are now derived from county sales tax with the state withholding
a portion of the sales tax from each county to generate enough revenue to make these
payments. For Allegany County this happens twice a year in May and December. Legislator
Healy remarked that this is another mandated expense for the County. Chairman Crandall
stated that he’s glad we’re one of the counties who have seen an increase in
sales tax revenue but we’re still short of where we’d like to be. It puts us in
a position to remain cautious as we move forward. It’s certainly not a cause
for celebration; the State is still picking our pocket to take care of its
budget. Legislator Healy asked if it is true that we are anticipating a
reduction in revenue from the State this year. Chairman Crandall stated that
the County hasn’t received payments that we should be getting from the State.
Revenue Report
County Treasurer Ross went through her revenue report noting
that it shows activity for the General Fund through July 13. She noted on the
bottom of her report the estimated state and federal claims outstanding from
March through June totaling $6,885,750. This includes grants and other aid we
should be getting. County Administrator Knapp stated these are not cuts but failure
to pay. We anticipate cuts but they haven’t been made yet. Legislator Harris
asked if there was anything in the revenue report that is a cause for concern.
Ms. Ross stated that things are steady and departments have been good about
putting in their claims. The State is saying revenues may be cut by 10-40
percent. Our Community Services office has already seen a 31 percent cut from a
recent claim. Legislator Harris stated it’s better to know. He asked Treasurer Ross
if departments should be making requests for budget adjustments when they
become aware of these cuts. Ms. Ross stated that from what they’ve seen, these
things may eventually be paid. At this point she’s hesitant to make budget
adjustments. She doesn’t want to have to adjust the budget again if they do end
up getting reimbursed. She would like to wait until September when hopefully
they will have a better idea of how things are going to be. Chairman Crandall
agreed. He would like to see a message go out to departments that if they know
of revenues being cut, they should keep the related spending in check.
Legislator Harris stated that many of these cuts are going to be for mandated
programs. He asked if we should continue providing services as usual, or do we
have to cut where funding has been cut. Legislator Healy remarked that the demand
for mental health services actually increases during difficult times. While the
demand for service increases, the State is reducing aid. Ms. Knapp said she
will get the message to departments.
Contingency Budget Update
County Treasurer Ross stated she’s asked departments to come
up with potential savings in the 2020 Budget. Some savings have occurred due to
furloughs. Additional savings are the result of reduced travel and conference attendance. There is
no summer help this year for Public Works, and the beach at Rushford Lake is
not being opened. Potential savings of $2.2 million has been compiled. However,
that number is reduced to $1.5 million when you account for revenue losses in
Public Works. She noted that not all departments included revenue loss.
State Receivables
Legislator Harris asked if the receivables were mostly state
or federal. Treasurer Ross indicated that the majority of the receivables are
due from the State. Mr. Harris asked Ms. Ross what receivables looked like
prior to COVID-19. She stated that prior to March a claim might take 30-40 days
to be paid. Currently, it’s been since March that any payments have been
received. Legislator Harris stated that we are continuing to provide mandated
services while floating the State as they are not making payments to us. We are
continuing to make the Medicaid payment. We are also losing interest on
investments if we had that cash available. Legislator Fanton stated that CHIPS
money is being held as well. A resolution has been put forth through NYSAC
asking the State for our money. Legislator Harris asked if there was any update
on the extreme weather funding. Legislator Fanton said he hasn’t heard
anything. Treasurer Ross stated that the CHIPS funding documentation shows that
twenty percent was withheld and they are hoping to true that up by the end of
the year. It’s committed, but we don’t have the money in hand. Legislator
Graves stated that he’s very much in favor of what Mr. Fanton is doing and the
resolution that Legislator Harris is proposing. We also need to discuss cutting
state mandated programs if the State isn’t paying for them. Legislator Harris
remarked that we can’t forget about the tax cap. It’s going to be impossible
for us to fulfil these programs with the tax cap in place. Treasurer Ross
stated that the tax cap for 2021 is 1.5 percent. Chairman Crandall said that we
can’t continue these programs if we don’t have the money to keep them going.
There are counties that are in really awful financial positions that won’t be
able to keep the programs going without state funding. Legislator Harris requested
the County Attorney to draft a resolution pleading with the State of New York
to pay all outstanding claims for reimbursement of services provided by the
County, and to ensure that the resolution details the egregious amount of those
outstanding claims and the hardships placed upon the County due to the State’s
failure to fulfill those obligations. The resolution should also detail the
estimated losses of revenue from interest on investments had the State
satisfied the County’s claims in a timely manner. The request was approved on a
motion made by Legislator Ricci, seconded by Legislator Burdick, and carried.
Legislator Healy suggested that Allegany County join with NYSAC and InterCounty
on this matter. Legislator Harris stated that it will get forwarded to
InterCounty once it’s been adopted. Refer to County Attorney and Ways &
Means Committee
Budget 2021
Treasurer Ross stated that most departments have submitted
their budgets. Those are being gathered and reviewed, and then we will start
putting together a tentative budget. Legislator
Harris suggested that it’s likely cuts will need to be made
to the budget. He feels it would be good for the committee to provide solid
numbers and guidance to departments rather than leaving that potentially large
task for the Budget Officer and Deputy Budget Officer to deal with. County Administrator
Knapp stated that departments have been asked to keep their budgets as tight as
possible.
There being no further business to come before the
Committee, the meeting was adjourned at 1:44 p.m. following a motion by
Legislator Stockin, seconded by egislator Ricci, and carried.
Respectfully submitted,
Sarah M. Decker, Journal Clerk
Allegany County Board of Legislators
