Hudson Valley News
Mon July 23, 2012
Kingston Facing Critical Financial Crunch
KINGSTON – The City of Kingston is facing a potentially critical financial crunch in 2013 and Mayor Shayne Gallo chalks it up primarily to mandated expenses.
The mayor, who is drafting his first budget to be presented a few months from now, said he is starting out behind the eight ball since the previous administration used $1 million from the city’s reserves to balance the 2012 budget. There are other concerns as well.
“I received notice from the New York State Health Insurance Plan for our employees and retirees, there is a $600,000 increase expected. There is also going to be close to $300,000 to $500,000 increase in pension costs; probably closer to five,” he said. “We’re looking at another $500,000 potentially in Safety Net. So, you do the math. It’s a tsunami.”
Gallo said he is looking for “real strong cooperation” from the city’s three unions to help balance the budget, which he must keep within the state’s two percent tax cap.
Hank Gross, WAMC News