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City of Albany announces layoffs due to COVID-19 causing revenue budget shortfall

Karen Tararache
Created: May 04, 2020 11:35 PM

ALBANY - Albany Mayor Kathy Sheehan is calling on congress to bailout municipalities, and she says they must act now.

"This is an issue that has to get addressed now because we have to plan and we will not be open for the summer if we don't know that we're going to have this funding within the next couple of weeks," Sheehan said.

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Sheehan announced a projected critical shortfall in revenue funding to the tune of seventeen to twenty million dollars as a result of the COVID-19 pandemic, if congress doesn't act to bailout municipalities.

"This is a problem on the spending side this is a problem on the revenue side, sales tax, hotel bed tax, all of these parts of the economy that have really been devastated also have an impact on our local governments."

Sheehan has asked each city department to begin the process for layoffs, service reductions and salary cuts.

She says without immediate action from the federal government there's a good chance local municipalities won't be able to open when the economy does.

"You're going to need our building inspectors, you're going to need permits, you're going to need public safety, you're going to need us to be working with restaurants on how they reopen."

Sheehan is projecting a 20% reduction in state aid and sales tax and a 39% reduction in departmental income.

She says the cuts required to balance the city's budget would decimate the city's services.


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