Municipalities facing a major loss in tax revenues from the closing of coal-fired power plants, including NRG Energy’s Huntley Generating Station in the Town of Tonawanda, would be guaranteed relief under a measure included in the one-house budget approved by the state Assembly, Assemblyman Robin Schimminger, D-Kenmore, reports.
The Assembly agreed with Schimminger’s proposal to increase funding for tax relief from $19 million to $50 million. The $19 million fund, set up by the State Legislature last year, had too many restrictions, Schimminger says. Among other things, it required a 20 percent cutback in tax collections and had a five-year limit.
The one-house budget establishes a set of spending priorities, but they need approval by the State Senate and the governor to go into effect.
Operations ended March 1 in the plant on River Road. As a result, Schimminger notes, the Town of Tonawanda, the Kenmore-Town of Tonawanda School District and Erie County are expected to face a loss of roughly $6 million in taxes.