Lewis County is owed by state

LOWVILLE — The state may owe Lewis County $3.5 million by the end of March, according to the county manager.

"We are now Lewis County Bank and Trust Company lending money to New York state," County Manager David H. Pendergast told legislators Thursday morning.

The state already owes the county about $1 million in expected reimbursement for services rendered, Mr. Pendergast said.

Gov. David A. Paterson's order Sunday that 10 percent of state aid payments to schools and local governments be delayed is expected to keep an additional $2.5 million from flowing to Lewis County through the first three months of 2010, he said.

"Thank you, I think," said Legislature Chairman Jack T. Bush, R-Brantingham, following Mr. Pendergast's presentation.

"You're full of joy this Christmas season," added Legislator Philip C. Hathway, R-Harrisville.

While the governor is proposing to pay the deferred money to the municipalities after March 31, Mr. Pendergast said the state is basically taking out a loan from counties without any terms or repayment schedule.

"Luckily, we have a solid fund balance," said County Treasurer Vicki A. Roy.

Mrs. Roy said she had just received a telephone call from a bank representative offering to lend the county money. "Hopefully, we won't have to do that," she said.

The county has a fund balance of $9 million to $10 million.

Mr. Pendergast said he and county department heads are working to determine the impact of the state Legislature's decision earlier this month essentially to make 12.5 percent cuts to state agencies.

"We haven't been able to find out much information," he said.

However, Mr. Pendergast said, he does expect at least some of the deferred payments, if made, to come in at 87.5 percent of the full amount due to the legislative cuts.

Department heads have been informed that the county won't make up the difference for lost state revenues, so program cuts likely will need to be made, he said.

Mr. Pendergast added that "the word out of Albany" is that aid cuts of 20 percent to 25 percent could be possible in next year's state budget.

"That hits us in the second quarter if they put the budget in place," he said.