On May 6, The New York State Association of Counties (NYSAC) released an updated report on the economic impact of the novel coronavirus on New York’s counties that projects drops in revenue between $1.5 billion to $3.6 billion over the next year.
“Counties are facing an economic calamity that exceeds what we saw in the worst of the great recession, and this time it’s occurring in the middle of a global pandemic,” said NYSAC President John F. Marren, chair of the Ontario County Board of Supervisors.
“Without help from the federal government in the form of direct aid to state and local governments, the counties who are leading the effort to stop COVID-19 and lay the foundation for reopening will face savage cuts to staff and services that could not come at a worse time,” said Albany County Executive Dan McCoy, president of the NYS County Executives Association.
The report details how counties face a quadruple threat of:
•Declining local revenues, especially sales tax, but also hotel occupancy taxes, mortgage recording taxes, gaming revenues, among other revenues;
•Higher spending necessary to respond to the health emergency and meet the state’s requirements for reopening;
•The loss of state reimbursement; and
•The potential of significant losses for small businesses on our main streets that could threaten jobs and the property tax base over the short to mid-term.
“Our initial report created an outline of what the economic impact of COVID-19 would look like. Now, as we have more data available, we’re able to color in those lines a little more, and the picture is much darker than we previously thought,” said NYSAC Executive Director Stephen J. Acquario. “Just as counties led the closing of our communities, counties are going to be leading the reopening and these numbers make it abundantly clear that we will need significant help from the state and federal government to accomplish that mission.”
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