White Plains CitizeNetReporter - County Sales Tax Receipts Sink. Spano Asks Albany to Help Out.

WPCNR Evening Star Reporter. From Westchester County Department of Communications. July 22, 2002:Westchester County is predicting a $5 million shortfall in sales tax revenues if numbers from the first six months of the year are any indicator.

According to sales tax receipts released by the state, Westchester collected $328,625 less than expected during the first six months of the year. Sales tax receipts were $116,136,962 from January to June 2002 compared with $116,465,587 that was budgeted.

Sales Tax to the Rescue?

“The news is not good,’’ said County Executive Andy Spano. “The shaky national economy is causing people to spend less, and that means we are losing vital sales tax dollars. This does not bode well for next year. We are facing a $102 million deficit caused by programs the State imposes on us, and if Albany does not give us a new revenue source, the people of Westchester could see a State-imposed double digit tax increase.’’

Asks Albany for 1% Increase in Sales Tax

If Albany would allow Westchester to increase its sales tax by 1 percent, it would raise about $75 million, enough to close about three-quarters of the budget gap.

“Without the sales tax increase our options are not good: a 29 percent State-imposed increase in property taxes or severe cuts in county services or a combination of both,’’ said Spano.

Westchester County Budget Director Kate Carrano said the latest sales tax figures are another blow to the county’s efforts to close the estimated $102 million budget gap.

“The 2002 budget amount for sales tax revenue was the same that was budgeted for 2001,’’ said Carrano. “However, 2001 actual revenues came in $4.5 million short. In the current sales tax picture, we are facing an additional $500,000 shortfall.’’

Spano said while increased costs for State mandated services like pre-school special education, Medicaid and health care were hurting the county, two added mandates from Albany this year delivered a crushing blow -- the addition of Family Health Plus health insurance for working families and passage of the Health Care Reform Act.

Both these new programs must be funded by Westchester, increasing the cost to county taxpayers by millions of dollars. This year Medicaid costs increased 19 percent -- more than double the 8 percent increase budgeted by the county based on the normal expectations from previous years.

Spano said while these programs were certainly worthy, it was not fair for Albany to pass along their cost to Westchester residents. He said the least that Albany could do was to give Westchester the right to raise additional revenue.

“Our State legislators know how much these State mandated programs are hurting our taxpayers and our only relief is the ability to raise the sales tax one cent on the dollar,’’ said Spano. “I hope they will work with us. Albany caused the problem. Now we need Albany to help solve it.’’


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