$30 million is the amount of revenue the City of Syracuse is projecting it will lose because of the coronavirus, according to Mayor Ben Walsh. And more cuts could be added on top of that.
Much of that $30 million loss is in sales tax, which Walsh said could be a 25% decline. But the city could also lose an additional $14-15 million in state aid, if Gov. Cuomo has to make 20 percent cuts.
"These are numbers we never envisioned in our wildest dreams," Walsh said. "We’ve been very good fiscal stewards for the city over the past couple years. We have a healthy fund balance, or reserve. To have this financial impact compounded by additional cuts, it’s crippling, it’s devastating and it’s not sustainable.”
A 20% cut to state aid for education could also have a significant impact on the Syracuse City School District, in the amount of $60-80 million. New York State announced over the weekend it will make more than $8 billion in cuts to “aid-to-localities,” which includes funding for health care, schools and local governments. That’s why Walsh has been advocating for federal support.
“It’s the only way that we can continue delivering city services in a way that we’ve all come to expect,” Walsh said.
Without federal aid, Walsh said the city will be forced to look at cutting services and staffing. When it is time to reopen the economy, he said safety precautions will have to be put in place for different industries. And thinking long term, he said the city will continue investing in connectivity and internet access, which have become even more important.
