Westchester County Board of Legislators
800 Michaelian Office Building
148 Martine Avenue
White Plains, NY 10601

Honorable Members;

I am pleased to submit my Proposed 2007 Westchester County Operating Budget. The tax levy increase is 3.98% over 2006, which is lower than last year and also lower than the current rate of inflation. We have controlled our expenditure growth to 3.2% for all county operations, for an increase of $49,159,955. However, we anticipate a $4 million decline in mortgage tax revenues due to the housing market.

The gross budget for 2007 is $1,692,337,149. However, due to a new ruling by the State Comptroller, this number includes for the first time (in both revenue and expense lines) $103,000,000 that we receive in sales tax that we then distribute to the county’s schools, towns, villages and the cities of Rye and Peekskill. Without this mandated addition to the budget, the gross budget would have been shown as $1,589,337,149.

This budget continues our commitment to provide services to protect the health and safety of our residents and our most vulnerable populations, while, at the same time reaffirms our goal of instituting strong fiscal controls and good management procedures. We continue to be recognized as one of the few AAA bond rated counties in the nation.

The budget includes:

• No increase in any County fees or permits.
• No increase in bus fares or reductions in service. In April of 2007 the Bee-line system will implement the Metro card system which will reduce the cost of bus transportation for many of our residents.
• A 5% increase for all contract agencies, which represents the first increase for these non-profit groups since the 2002 budget.
• A further reduction in parental day care co-pay to 15%, which was reduced last year to 20%, and an additional $500,000 in day care scholarships.
• New positions in the Department of Public Safety, Emergency Services, Probation and the District Attorney’s Office for investigations, law enforcement, overall security and emergency preparedness.
• $5.1 million has been added for the implementation of HAVA and the centralization of the elections process, now mandated by law.
• We will continue to replace the County’s fleet with fuel efficient and hybrid vehicles.
• We will continue our Westchester Medical Center support, budgeted at $15.3 million.

For the second consecutive year, the Department of Social Services tax levy is reduced. This decrease of $7.5 million comes despite providing for 41 new positions in the Child Welfare Unit to meet the potential recommendations of the Child Welfare Workload Study.

As in previous years, the State and Federal governments are eliminating or failing to provide adequate funding for many essential services formally paid for by grants in Public Safety, Probation and Labs. As a result, the County will have to pick up more of the staff costs of these worthwhile programs.

The 2007 proposed budget institutionalizes two important Public Health Programs: Teen Aware to prevent teen pregnancy and Healthy Beginnings which provides pre-natal home visits to at risk women and continues to fund the Health Care Disparities Initiative.

The 2007 budget continues to adequately fund those mandated and fixed expenditures of county government. While the managed growth cap on Medicaid implemented during 2006 has helped control the county’s Medicaid expense, the program continues to escalate at 3.25%, costing taxpayers $189.8 million in 2007. But even though capped, this amount is too much for our residents. We are continuing to aggressively pursue and combat Medicaid fraud, waste and abuse to provide relief to our taxpayers who pay the bill for this State Mandated program.

Not capped yet at the county level is the State Program for Children for Special Needs (Early Intervention and Pre-K). This program will grow to $139.2 million in 2007 up from $130.9 million last year.

As in years past, we continue to propose a budget that is prudent and judicious supporting and funding programs that have proven to be beneficial to the public and vital to their health and safety. We will not let up on continuing to achieve greater efficiencies. While County taxes make up between 15% and 20% of a homeowner’s total property tax bill, we are ever mindful of the increasing tax burden our residents pay to their schools and local governments. Our goal, therefore, is to provide the best services to our residents at the lowest possible expense.

As always, my administration is ready to assist your Honorable Board in its review of my proposed budget. I respectfully request its adoption.

Respectfully Submitted,

Andrew J. Spano
County Executive