How is State College doing financially with the COVID-19 impact? Here’s what local officials said
Despite a negative budget impact of $1.2 million due to COVID-19, the borough of State College remains in “good financial condition” for now — although Mayor Ron Filippelli said he anticipated the financial situation getting worse and implored residents to contact their local representatives.
In a YouTube video posted Saturday, Filippelli told residents the $1.2 million budget impact through the end of June “is certainly not where it’s going to end” because earned income taxes and local services taxes still haven’t been collected, parking remains free until August, and a $2 million bond payment is due in September for parking structures.
“We don’t yet know what the total impact is going to be,” Filippelli said. “So we need help.”
He said the borough is closely monitoring the U.S. Senate’s debate on the next coronavirus relief bill — because the last $2.2 trillion bill didn’t include direct cash infusions for cities and counties with populations under 500,000. (The state did split a pot of $625 million in federal money among counties, however.) And Filippelli is hoping State College’s residents especially reach out to U.S. Sen. Pat Toomey, R-Pa., whom he believes might oppose such help.
Toomey expressed reservations about another relief bill last week while visiting Centre County, although a spokesperson said Wednesday that Toomey has not yet voiced opposition or support of such legislation.
In the meantime, State College appears OK for now — according to State College Finance Director Dwight Miller, who gave a public presentation Monday to the borough council.
According to public documents, shown at Monday’s meeting, General Fund revenue is still projected to be around $30 million this year. The General Fund actually saw a moderate $330,000 revenue increase (compared, year to date, to 2019), while other funds saw moderate to severe decreases. The most severe change came from the Parking Fund, which saw its revenue nearly halved — from $1.8 million at this time last year to $940,000 now, which also meant it went from being profitable by more than $600,000 to losing about $13,000.
The borough chose to make parking free March 23 during the pandemic in an effort to support downtown merchants while limiting the spread of the coronavirus. The loss of Blue-White Weekend and Penn State graduation also further impacted parking, which will no longer be free starting Aug. 3.
During public comment, one resident asked Miller to put all those numbers into context: Is the borough financially OK right now?
“Yes,” Miller responded. “I would say that the borough is in a good financial condition.
“As you see, the revenues are about $30 million for the General Fund annually, so $1.2 million out of a $30 million budget seems substantial — but the Council has a financial reserve policy and it’s just for times like this, so the borough is secure.”
According to the documents, Other Revenue — such as licenses and permits, fines and violations, and grants — is down 17% so far this year, Sewer Fund revenue is down 7%, and Refuse Fund revenue is up 13%.
The full Year-To-Date Financial Report can be found at the bottom of the borough council’s agenda packet, which is posted online at statecollegepa.us.
COVID-19 Financial Impact
Here’s a more exact breakdown of the coronavirus’ impact on State College, through the end of June:
General Fund lost revenue (meters and fines): $348,216
General Fund COVID-related operating expenses: $55,211
Parking Fund lost revenue: $824,155
Parking Fund COVID-related operating expenses: $194
TOTAL IMPACT: $1,230,773
