Suffolk County projects $40M sales tax revenue loss by end of the year

Suffolk officials are projecting a roughly $40 million deficit in sales tax revenue by the end of the year, according to a budget review given to lawmakers on Tuesday.

The sales tax deficit is a nearly $2 million increase from the $38 million deficit originally projected, said Budget Review Office assistant director Benny Pernice. The sales tax collections, which help fund the county's operating and capital budgets, are expected to be approximately $2 billion.

“With the latest information, we’re increasing that projection to a deficit of a little bit over $40 million,” Pernice said, adding they need to recoup more money in the next two quarters to stay on budget. 

Tuesday’s gathering comes ahead of the annual operating budget review process. The Suffolk County Legislature needs to pass the budget by November, which then takes effect in January. In July, Suffolk County Executive Edward P. Romaine approved a 2025-27 capital budget plan that included sewer system upgrades and the improvement of highways.

As for the county sales tax revenue, Suffolk officials note it can fluctuate due to multiple local factors. Between January and July, sales tax revenue in Suffolk was around $1.1 billion, a 0.9% decrease from the same time period in 2023, according to data from State Comptroller Thomas DiNapoli. Nassau saw a 0.4% decrease in those months, moving from roughly $900 million to about $896 million.

The Suffolk County projected deficit is likely to be offset through funding that includes a contingency account, less workforce hiring and higher-paid workers being replaced by newer ones, officials said.

“We get savings from that every single year,” Pernice told legislators on Tuesday. “I think that is going to help ameliorate some of the deficit.”

By Tiffany Cusaac-Smith

tiffany.cusaac-smith@newsday.com@T_Cusaac

Education: Howard University 

Tiffany Cusaac-Smith came to Newsday in 2023 after being a race and history reporter at USA TODAY, where she wrote enterprise and spot articles examining how the past shapes the present. Previously, she worked as the race and justice reporter at the USA TODAY Network of New York, covering issues such as criminal justice reform, housing, environmental justice, health care and politics. At The Journal News/lohud.com in Westchester County, she covered Yonkers, the state's third-largest city. She also worked at The Associated Press in Atlanta.

Honors and Awards: Criminal justice reporting fellowship with the National Press Foundation;  New York News Publishers Association award for distinguished investigative reporting;  Contributed reporting for Best of Gannett honor; Member of Table Stakes, a program funded by the Knight-Lenfest Local News Transformation Fund and managed by the American Press Institute to transform local news.