Hiring, spending freeze instituted to brace for losses

Ulster County Executive Pat Ryan has instituted a hiring and spending freeze in county government to brace against what could be a catastrophic loss in sales tax revenue due to the disruption of business being caused by the coronavirus.

Ryan said Tuesday that he is directing a halt to hiring and “noncoronavirus work or initiatives until we get through the immediate crisis.”

Ryan said he made the decision in consultation with Ulster County Legislature Chairman David Donaldson and Minority Leader Ken Ronk.

“It certainly makes sense right now,” said Donaldson, D-Kings

ton. “We’re going to lose a lot of revenue and we understand that we need to take steps to protect the county taxpayer.”

The most significant hit to the county’s coffers will

be sales tax revenues, which in the 2020 budget is expected to provide roughly 37 percent, or $128.6 million, of the revenue needed to support the county’s $342.28 budget.

In a March 13 report, county Comptroller March Gallagher, said “most of the top generating industry sectors for sales tax are likely

to take significant and sustained downward trends as a result of COVID-19.”

Gallagher said those sectors include automobile sales, gasoline sales, sales of construction materials, restaurants and the hotel/motel industry, and comprise 58 percent of the total taxable sales and purchases in the county.

In addition to the loss in sales tax, county officials said the county will see a decrease in revenues generated through the county’s two percent hotel/motel tax which is levied on overnight lodging facilities.

“We are deeply concerned about the potential of lost revenue,” said Ronk, R-Wallkill.

Ronk said he had been preparing a resolution for consideration by the Legislature Tuesday that called for Ryan to halt any unnecessary spending prior to his conversation with the executive Tuesday.

“We’re obviously going to see revenue decrease,” he said. “A temporary spending and hiring freeze until we

know what the true impact of this is going to be is absolutely the right thing to do.”

Ryan said the length of the freeze would depend on the length and future severity of the coronavirus threat.

For local coverage related to the coronavirus, go to bit. ly/DFCOVID19. For live updates, visit bit.ly/DFcovid19live.

TANIA BARRICKLO — DAILY FREEMAN Ulster County Executive Pat Ryan, left, speaks during a press conference on Wednesday, March 11, 2020, at the Ulster County Law Enforcement Center in Kingston, N.Y. With him are county Legislature Chairman David Donaldson, center, and county Emergency Management Director Steven Peterson.