Town of Colonie anticipating $7 million shortfall

Local

COLONIE, N.Y. (NEWS10) — Town Supervisor Paula Mahan said the Town of Colonie is facing a potential $7 million shortfall and is looking to take cost saving measures that could impact many town staff members.

She said some areas the town is looking at for budget cuts would be through staffing reductions due to attrition, restricting spending and overtime, postponing projects, cancelling summer programs and community events, a retirement incentive, and as a last resort furloughs.

Here is her full statement:

“We’ve been working on a sustainable financial plan to meet the budget demands for the remainder of 2020 and at the same time begin the 2021 budget process. During this crisis, we are all facing major financial challenges and we’re going to have to make many sacrifices. We are facing a substantial reduction in sales tax and other revenues and are anticipating a $7 million shortfall, possibly more depending on how long it’s going to take to get back to some sense of normalcy. Local governments need assistance to get through this crisis; we need federal relief. We’re all in this together. We survived the financial crisis we inherited in 2008; that was an extremely difficult time. Although I’d like to forget those difficult years, it helps me understand the difficult decisions we need to make to get through this COVID-19 pandemic. We are considering all options for cost saving measures while prioritizing essential services. The areas we are looking at are staff reductions due to attrition, restricting spending and overtime, postponing projects, cancelling summer programs and community events, a retirement incentive, and as a last resort furloughs,” Mahan said.

Supervisor Mahan noted, “The Town of Colonie will get through this crisis by working together with our County and State partners but more importantly, working with our employees and the citizens of the town.”

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