NYSAC Fall Seminar • Sept. 15 th 2020 County 2021 Budget Challenges Dave Lucas NYSAC Director of Finance and Intergovernmental Affairs 1 #CountiesForwardTogether 1
County 2021 Budget Challenges• Sept. 15 th 2020 Join the conversation online! Follow your association on Twitter, Facebook and Instagram for the latest news and updates from NYSAC. @nyscounties nyscounties @NYScounties 2 #CountiesForwardTogether 2
County 2021 Budget Challenges• Sept. 15 th 2020 Virtual Contests 1 - Virtual Fall Seminar Tweet-Off 2 - #CountiesForwardTogether Instagram Photo Contest 3 - Perfect Attendance Award drawing nysac.org/contests 3 #CountiesForwardTogether 3
County 2021 Budget Challenges• Sept. 15 th 2020 NYSAC Thanks our Workshop Sponsor: Absolute Auctions & Realty, Inc www.aarauctions.com 4 #CountiesForwardTogether 4
NYSAC Fall Seminar • Sept. 15 th 2020 2020 Impacts Steven M. Neuhaus County Executive Orange County Deborah Slesinski Budget Director #CountiesForwardTogether 5
Orange County is in southeastern New York State it has a total area of 839 square miles. As of the 2010 census, the population was 372,813. Orange County #CountiesForwardTogether 6
With help from departments, a 2020 year-end projection was completed. While any projection is difficult, this forecast is very uncertain. Economic conditions continue to change quickly, and actual revenue losses will fluctuate. The GDP decreased almost a third in the Projection second quarter of 2020, the worst decrease in over a century. Travel restrictions and quarantines are still being required, and we await the possibility of a second wave in conjunction with flu season. #CountiesForwardTogether 7
• Sales Tax Orange County sales tax comprises 27% of the revenues in the 2020 budget. Currently, sales tax is down 13.62% from the same time last year. When comparing the period March through May, Orange County had a decrease in taxable sales from 2019 to 2020 of over $576 million dollars (source www.tax.ny.gov). 2020 Mid id-Year Revie iew – Sale les SALES TAX Tax 2020 Actual 2019 Actual County Portion County Portion $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $- FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST #CountiesForwardTogether 8
Mid- Year Review - Hotel Tax • Hotel Tax The travel and hospitality industry is a significant part of the economy in Orange County. Having hotel rooms empty for 3 months has had a major impact on revenues. Hotel tax supports our Tourism Department and helps to generate our fund balance. Currently, hotel tax is down 44.6% from the same time last year. #CountiesForwardTogether 9
Tax Shortfalls Based on different assumptions and guidance from NYSAC, the expected shortfall in sales tax and hotel tax revenues is as follows: • Sales Tax - $25 — $35 million less than budget • Hotel Tax - $1.7 — $2.2 million less than budget #CountiesForwardTogether 10
It appears that we could be short $1.2 million is budgeted in revenue $700,000 in court facility revenue for an auction to sell delinquent A shortfall of $2 million in casino and compassionate care funds (sale properties, which we are hoping to revenue is expected. of marijuana) both of which come schedule in November, if NYS allows from the state. it to happen. Certain state funding is being Orange County DMV has been subject to a 20% withholding as we closed for 3 months and is currently await further guidance from the operating by appointment only. state on whether this will become a DMV fees are down 50% as permanent cut. compared to 2019. Additional Revenue Challenges #CountiesForwardTogether 11
Cost Reduction Plan by departments Hiring Freeze Separation Incentive Voluntary Layoffs Strategies Justification for all Purchases Implemented Freeze on Commodity & Equipment Spending as of 9/30 to Cut Spending Freeze on Travel/Conferences Pause on Capital Spending #CountiesForwardTogether 12
Cost Reduction by Departments WHILE NOT ALL DEPARTMENTS WERE ABLE ORANGE COUNTY REQUESTED EACH AN ESTIMATED $10.5 MILLION WAS SAVED TO GIVE THE FULL 15%, MANY WERE ABLE DEPARTMENT PROVIDE US WITH A 15% THROUGH CONTRACTUAL AND TO IDENTIFY ITEMS IN THEIR BUDGET THAT CUT OF THEIR 2020 EXPENSES. EQUIPMENT CUTS. COULD BE PUT OFF OR ELIMINATED. #CountiesForwardTogether 13
Vacancies • Orange County currently has 286 vacant FT and PT positions within the county. • By holding these positions vacant, we have saved an estimated $11.7 million to date. #CountiesForwardTogether 14
County Government came to an agreement with our unions to offer a voluntary incentive to our employees based on the following terms: $10,000 for Orange County Government employees with 10 up to 20 years of service. Separation Incentive $12,500 for Orange County Government employees with 20 up to 30 years of service. $15,000 for Orange County Government employees with more than 30 years of service. #CountiesForwardTogether 15
Separation In Incentive Savings Orange County had Approximately 63 participants from $1,966,306 was the separation saved. incentive. #CountiesForwardTogether 16
Orange County made a Voluntary Temporary Layoff Program available to certain eligible employees from the Temporary date of June 1, 2020 through July 31, 2020. Temporary layoffs were instituted in month long increments. Employees Layoff could participate for one or both months. Employees from the following County Departments were not eligible to Program participate due to the nature of their jobs: Valley View, Health Department, Emergency Services and Probation. #CountiesForwardTogether 17
Savings from Voluntary Layoff The County had 9 22 Participants for July only participants for June only Orange County saved And 48 participants for both $426,917 by offering this months program. #CountiesForwardTogether 18
Justification of Purchases – Spending Deadlines Departments were asked to Purchasing typically gets cut off reduce their 2020 budget by for departments mid October- 15%. By limiting non-essential Early November for Equipment spending, our contractual and and Commodities. For 2020, we equipment purchases are down are moving this deadline to 9/30 20% as compared to 2019, a for both areas, to achieve savings of over $20M. greater savings. #CountiesForwardTogether 19
Travel and Conference spending has been restricted since the start of the pandemic. We are down $100K in spending as compared to the same time in 2019. Capital spending is currently on pause, with the emphasis on Travel Freeze & only essential projects. We are down $2.9M as compared to the same time in 2019. Pause on Capital Spending 20 #CountiesForwardTogether
Even with all the strategies implemented, we are still projecting a $35 - 40 million deficit at year-end. #CountiesForwardTogether 21
County 2021 Budget Challenges• Sept. 15 th 2020 2021 Tompkins County Recommended Budget Tompkins County Administrator Jason Molino #CountiesForwardTogether 22
Tompkins County Recommended Budget • Sept. 15 th 2020 The Bottom Line • Levy up 4.97% • No layoffs • Rate only up 1.17% • Elimination of 47 FTEs, 6% • $5 increase of solid waste fee reduction • Placement strategy for 18 • $83 impact for average impacted employees homeowner • Revenue concerns • 8.9% decrease in sales tax • 55% decrease in casino revenue • Potential 20% reduction in State aid, or greater #CountiesForwardTogether 23
Tompkins County Recommended Budget • Sept. 15 th 2020 July ‘19 Tompkins County – 3.9% Southern Tier - 4.2% New York State – 4.2% NYS Dept. of Labor #CountiesForwardTogether 24
Tompkins County Recommended Budget • Sept. 15 th 2020 • SNAP (food stamp) caseloads generally declining • # of applications decreased when enhanced unemployment was offered • Still 40+% higher than January 2008 (pre- recession) http://otda.ny.gov/resources/caseload / #CountiesForwardTogether 25
Tompkins County Recommended Budget • Sept. 15 th 2020 • Family Assistance (TANF) cases continue to decline • Continue with downward trend since 2008 • No local cost (or savings) • 5 year life time eligibility http://otda.ny.gov/resources/caseload / #CountiesForwardTogether 26
Tompkins County Recommended Budget • Sept. 15 th 2020 • Safety Net cases remain 25% above January 2008 (pre-recession) • Indicates that the vast majority of new applications submitted during the pandemic have been for SN households not TANF • 71% local funding/ 29% NYS http://otda.ny.gov/resources/caseload / #CountiesForwardTogether 27
Tompkins County Recommended Budget • Sept. 15 th 2020 Major Budget Drivers • Revenues • Expenditures • Sales tax • Capital Program • Tax base • Labor Costs • Casino revenue • Unfunded Mandates #CountiesForwardTogether 28
Tompkins County Recommended Budget • Sept. 15 th 2020 Sales Tax • Average annual sales tax growth has been approx. 2.0% for past decade • 2.5% for prior 15 years • Exception: • -6.07% (2009) • -2.17% (2015) & -.55% (2016) • 2017- growth of 6.51% • 2018 – growth of 5.41% • 2019 – growth of 4.13% • 2020 – est. decrease of -14% to 2019 actual #CountiesForwardTogether 29
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