Senator Dale M. Volker Announces Senate Passage Of Erie County Sales Tax And Deficit Financing Bills

Senator Dale M. Volker (R-C-I, Depew) today announced that the State Senate has passed, at the request of the Erie County Legislature, two pieces of legislation (S.5705 and S.5745) that would allow for the addition of a .25% sales tax and for the ability for Erie County to deficit finance to close an approximate $118 million budget deficit.

"Due to fiscal mismanagement and an inability to adopt measures to address Erie County’s financial dilemma, a budget gap of approximately $118.4 million exists in Erie County for 2005," said Senator Dale M. Volker. "These bills would allow the County of Erie to issue deficit serial bonds in an amount not to exceed $130 million to close that projected budget gap using the .25% sales tax to pay for the deficit financing. Although, this is a short-term fix that will not address a projected $130 million budget deficit beginning in January 2006, the County Legislature has requested these two pieces of legislation to close the budget deficit for 2005. The State Legislature is obligated to passed these two bills at the request of the Erie County Legislature, and will work with them in order to stabilize county finances and seek long-term solutions to the severe mismanagement publicized by State Comptroller Alan Hevesi."

Senate Bill 5705 would allow Erie County to impose an additional one-quarter of one percent sales and use tax in addition to the permanent 3% sales and use tax, in addition to the temporary 1% additional sales and use tax the County has annually been authorized to impose.

Senate Bill 5745 would give authorization for the County of Erie to issue serial bonds not to exceed one hundred thirty million dollars ($130,000,000.00) to close a projected budget gap in the 2005 adopted budget.

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