Archive: News

The Legislature’s budget committee was reminded today that New York State’s delays in state aid to county programs are having an effect on County finances.

Finance Director David Squires told the Budget, Capital and Finance Committee that the County’s General Fund cash balance for November stands at a little more than $15 million, down by more than $4 million from a year ago, a difference that he attributes largely to the current delay in state aid payments.  Squires said that the State’s inconsistency in making payments makes it difficult to measure the impact of what has occurred and to plan for cash flow.  By his best estimate,  Mr. Squires projects that the General Fund cash balance could stand at just over $8 million at year’s end.

County Administrator Joe Mareane has cautioned legislators that the State’s budget shortfall is creating “meaningful problems” for counties throughout New York State.  “In delaying payments to the counties and other local governments, the State is simply using smaller, property tax-supported governments as its bank—borrowing money without interest and with no real guarantee of repayment,” the administrator states.

In Tompkins County,  the largest single delayed payment is $1.1 million in reimbursements to the County Health Department.

The committee was assured that the County is not using any of its $30 million fund balance to replace funds reduced by the State.  Director Squires told the committee that, without its healthy fund balance, the County would be forced to borrow to cover expenses, as have some nearby counties.

Committee chair Jim Dennis said the County must be prepared to respond in a reasoned, coordinated manner, once the full local impact of  the State’s fiscal problems becomes known.

----
v5i49