White Plains CitizeNetReporter - Spano Signs Budget "on spec"

WPCNR COUNTY CLARION-LEDGER. From Westchester County Department of Communications. (EDITED) December 23, 2002:County Executive Andy Spano has signed a budget for 2003 that holds the line on property taxes. But he warned that if the state doesn’t give the county authority to raise the sales tax, then property taxes will go up almost 15 percent and important quality-of-life county services that protect the public and help children and women and fund cultural groups will be slashed further.

The $1.338 billion budget was approved Saturday morning by the Board of Legislators and signed by Spano Monday.

"Monopoly Money" to be Shared With Communities

The budget includes $65 million in revenue that would be generated if the state allows the county to raise its sales tax one penny on the dollar effective March 1 to pay for state-mandated programs. Another $26 million in revenue from this sales tax increase would go to Westchester’s towns, villages, school districts and small cities to help them hold the line on local property taxes.

No Sales Tax Increase Means a Contingency Budget

If the state does not authorize the sales tax increase, the county will enact a contingency budget that includes a 14.84 percent increase in property taxes and $14.9 million in additional cuts to county services, including public safety and legal aid; programs to help children; and programs to prevent domestic violence and drug and tobacco use.

Spano Challenges Albany Legislators

“I and the Democratic-controlled Board of Legislators do not want to raise property taxes. I once again call on our state legislators to give Westchester the authority to raise the sales tax,” Spano said. “The alternative is a double-digit property tax increase, layoffs of county employees, and further reductions to county services, including public safety, as well as programs that help women and children, the hungry and support the arts and our libraries.”

Praises Democratic Leadership for Not Raising Property Taxes.

He added, “I want to thank the Democratic leadership, including Richard Wishnie, the chairman of the Budget Committee; Lois Bronz, the chair of the Board; and Mike Kaplowitz, Clinton Young, Bill Ryan and Andrea Stewart-Cousins. Together with Democratic Legislators George Latimer, Vito Pinto, Jose Alvarado and Marty Rogowsky, we have enacted a budget that does not raise property taxes. And together, we will ask the state Legislature to give us the authority to raise the sales tax.”

State Has 49 Days to Authorize the Sales Tax

The Board of Legislators will meet in a special session Monday, Jan. 6, to authorize the contingency plan. That plan would be put into effect no later than Feb. 10 if the state has not authorized the sales tax increase.

Contingency Here We Come

“While I am not happy raising any taxes, I firmly believe that increasing the sales tax is far better than raising the property tax,” Spano said. “Although I am optimistic that the state Legislature will grant our request, I also recognize our responsibilities to enact a balanced budget and to do everything within our power to maintain the county’s triple-A bond rating. Therefore it is necessary to have a contingency budget in place.”

Anatomy of the Cuts

The $14.9 million in cuts that would be enacted if the contingency budget is put in place include the following:

• Elimination of funds for anti-smoking programs aimed at teens and pre-teens

• Closing of drug-treatment programs for prisoners

• Elimination of Parkway Police patrols

• Additional across the board cuts to the County Executive’s Office, the District Attorney’s Office, the County Clerk’s Office and the Board of Legislators

• Additional cuts to the Board of Elections

• Elimination of salary increase for employees who have been without a contract for a year

• An additional 10-20 percent cut to all community-based organizations that the county works with. These include providers of health services as well as cultural organizations.

• Elimination of an additional 142 subsidized day care slots

• Elimination of program to investigate child abuse

• Additional cuts to Legal Aid Society

• Additional cuts to the Public Utility Agency

• Layoffs of county employees.

“Implementing these cuts would deeply affect our quality of life in Westchester. But without a sales tax, we have no choice,” Spano said.

Mandated Spending by State Again Fingered

Westchester expects to spend about $1 billion next year on state- mandated programs,(according to the Westchester County News Release.) Of this, the state will reimburse the county about $213 million; the remainder comes from county tax revenues and fees. From Medicaid to services for children with disabilities, from railroad station maintenance to corrections to pensions -- the costs of these state-imposed programs are soaring, collectively expected to eat up more than $620 million in county property tax and sales tax revenue next year.

Recapping the Budget Buidup

The increase alone from 2002 to 2003 is about $111 million. In his original budget submitted to the Board of Legislators in November, Spano cut $30 million by eliminating 229 vacant county jobs and slashing discretionary spending. He also raised fees for a variety of services. Even with this, Spano said at the time that unless the county was given approval to raise the sales tax one penny on the dollar, property taxes would have to go up 28.6 percent.

Democrat Caucus Cut the Budget That Will Be Used if Sales Tax Increase Approved.

Working with the Democratic majority on the county Board, Spano and the legislators cut an additional $42 million from Spano’s proposed budget, eliminating some additional vacant positions and making other cuts to county services and programs. It is that budget that would be in place if the sales tax increase is authorized. No Sales Tax. More Cuts.

If it is not, the contingency budget with its draconian cuts of an additional $14.9 million and property tax hike of 14.84 percent will go into effect.

County property taxes make up about 15-20 percent of a property owner’s bill. The remainder of property taxes are collected by school districts, local governments and special districts (sewer, water, garbage, etc.).


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