Coronavirus affecting economic state of Ithaca, mayor voluntarily reduces salary by 10%
Ithaca, NY (WENY) -- The Town and City of Ithaca’s economy rely heavily on students. The two major schools in the Ithaca area are Cornell University and Ithaca College, each with a student body with 6,000.
Since the start of the coronavirus pandemic, both major schools of high education have moved to online and distancing learning. Meaning Ithaca, who would normally get sales revenue from students eating out, and purchasing items locally are now home. With that, combined with mass gathering restrictions, businesses are stuck having to try and turn a profit elsewhere.
Svante Myrick, Ithaca’s mayor didn’t mix words. He said the city is in for "hard times" ahead. Around 20% of the city’s revenue is generated through sales tax, such as purchases and people staying in hotels. Myrick used the examples of hotels who are barely at 10% occupancy.
“We were finally on track, our economy was growing and we felt very good about where we were two months ago to now being on the brink of insolvency,” said Myrick.
Myrick is hoping to curb potential insolvency. He mentioned one of two ways. Either by raising property tax, which he hasn’t had to do often since taking office nine years ago or reducing city staff, which includes essential services like police, fire, construction, etc. The mayor wasn’t overly optimistic, adding that he might have to cut both city staff and increase property tax. However, Myrick is voluntarily taking a 10% pay reduction, to help the city through.
“The amount of money we're losing, we think will be up to $14 million out of a $70 million budget,” said Myrick.
Ithaca is hanging on by a thread but the same can’t be said for some small and family-owned businesses. Some have closed, others have had to change the way they operate, and others are holding firm. Jennifer Tavares, the Tompkins County Chamber of Commerce President, said many local businesses have adjusted sales tactics and operations.
“For a lot of people even if they may be on an interim bases, try to adjust their operations or take advantage of what they are allowed to do,” said Tavares, about local restaurants switching to take-out or delivery only.
“People are going out of their way to buy gift cards at businesses that they can redeem later, with some folks ordering more delivery, more pickup than they used to before,” said Myrick.
In regards to ordering out, even the Tompkins Chamber Foundation is doing their part, by teaming up with the county’s health department. They've started a GiveGab fundraiser. The fundraiser looks to help out the community in a two-pronged approach. Money that the chamber raises will be spent at local restaurants who’ll then, in turn, deliver food to volunteers around the area making masks.
“Everyone wins right. It's a great opportunity to support both our workforce and our small businesses and also thank the volunteers,” said Tavares.
Tavares says they've raised enough for about two weeks.
“Tompkins County is very well positioned right now based on all the data,” said Tavares about the county’s re-opening.
With hospitalizations down but the virus still very much impacting thousands, there's no limit on how long people will be making masks, for nurses and doctors on the front lines.
Tavares projects they'll need between $150 and $200 daily to help the restaurants feed the volunteers make masks. The money raised will also ensure some local restaurants won’t have to permanently go out of business. For more information on how to donate go to the chamber's website at https://www.tompkinschamber.org.