First Look 2021 Budget Update and Projected Deficit

Hello Everyone,
 
While other Greenburgh news updates are sending out emails about testing poop in the sewers, today's email is going to focus on an important topic, the Greenburgh 2021 Budget.  If you are reading this, you are reading the very first public announcement about the projected deficit that we are facing in Greenburgh.  Stay in the know with these emails, like my FB page for additional updates, and encourage your neighbors and friends to sign up.

As first announced during the 8/25 Town Board Work Session, the Town Board is facing a significant projected deficit in the B or TOV budget for next year.  The Town Financial Policy prescribes maintaining a fund reserve in the B budget equal to a minimum of 8% of the following years appropriations which is approximately $7.1mm in reserve.  Current projections as reported by Comptroller Roberta Romano estimate that next years projected budget would leave us with a fund balance equal to $3mm, or $4mm below the projected floor.  $4mm is equal to 4.5% of prior year TOV spending and 6.75% of TOV tax revenues.

The projected deficit is primarily due to a loss of revenues from the Town Hotel Tax, decreased revenues from our share of County Sales tax, and reduced revenue from Licenses and Permits.  In last yearss budget we collected ~$13.2mm in revenue last year from these line items.
 
The Town Board went into executive session immediately following the work session to discuss the budget situation.  As a result, what was discussed or preliminary plans to deal with this budget deficit are unknown at this time.  Whatever they decide will likely be some combination of tax increase, service/spending reductions, and delay in capital projects.  The only line items in the budget that are greater than $4mm are for Police, Sanitation, Highway, Debt Service and Employee Benefits.  Possible early retirement incentives for Town employees was discussed as one potential cost savings by the Town Supervisor similar to a Westchester County program.  Other Town Board members suggested reaching out to Senate Majority Leader Andrea Stewart Cousins, but the state is facing an even graver budget situation.  There will be no easy solutions here and hard decisions will have to be made.   



This problem will not be unique to Greenburgh.  We know that all levels of Government are going to have budget problems due to a loss of sales tax revenue and other revenues this year.  We also know that the coming wave of Commercial Certiori's(Commercial property owners can retroactively grieve their assessments unlike residential property owners and collect a rebate of tax revenue and you can be sure with the lockdown the will be doing so) will mean even if revenues can stabilize or return to previous levels that the damage will not just be short term.