SULLIVAN COUNTY -- While most of the attention has been on the 2020 General Election, for our local towns, it's also budget season. Local municipalities are doing what they can on their end, but the loss of state aid due to the COVID-19 pandemic is expected to present a new set of challenges.

For example, this year several local municipalities received a 20 percent reduction in Consolidated Local Street and Highway Improvement Program (CHIPS) funding, and many were recently informed that state aid to municipalities would be cut by 20 percent.

The Democrat recently reached out to some town and village officials about how they are making adjustments.

In the Town of Bethel, Supervisor Dan Sturm said for them the 20 percent loss in state aid would cut them from $45,726 to $36,580.

“So we are losing $9,145 this year and probably next year as well,” Sturm said. “Although it doesn't sound like a lot, every $25,000 equals a possible one percent increase in property taxes for our residents. So, we did budget correctly for next year assuming the 20 percent cut, and made adjustments elsewhere to make sure we stayed under the two percent tax cap.”

Sturm added that as far as he knew, CHIPS funding was also cut by 20 percent in Bethel, but they completed their paving for the year and did not go over budget even with the cut, adding that the town never budgets the full amount of CHIPS funding because of state aid uncertainty from year-to-year. However, he expects less CHIPS funding for paving next year.

In the Town of Thompson, Supervisor Bill Rieber Jr. said, “We have reduced our expectations for this year's highway state aid by 20 percent. It will not have a significant impact on our taxpayers' roads. Going forward is a little unpredictable given the State budget deficit. Our roads are in very good shape and we can absorb a year or two of lower funding if necessary.”

In the Town of Rockland, Supervisor Rob Eggleton noted that the reduction of CHIPS funding impacts what they can do as far as road maintenance -- paving, resealing, etc. -- next year, adding that as of September they had yet to receive any CHIPS monies.

“And we're worried next year if we're going to get any of that [funding],” Eggleton said, also citing concerns about emergency funding for winter storms.

Cochecton Town Supervisor Gary Maas noted that they have been receiving less revenues from the courts because of everything being pushed back, but that loss has been made up by building permits, which have tripled during the pandemic.

Maas said the big question for the board in the 2021 budget process, is how much they expect to get from state aid next year.

Town of Liberty Supervisor Frank DeMayo said the town board went through the budget with a fine tooth comb, as they haven't raised taxes in several years. He did note that the reduction in CHIPS funding resulted in them not being able to pave one road this year.

DeMayo said his biggest concern with the pandemic is grant funding. He said it will be difficult for them to get certain upgrades done if funding dries up.

Despite the uncertainty, DeMayo said the board is keeping proposals up-to-date so that when funds become available they will be ready to apply.

Villages won't be working on their budgets until early summer. Monticello Mayor George Nikolados recently told the Democrat that he hasn't been notified of any cuts to state aid. He noted that, at this time, the pandemic's biggest effect on them is whether or not people can afford to pay their property taxes, which the village relies on to operate.

Unlike towns, villages are not made whole by the county if people do not pay their property tax bill.

Keep a look out for updates on local municipalities budgets in upcoming editions of the Democrat!