Just as Niagara Falls seemed to be making headway in its financial struggles, a dispute between the Seneca Nation and the State of New York has resulted in the City losing as much as $60 million in revenue. The City’s 2013 executive budget proposal called for significant layoffs, program cutbacks, and property tax increases.
Salamanca unexpectedly lost revenues from the Seneca Allegany Casino due to a dispute between the Seneca Nation and New York State over exclusive gaming rights. Although Salamanca aggressively responded to this revenue crisis, the City could run out of cash before the fiscal year ends on March 31, 2013.
Local governments’ infrastructure needs are substantial and growing, while their ability to maintain their investments in capital programs is increasingly constrained. State policy changes could help reverse this trend.
From 2001 to 2011, total federal and state aid combined, grew at an average rate of 2.2 percent annually, slower than the rate of inflation (2.4 percent).
Utica has been in fiscal decline in recent years, relying on non-recurring revenues to fill budget gaps. Its new mayor has vowed to work with the City Council and OSC to ensure that the City remains in control of its own financial future.
Gloversville faces significant fiscal challenges as it has nearly exhausted its constitutional taxing limit, severely limiting its flexibility to address unforeseen expenses and make ongoing infrastructure investments.
Sluggish growth in sales tax revenues adds additional pressure to already strained county budgets and to the budgets of other local governments that receive sales tax revenues through sharing agreements.
By several measures, Yonkers is better off than many other cities in the State. Despite these advantages, the City has been challenged by significant structural budget gaps and, by the end of its 2011 fiscal year, the City had essentially depleted its general fund reserves.
The City of Syracuse faces many of the same challenges as other upstate cities. However, a larger than average percentage of its property tax base is either exempt or delinquent and growing fixed costs in the budgets of the City and the dependent school district have created chronic budget gaps.
The City of Rochester projects large and growing budget gaps in its 2013-14 through 2017-18 fiscal years. Absent significant spending cuts or increasing revenues, the gaps could cause the City to exhaust its available fund balance within the next two fiscal years.
