Economic impact of pandemic was ‘stark’
The demand for social services in Ulster County increased dramatically in the early days of the coronavirus pandemic as unemployment soared in response to government-ordered shutdowns, according to a new report from county Comptroller March Gallagher.
The report, covering the second quarter of 2020, says the county lost 6,900 jobs at the beginning of the pandemic, primarily in the education, health services and leisure and hospitality sectors, though jobs in other services and government also took a hit. Since then, the county has regained some 4,100 jobs, or 59% of those lost.
At the same time the county was enduring dramatic job losses, demand for assistance through the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and Medicaid skyrocketed, the report stated.
“Ulster County experienced immediate, stark, second-quar
ter economic impacts as a result of the pandemic, including significant job losses and increased need for Supplemental Nutrition Assistance Program and Medicaid,” Gallagher wrote in a press release accompanying the report.
Monthly SNAP benefits jumped by $1.6 million between March and April, then slightly declined in
the following months, the report states, and Medicaid enrollments increased by over 2,300 between February and May.
By comparison, in the 12-month period prior to the onset of the pandemic, SNAP benefits varied by less than 2%, and Medicaid had less than 0.5% variation in the number of recipients.
Also, the report states, the county suffered a reduction in revenues, bringing in $159.3 million through June 30. That’s
46.5% of the total budget for 2020..
According to the report, the county’s largest revenue losses were in sales tax and the county’s occupancy tax. Larger decreases resulting from the losses in sales and occupancy taxes were offset by increased state and federal aid, the report states.
County spending also was down in the first half of the year, with the county spending only $130 million, or 37.2% of the budgeted amount for
2020. At the same point in 2019, the county had spent 41.1% of its 2019 budget of $329 million.
Gallagher said in her report the reduction in spending was, in part, the result of a $5.2 million decrease in contractual expenses, mostly related to child care and family assistance programs.
“Revenue declines have been addressed through a spending and hiring freeze that has resulted in lower expenditures as of June 30, but continued
vigilance is necessary to minimize further negative financial consequences for Ulster County taxpayers, “she wrote.
In March, County Executive Pat Ryan announced a spending and hiring freeze across county government, and in April he offered a retirement incentive program to county employees. Then, earlier this month, Ryan sought approval from the county Legislature to draw down $1.47 million from the county’s special tax stabilization
fund, but lawmakers postponed action on the request until October amid concerns about tapping that fund for expenses that will be reimbursed by the Federal Emergency Management Agency.
Ryan is expected to unveil his proposed 2021 county budget on Oct 1. He has warned that expected decreases in state and federal aid could put a strain on the county’s finances in the coming year.