Syracuse Common Councilors Monday used their power of the purse to temporarily limit city spending in advance of a looming fiscal crisis caused by the COVID-19 pandemic.
Council Finance Committee Chair Tim Rudd says the more they hold off spending now, the less they’ll have to cut later.
"I'm asking everyone to hold all their spending items until we have a clear plan on the estimate on the revenue shortfall and a plan for how we're going to overcome that shortfall, especially given the lack of any bailout from the federal government or the state, and limitations on our cash reserves."
Monday’s move halts nearly $800,000 in spending mainly on water and fire department equipment purchases and maintenance. At the same time, Rudd and his fellow councilors also postponed approval of a retirement incentive program so they can further clarify just what it will cost, and how much the city might save in the end.
"...And then having the plan that saves us money signed off by department heads. Most department heads think most of their positions are crticial and urgent. It's important to have buy-in from those department heads to hold the positions vacant for the time necessary to make this financially beneficial."
More than 200 city employees would be eligible to receive a one-time payout of $5,000 and continued health insurance for up to 10 years under the program. Rudd wants specifics on just what positions will be held open, the new salary for that job, and if any positions will be eliminated…while acknowledging that more pain is likely ahead.
"This retirement incentive is probably the best idea at the moment to save money. It's $3 million out of $20 to 25 million. There's a lot of stuff that will feel really uncomfortable holding, highlighting that we don't have many good things to cut, meaning really tough decisions moving forward."
Meanwhile, Congress continues to debate if local government aid will be in the next COVID-19 relief bill.
