City of Poughkeepsie Closes Budget Gap from $6 to $4M

POUGHKEEPSIE  – City of Poughkeepsie Mayor Rob Rolison announced today that the City has reduced the potential $6 million budget gap for 2017 to approximately $4 million.
The $4 million projected budget gap in 2017, which is still being worked on by the administration is a fluid number, according to Mayor Rolison.

“Prior year’s budgets simply overstated anticipated revenues, causing accumulated deficits which we must begin to address in the current budget cycle”, said Mayor Robert G. Rolison. “The use of one-time revenues, or revenue estimates that do not materialize at all, has been a primary driver of our fiscal troubles.”

Some of the principal contributors to the remaining gap include:

• $1.5 million in one-time revenue related to the expansion project at Vassar Brother’s Medical Center, which is not a recurring revenue in 2017

• $250,000 in increased pension costs

• $500,000 for the sale of City property which did not occur in 2016

• More than $400,000 in unrealized parking revenues

• An anticipated $1 million in increased health insurance costs

Rolison has asked all city department heads to deliver to the administration additional recommended cuts of up to 6% of their general fund operating expenses.

“This budget will -be painful, but it will also represent the turning-point in the City beginning to address legacy fiscal problems that have been neglectedfor far too long,” said Mayor Rolison.

“I look forward to working with the Common Council as well as our partners in the federal, state, and county governments to address our structural budget issues and we will continue to seek efficiencies in City services and operations.”

The Mayor’s preliminary budget will be submitted to the Common Council on October 14th.