The City of Albany announced that they project a revenue shortfall of $17 million to $20 million as a result of the COVID-19 pandemic.
“Working with the Common Council, the City of Albany passed a responsible budget that funded city services, made important investments in our infrastructure, and held the line on taxes,” said Albany Mayor Kathy Sheehan. “Unfortunately, Albany and cities across the country find themselves in a deep economic crisis as a result of the COVID-19 pandemic.”
The City of Albany is currently reviewing all options in order to remain solvent, according to city officials.
“I have asked each city department to start the process of preparing for across the board layoffs, service reductions, and salary cuts – with the first series of reductions beginning this week,” said Sheehan.
According to city officials, nearly every single revenue line the City relies on to provide services is projected to be negatively impacted, including an estimated:
- 20 percent reduction in unrestricted State Aid,
- 20 percent reduction in Sales Tax,
- and 39 percent reduction in Departmental Income.
“The COVID-19 revenue shortfall is truly unprecedented, and the cuts required to balance the budget would decimate city services,” said Sheehan. “Our police officers, fire fighters, sanitation workers, laborers, and code enforcement officers have been on the front lines responding to this pandemic, and now we are forced to make decisions to lay off hundreds of these same workers in the absence of action from Washington.”
Sheehan said that she is working with Mayors from across the country to advocate for direct federal aid to state and local governments. Sheehan stressed that direct federal aid is not only necessary to maintain vital municipal services but is critical to reopening the economy.
“Every city and town, whether led by a Democrat, Republican, or Independent, has lost revenue because of the measures we have taken to flatten the curve and save lives. We must receive federal aid to replace this revenue in order to turn the economy back on in our communities.”