Local sales tax collections in New York State increased by 16.7% in May compared to the same month in 2021. Overall, local collections totaled $1.7 billion, up $242 million from May of last year.
The devastating job losses caused by the COVID-19 pandemic led to a record number of unemployment insurance (UI) claims in New York, necessitating borrowing from the federal government beginning in May 2020. Two years later, the State’s UI debt has remained stubbornly high despite steady employment gains and state tax rates that have already increased to maximum permissible levels. Absent federal or state significant action, interest costs will mount and employers federal taxes will also grow.
Of the total contracts reported by State agencies in 2021, 58 percent were processed after their start or renewal dates, a decrease from 78 percent in 2020.
The pandemic required a shift in agency operations, initially changing traffic patterns and requiring a pause in construction and repair work. As the City began its recovery, adaptations were needed to expand outdoor public space to encourage economic activity amid the public health crisis. The agency managed the administration and enforcement of the Open Streets and Open Restaurants programs.
The Municipal Water Finance Authority reports that drinking water quality, water supply, and wastewater treatment were not impacted by COVID, but the pandemic has negatively affected revenues. The System’s total operating revenues declined by nearly $164 million (4.3 percent) from FY 2019 to FY 2021.
The DSNY experienced a surge in medical leave during the first few weeks of the pandemic and has continued to experience spikes in employee unavailability. This factor, coupled with a FY 2021 hiring freeze which reduced uniformed staff by 9 percent (nearly 700 employees) between February 2020 and June 2021, has resulted in higher overtime costs.
To alleviate population density during the pandemic, the City accelerated the release of some inmates utilizing reintegration hotels with support services run by non-profit organizations. However, more than 1,200 correction officers had been reportedly infected with COVID-19 through March 2021.
Immediately following the start of the COVID-19 pandemic, about one-fifth of firefighters and a quarter of EMS staff were unavailable for duty on medical leave. Meanwhile, medical emergency calls to 911 surged to the highest daily number in FDNY history (over 6,500).
