Nov. 15, 2005


SPANO PROPOSES 2006 COUNTY BUDGET WITH TAX INCREASE BELOW RATE OF INFLATION TO SUPPORT THE MEDICAL CENTER, ENHANCE PUBLIC SAFETY AND RESTORE FUNDS TO CONTRACT AGENCIES

County Executive Andy Spano today released his proposed spending plan for 2006, which includes an increase in the county tax levy of 4.5 percent – below the 4.8 percent rate of inflation – to support the Westchester Medical Center, to enhance public safety and to restore funding that was cut from various non-profit agencies in harder fiscal times.

The 4.5 percent tax levy increase will generate $21.6 million in revenue. Of this, 3 percent (or $14.4 million) will go the medical center for operating expenses, utilities, lab services, security, transportation and ground maintenance. The remaining 1.5 percent ($7.2 million) will go toward public safety, services for children with disabilities and to a new federal-state mandate (costing $3 million) that the county take over from local jurisdictions certain costs associated with voting.

The budget also holds the line on bus fares and adds personnel in emergency services, corrections, probation and child welfare programs.
“This budget reaffirms our commitment to provide services to protect the health and safety of the people of Westchester while continuing to institute strong fiscal controls in our management practices and policies,” Spano said in his budget message.

The gross $1.54 billion budget is an increase of 3.9 percent, or $57 million, from 2005. The tax levy increase – the amount collected in county property taxes – is less than half of this. Due to Westchester’s economic growth, increases in sales tax and mortgage tax revenue have helped offset the increased costs.

The effect of Spano’s proposal will ultimately vary from community to community, due to a state formula that address the way local governments assess property and different trends in market values.

County taxes represent less than 20 percent of a homeowner’s total property tax bill, with the remainder levied by local schools and municipalities, as well as special districts (water, sewer, etc.)

Spano said he was pleased to report that his and other county executives’ lobbying efforts about the costs of another state mandate – Medicaid – had finally paid off. The cost of this health program for the poor is projected to rise just 3.5 percent next year – as opposed to 8 percent from 2004 to 2005. And because of a one-time change in state accounting practices, the county will actually be paying less in 2006 ($188.5 million) than the $200 million net that was budgeted in 2005.

But other new and old state and federal mandates will affect the budget. As is required by federal and state law, the county Board of Elections is allocated $3 million to take over from local jurisdictions the job of purchasing, maintaining and storing 1,300 voting machines as well as the training and compensation of inspectors. And the cost to counties of state-mandated programs to provide services to children with disabilities continues to soar, up 15 percent.

In addition, the county has chosen to continue funding important public safety programs that were previously funded with state or federal grants which have expired.

“For the past eight years, this administration has been prudent and judicious,” Spano said. “Just last week, Moody’s and Standard and Poor’s rating agencies once again affirmed the county’s fiscal stability with a rating of AAA. We are very aware of the school, local and county tax burden our residents pay. That’s why we have streamlined government, made staffing cuts and share a portion of county sales tax with our municipalities and schools to help offset their local property taxes. At the same time, we have always kept to the philosophy that government is best when it provides those services to protect and enhance the quality of life of each and every resident.”

Spano’s budget now goes to the Board of Legislators, which has until Dec. 27 to adopt a final spending plan.

Here are some other highlights of the budget proposal:
• Funding for day care to guarantee no waiting, and a reduction in parental co-payments (to 20 percent, from 25 percent) so that more families can take advantage of the program.
• Various non-profit agencies – from day care to the arts to libraries to those that fight domestic violence – will be restored to 2002 funding levels. These groups had been cut 20 percent since 2003 due to budget pressures.
• The Department of Correction has additional funding due to the growing prisoner population.
• Positions have been added to the Emergency Services Department to continue to ensure that Westchester
will be ready to handle a response to a man-made or natural disaster. Staff will also be added to the
Probation Department to continue intensive supervision of sex offenders, domestic violence offenders and drunk drivers, and to deal with gang intervention programs.
• There will be an increase in child welfare positions in the Department of Social Services to change the standard for measuring work from a caseload to a workload system. These new positions will have no effect on the department’s tax levy, which, in fact, has decreased for the first time in history by over $17 million.
• In an effort to combat Medicaid fraud, the 2006 budget provides funding to investigate the providers to uncover abuse, fraud and waste. The county recently signed a memorandum of agreement with the state Health Department and Medicaid’s Inspector General to begin a review of the provider payments through IBM’s Verify New York’s investigative software system. When fraud is found, the county will receive a percentage of the settlement.
• County utilities costs are projected to be up more than $2.2 million – to $17.4 million. This represents heating of buildings for the county and the medical center operations.
• The cost of the county’s health benefits to employees is projected to increase by $15 million, to $90.9 million. This, despite cost-control measures the county negotiated into its labor contracts last year.
• State- and federal-mandated programs to educate and transport young children with disabilities will continue to rise. The projection for 2006 is that this will cost Westchester $132.4 million, compared to $125.9 million in 2005. Once state aid is taken into consideration, the cost to county taxpayers in 2006 will be $58.7 million – more than a $7 million increase from 2005.
• The replacement of 44 old county vehicles with hybrids to reduce gas costs and protect the environment.
• Various county revenues are up. Sales tax revenues are up by about $20 million, state aid for transportation up $10 million, and mortgage tax up $7 million.