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WPCNR QUILL & EYESHADE. By John F. Bailey. July 17, 2009: For the first six months of 2009, the Westchester County share of sales taxes it collects is down $23.3 Million from the 2008 sales tax pace off 12%. If the trend continues, the cumulative effect of a 12% annual decline could mean the county faces a $44 to $46 Million decline in sales tax for the year, and as high as $57 Million by rough WPCNR estimates of the present trend.
COUNTY SALES TAX
COLLECTIONS JAN TO JUNE 2009
$205,972,196.12
County’s Share (79%)
$162,718,034
COUNTY SALES TAX
COLLECTIONS JAN TO JUNE 2008
$235,448,377
County’s Share:
$186,004, 217
SALES TAX SHORTFALL:
JAN-JUNE 2009:
(-$23,286, 183)
COUNTY BUDGETED
SALES TAX COLLECTIONS 2009
$478,000,000
Projection Shortfall
if sales tax continues to be OFF 12%
2009:
(-$57,360,000)
Westchester County, according to the New York State Department of Taxation and Finance figures released to WPCNR, was down 12.52% in sales taxes collected the first six months of the fiscal year. From January to June the county collected $205, 972,196.12 contrasted with $235,448,377 in 2008.
Of this $205,972,196, according to Donna Greene, Westchester County Communications Director, the county gets to keep approximately 79%.
That 79% works out to $162,718,035 for the County Government, the balance of $43,254,161 going to communities who do not collect their own sales taxes (the county does it for them).
Ms. Greene issued this statement on how the county is attempting to compensate for the erosion of sales tax revenue as we write:
“For the 2nd quarter of 2009 (April May June) our sales tax revenues (the portion the county government keeps) were $79,639,549 This is down ($12,127,070) from $91,766,619 in 2008
Clearly sales tax revenue is down from where we had hoped. However, it is difficult to annualize these numbers and say if we are down X in the first 6 months we are down 2x in 12 months.
Having said that, we of course have to make adjustmens along the way to our 2009 budget.
So far the following:
1. We have $30 million in FMAP money (this is Federal Medical Assistance Percentage — from the federal stimulus program) … essentially more of our Medicad costs are being paid for by the feds.
2. Back in March a $7 million savings plan was implemented by the County Executive
3. We are continuing to slow down the filling of vacant posiitions and we will continue to look for ways to save money in every budget line possible.
Obviously, none this is easy, but it is essential.”
The savings and Federal Medical Assistance Percentage detailed here total $37 Million in hard cash, WPCNR notes,which would cover the $23 Million shortfall that already exists. Should the county economy remain on its 12% decline pace, the sales tax deficit would reach $46 Million by the close of the fiscal year.
Because the county has budget $478 Million in sales tax in its $1.7 Billion budget, if that $478 Million is off 12%, the sales tax shortfall actually could amount to $56 Million in funds that are not going to come in.
Should the county economy pace of purchasing deteriorate, the year-to-year sales tax deficit would grow beyond the $46 Million figure, assuming the county remains at its present level of consumption.