MIDDLETOWN – The state’s withholding of 20 percent of its aid to municipalities will mean the City of Middletown’s 2020 budget will face a $500,000 cash shortfall.
Mayor Joseph DeStefano said the city has a sizeable fund balance and will be able to absorb the loss.
As for 2021, the mayor made a commitment to the city’s common council Tuesday night.
“I can assure you that in 2021, I have no plans for any layoffs. We do have some vacancies that we are delaying until June. Is there a possibility that vacancies will not be filled? Yes, depending upon the status of the budget with New York State,” he said.
Governor Cuomo withheld the 20 percent because of the massive fiscal damage from COVID-19 and the federal government’s failure to this point to bail out the states.
