The state comptroller has notified Yonkers officials that New York State will withhold a total $19.5 million from the city of hills.
The support is usually dispersed to Yonkers at the end of its fiscal year on June 30th.
This is going to pose serious cash-flow issues for Yonkers, because it’s at the end of the fiscal year.
And Mayor mike Spano along with the city council members just don’t know if and when the missing New York State payment will arrive.
Yonkers relies on state aid as well as sales and property taxes as their main sources of revenue, and even withholding a portion of the AIM funding will make paying for essential services difficult.
In Yonkers costs went up as the city responded to the coronavirus and revenue dropped from lost sales tax revenue and now city leaders have to contend with a rapidly growing deficit.
Now the $19.5 Million in state aid being withheld from Yonkers will be disastrous and probably result in city employees being let go.
Yonkers just can’t assume that the remaining funding is coming later on.
This all due to Gov. Andrew M. Cuomo’s sweeping executive powers, granted during this year’s budget process to respond to the pandemic,
Currently, New York is dealing with the roughly a $10 billion deficit
However, the governor says the reduction might not be a permanent loss.
State and Yonkers officials have called on the federal government to provide aid to help offset the deep revenue losses they’ve experienced during the pandemic.
However, some Republican congressional leaders have stalled that effort, arguing that the aid amounts to “bailouts” for Democratic-controlled states with excessive budgets.
Some Yonkers union leaders say state legislators need to relax the 2 percent tax cap so that funds can be raised to keep city employees on the job.