Westchester County Board of Legislators
800 Michaelian County Office Building
White Plains, New York 10601

 Honorable Members of the Board:

 I am pleased to transmit the first budget of the new millennium: the proposed 2000 Operating Budget for County Operations.  It is being released today-- five days ahead of schedule.  While I cannot commit to this as a standard practice for future years, I am delighted this year to be able to give you and the public more time for review as you consider the complex issues on which this budget is based.

PROPERTY TAX RELIEF:
Tax Levy Decreases for Second Year in a Row
As you are aware, this is the second budget prepared by my administration.  And, in keeping with my pledge to reduce the cost of government, for the second successive year, we are decreasing taxes for Westchester residents.  This has been accomplished despite a $40 million cumulative shortfall in State and Federal funding in years 1999-2000.

The 2000 Budget proposes the largest tax decrease in 25 years.  This budget proposes a tax decrease of $6,238,979, which is a 1.7% decrease in the tax levy.  The proposed levy for 2000 is $356,919,415 as opposed to the 1999 levy of $363,158,394.  This has been accomplished—

• Despite the massive loss of State and Federal aid that had been given to us previously to pay for programs the State and Federal governments have mandated and for which we have no choice, but to provide…

• Despite the continued increases in such State mandated programs as SCD (Services for Children with Disabilities) and Medicaid…

•  Because of the prudent and innovative plan to securitize tobacco settlement funds, and

• Because of the continuous review and re-engineering of those programs and operations that the County provides either by charter or in its discretion to enhance the quality of life of our residents

Please be aware that if it were not for those non-funded or under-funded mandated services, I could have decreased taxes by an additional $25 million or 6.9%.

For example, our  tax levy cost for Services for Children with Disabilities is up another $3.9 million on top of the $5.8 million increase last year.  And our tax levy costs for the Medicaid budget after six years of stability are increasing by $13 million.  Despite these funding losses, I am pleased to note that all advocacy groups and community-based organizations, which contribute so much to our Westchester lifestyle, have been held harmless.  And furthermore, I have proposed an additional 600 more child day care slots for low-income families.

PROPERTY TAX RELIEF:  2000  
The 1.7% decrease in tax levy proposed for 2000 required many creative solutions for difficult issues that required cuts to be made in those areas of County government that we control and that are discretionary.  Moreover, in order to absorb the impact of the loss of an additional $25 million of State and Federal aid and higher expenses imposed by the State’s direct and indirect action, unfortunately, fees had to be increased or re-structured to pay for local initiatives like parks and recreation and transit services.  At the same time we had to adequately fund those State and Federal mandated programs that are being under-funded by those same governments.

Vacant positions have been eliminated.  The remaining positions are essential to County operations and are vacant through normal turnover.  In 1999 we abolished 125 positions and in 2000 we are eliminating another 47, for a combined total of 3.3% of the total positions in County government.  These reductions in large part are a result of the New York State Early Retirement Incentive Program, which I will propose again for 2000, should the State authorize one.

We have also established new administrative policies to protect our financial future.  These include: the creation of a true unrestricted fund balance for the County by not appropriating all of the undesignated fund balance into the successive year’s budget; and a return to a “pay as you go” policy for the replacements of Commissioners’ cars, computer equipment and county-wide maintenance projects.

TOBACCO SETTLEMENT:
This proposed budget assumes that the legislation currently before your Board to securitize the back-end of our tobacco settlement will be passed.  We should not place the future of our County solely at the mercy of future tobacco profits while actively working to decrease teen smoking.  This legislation will provide for tax relief, enable us to spend more on anti-smoking initiatives and allow the County to establish a policy of building a fund balance to provide for unforeseen State budget cuts like those of this past year.

When the State legislature adopted the 1999-2000 State budget with their draconian cuts to County government, they used the rationale that the counties could replace the State cuts with their tobacco money.  It is indeed unfortunate that we have had to do just that.  Instead of giving our residents a further decrease in taxes, the proposal you have before you requires that a significant portion of the tobacco money will be used to offset State and Federal aid cuts.

However, I am firmly committed to the promise I made to spend 28% of the tobacco money we will receive in 2000 on public health and tobacco related initiatives.  Therefore this budget proposes an expenditure of $2.5 million dollars for a community and school based campaign, under the auspices of the Health Department, to reduce teen smoking.  An additional $1.5 million will be spent on other public health issues, such as mosquito control and surveillance, and public health infrastructure to ensure efficient and effective continuation of public health care services and to pay for smoking related health care services.

NEW PROGRAMS AND RE-ORGANIZATIONS:

Domestic Violence
My Zero Tolerance for Domestic Violence Program continues with funding for two additional staff positions in the District Attorney’s Office, the expansion of the Domestic Violence Justice Program in the Family Courts, and the addition of $740,000 for the Probation Against Violence Unit, a previously funded grant program that helps ensure the safety of victims by providing aggressive supervision and other interventions for convicted batterers.

Department of Emergency Services
At long last, with the legislation nearing adoption by your Board, Westchester County will finally have a comprehensive and centralized Department of Emergency Services.  I have included $3.3 million for this new department, which will cost-effectively merge the emergency services previously spread throughout the Office of Fire Services, the Departments of Public Safety and Public Works, and the Westchester County Health Care Corporation.  Funding for the purchase of modern training apparatus, the completion of additional classrooms and training facilities and a new state-of-the-art computerized response system will improve efficiency and response time for the safety of our homes, businesses and citizens.

Solid Waste Commission
Implementing the legislation passed this past year to insure that trash haulers engage in fair practices, and to make sure that companies doing business in Westchester are honest, I have proposed a $1.4 million operating budget for the first year of the Solid Waste Commission.  At the same time, I am sending legislation to your Board to revise the licensing fee schedule so that the Commission will operate on a self-sustaining basis and at no cost to the taxpayers, which was your Board’s intent.

Human Rights Commission
In anticipation of your Board’s passage of this important legislation, I have proposed $100,000 for its start-up implementation.

Education Initiatives
I have always believed that education is the way to stop the welfare cycle.  Thanks to the generosity of two private foundations, Westchester County is embarking on a unique scholarship program, called Westchester Scholars.  Each year we will target 100 high school students from families on public assistance or below the poverty level to help prepare them, by giving them computers and on-line mentoring, for college scholarships.  Twelve high school seniors will be selected for college scholarships each year.

I have also put in the budget $100,000 as a challenge grant to the school districts and teacher’s union for Westchester Education Coalition to further education programs related to the workplace.

Hudson River Boat Patrol
I am proposing the creation of a new Hudson River Boat Patrol in our Public Safety Department for pollution surveillance of the three-wastewater treatment plants on the Hudson River and to enforce safe watercraft operations.  We are able to begin this program with the addition of two civilian Communication Operators that will free up two uniformed police officers for this new function.

DEPARTMENT OF TRANSPORTATION:
As I warned earlier this year, the impact of Albany’s $1.5 million cut to basic transit aid will cause a reduction in bus service, a consolidation of routes and the elimination of all shuttle service that does not cover its operating expenses.  Asking our taxpayers to pay a subsidy of $2,500 per passenger for shuttles is not fair.  Instead, I will work with the businesses that benefit from these shuttles to determine if there is a less expensive and more effective way of providing a service.

I am also proposing a reorganization of some DOT divisions, which will not only save taxpayer dollars, but will increase efficiency.  A consolidation of its telephone/information operations with the communications operators in the Department of Information Technology will save over $111,000 and provide better service.  The ParaTransit Program will be moved to the Office for the Disabled to provide a more integrated and efficient service.  The savings will be an additional $270,000.

Unfortunately, these measures cannot make up for rising costs in fuel, vehicle parts (due to our aging fleet) and bus operators’ increased salaries.  Therefore I have no alternative but to propose a fare increase of 10 cents.  Over a ten-month period, this small increase will generate $1.9 million.

DEPARTMENTS OF CORRECTION AND PROBATION:
Next year’s budget contains $500,000 for the start-up of a new day reporting center for non-violent, low bail inmates who are awaiting trial.  This was one of the recommendations of the Correction Task Force as a means of minimizing the need for future capital construction at the jail.

I have also proposed $250,000 for 6-months funding of a new substance abuse program for those who have been sentenced to 90 days to one year.  Another Task Force Recommendation, the goal of this new drug and alcohol initiative is to educate, help these individuals deal with their drug problem, and teach life skills to prevent recidivism.

TAXPAYER FRIENDLY BUDGET:
Last year, with the assistance of Legislator Richard Wishnie, we released the premiere edition of our “Taxpayer Friendly Budget”, an easy-to-read-and-understand budget summary so that all the people of Westchester would better understand how their tax dollars are being spent.

This year, we continue to make improvements in the document.  They reflect the budget’s three categories of programs and the tax levy for each Federal and State Programs; Charter Defined Programs; and Discretionary Programs.  We will continue to make further improvement in the document, and your comments are welcome.

THE PROBLEM TO BE RESOLVED:
While I am pleased that once again my budget contains a reduction in taxes, I am disappointed that the massive decrease in State and Federal funding prevented an even greater reduction.  Uncontrolled State mandates are my major concern.  As long as the State continues to massively under-fund such programs as Services for Children with Disabilities (SCD), our taxpayers will continue to shoulder an unfair burden. The State’s pullback of other support this year---when New York State had its largest surplus—shows a lack of responsibility and a disregard for the taxpayers of Westchester.  I will continue to beat on the doors of Albany until we are successful.

CONCLUSION:
For the new millennium, Westchester County remains in excellent financial health.  Once again we have received a Triple A Bond Rating from all three rating agencies.  The budget I submit to you today is a prudent one.  It provides tax relief for our residents and contains the programs and services the people of Westchester have come to expect and deserve.  Once again, we have re-organized and re-engineered services to make them more efficient and more accessible.  We will continue to focus on technology as a means of further taxpayer savings.

For the past two years, Westchester County has been governed with a new spirit of cooperation.  This extends not only to the relationship between the branches of government, but also to community organizations, advocacy groups, municipal officials, businesses, schools and colleges, unions, and our various ethnic groups.  I view this unprecedented level of trust and harmony as a sign to the people of Westchester that they come first—that, working together, the government is here to help make life easier and better for everyone.

This administration stands ready to assist your Honorable Board in the review of my new millennium budget.  I respectfully request its adoption.

Respectfully Submitted,
Andrew J. Spano
County Executive