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Municipalities are 'stuck in a moment' as New York State delays, federal leaders debate

By Mike Pettinella

Local governments throughout New York State remain in a holding pattern as they wait for word from Albany on state aid levels and from Washington, D.C., on another federal stimulus bill.

“No update has been received by the Genesee County Manager’s Office regarding state reimbursements of mandated expenses,” County Manager Matt Landers said last night.

Municipalities were expecting to receive an update regarding state funding from Gov. Andrew Cuomo on Sept. 30, one of the governor’s predetermined “benchmarks” to evaluate and inform localities of the impact of the COVID-19 pandemic upon New York’s economy.

Until he hears something different, Landers said Genesee County is “still planning for 20-percent reductions in state reimbursements for both county fiscal years 2020 and 2021.”

The county, towns and fire districts have fiscal years that run from Jan. 1 through Dec. 31.

Villages’ fiscal years run from June 1 through May 31, except Alexander, which runs from April 1 through March 31. The City of Batavia’s fiscal year is also April 1 through March 31.

Landers and officials in other counties have been supported by repeated calls from the New York State Association of Counties for the White House and Congressional leaders to reach an agreement on a coronavirus stimulus package that would provide direct aid to local governments.

NYSAC’s latest plea to pass an updated HEROES (Health and Economic Recovery Omnibus Emergency Solutions) Act came on Thursday following its virtual Fall Seminar.

In its press release, NYSAC stated that an analysis of the modified $2.2 trillion HEROES Act -- which was moved by leaders in the House of Representatives this week and is still in the midst of negotiations – reveals that counties across the state would receive nearly $3 billion in federal stimulus.

“Every day that passes without a deal on direct aid to local governments, the deeper the economic hole that is being dug in our communities,” said NYSAC President John F. Marren. “Local governments stepped up and expended great resources to stop the spread of the virus and now, with state aid being withheld and revenue collection down, counties are being forced to cut services and lay off employees, which only depresses the economy further. It’s time for Washington to get behind a plan and get this done for the American people.”

The NYSAC report also indicated that through the Community Development Block Grant program, entitlement communities across New York State -- municipalities over 50,000 in population – would receive about $2.4 billion.

Other, smaller cities and localities, would receive $2.2 billion, and New York City, which has half of the state’s 19 million people, would receive $5.35 billion.

The House’s latest version of the HEROES Act is $1.2 trillion less than what Democrats proposed in May, and includes direct payments to individuals and families, and enhanced unemployment benefits.

The issue of sending funds to states and municipalities is one of the sticking points, but reportedly has the support of the Trump administration in the amount of $250 billion.

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