Erie County Ends First Half of 2009 $15 Million in the Black

July 31, 2009

Strong sales tax numbers and efficiency savings help achieve ‘positive variance’

Erie County is ending the first half of 2009 more than $15 million in the black according to the latest Budget Monitoring Report (BMR).  Prepared by Director of Budget & Management Gregory Gach, the report details the savings and shows a net positive variance of $15,245,182 for the period ending June 30, 2009.

The positive variance of $15.2 million is nearly $12 million higher than reported in May thanks to strong sales tax numbers, personnel savings, and efficiency efforts by various county departments.  

“The latest Budget Monitoring Report is another sign that Erie County’s finances are being well managed and controlled during these tough economic times,” said Erie County Executive Chris Collins.  “Our $15 million positive variance reflects our efficiency efforts across all departments and rebounding consumer confidence locally.”  

Despite the weak economy nationally, the latest sales tax numbers received by Erie County reversed the downward trend reported last month.  May sales receipts – received in July – were up more than 6% or nearly $2.5 million as compared to May of last year.  Sales tax is the County’s single largest revenue.  The Administration’s policy of scrutinizing every job opening is also generating savings.  To date, the County has saved more than $5 million on personnel related expenses.

The June BMR also outlined $3 million in departmental savings.  The Child Welfare Services program achieved $1.5 million in savings alone.  In addition, Six Sigma projects and other efficiency efforts have saved another $1.5 million for the first half of 2009.  The County’s positive variance is also the result of federal stimulus dollars provided to county governments to help offset rising Medicaid costs. 

The June BMR numbers include the County’s mandated payments to Erie County Medical Center, a sharp drop in interest earnings, and a dramatic decline in Real Estate Transfer Tax proceeds.  The Budget Department continues to calculate the negative impact of the New York State Budget on Erie County at $4 million.