Letter to the Westchester County Board of Legislators
from Andrew J. Spano, County Executive
November 14, 2000

Honorable Board Members:

I am pleased to transmit to you my Proposed Operating Budget for calendar year 2001. It is a budget that provides for the largest tax cut in the history of Westchester County government for an unprecedented third year in a row. This has been accomplished while maintaining programs that enhance our quality of life and despite massive cuts and cost shifts from the state and federal governments. 

The budget process is one of partnership between myself and your Board. For the past three years our joint efforts have reduced taxes and enhanced the quality of life for our taxpayers. Together we have decreased the burden on our residents without mortgaging the future for short-term gain. To continue to do this, I urge you to join with me in letting the state and federal governments know how their decisions impact taxes paid by local residents. These levels of government must be held accountable for their own programs and their own budgetary problems. Only then can we truly give our residents the tax decreases they deserve.


PROPERTY TAX RELIEF FOR THREE CONSECUTIVE YEARS: FIRST TIME IN COUNTY HISTORY

I promised Westchester residents that I would reduce the cost of government for our taxpayers. This budget reduces the county tax levy by 4.84% or $17,269,125. The proposed tax levy is $339,446,955. It is the largest decrease ever in County property taxes. Since I have been in office, the cumulative decrease in taxes over three years is 7.26% or $26,104,782. Put another way, the property tax decrease has more than doubled each year.

You may recall that last year, we were able to reduce the tax levy despite a huge loss in State and Federal Aid. Unfortunately that situation has not changed. In this budget, I have, once again, absorbed at taxpayer expense reductions in federal and state revenue and increases in expenses for federal and state mandated programs over which we have no control. The cumulative impact since the 1998 budget has been $54,850,737. Had these cost shifts not occurred, we would have been able to reduce the county property tax levy by over 22%. 

While the goals of these programs—to help children, the uninsured and the elderly—are most worthy, I am opposed to the fact that the county pays for them, but has no control over how they are run. They are state and federal programs, and these levels of government must pay their fair share.

Taking the growth rate for all existing and new mandated programs, fixed expenses, county discretionary programs and the public benefit corporation credit support, the proposed budget for 2001 totals $1,223,020,273. This is an increase of 2.45% that is well below the current cost of living index. 

Even with the increased costs in uncontrolled mandates, this historic tax levy decrease continues and expands the programs and services that protect our children and our environment. Moreover, we have given long-term tax stability to Westchester County. Our fiscal integrity and our triple A bond rating not only remain secure but are an example to other counties. 

To accomplish this, this budget:

• Continues our policy against one-shot revenues.
• Continues our “pay as you go” for the routine replacement of equipment, computers, repair and maintenance of our physical assets.
• Continues the process of restructuring the way we do business.
• Continues the “right-sizing” of government where unneeded vacant positions have been eliminated and new positions are budgeted where necessary.
• Preserves the Debt Stabilization reserve of $26,000,000, established in 1999 for the first time in county history, to protect our taxpayers from future swings in debt service costs.
• Includes the negotiated contract stabilization of union relations for a sixth year. For the first time in over a decade, it includes funding for contract settlements for all employee unions through the current period.

PROGRAMS AND SERVICES FOR OUR FAMILIES, CHILDREN, SENIORS
It is not enough to reduce taxes. We must also continue to provide programs that protect our families and our environment and to serve our residents who have not fully enjoyed the benefits of our booming economy. 

This budget increases the gross funding for Day Care to $37,413,606 and provides for 4,647 low-income Day Care slots. The county portion proposed to support this is $17,844,024, which is $13.2 million more than last year. In 1998, the county portion was $1.3 million. This is an increase of 1,338% in county tax levy support. 

Each year we have budgeted more for Day Care slots, and we have seen the numbers surge in the last year. This program not only helps children, but our whole economy. This program not only helps those parents who are transitioning off welfare and desperately need child care to break the cycle, but it also helps those low income residents who are not on public assistance to stay self sufficient. Fully, half our residents who qualify for low-income day-care fall into the latter category. 

While we have clearly funded this program extensively on county tax dollars, I believe that more should be done and that the State, sitting on a surplus of Federal funds, must step forward and provide more money for additional slots. 

This budget also proposes $100,000 in funds to support the Asthma Clinical Research Center at the Westchester Medical Center. The grant to the American Lung Association of the Hudson Valley will study the impact of asthma on children and methods of diagnosis and treatment. I am also continuing our $2,625,000 commitment to our anti-tobacco campaign, which brings our total appropriation to $5,250,000 over two years. 

We have also increased funding to $800,000 and added 14 new lines in the health department for mosquito control and surveillance and to bring our program in house. 

This year one in five county residents is over 65. The rest of the country will not reach this stage for another 50 years. Being ahead of the curve in this respect means that we must focus on the needs of our older citizens and continue to control the property tax. For the year 2001, I will submit legislation to your Board to elevate the Office for Aging to a County Department, which will have no impact on the tax levy. 

This budget continues to provide for our cultural institutions, which contribute so meaningfully to our quality of life. Two years ago I entered into three-year agreements with the various cultural organizations to guarantee a stable and certain revenue stream from the county so that they could plan accordingly for their operations. 2001 represents the third year of my commitment. 


DEPARTMENT OF TRANSPORTATION
My proposed budget maintains the current bus fares. This is due in part to our State delegation that at our request fought for and delivered aid to our bus system. Even though there will be no reduction in bus routes and only one new route will be institutionalized, (the Austin Avenue route begun earlier this year at the request of residents, store owners and the City of Yonkers) to maintain the current bus fare the county will be budgeting an additional $3,412,425 of taxpayer dollars.


DEPARTMENT OF PARKS, RECREATION AND CONSERVATION
To keep our parks system second to none, this budget proposes increases for eight new staff positions and for repairs and maintenance for a total of approximately $300,000. It is good fiscal policy to continue to fund routine maintenance so that we can avoid having a capital expenditure if such repairs are constantly deferred. Last month I submitted, and your Board approved, a $1.4 million budget amendment for golf course maintenance equipment. Had the previous administration addressed this on a continuing basis, there would have been no need for this large, one-time, expenditure. We can no longer afford to defer basic maintenance equipment. 

I am also recommending funding of a new ride at Playland, “Chute to Chute” at $450,000. Our investment in Playland of millions of dollars is meaningless unless we bring new rides and new excitement to increase our marketability. It is anticipated that the new revenue generated from this ride will cover its cost.

Golfing on county courses has never been more popular and we must continue to improve our golf courses with work on the tees, greens and irrigation system at Mohansic and Sprain Lake at a cost of $4.9 million. 

Upon the death of Mrs. Patterson this year, the county accepted the estate known as Merestead. This magnificent property came with an endowment that should cover operating costs associated with maintaining it. Funding and the budget for this park will be managed out of a dedicated county trust for Merestead. 


ECONOMIC DEVELOPMENT
Our effort to encourage new business and to retain and grow existing ones has had an impact not only on our overall economy but also on our budget. This growth, thanks to our overall economic strategy, has helped reduce the vacancy rate to a low of 11.9% from a countywide average of 16.5% in 1998. In White Plains, alone, the rate has gone from 30% vacancy to 15%. The result has been a significant drop off in certiorari claims. The reduction in the Certiorari Proceedings account has dropped from a high of $11,500,000 in 1998 to a projected $8,000,000 in 2001. Not only is the county budget benefiting from this reduction, but so are our towns, cities and school districts.

To continue and enhance our pro-active efforts, this budget calls for the incorporation of the convention and visitors bureau, better known as tourism, into the county’s management structure. It is time to put under one county umbrella all the economic development tools that can keep our economy growing. Receipts from the sales and hotel tax are anticipated to grow at a rate of 5%.

CONCLUSION
With your Board’s assistance we have accomplished tobacco securitization and I thank you for being far-sighted. Tobacco settlement payments are budgeted at $14,760,055 for 2001. This is approximately $2.24 million less than the original Master settlement due to a significant drop off in consumption. Had we not securitized when we did, we could expect to see a great loss in future payments especially over the second 10-year period. It was a wise decision.

Furthermore, as a result of securitization, the Westchester Medical Center is closing today on its first bond sale and is transferring to the county the funds necessary to decrease the county’s previous debt on their behalf, which in turn reduces the county’s outstanding debt. And the ultimate prize, of course, is the new Children’s Hospital.

The Proposed 2001 Operating Budget I transmit to you today keeps our county strong and financially sound. It reduces taxes, without mortgaging our future. It provides for quality of life programs and services for those in need. As we begin this process for the third time together, I look forward to another taxpayer friendly budget crafted in this effective partnership. 

My staff and I stand ready to assist your Honorable Board in the review of this historic budget. I respectfully request its adoption.


Respectfully submitted,

Andrew J. Spano
County Executive