SLOW FADE: WP SALES TAX $$ DECLINE 6 OF LAST 8 MONTHS, $1 MILLION

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Slow Fade: WP Sales Tax Revenues Decline in 6 of Last 8 Months, Down 2.7%, $1 Million

County Sales Tax Dollars Up in 6 of last Months. Up 4.5% 1st Two Months of 2019.

WPCNR QUILL & EYESHADE. From the New York State Department of Taxation & Finance with analysis by John F. Bailey. March 26, 2019:

White Plains is in a slumping economy.

Perhaps March with its inclement weather and March Madness  will turn things around.

It has to, because after 8 months of the city fiscal year, the city has earned  $33,038,728, $929,896 behind the 2017-18 pace, a 2.7% decline. White Plains sales taxable activity has declined almost 5% below the inflation rate which is about 2%.

Meanwhile, Westchester County is 4.5% ahead the first two months of its new fiscal year, the county economy has grown for the 7th straight month and maintained its average of approximately 5% growth each month.  That is more than double the inflation rate.

White Plains, as it plans its 2019-20 Budget, should be concerned.

If White Plains pulls in last year numbers the next 4 months it will receive $49.147 Million in sales taxes.

If the 3% declining rate is continued over the next 4 months, the revenue will erode to $48.664 Million in sales tax receipts.

With labor negotiations in mind, where a 3% increase is expected to be lobbied for by all unions, in line with the precedent the county set in its negotiations, a 3% decline in sales tax revenues (that fund White Plains year to year raises in the payrolls)—

This six month slow fade is worrisome.

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