Erie County Comptroller shares estimated sales tax revenue loss due to COVID-19

Erie County Comptroller Stefan Mychajliw has analyzed sales tax projections for every village, town, city and school district through June for “best and worst-case scenarios,” depending on the percentage of sales tax reduction due to the COVID-19 pandemic March through June 2020.

Using figures currently available to his office, including total sale tax received from March to June in 2019, members of Comptroller Mychajliw’s Accounting Division ran this analysis to assist local leaders and superintendents as they monitor and adjust their budgets.

“This is a trying time for all of us and I know that every village, town, city and school district is carefully monitoring their budget as revenues are expected to take a major hit.  While we are all hoping we can get back to ‘business as usual’ sooner rather than later, we also are aware that the shutdown of businesses and loss of jobs is going to impact sales tax numbers.  As the County’s Chief Fiscal Officer, I ran these analyses to provide ‘best and worst-case scenarios,’ depending on the percentage of sales tax reduction.  Having this information will be essential as everyone adjusts their budget and makes difficult decisions during and after this unprecedented event.” Mychajliw said.

Mychajliw’s projections of potential loss to the Akron Central School District range from $42,960.0 (best case 10 percent potential loss) to $214,803.52 (worst case 50 percent potential loss).  Projections for the Town of Newstead range from $30,944.66 (best case 10 percent potential loss) to $154,723.30 (worst case 50 percent potential loss) and for the Village of Akron from $9,663.03 to $48,315.17.

The Village of Akron is in the process of developing and adopting a 2020-2021 budget, as is the Akron Central School District.  A 2020 budget is in place for the Town of Newstead.