Onondaga County receives $38 million sales-tax payment, says 2020 budget deficit tops $19 million

SYRACUSE, N.Y. — Onondaga County on Monday received a sales-tax payment of nearly $38 million, leaving the sales-tax deficit in the county’s 2020 budget at more than $19 million.

The $37.8 million payment covers the months of August and September, reflecting a $10.2 million, or 33 percent, increase compared to a similar payment a year ago, per an Onondaga County news release. It’s a sign that local economic activity has started to rebound following the COVID-19 slowdown.

Onondaga County Executive Ryan McMahon described the payment as “very, very good news” during his coronavirus briefing at the Oncenter.

“We’re not going to have to make any more work-force adjustments for the month of October due to this [payment],” McMahon said.

The adjustment could also extend into November, depending on the next sales-tax payment expected later this week, he added.

“It shows you that even though at times, it’s a lot of work to keep the economy open and to get kids back to college and there was a lot of anxiety about bringing back in 30,000 kids in the community, there is no question that that spending power drove this payment,” said McMahon.

Onondaga County’s nine colleges have reported 127 cases of COVID-19 over the past two-and-a-half months, he noted. The schools include Syracuse University; SUNY College of Environmental Science and Forestry; SUNY Upstate Medical University; Le Moyne College; Onondaga Community College; Bryant & Stratton; St. Joseph’s College of Nursing; Bill and Sandra Pomeroy College of Nursing at Crouse Hospital; and Onondaga School of Therapeutic Massage, according to McMahon.

McMahon also figures that back-to-school spending, capital projects, housing projects, and spending at Destiny USA also played a role in the $37.8 million sales-tax payment.