Erie County Comptroller Mark Poloncarz cautioned that sales tax revenues in the second quarter did not come in at the rate targeted in the 2008 budget.

The analysis said sales tax growth was 1.75 percent in the period, below the 5.73 percent growth rate in the first quarter.

Poloncarz said the report backs his earlier calls that county officials should not come to rely on those receipts to fund operations.

"Last year I warned County policymakers that our reliance on sales tax revenue as our largest source of revenue could negatively impact our budget if an economic downturn occurs," he said.

He added if the slow rate of return continues in the last half of the year, the county could face a budget shortfall.

In the past year, Erie County sales tax revenues had risen almost unexpectedly, with much of the increase attributed to Canadian visitors taking advantage of near or at-par exchange rates.

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