The city of Syracuse has placed 104 of its nonessential workers on temporary unpaid leave as a result of the coronavirus pandemic, Mayor Ben Walsh said Friday. 

The workers include crossing guards and some parks and recreation employees, Walsh said during a press conference. The city is planning to bring the workers back by the end of July, if not sooner, he said. 

“We have to get through this crisis and to do that we are going to have to make some difficult financial health decisions,” Walsh said.

The coronavirus causes COVID-19, a respiratory disease that has infected 311,155 people and killed 24,024 in New York state. The city of Syracuse has the largest case rate in Onondaga County, with 439 cases, Walsh said. This number constitutes 48% of total cases in the county, he said. 

A decrease in sales tax revenue due to the COVID-19 pandemic and cuts in state aid have negatively impacted the city’s financial status, Walsh said. 

Sales tax revenue will fall $13.4 million short of the city’s expected budget by the end of the fiscal year, Walsh said. The city also predicted a potential loss of $7 million in sales tax revenue for the 2021 fiscal year, he said.  

“It’s a moving target and we are going to continue to track it,” Walsh said. “But that gives you a sense of how we will be hit just on this one revenue source. It is devastating.”

New York state may also cut its aid to municipalities by 20% or more, Walsh said. With this cut, the city of Syracuse would lose over $14 million, he said. 

The city plans to reduce spending and cut costs to compensate for its losses, and has no intention of declaring bankruptcy, Walsh said. 

“The situation is going to change rapidly and therefore the numbers are going to change rapidly,” Walsh said. “So we can be in a position where we can be flexible and account for those changes.”

The city will set aside $50 million dollars as a fund balance to help its financial situation, Walsh said. While the fund will provide some temporary relief, it is not a sustainable long-term solution, he said. 

City officials will freeze all nonessential spending starting May 1 and continue to push for federal aid to support essential workers, Walsh said. To account for any losses in the 2021 fiscal year, the city government has formed a Financial Contingency Committee to evaluate potential financial scenarios for 2021, he said. 

“These are things that we do not want to do, we hope we don’t have to do, but we have to plan for as the situation moves forward,” the mayor said. 

The Syracuse Common Council helped place the city of Syracuse in excellent financial standing before the pandemic hit, Walsh said. The city will work to regain this standing as it handles the COVID-19 crisis, he said. 

“Our intention is to continue to stay on that path and to continue to deliver the services that our residents pay for and that they deserve,” Walsh said.

Published on May 1, 2020 at 11:14 pm

Contact Maggie: mehicks@syr.edu | @maggie_hickss