|
Spano Fairwell Budget: 4.8% Tax Increase. Blames Sales Tax. Astorino Pans It.
Posted on Monday, November 16 @ 14:25:01 EST by jfbailey
|
|
|
“In short,” said Spano. “We have a budget impact of more than $121 million that we have to deal with.”
County Executive-Elect Rob Astorino said in a reaction to the budget, that Spano had not cut enough.
Mr.Astorino stated: "It is dissappointing that Mr. Spano's final budget as County Executive includes a sizable tax increase. Westchester families have made it clear that they cannot take higher taxes. Mr. Spano's budget now goes to the County Board of Legislators where additional budget reductions should be made. A five percent tax increase is unacceptable to the public. "
He called for the budget to be submmitted earlier in the year, going forward: "Part of the problem is the budget process itself. An outgoing County Executive should not be proposing a budget with no accountability for the result. As I said during my campaign, budgets should be submitted in October to allow full, line-by-line scrutiny prior to Election Day."
He added, “No county executive wants to raise taxes. However, as county executive, I have to make difficult choices, some of which may not be as popular as others but every decision is made in the best interest of the residents of Westchester. The budget recognizes the extraordinary economic times, which all levels of government -- federal, state, county and local -- are facing. As in all my previous budgets, the proposed budget supports the fiscal integrity of the county and its triple A-bond rating. It minimizes the effect of the economic downturn on taxpayers while providing essential services for the residents of Westchester.”
Spano said that the budget is not without pain and not without needed sacrifice. He called on members of the CSEA, Teamsters and other county unions to go along with the five-day unpaid furlough so that severe layoffs can be avoided.
White Plains/Scarsdale Legislator, Bill Ryan. June 2009. (WPCNR Photo News Archive)
Chairman of the Board of Legislators, Bill Ryan (District 5) commented in a statement to the media:
The County Executive has delivered to the Board of Legislators his proposed County budget for fiscal year 2010. Considering the weak economy, more and more residents relying on County programs and services for basic needs, the reduction of sales tax and other revenue to the County, and taxpayers asking for property tax relief, this could not have been an easy budget to put together. I appreciate his efforts and those of the Budget Department.
The Legislature’s analysis of the County Executive’s proposed budget begins today and as we work through this process with the Administration we must look for the best opportunities to streamline, cut costs and improve the organization of our county government operation. We must make our best effort to do more with less.
The time has come for government to work smarter, become more efficient and less expensive. This needs to be the objective of government at every level: federal, state, county and local, and every form: general purpose, school districts, authorities and special districts. Westchester County government should immediately accept this challenge and be a model for other units of government to follow. If others are reluctant, Westchester County should lead by example.
County government should help our localities streamline and reduce costs by consolidating functions and programs, centralizing operations and delivering services regionally as needed. If the Westchester community with all of its taxing jurisdictions is going to be in the national headlines each year, let it not be for having the highest combined property tax bill in America, but let it be for real progress and innovation in service delivery and cost containment.
I know that property taxes are too high in Westchester. In these tough economic times, we can’t afford to pay more taxes. Overburdened taxpayers look at their tax bills for schools, local and county government, and plead for property tax relief. I also know that the law requires the county to care for people most in need. Our budget decisions cannot place an unfair burden on those who have the least and we cannot balance the budget on the backs of our working families. We must do a better job balancing the delivery of essential services with the need to cut costs. We look forward to working with the Administration on a budget that will preserve the core services that are critically important to many Westchester residents.
Over a year ago, the bottom fell out of the national economy with the financial and banking sector hardest hit. Wall Street’s woes became Main Street’s problem. Westchester County government, the administrative arm of the State for service delivery, has worked through the worst economic crisis since the Great Depression and we have remained financially strong and stable. But, the financial crisis has forced all of us in government to assess our priorities. The Board of Legislators takes seriously the importance of doing so at this critical point in time.
“The last thing we want to do is lay people off in this economy,” Spano said.
Beyond the elimination of 34 vacant jobs and three other management positions, his proposal includes only one-month funding for nine positions in the county executive’s office and five deputy commissioner positions.
“This will give the incoming county administration the flexibility it needs to assess these positions as it goes forth,” he said.
Among the job cuts, the county executive’s security detail will be eliminated, removing three police officer positions from public safety.
In addition, his budget calls for a review of the Health and Community Mental Health departments to see if they should be ultimately merged, as physical illnesses, mental health and substance abuse are inter-related. This would not only provide better services but create efficiencies that would reduce costs. As a result, the budget includes funds for only one commissioner.
The budget must be approved by the Board of Legislators by Dec. 27.
Chairman of the County Board of Legislators Budget and Appropriations Committee, Jose Alvarado of Yonkers commented:
We are looking forward to a cooperative working relationship between the Legislature and the Administration. In this climate of cost saving and economic cautiousness, nothing is off the table. The County must – and will – continue to look for creative ideas for service delivery and additional savings.
The financial crisis has forced all of us in government to assess our priorities, so that going forward we can continue to minimize the impact that cuts will have on essential services. Through this series of oversight meetings, we are demonstrating both how serious this process is and how committed the Board of Legislators is in helping shape the important decisions that will be made over the coming weeks.
It’s imperative that we take a responsible approach to balancing our budget. We must make sure we protect the county’s quality of life, and ensure that we continue to move in the right direction.
REVENUES
Economically driven revenues have decreased by $50.9 million. The largest of the decrease is attributed to sales tax. It is estimated that sales tax will decrease by $45.6 million from the 2009 adopted budget. Other economically driven revenues (Mortgage Tax, Hotel Tax and Auto Use Tax) have been similarly affected, totaling a $3.4 million decline.
Also, as with all investment portfolios, interest earnings have declined $1.9 million.
EXPENDITURES
On the expenditure side, the county continues to be hit with a $13.6 million increase in pension costs (mandated by the state) and increases in various social services areas. Medicaid growth is estimated at $7.2 million (for a total of $204.9 million), with the balance of Social Services Relief accounts reflecting another $11.4 million expenditure increase. Services for Children with Special Needs are increasing by $7 million (for a total of $141 million). In addition, the county has been assessed with the new MTA Mobility Tax, costing $1.5 million.
Another area that has seen major cost increases is employee health insurance, up $24 million due in large part to a surge in the number of extremely ill catastrophic cases that the county government must fund. Changes made to the plan as part of labor negotiations in 2008 have stemmed the growth of prescription drug costs to reasonable levels.
In addition, the costs for workers compensation has increased by $5.5 million.
SOME OF THE SPECIFICS IN SPANO’S PROPOSED BUDGET:
· The abolishment of 37 positions (34 of which are vacant), with an estimated savings of $2.4 million.
· One-month funding for 9 positions in the county executive’s office and 5 deputy commissioners, saving $1.5 million.
· In addition, for all remaining employees with the exception of elected officials, the Board of Legislators staff and public safety, correction and criminal investigators, a five-day unpaid furlough, which saves $5.5 million. (Spano called on the legislators to impose the furlough on its own staff as well.)
· Elimination of the county executive’s security detail.
· No tax levy dollars for Playland
· For the third consecutive year, no pay increases for commissioners, directors and non represented management
· A savings of $1.5 million in overtime reduction.
· $5 million in savings from locking in decreased fuel costs for buses and $250,000 in savings from a new Paratransit contract.
· No cuts to contract agencies.
· Increase revenues of $4.7 million to the Department of Labs and Research by maximizing the fee structure.
· End to the county’s subsidy of the Westchester Medical Center, saving $12.5 million.
· Initial steps to merge the departments of Health and Community Mental Health, with funding for one commissioner.
· The budget continues cost-savings measures previously implemented ranging from the use of network printers, decreasing the number of duplicative electronic devices, to the reduction of light bulbs to the adjustment of thermostats.
| 
