U.S. Rep. Paul Tonko called on Congress to pass a new round of stimulus spending to help municipalities fill coffers ravaged by the economic downturn and the coronavirus pandemic.
Tonko said that COVID crushed the tax base in small communities and that governments were in financial stress "through no fault of their own."
Tonko (D-20) made the remarks toward the end of his "Small Business Saturday" press conference, Nov. 28. Most of the conference focused on the stories from local business owners who have fought and struggled to stay afloat during the pandemic.
Tonko added that the HEROES Act, introduced in Congress last May, contained $1.4 billion for capital district area municipalities such as Saratoga Springs. It stalled in Congress as legislators have argued over the best move forward for economic health.
Todd Shimkus, president of the Saratoga County Chamber of Commerce, was a panelist at the conference and generally agreed that more stimulus is necessary.
"It should really be for the small mom and pop" store, Shimkus said, not the companies with up to 500 employees, as the CARES act allowed under its Paycheck Protection Program earlier this year.
Shimkus also advocated for loan forgiveness of the PPP of up to $150,000. Current regulations allow PPP loan forgiveness for up to $50,000. He also advocated for a change in a tax regulation in the CARES Act. Without the change, businesses will be forced to pay taxes on expenses that are normally exempt, he said.
Area counties such as Saratoga and Warren have moved forward with budgets this season that do not have severe cuts in services or massive tax increases. Leaders there have cited strong fiscal stewardship and a resilient workforce as the reasons.
Saratoga Springs relies heavily on tourism spending, both for sales tax revenue and from "Big Event" items said Commissioner of Finance Michele Madigan for a recent story.
The lost taxes on gate receipts at the Saratoga Racetrack which did not have spectators; the lost hotel bed tax and lost spending when the city's conference center was closed for the summer; and the lost sales tax and spending that is tied to entertainment at the Saratoga Performing Arts Center, which did not hold concerts, decimated the city's budget.
"Sales taxes are big" for Saratoga Springs, Shimkus said, adding, "Getting people to shop local helps save towns."
That was the true theme of the day: getting people to shop locally for Christmas.
During the conference, a small group of owners explained that the pandemic has forced them to improve their online presence and low-touch procedures for people to shop but also avoid overcrowding. Still, they said they needed people in the stores or on their websites.
Owner Frank Figliomeni, of Professor Java’s Coffee Sanctuary on Wolf Road in Albany, said he hopes people will come out, even just to say hello, even without buying anything. He fears that consumers have stayed inside and away from others too long.
"I don't want this to become the norm," he said.
The Saratoga Chamber website has many ways to shop local, and the Chamber's #SaveOurLocals campaign highlights the issue.
Given how strained companies are, this is a make-or-break winter season, Shimkus said. "We need to help our local businesses before they're gone forever."
Tonko represents New York's 20th district in the House of Representatives. The district covers Amsterdam to Albany and up to Saratoga Springs.