Report Shows County Budget Running Positive, Sales Tax Climbing

 May 1, 2009

A first quarter Budget Monitoring Report (BMR) prepared by Erie County Director of Budget and Management Gregory Gach shows the County operating with a positive variance of more than $4.7 million so far this year.

Released yesterday, the report also highlights a recent climb in sales tax revenue, the County's single largest source of funding. County sales tax has been declining since October 2008 as local consumers deal with the national recession. Reversing that trend, February 2009 sales tax revenue - received by the County in April - grew a significant $767,138 over February 2008 collections.

"The first quarter BMR shows Erie County is in strong financial shape, despite weak consumer confidence and increasing pressures from Albany," said Gach. "A positive variance reflects the Administration's proper management and control of our budget. We continue to scrutinize the necessity of every vacant position and are achieving lower expenses through efficiency efforts and Lean Six Sigma projects. Climbing sales tax revenue is also encouraging, despite the continued news of a weak economy both locally and across the nation."

The first quarter BMR includes $6.5 million in Federal Medicaid Assistance payments as part of the federal stimulus bill. Going forward, Erie County expects to receive approximately $8 million per quarter in Federal Medicaid Assistance payments. The BMR also reflects an unanticipated County expense of $6.5 million to Erie County Medical Center, mandated by the State.

This BMR does not reflect the impact of the recently passed 2009-2010 State Budget, since New York's fiscal year begins April 1st. Gach now estimates the State Budget will shift an additional $4 million in costs to Erie County in 2009.