Dutchess County Projects $20-$50 Million Revenue Decline - 41% Comes From Sales Tax - Of Which Beacon Pays In

County Executive Marcus Molinaro released 2020 projections for a severe decrease in revenue to Dutchess County due to the COVID-19 pandemic. According to the release, it “includes a projected sales tax revenue decline of $20-50 million in 2020. Sales tax accounts for 41% of the County’s 2020 budget,” County Executive Molinaro said during his June 10, 2020 online Town Hall. The City of Beacon and other municipalities like Poughkeepsie pay into Dutchess County’s sales tax collection. Beacon does not keep the sales tax generated here, and is instead paid out a distribution of a fixed, negotiated amount from the cumulative sales tax collected across municipalities each year. A Little Beacon Blog conducted research into this, and reported on it here.

According to Molinaro’s statement, 3 of the sales tax payments Dutchess County has received from New York State in 2020, reflecting sales tax revenues since March 1st, have been lower than 2019. You can read about where which municipalities Dutchess County collects sales tax from in New York State, which include Beacon, Poughkeepsie and smaller surrounding municipalities.

Molinaro went on to describe a furlough program for Dutchess County employees: “In the wake of a projected $40-80 million revenue loss, Dutchess County Government has offered its workforce a voluntary furlough program, which 66 employees across various departments have volunteered for, and implemented freezes on hiring and non-essential spending. Funding from New York State accounts for 16% of Dutchess County’s annual budget and Governor Andrew Cuomo has suggested the pandemic may result in as much as a 20% cut in state aid to local counties, resulting in a projected loss of $15-20 million to Dutchess County. County Executive Molinaro continues to advocate for state and federal aid for counties like Dutchess to avoid being forced to eliminate critical services and programs.”