Controller Gallagher reports slight dip in sales tax revenues amid cannabis revenue challenges

Ulster County's financial outlook appears stable as Controller Gallagher reported a year-to-date sales tax revenue of $76 million, reflecting a slight decline of 0.18% compared to last year. This figure indicates that the county is on track to meet its budget goal of $175 million, a positive sign for local finances. Gallagher emphasized the importance of ongoing communication with state representatives regarding challenges in cannabis revenue management, which has been complicated by insufficient information from the Office of Cannabis Management.

In addition to sales tax updates, Gallagher highlighted that occupancy tax revenues are performing well, reaching 50% of the budgeted amount as of July 9. New regulations requiring short-term rental platforms to remit taxes directly to the county are expected to enhance revenue tracking, although current payments are often misidentified due to labeling issues.

The Controller also provided updates on audits and financial initiatives, noting that the department is reviewing contracts with nonprofit agencies to ensure accountability and transparency. A report on these contracts is forthcoming, which aims to improve mandated reporting practices.

Gallagher acknowledged the finance department's progress in bank reconciliations, a significant improvement from previous months. However, he raised concerns about unposted transactions from 2024, which could hinder timely financial reporting to the legislature.

In capital projects, the county has already spent $15 million this year, indicating a robust investment in infrastructure. Discussions also touched on the need for a warming center in southern Ulster County, with officials encouraged to identify potential partners and locations for this initiative.

Overall, the meeting underscored the county's commitment to financial transparency and effective resource management, while also addressing community needs through ongoing projects and services.