WPCNR COMMON COUNCIL CHRONICLE-EXAMINER. By John F. Bailey. April 13, 2004, UPDATED 12:03 A.M.: Budget Director Anne Reasoner walked the Common Council through the highlights of the 2004-05 budget in a meeting Tuesday evening, and during the course of the meeting reported that the State Office of Taxation and Finance had reported White Plains sales tax receipts for the third quarter ended March 31 to be running 8.6% ahead of the 2002-03 White Plains pace, a very bad year when only $35 Million in Sales Tax was collected.  

WHITE PLAINS BY THE NUMBERS: Anne Reasoner, standing, Budget Director, conducting the Overview of the Budget meeting Tuesday evening. Photo by WPCNR News.

Projecting out to the end of the fiscal year in June, Ms. Reasoner told WPCNR she saw no problem in hitting the 37.8 Million sales tax figure that the 2004-05 budget is counting upon to stay on the projected $110.5 Million city budget.  She gave no other details, but said, "I see no problem in meeting the $37.8 Million figure." She said reconciliation with the state would take place over the next week, and she expected no downward revision.

She attributed the March spike in sales tax receipts to what she described as "strong retail sales in March."  

Ms. Reasoner also said that if the 6.5% of Salaries "Pataki Solution" to the  $7.9 Million pension fund payments (the major factor behind the 6% budget increase) demanded by Comptroller Allan Hevesi, did not materialize, the extra $3.8 Million needed would be bonded for  in 04-05.  Payments on that bond, she said,  would not be due until 2005-06, at which time the payments would add 2.7% to the tax burden in fiscal 2005-2006 for five years.

Roach Report from Albany: 6.5% of Salaries Limit on Pension Payment is "Dead."

Councilman Tom Roach voiced the opinion that the 6.5% of Salaries Pataki Proposal to ease the pain of the pension bill is not going to happen.

At best he said, his information from Albany is that the legislature will grant a 6.5% of salary payment to municipalities to ease the pain of the large pension fund payment,  but municipalities would have to pay the full pension share amount they owe this year.

In the White Plains case, that is $7.9 Million. Roach said the proposal that is likely to happen, according to his Albany listening post is that White Plains will be allowed to pay $3.8 Million in cash (6.5% of salaries), but be allowed to bond or borrow for the rest. In which case, White Plains would be posting the tax hit until 2005-06.