February 8, 2008
County Testimony Details How Cost Shifts Will Squeeze Property Taxpayers
NYSAC and the New York Public Welfare Association (NYPWA) teamed up this week to testify about how cost shifts in the Executive State Budget proposal will negatively impact local property taxpayers. Visit www.nysac.org for a copy of the testimony.
Specifically, the Executive Budget breaks the historic state/local fiscal partnership by shifting a portion of the State’s cost for the Family Assistance and the Safety Net program. The proposal requires counties to now pay 2 percent more, while the State share would decrease by 2 percent. According to the Executive Budget, this proposal is projected to generate up to $40.5 million in General Fund Annual Savings, and is based on an immediate effective date of April 1, 2008. The analysis of local impact included with Executive Budget indicates that the 2% increase will have no impact on counties in 2008 and increase county costs by $10.7 million in 2009. However, the reality for counties is that this proposed increase in the local share of welfare is effective on April 1, 2008 and therefore must be accrued by counties. Under this plan, county costs will increase by approximately $19 million over two years.
In addition, the Executive Budget proposes that, effective April 1, 2008, counties will assume the full cost of youth placed by the Family Court in secure and non-secure detention facilities. Currently, the State reimburses counties 50 percent for secure and non-secure detention costs. The State’s estimated savings for this initiative is $35.4 million. Based on the feedback from counties, NYSAC is concerned that the State’s estimates understate the impact of this cost shift.
“There is a direct correlation between the decisions made in this state budget proposal to the local property tax burden in New York State. Even as we focus on our property tax crisis, this budget shifts the burden of paying for critical social service programs to our counties and local taxpayers,” NYSAC President Lucille M. McKnight told the Joint Fiscal Committees of the Legislature at a hearing on the human services aspect of the Governor’s proposed state budget.
NYSAC’s analysis of the Executive Budget and its impact on county government is available on the NYSAC website at www.nysac.org. (Ken Crannell)
State Agencies Cite NYSAC’s Work in Budget Testimony
This week the New York State Legislature held several Joint Hearings on the 2008-09 Executive Budget. These presentations to the Legislature provide members an opportunity to receive input on the Governor’s budget proposal from the agencies who must administer these programs and services. This year, in addition to delivering testimony addressing county’s concerns with specific cost shifts contained in the proposal, three agency heads highlighted NYSAC’s efforts to identify cost savings and opportunities for state and local efficiency.
Specific efforts include:
- The Commissioner of the Department of Corrections (DOCS) Brian Fischer in his testimony mentioned the support his agency had received from NYSAC in relation to the Governor’s proposal to offer counties the opportunity to purchase low cost, nutritional meals for jails from DOCS’ cook/chill facility;
- The New York State Division of Parole Chairman and Chief Executive Officer George Alexander noted how NYSAC’s partnership has been helpful in addressing the time that State parole violators have been housed in local jails; and
- The Commissioner of the New York State Office of Temporary and Disability Assistance noted how NYSAC has worked with his agency to identify ways to enroll eligible families in the Federal Food Stamp Program.
The Senate and Assembly will continue to hold hearings regarding the Executive Budget over the next week. (Adriano Bongiorno)
IDA Civic Facilities Financing Authority Lapses
Local Industrial Development Agencies (IDAs) can no longer provide low cost revenue bond financing for projects such as public hospitals, senior-living facilities, college dormitories and other construction project by not-for profit community agencies as a result of a continuing impasse in negotiations in the legislature over IDA reform.
The authority to provide this lower cost financing alternative expired on January 31, 2008. Under this authority local IDAs had been able to help finance these community projects through revenue bond financing, the cost of which is less expensive than convention financing methods, with the risk being the sole financial responsibility of the bond holders without placing an added debt burden on taxpayers.
The renewal of this authority has been tied up by the negotiations between the Senate and Assembly on an overall IDA reform package. A particular sticking point in the negotiations has been the insistence by the Assembly that all projects be required to pay prevailing wages on all construction projects financed by local IDAs. Critics of this approach have indicated that placing this requirements on all IDA projects would significantly increase New York’s already high cost of doing business (ranked number 2 in the country).
A recent study conducted by the Center for Governmental Research, (CGR) commissioned by the New York State Economic Development Council, concluded that “there will be a very significant impact of the ability of New York Regions to compete for projects if prevailing wages were extended to IDA projects in New York State.“ The CGR study took a comprehensive look at the comparative costs for market wage and prevailing wage projects in 7 New York Statistical metropolitan areas and compared them both within New York and with competitor regions around the country.
According to this study, the mandate of prevailing wage requirements would increase the cost of a typical Upstate construction projects financed by an IDA by 23%, and New York City metro region projects by 52%, further increasing the already high cost of doing business in New York.
NYSAC has made enactment of IDA reform, including the enactment of permanent authority for local IDAs to finance civic facility projects, part of its legislative program for 2008. County officials are urged to contact their legislative delegations to urge the enactment of this authority and to oppose the costly imposition of prevailing wage requirements on IDA funded projects.
A full copy of the CGR study of the financial impact of the imposition of prevailing wage requirements can be obtained by visiting this link. (Jeff Osinski)
Sales Tax Collections on Indian Reservations Evade County
Coffers
For the second year in a row, the Governor’s Executive State Budget includes over a hundred million dollars in revenue from the collection of taxes on sale of gasoline and tobacco products to non-Native Americans on New York reservations. This year the budget allocates $174 million in revenue for state and local coffers, with the assumption that New York State Department of Taxation and Finance will begin to implement the 2005 law requiring the collection of sales tax on cigarettes and gas sold on reservations to non-Native Americans.
One of the laws enacted in 2007 requires the State lawmakers to provide a corresponding local fiscal impact statement on the measures they propose that will have an impact at the local level. The 2008-09 Executive State Budget includes the Division of Budget’s analysis of the proposed budget’s impact on counties. While the budget language includes this $174 million allocation in sales tax revenue, it does not include a corresponding revenue impact the local share of this revenue on the local impact state.
The NYSAC Standing Committee on Native American Affairs and Gaming adopted a resolution calling on the state to implement measures to collect these sales and excise taxes. Several counties have also adopted this resolution and NYSAC will continue to advocate for the implementation of this law. (Mark LaVigne)
NYSAC Resolutions Passed and Posted to the Web site
NYSAC’s standing committees convened last week at our 2008 Legislative Conference to pass resolutions drafted to respond to the Governor’s 2008-09 Executive State Budget. The resolutions were adopted by each committee and then voted on by the NYSAC Resolutions Committee. The full conference then passed the resolutions unanimously at the NYSAC business meeting on January 30, 2008.
To download copies of the resolutions, visit the Legislative Action Center section of our Web site at www.nysac.org. (Adriano Bongiorno)
State Energy Authority accepting applications for grant funding
The New York State Energy Research & Development Authority (NYSERDA) is now accepting applications for $11.2 million in grant funding for the purchase, installation and operation of stationary fuel cell systems. The program offers a $2,500 bonus incentive for installations at essential public service sites.
Under a similar program, Saratoga County partnered with New York State-based company Plug Power to provide a fuel cell-powered backup system for the Saratoga County Emergency Services Department.
Funding for this program is on a first come, first serve basis. NYSERDA will be accepting applications until May 29, 2008. (Pete Savage)
2008 County Directory
NYSAC is currently updating its roster of thousands of elected and appointed county officials in New York State. The directory will be available in April. To order a copy of the 2008 Directory, visit
www.nysac.org/About/documents/2007DirectoryOrderForm.pdf.
Coming Next Week
New York State Association of County Clerks will hold their Annual Legislative Conference in Albany on Monday, Tuesday and Wednesday.
Tuesday, February 12th – New York State Commission on Property Taxes will hold its second meeting in Albany.
The State Assembly and Senate will be in session on Monday, Tuesday and Wednesday.
