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WPCNR QUILL & EYESHADE. By John F. Bailey. December 16, 2009 UPDATED December 17,2009 6:30 P.M.: White Plains shoppers came within 1.7% of last year’s November spending pace in November, according to the  November statistics on sales tax furnished WPCNR by the New York State Department of Taxation and Finance Tuesday.

If the city’s December numbers match last year’s and sales tax collections match the first half of 2009, the city sales tax deficit will be $2.5 Million behind the 2009-10 city projection of  $47.3 Million.

The county news is not as good. Sales Tax collections for November throughout the county were down 4.5%, an improvement over the lacklustre 12.5% the county has run the first 10 months. If the county hits last December's holiday numbers in December, the county will still finish the year with a $61.5 Million deficit in sales taxes, finishing at $416.5 Million when the county had budgeted to collect $478.2 Million in sales tax in 2009.

According to Westchester County Communications Director, Donna Greene, the disappearing $60 Million in county sales tax was covered by the infusion of increased federal medicaid reimbursement as part of the American Recovery and Reinvestment Act in 2009. In a statement Ms. Greene sent, she writes: The $60M has been offset by a combination of expense reductions and FMAP revenue. (Remember, the expense reductions have been ongoing the entire year."

FMAP  is an anachronym for "Federal Medicaid Assistance Percentages." In 2009, the New York State reimbursement was increased from 50% to 55%, allowing New York State to return money to Westchester  County for the County's share of expenses.  Greene told WPCNR Thursday afternoon that the FMAP money was fungible and could be returned to the County General Fund, to be used as the county saw fit. 

Asked if the county could quantifiy "to the penny" how much FMAP money was used to fill the sales tax gap, and what savings paid the rest, Greene said that was not available at  the present time.

The appearance that White Plains is attracting retail shoppers at a pace double the rest of the county would appear to indicate that sales are off severely in the other major retail centers: Yonkers, New Rochelle, Mount Vernon and Port Chester.

If shoppers return to the White Plains malls in droves in December and match last December’s sales tax receipts ($4,287,434) the city will have  $22,879,003 in till towards the 2009-10 Sales Tax target of $47.3 Million.

In January to June of 2009. the city collected  $21,947,874 in sales tax.

If the city runs even with that January to June pace, the city will collect $44,826,877 in sales tax for the year, a projected budget deficit on sales tax receipts of $2,473,123. The important factor is that retail sales do not fall off the next six months to the pre-holiday season doldrums. Citizens should cross their fingers that the buying doldrums that began in July, do not return.

The city deficit at this time if city sales tax collections have indeed stabilized and will continue on last year’s pace amounts as follows, figures come from Commissioner of Finance Gina Cuneo-Harwood's figures she told the White Plains Common Council November 23:

$2.473 Million in lost Sales Tax (as of Dec. 15)

1.2    Million in lost Mortgage Tax

400,000 in Parking Revenues

500,000 in lower Fines & Forfeitures

$6.9 Million in fund balance

$3 Million in Labor Settlement

Total City Deficit: $14,473,000

Worse News for the County

Despite comments in a letter from County Legislator Michael Kaplowitz sent the Journal News Monday and published today (Tuesday) that “sales tax for 2009 is running over $45 Million less than last year,” the deficiet is a lot more  more – about $61,483,764 behind sales tax projections – a figure estimated by this reporter in August and September, and pointed out to the county by this reporter at the time.

The county however has not good news according to the November  County sales tax. In November, through eleven months of the fiscal year, the county, according to the state Department of Taxation & Finance has collected $375,507,685.61in sales tax. The county expected to collect $478.2 Million.

If the county matches last December’s sales tax collection of $41,008,551.17, the county will receive a total sales tax handle of $416,516,236, creating a revenue deficit this year of $61,483,764. 

The County Board of Legislators Monday night saw fit to cut County Executive Andrew Spano’s budget by $1 Million.

Details on how the sales tax shortfall in the current budget is being addressed by the county as this year’s budget was not detailed in the county news release trumpeting the Board of Legislator’s approval of the 2010 budget last night. The county is addressing the possibility of the deficit continuing into next year.