WPCNR COUNTY CLARION-LEDGER. From Westchester County Department of Communications (EDITE) November 15, 2006: County Executive Andy Spano today released his proposed 2007 budget, describing it as a fiscally sound plan that would protect public health and safety while keeping the tax levy increase below the annual rate of inflation. 

The proposal calls for a gross 2007 budget of $1,692,337,149  and an increase in the county property tax levy of 3.98 percent. The current rate of inflation is 4.1 percent.  This increase would have been less if not for a decrease in mortgage tax revenues due to the slowdown in the housing market.  

“We have been prudent and judicious, supporting and funding programs that have proven to be beneficial to the public and vital to their health and safety,” Spano said. “We have provided for mandated expenses while at the same time aggressively pursuing programs to root out Medicaid fraud and abuse. We will not let up on continuing to achieve greater efficiencies. While county taxes make up 15-20 percent of the total property tax, we are ever mindful of the increasing property taxes our residents pay to their schools and local governments. Our goal clearly is to provide the best services to our residents at the lowest possible expense.”

The budget includes no increases in fees,  permits or bus fares and no cuts in bus service.(In April of 2007 the Bee-line system will implement the Metro card system which will reduce the cost of bus transportation for many riders). It also includes a 5 percent increase in funding to all contract agencies that work with the county to provide cultural and human service programs.

The effect of Spano’s proposal will ultimately vary from community to community, due to a state

formula that address the way local governments assess property and different trends in market values.

SPENDING 

The gross budget appears as an increase of $152.2 million, but $103 million of that is due to accounting changes mandated by the New York State Comptroller. For the first time (in both revenue and expense lines) the budget must include that portion of the sales tax that is received by the county, but then distributed to the county’s schools, towns, villages and the cities of Rye and Peekskill. Without this mandated addition to the budget, the gross budget would have been shown as $1,589,337,149, an increase of $49.2 million, or just 3.2 percent.

Spano projects that net Social Services expenses next year will be down $7.5 million, the second year in a row there has been a decrease. The decrease comes despite the fact that it provides for 41 new positions in the Child Welfare Unit to meet the potential recommendations of the Child Welfare Workload Study.

Medicaid, the program that pays for health care for the poor, is  projected to cost taxpayers $189.8 million next year. Another state-mandated program, Children with Special Needs (Early Intervention  and Pre-K) will grow to $139.2 million in 2007, up from $130.9 million in 2006. About half of these costs are reimbursed by the federal and state governments.

Other expenditures include an increase of 20 percent in the costs of getting electric power from the New York Power Authority and a 12 percent increase in water costs from New York City’s water system; and $5.1 million for the implementation of  the federal Help America Vote Act (HAVA) and the state-mandated centralization of the elections process. In addition, the county anticipates that the costs of court-ordered property tax refunds (known as certioraris) will increase to $10 million next year, from $6 million this year.

The 2007 proposed budget institutionalizes two important public health programs: Teen Aware to prevent teen pregnancy and Healthy Beginnings which provides pre-natal home visits to high-risk populations. In addition, the budget would continue to fund  Spano’s Health Care Disparities Initiative.

OTHER HIGHLIGHTS OF THE BUDGET

ü      A 5 percent increase in county payments to contract agencies, which represents the first increase in five years for these non-profit groups that provide important services and enhance the arts.

ü      Additional subsidies for day care, reducing the parent co-payment to 15 percent (which was reduced last year to 20 percent) and an additional $500,000 in day care scholarships.

ü      Continuation of the county’s ongoing effort to replace its bus fleet with fuel -efficient and hybrid vehicles. 

ü      Continuation of support for the Westchester Medical Center, amounting to $15.3 million.

ü      New positions in the departments of Public Safety, Emergency Services, Probation and the District Attorney’s Office for investigations, law enforcement, overall security and emergency preparedness.

REVENUES

            The county budget projects an increase of 3.5 percent in sales tax revenue from 2006, or $467.5 million. (This includes the $103 million pass through to local governments and school districts, a bookkeeping change.)

However there is a 13.8 percent decrease, or $4 million,  in mortgage tax revenues due to the slowing down of the housing market in Westchester. The tax levy increase would raise $517.9 million in revenues.     Taxpayers benefit from the continued growth in the county’s surplus from previous years. For 2007, it is up $4.3 million, to $43.6 million. (Under county fiscal practices, the audited fund balance from 2005 is used in 2007.)

The county anticipates $414.7 million in state and federal aid in 2007, no change from 2006.