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County Officials Urge State Leaders to Cut State Spending Without Having Property Taxpayers Make up Difference
August 15, 2008
In light of Governor David Paterson's latest round of proposed budget cuts, the New York State Association of Counties (NYSAC), whose membership consists of the fifty-seven counties and the City of New York, today urged state leaders to draw the distinction between "cuts" in state funding and simple cost shifting by the state to the counties for delivering state mandated services.
"The difference could spell property tax increases for New York's overburdened homeowners and businesses," said NYSAC Executive Director Stephen J. Acquario.
Among the $1 billion dollars in cuts announced this week were $250 million in cuts to local governments by "reducing local assistance general fund spending by six percent." County leaders warn that thousands of county officials will vigorously defend against state cost shifting to county government.
"Let's be clear here. They are not cutting aid to counties, they are cutting the reimbursements for programs that county governments are required-by state statute-to deliver. We still have to spend taxpayer money to deliver the state's programs, the difference is that we just have less of the state's funding to pay for it," said Acquario. "If we are going to make the hard choices to address the current economic situation, then we need to reduce state programs and services, not simply shift more costs to property taxpayers."
As much as 80 percent of a county budget is devoted to the administration, implementation and delivery of state programs and services. Historically, when state finances have been squeezed, costs for state programs and services have been shifted down to the local property taxpayers.
"The state has two choices to offset part of their budget deficit. They can either reduce state programs that are delivered by counties or they can shift the cost of delivering those programs to counties," said NYSAC President Lucille M. McKnight, an Albany County legislator. "When they shift costs instead of cutting programs, county property taxpayers must make up the difference."
"We can't keep squeezing the balloon at both ends and expect it not to pop," said Suffolk County Executive Steve Levy, president of the NYS County Executives Association. "The weakening economy means less tax revenue collected at the local level. The state's budget deficit shifts costs at the same time we are facing increased local costs of health care, pensions and fuel. Something has to give, and it should not be property taxpayers who already pay some of the highest taxes in the nation.
"I applaud Senate Majority Leader Skelos for his statement of support for protecting New York's property tax payers in opposing these cost shifts," said Levy. "Senator Skelos knows first-hand the impact of how property taxes are crushing the people of this state, especially on Long Island."
"The Senate Majority will continue to work with the Governor to address the economic challenges facing New York State, but not in a way that is harmful to local governments. If the State takes away promised local aid, many local governments will be forced to raise their taxes to fill the gap. At a time when we are focused on providing real property tax relief to overburdened homeowners, we oppose any effort to cut local government assistance funding," Senate Majority Leader Dean G. Skelos said.
The New York State Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC's mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.
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