Noble pleads for federal aid
The Kingston mayor appeals to Trump, Schumer to help make up revenue shortfalls amid pandemic
KINGSTON, N.Y. » Mayor Steve Noble is urging federal officials, including President Trump, for federal aid to municipalities to ease budget problems caused by the COVID-19 pandemic.
Noble made his plea in July 7, 2020, letters to Trump and U.S. Sen. Charles Schumer, D-N.Y.
Noble sent the letters as he prepares for budget talks with city department heads and the Common Council.
“The outbreak of COVID-19 has created a time of uncertainty for local governments,” he wrote to Trump. “I am grateful that the CARES Act (the federal stimulus bill approved in March) provided critical funding to protect public health and the country’s most vulnerable households and small businesses. I also appreciate the fiscal assistance that has already been enacted for states and some local governments for expenses related to COVID-19.
“Unfortunately, to date, the federal government has provided absolutely no relief to local government for our lost revenues resulting from the coronavirus pandemic, which account for the vast majority of the COVID-caused budgetary
harm in the City of Kingston’s budget,” the mayor wrote.
In both letters, Noble cited specific city fiscal issues.
• Sales taxes: Projected receipts of $14.3 million accounted for more than a third of the city’s budgeted revenue in 2020.
“This economically sensitive revenue source has been severely affected by the reduction in consumer spending due to the COVID-19 economic downturn,” Noble wrote. Current estimates are that the 2020 sales tax revenue losses will range between $2 million and $2.8 million.
• Property taxes: The city is experiencing a rise in delinquent property taxes due to rising unemployment rates attributed to the pandemic. In 2020, the city is expected to lose $450,000 to $800,000 in property tax revenue as a result of the delinquencies.
• State aid: As New York must address its own budget deficits resulting from the pandemic, it is expected that local governments will see significant cuts in their state-funded operating aid.
“We expect that Kingston’s state aid will be reduced by a minimum of $600,000 in 2020, if not more,” Noble wrote.
• Parking revenue: The city expects to lose $700,000 or more in parking fees and fines in 2020.
“This revenue source is tied directly to the economic health of our local businesses and the level of consumer spending, both of which have been severely impacted by the COVID-19 pandemic,” Noble wrote.
The mayor wrote in his letters that federal aid is necessary.
“As discussion in Washington progress in developing a fourth emergency response package to help safely reopen and restore our local economies, I want you to know that any package that does not include direct federal funding to all local governments will be a failure,” Noble wrote.
The mayor suggested:
• $500 billion, over two years, in federal aid for local governments.
• Equal funding for municipal and county governments.
• Maximum flexibility for the use of funds to address the budget consequences of the pandemic, especially with respect to lost revenues.