WPCNR MR. & MRS. & MS. WHITE PLAINS VOICE. April 2, 2006: Don Hughes, a WPCNR reader who also edits a website specializing in City of White Plains meetings, events and documents has reviewed a series of statewide and local financial reports. Here are his findings about how White Plains is doin':

A number of financial reports have recently become available: City of White Plains Interim Financial Report, City Budget Survey released by NYCOM, Analysis of Fiscal Stress in New York State’s Cities by Alan Hevesi, Population Trends in New York State’s Cities by Alan Hevesi, and The City of White Plains 2005-6 Summary Adopted Budget

While it is necessary to realize that there are difference realities in different cities, it is also important to step back and compare our city’s performance with other cities to see where we are doing well and where we may be able to do better.

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Looking at per capita expenditures, White Plains, at $1,700 in 2004, was the highest in the state.  The mean of all cites was $995.  It is easy to claim that we are getting more services than other cities, or that it is necessary to maintain our low crime rate. 

But, it is also important to ask if, for the highest expenditures in the state are we, in turn, getting the best services in the state.  Next, we should ask if we really want to pay for premium services.  At the least, this should prompt a more detailed comparison of our services with surrounding municipalities to see if there are any opportunities to save money.

But why look at per capita expenditures?  In general, the more residents in a municipality, the more money they will have to spend to provide services.  Therefore it is necessary to compare them on something other than the absolute dollar amounts of their budgets.  This is sort of like the labels in the supermarket that give you the cost/1000.  There are still other factors that go into determining which is the better buy, but it helps you put things into perspective.

White Plains per capita revenue was also the highest at $1,643, but it was less than the expenditures.  White Plains spent more than it took in.  It is important to realize that this number includes all revenue sources not just property taxes, and is likely to overstate the amounts actually paid by any particular household.  Per capita property taxes were $578.  According to NYCOM, White Plains’ 2006 property tax rate is the 5th highest in the state.

Of the 79 localities collecting sales taxes in New York, 65 had rates higher than White Plains’ 7 7/8%  

In 2004, White Plains was the number two city in dependence on sales tax with it supplying 28.4% of our revenue.  In the 2006 budget it accounts for 32.7% 

The median for all cities was 16.8%  It is tempting to want to try to shift the tax burden to non-resident shoppers, but this is a very fickle revenue stream. 

Sales tax collections have decreased in two of the last 5 years.  Sales tax collections so far this year are up only 1.5%, not even keeping up with the 3.39% inflation.  In addition, our fixed costs as a percentage of the budget were above average.  This means that a large portion of our expenses are immutable and not subject to cuts while an equally large portion of our income is subject to the whims of the area’s shoppers.  An economic slowdown could lead to astronomical property tax increases which could be devastating to many of our long time residents. 

White Plains per capita debt is close to the median.  The city Common Council prudently resisted suggestions to bond the entire recent pension cost increases.

Excluding New York City, the population in New York State’s 61 cities has decreased by 20% since 1970.  At the same time, the population residing in towns has increased by 16%.  White Plains bucked the trend experiencing a 5.4% population increase.  I have estimated approximately a 10% population increase since 2000 to a current estimate of 58,700 residents.  Yet during the same period our tax base has decreased by 5% to $298,326,052.  This is $3,930,147 less than was forecast in the 2005-06 budget.



Paul Wood was recently quoted in The Journal News as saying, “I have a nighttime population of 50,000, but we provide services to more than 250,000 during the day”.  This 250,000 number is tossed about a lot.  It implies that between 9 and 5 there are some 300,000 people riding up and down in elevators, flushing toilets and calling the police.  It is just not a meaningful number. 

It was derived a number of years ago by counting the number of vehicles passing through the fringe intersections and applying a factor to estimate the number of people per vehicle.  It counts trucks making deliveries, commuters coming to the train station to go to NYC, and people just passing through. 

A better estimate of commuters coming into White Plains is 24,000; and we should subtract 10,000 or so White Plains residents who work outside the city.  This is a better match with the NY Department of Labor 2004 estimate of 48,400 jobs in White Plains. 

This was down 11,700 jobs from their 1990 estimate of 60,100 jobs.  In the past we had more commuters, and lower taxes.

However, whatever the correct number, it is disingenuous to use it as support for above average expenses when the justification for building the malls, office parks, government offices, for suffering the traffic congestion and low air quality was precisely because it would attract those people who would stuff money into the city coffers while requiring minimal services.

I suggest that during the upcoming budget discussions that the city looks beyond just comparisons with previous White Plains experiences.

Don Hughes