Half of Indian Point nuclear plant is shutting down this Thursday, and the closure is already straining the finances of local cities.

The Village of Buchanan will lose $367,000 this year because of the partial closure.

Buchanan Mayor Theresa Knickerbocker says the shutdown of Unit 2 means taxes for local homeowners will go up this year by 40%.

The increase comes as the coronavirus pandemic is putting many people out of work and closing local businesses.

"Its almost a perfect storm... here you have a closing of Indian Point, and we knew there would be increases in our taxes but now compound is the loss of sales tax," says Knickerbocker.

As the plant begins the shutdown, the operator Entergy will begin decreasing its tax pilot payments - leaving a massive financial hole in Buchanan. The state is offering some funding, and Westchester County is also offering to pitch in.

"The county will do what we can do with our resources," says Westchester County Executive George Latimer. "Our resources are going to be drastically reduced by what is happening now."

There is also the concern that Entergy's pilot tax payments could be lowered because of the economic downturn.

"If there are changes that we agree to and the local jurisdictions agree to then that would be the new pilot, but right now we have an existing pilot that we continue to pay," says Jerry Nappi, of Entergy.

Local officials are working on a plan to bring in more development to generate revenue.

MORE: TRACKER: New York, New Jersey, Connecticut coronavirus cases and deaths 

MORE: Photos, video of Blue Angels and Thunderbirds flyover of tri-state area