County Executive Andy Spano today proposed a 2008 budget  of almost $1.78 billion that calls for an increase in the property tax levy of 4.7 percent, or $24.4 million over 2007, mainly to fund state-mandated programs in the Department of Social Services.

“As in years past, we continue to be prudent and judicious in supporting and funding programs that have proven to be beneficial to our residents, to keep them safe and healthy,” Spano said. “If not for instituting strong fiscal controls, county expenditures and the tax levy could have been higher.”

Unlike in past years, the county cannot assume strong growth in sales tax revenues to offset costs of existing programs. Net sales tax revenues are budgeted at $371 million or just 1.6 percent over the 2007 adopted budget, reflecting a downturn in the economy and revised budget forecasts for sales tax revenue for the current year.

The budget was sent to the Board of Legislators, which has until Dec. 27 to adopt a final spending plan.

Spano’s plan provides for gross spending in 2008 of  $1,778,339,288, an increase just under $75.5 million. Of the $24.4 million of the tax levy increase, $18 million is due to costs of state mandates for child welfare services.

The exact impact the budget would have on taxpayers varies from community to community due to different local assessing practices and local changes in property values. County property taxes generally account for on average about 15 percent of all property taxes, with the remainder collected by school districts, local governments and special districts. As a rough guide, if a person pays $10,000 in total property taxes now, the county government portion is about $1,500. A 4.7 percent increase is about $70.   

“Through our new Performance Based Management initiatives, we will continue to strive for even greater efficiencies,” Spano said. “However, we need to work with state government to address the burden of state mandates on local governments and our taxpayers. Without that, it is next to impossible for counties like Westchester to reduce taxes without eliminating major programs and services that impact our quality of life.”

|Nonetheless, he said, “We will do whatever we can to continue to provide for our residents at the lowest possible cost.”

The key reason for the increase projected for 2008 is the higher case load in the child welfare division of the Department of Social Services and inadequate state reimbursement for it. Since 2006, the case load for Child Protective Services has increased by 886 cases, for Child Preventive Services by 387 cases and for Foster Care by 135 cases. In addition, the state has increased the reimbursement to service providers. However, the state is not providing the reimbursement to cover the high case loads.  

“Therefore it falls to the county to protect these children, and I will continue to do whatever is needed to keep our children safe,” Spano said.
 The  $18 million increase in social services includes 22 additional positions in the department  and five new positions in the County Attorney’s office for Family Court.

After Child Welfare, the second major increase in Social Services is Medicaid. Although the growth in Medicaid has been capped, the proposed budget still reflects an increase of $5.4 million in real cost to the county.  However, this increase has no effect on the tax levy, as the county prudently set aside a reserve fund for this. (The remainder of funds in this reserve account will continue to provide tax payer relief for Medicaid increases for future years.)

The cost of running the county’s prison system is projected to be up $9 million next year, primarily reflecting increases in salaries and overtime. Much of these personnel costs are due to state-mandated staffing requirements.

The Department of Health, on the other hand, shows a substantial decrease. Because of more rigorous controls put in place by the county, the Children With Special Needs Program (formerly SCD) is projected at  $6 million dollars less next year. This will save taxpayers $2.7 million. The decrease is despite the fact that the county expects to have  more children in the program.

The budget also includes a proposed 25-cent cash fare increase for Bee-Line bus passengers. The cost of running the system is up due to fast-rising fuel and personnel . The fare increase will pay part of this cost; county tax dollars the remainder. 

“ I have maintained the cash fare at $1.75 for the past four years and would have liked to continue this practice,” Spano said. “However, the increased costs must not be borne by our taxpayers alone.  We must strike a balance between riders and taxpayers. Without the fare increase the tax levy cost would be half a million dollars more.”

Other highlights: 

• Despite an increase in positions mostly in Social Services,  Public Safety and Information Technology, Spano noted that the executive branch has 122 fewer positions than it did in 1998 when he took office.
• The budget includes a 3 percent increase in county funds to various contract agencies that provide social services and  health and cultural programs.
• The budget increases funding for day care, dropping to 10 percent the required parental co-payment, and increasing  by 296 the number of subsidized day care slots.
• There is an $1.6 million increase in funding to meet the federal requirements for the centralization of the elections process.
• The budget continues support for the Westchester Medical Center.
• The budget includes a $1 increase in golf fees and a $10 per monthly permit increase for County Center commuter parking.
•  Mortgage taxes are projected to rise by 10.3 percent, or a total of $28.7 million.

“This budget supports my continued commitment to provide for the health and safety of the residents of Westchester while utilizing the most efficient and cost-effective measures at my disposal,” Spano said.  “ I am proud that, once again, due to our strong fiscal controls and good management practices, we have been recognized as one of the few AAA bond rated counties in the nation.”