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Essex County chairman says fiscal situation isn’t dire — yet

ELIZABETHTOWN — Faced with possible cuts to state aid as New York contends with the fiscal gash inflicted by the coronavirus pandemic, Essex County Board of Supervisors Chairman Shaun Gillilland said this county’s finances are OK — for now.

Gov. Andrew Cuomo has quietly started to implement 20% budget cuts that are expected to trickle down to local governments, Politico reported on Thursday. Aug. 27. The governor has repeatedly pressed for upward of $60 billion in unrestricted aid from the federal government to help bridge the state’s widening budget gap. New York’s federal representatives have each echoed the need for more federal aid. As recently as July, North Country Rep. Elise Stefanik, R-Schuylerville, has urged Senate Majority Leader Mitch McConnell to support federal aid for both New York state and its local governments. But negotiations in Washington over a new stimulus package appear to be at a standstill.

Counties typically have until Dec. 20 to adopt a budget for the next year. Gillilland, R-Willsboro, said during a press conference on Aug. 27 that Essex County is in the early stages of building its 2021 budget now, while considering the possibility of cuts to state aid.

“We’re in the process right now of analyzing what the effect will be,” he said.

Gillilland said county officials have been told that federal funds won’t be withheld.

“It’s not an across-the-board disaster,” he said.

Gillilland credited the financial planning of county Manager Dan Palmer for the government’s relative stability amid the pandemic.

“We’ve invested through a series of tax increases that were very painful, but have rebuilt a very healthy fund balance,” he said.

Healthy fund balances — essentially tax dollars and other revenue put into reserves or left unspent — can help shelter county and local governments from financial storms, Gillilland said.

“I think 2020 is about as rainy as it can get,” he said. “I’m optimistic that we will get through this year.

“I don’t think it’s as dire at this point as could be imagined because we have a healthy fund balance to cover expenses. If this goes on one or two more years, the answer to that question will be very different.”

The state has withheld roughly $430 million in aid to colleges and universities, plus $324 million to school districts, Politico reported. Altogether, a quarterly budget update released by the state this month shows about $1.7 billion in local aid payments that have been withheld.

New York is facing a projected $62 billion revenue loss in the next four years, according to a report from the state Division of Budget.

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