April 14, 2009
By: Chris Caya

BUFFALO (2009-04-14) Erie County saw a drop in its sales tax receipts during the first quarter. That's raising some questions in the County Comptroller's Office while the County Executive says everything's under control.

Comptroller Mark Poloncarz says it's not good news that sales tax revenue is dropping, but he says given the economy it's to be expected.

During the first 3 months of the year, Poloncarz says sales tax receipts were down nearly 3% or about $3 million and he's questioning County Executive Chris Collins and the Legislature's reliance on sales tax to balance the budget.

"Sales taxes are cyclical. When you're paying for your annual budget on what is a cyclical source you put yourself at risk when times get bad," Poloncarz said.

"Here we are, times are bad," said Poloncarz who points out the only thing preventing a deficit is federal stimulus funding which he calls "a short term fix."

County Executive Collins says given the slowing economy his new 4-year plan is very conservative. Collins says he's projecting a 5% drop in sales tax revenue.

"So, it means we're not going to have increase property taxes. We're not going to have to cut services," Collins said.

"We're not going to have to dip into the 'Rainy Day Fund'."