Purpose of Budget Review

The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the County’s adopted budget for the 2018 fiscal year are reasonable.

Background

Westchester County, adopted a total budget of approximately $2.1 billion for fiscal year 2018.

Key Findings

• Significant revenue and expenditure projections in the proposed budget are reasonable.
• While the County budgeted $544.5 million in revenue for sales tax collections, we estimate total collections to be closer to $538.4 million.
• The County budgeted $246.6 million in State aid revenue, which may be overestimated.
• Four of the County’s collective bargaining agreements (CBAs) have expired and the County faces potential significant increased salary and wage costs when these agreements are settled.
• The County’s adopted budget includes a tax levy of $705,565,775, which is within the limits established by the law.

Key Recommendations

• Monitor sales tax and State aid revenues throughout the fiscal year and make any needed budget amendments if revenues fall short of estimates.
• Consider the potential financial impact of the settlement of the expired CBAs and be prepared to provide the necessary funding in the event that any are settled in 2018.