Despite a loss of about $26 million in revenues and an increase of more than $20 million in energy costs and mandated expenses, County Executive Andy Spano today proposed a budget for 2009 that decreases county spending from this year.  

“The economic environment we face today as well as into the foreseeable future has and will continue to have an effect on every resident of Westchester County,” Spano said. “ I am well aware of the tax burden placed on our residents from all taxing districts and how many are finding it difficult to make ends meet.”

He added, “My goal is to continue to keep our county taxes down; to share services with local governments so they can reduce costs; and to continue to be fiscally responsible. At the same time, we must continue to protect the safety and well-being of every Westchester resident and maintain our quality of life.”

Spano described the challenges of the budget as “unprecedented” due to the nationwide recession. “We have a $46 million hole in our budget to close,” said Spano, referring to a loss of $26 million in revenues from state aid, interest on investments and the mortgage tax ; and a $20 million increase in costs beyond the county’s control. 

To reduce county spending, every line in the county budget was examined.

• While there are no layoffs in the budget, 52 vacant positions would be eliminated for a total of 146 positions since he first took office.
• There will be no purchases of vehicles, and overtime and equipment purchases have been reduced significantly.
• All  costs for the amusement part of Playland will be borne by patrons, not by taxpayers, saving another $3.3 million.
• The Department of Community Mental Health has been restructured.
• There will be no raises in 2009 for commissioners, department heads and other managers who are not in a union.  

 “To minimize the impact on the taxpayers of Westchester, I have slashed discretionary spending so that the 2009 budget is actually less than what was budgeted for 2008,” Spano said. “The gross budget for 2009 is $1,773,479,195. All discretionary spending except that which impacts the health and safety of the county has been reduced. I have done what I believe our residents have been doing in paring down their own spending.”

  “Yet, even with these extensive cuts, that is not enough to hold the line on taxes,” Spano said. “It is our loss of $26 million in revenues that is causing county taxes to go up 2.97 percent.”

County taxes account for about 15-18 percent of a taxpayer’s property tax bill. The remainder comes from taxes levied by schools, local governments and
special districts. The exact impact of the county tax increase on a property owner varies from community to community, due to difference assessment practices.

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

“For the foreseeable future, we all will be affected by the economic downturn,” Spano said. “I continue to be concerned about the welfare of our residents-those on fixed incomes, those who are unemployed, those who have seen their savings disappear and those who have lost their homes. I assure you that I will continue to protect our taxpayers and will still provide the services the public needs.”

Here are highlights of the budget:
REVENUES
Due to forces beyond the county’s control, the government is facing a tremendous loss of revenue.

• Mortgage Tax revenue is budgeted at $16.8 million for 2009, reflecting a decrease of $11.9 million from the 2008 budget and more than $15 million less than actual  receipts in 2007.
• Interest on Investments is down $4.8 million from 2008.
• Loss of state aid is expected to be at least $9.6 million
• Sales Tax revenue growth is projected to grow only 1 percent next year. 

REQUIRED EXPENDITURES
As it deals with loss of revenue, the county must also address increased expenditures beyond its control:

• $3.6 million increase in fuel costs for the Bee-Line bus system
• $1.15 million increase in Para-transit due to increased ridership as well as increased fuel costs.
• $5.7 million increase in the cost of utilities for the county as a whole. One reason for this is that Entergy’s contract to supply low-cost power to schools and governments expire at the end of this year. Despite the county’s requests to continue the contract, Entergy has refused, causing utility rates to increase for all these entities.
• $2.7  million added in legal fees from the fair housing lawsuit and from court-ordered property tax reductions for “certiorari” cases
• $4.9 million increase in the cost of state-mandated programs for Children with Special Needs
• $2.4 million increase in the cost of Medicaid

 

MISC.
The budget also includes the following:

• No decrease for contract agencies. These non-profits will be held at 2008 levels.
• The county, as required by law, will continue to fund the federal Help Americans Vote Act (HAVA).  Although costs have gone up since 2005, municipalities have been held harmless.
• Money is included in the budget to fund negotiated labor contracts.
• There is no increase in Bee-Line bus fares, but there will be an increase of $1 per ride for Para transit rides
• Support for the Westchester Medical Center will be decreased to a net of $13.5 million.
• The county’s Special Studies account has been eliminated. Money not spent from 2008 will be used on global warming, autism and performance-based management initiatives.