Saying he could not sign a budget with phony revenues, wasteful spending and unfunded liabilities, County Executive Robert P. Astorino announced Dec. 15 that he would veto 247 lines of the budgets for 2011 approved the previous week by the Board of Legislators.
"What the legislators approved last week is flawed and puts Westchester County government at risk," said Astorino. "While it is commendable that the board followed my lead to reduce county property taxes, the legislators did so in an irresponsible way. The combination of phony revenues, wasteful spending, unfunded liabilities, illegal actions and rejection of generally accepted accounting principles jeopardizes our AAA credit ratings. I cannot sign this budget in its current form."
These vetoes include 220 to the operating budget, 200 involving about $32.5 million in expenses and 20 involving almost $23.3 million in revenues; 24 to the capital projects budget; and three to the solid waste district budget.
In November, Astorino proposed a spending plan for 2011 that cut the county property tax levy by 1 percent, maintained all essential county services, protected the county's needy and ensured fiscal responsibility. Last week, the Democratic-controlled Board of Legislators pushed through additions and deletions.
"I take very seriously my fiduciary responsibility," said Astorino. "We only have to look at what is going on in Nassau County to see warnings of what not to do. Nassau cut taxes, without making the hard decisions on spending. As a result, its credit rating has been downgraded and a state oversight agency may take over."
Astorino's vetoes can be overridden by a two-thirds vote (12) of the legislators. The Democrats control the board by a 12-5 margin over the Republicans.
The vetoes announced today (the last day to do line-item vetoes under the County Charter) include many of the board's additions to the operating budget for next year, including expenditures on the Section 8 program, day care, Cornell Cooperative Extension, the Human Rights Commission, neighborhood health centers, one homeless shelter and community mental health clinics. Vetoes also include added revenues for the sales tax and the departments of Parks and Labs & Research.
Under law, Astorino may only use a line-item veto on the additions, not the deletions. However, he expressed his concern about some of the board's deletions, saying some may be illegal. Of particular concern, he said, is the board's deletions of all three deputy commissioners in the Department of Social Services.
Astorino also blasted the Democratic-controlled legislature for pushing through its changes without allowing any time for the Republican minority or the administration – or the public – to give them scrutiny.
"This is what the Democrats call transparency," Astorino said. "Vote now and let the public find out the facts later. The reckless process that led to Friday's passage of a $1.79 billion budget is a prescription for financial disaster."
SOME OF THE VETOES
Operating Budget Expenditures
- Section 8 Housing Voucher Program: The legislators restored $4.1 million for 40 people to administer this program. The county has no legal obligation to administer the program and Astorino has argued that it is costing county taxpayers about $1 million annually to do so, once short-term and long-term costs are factored in. Astorino had already given the state notice of the county's plan to terminate the contract at the end of this year and the state is proceeding with plans to replace the county.
- Day Care: The board has added approximately $5 million for day care. Under the board's plan, the parent share would be lowered to a level far below what most counties and even New York City pay. In addition, the board has restored a scholarship program that has failed in its purpose of getting people off unregulated day care. Even with the vetoes, the county will spend $29 million on day care next year, reflecting the administration's support for these programs.
- Cornell Cooperative Extension: The board added $990,000 to Cornell Cooperative Extension to continue to run nutrition and farming programs. Astorino has maintained CCE's programs are a complete duplication of programs run elsewhere by the county and various non-profit groups.
- Human Rights Commission: The board has restored five positions at a cost of $575,500 (including benefits). Astorino had cut the commission, saying it duplicates the work of local and state agencies.
- Neighborhood Health Centers: The county executive vetoed the $1.9 million subsidy the legislators allocated to the Mount Vernon Neighborhood Health Center, Hudson River Healthcare and Open Door Family Medical Centers. "Putting a budget together is all about allocating resources to the greatest needs," said Astorino. "The fact of the matter is they no longer need the county's financial help because they have been reaping a financial windfall from the federal government. Last year, all three closed their books with multi-million dollar increases in their net assets."
- Homeless Shelters: Astorino had proposed the closing of two homeless shelters: WestHelp in Greenburgh and Oasis in New Rochelle. The board added almost $950,000 to keep Oasis opened. Astorino vetoed this, saying the shelters were underutilized and not needed.
- Mental Health Clinics: Astorino had proposed closing two of the county's mental health clinics in January and two others in June. These services would be provided by non-profit agencies, with transition plans for all patients developed. The legislators added funds to delay the closing of two of the four clinics until June. Astorino vetoed this change.
- Other Positions: The county executive had originally proposed a total of 226 layoffs based on recommendations of his commissioners. All but 95 of these position had been restored by the legislators. Including the Section 8 program, Astorino vetoed 134 positions of the 147 that the legislators had restored to the budget. This includes 118 positions that are currently filled.
Operating Budget Revenues
- Sales Tax: In his original budget, Astorino projected that sales tax revenues for next year would increase 4 percent from the current year. This projection is based on a regional consensus and was called optimistic but "reasonable" by the county board's own auditors. The board has added almost $2.3 million more in sales tax revenue, which Astorino said is overly optimistic. He noted the county may not even hit its 2010 projected sales tax revenues. "The problem with over estimating is that it leaves a deficit for the following year. Making up sales tax numbers so the budget looks balanced is irresponsible," he said.
- Parks Revenue: The board increased parks revenues by $750,000. The legislators added $100,000 for the Playland pool. Astorino in his original budget had said that the pool would not be opened next year because it needs $50,000 in repairs. The board also added $500,000 for golf fees, beyond the $500,000 addition that Astorino had proposed. The county executive questioned whether the market could bear this further increase, which could in fact lower revenues. The approval is also needed from the Parks Board, which was not consulted on the board's increase.
- Labs & Research: The board added $1.5 million in additional revenue from "enhancements" to the department's business plan. Astorino noted that the board is claiming revenue from a business plan that has not yet been written. He added that the legislators should have learned from the 2010 budget when the county added $2.7 million in revenue that never materialized.
Capital Projects Budget
Approximately $60 million in infrastructure capital project additions by the board were vetoed.
Astorino said some of the projects might be worthy but that the board had not followed the required legal process of vetting the projects through the county's Capital Review Committee and Planning Board. "We have a process that must be followed," he said. "Otherwise these projects are subject to the whims of legislators and become nothing more than legislator's pork."
Solid Waste District Budget
The three vetoes include a position added without funds and $100,000 in expenses.
LEGISLATIVE ACTIONS OF CONCERN
- The board has eliminated all three deputy commissioner positions in the Department of Social Services. This is the county's largest department with a budget of $575 million. The board's action puts the department at risk. Under law, the department must have at least one deputy.
- The board has transferred $500,000 from the Department of Law (County Attorney) to its own budget for "legal services." By law, the county attorney and his staff represent all branches of government. "At a time when the public is crying for consolidation, why is the Board of Legislators setting up its own legal fiefdom and patronage positions that will have no legal authority to act on behalf of the county?" Astorino asked.
- The board's adopted budget cut $10 million in funds allocated to pay for past and future labor contracts. Said Astorino: "While it sounds nice to say no county employee will get a raise in 2009, 2010 and 2011, the fact is six of our eight unions have unsettled contracts that are retroactive; five of which are subject to binding arbitration, over which the county has no control. This is a mandate that the board is leaving unfunded."