The Saratoga Springs summer tourism season, buoyed by horse racing, outdoor concerts, theatre, and other attractions is looking uncertain at best. The city finance department is predicting a $14 to 16 million reduction in revenues for the year – about a third of the annual budget. To mitigate potential impacts, the search is on for ways to cut expenses.
Last week, city departments were asked to start finding savings. Tuesday night, city Finance Commissioner Michele Madigan laid out a plan, with $11.9 million in reductions currently under consideration.
But Madigan warned against going any further.
“Further reductions could lead to significant long-term financial ramifications for the city and should be strenuously avoided, as funds will be needed for various payouts…retirements, comp time, sick time, and other liabilities the city is required to pay at any given time,” said Madigan.
The package includes use of $4.5 million in unassigned, unrestricted fund balance, $1 million from budget reassignments, $2.4 million in a budget note, and $4 million in departmental cuts.
The measures would leave the city with a revenue shortfall of $2.1 and 4.1 million.
Discussions are taking place to avoid employee layoffs or forced retirements. Madigan said one idea is moving city employees to a four-day work week.
“I don’t’ know. Nothing’s too crazy for me to explore at this point in time,” said Madigan.
But the direction she’s envisioning now to save cash is enacting furloughs.
“Taking such an approach provides immediate relief to the city while providing maximum protections to affected employees. But only if we act quickly. The mayor, HR, and our legal department are discussing this option with each union in the coming week. Reducing city expenditures via furloughs will have a direct impact on the potential for any future layoffs, and that, for me, is the goal,” said Madigan.
The largest and most expensive city department is Public Safety, which includes police, fire, and emergency services.
Public Safety Commissioner Robin Dalton said the department is open to discussions.
“We are expensive to run. But we are all very nervous about the financial impacts that this going to have on the city. And so we’re open and really looking forward to having these discussions about the budget and working with the unions in coming up with ways to move forward,” said Dalton.
On Wednesday morning, more actions were put into motion.
Commissioner Madigan provided an update on Facebook Live on a plan to enact furloughs for 90 days, with a goal of saving $3 million. She wrote to each city department to identify employees who will be furloughed.
“That is very ambitious, I will admit. The furlough program is designed to last for 90 days, 90 days only. Each individual department is working on providing that list to furlough,” said Madigan.
Madigan, a Democrat, is joining a growing list of bipartisan officials in New York state asking for federal aid to assist state and local government during the COVID-19 crisis, predicting lasting financial impacts into next year’s budget without it.
