Legislature Budget Raises Property Tax Rate 35% Over Executive Proposal

December 1, 2008

Legislature Amendments Ignore County Charter, Collins Promises Vetoes

Erie County Executive Chris Collins says the County Budget amendments approved by the Legislature Majority raise the property tax rate 35% higher than what he proposed. In addition, many of the amendments ignore County Charter, and therefore are null and void and do not impact the tax levy.

Under the County Executive's 2009 proposed budget, the tax rate went from $4.94 to $5.12 per $1,000 of assessed value, representing a 3.6% increase over 2008.

The Legislature Majority has increased the tax rate from $4.94 to $5.18 per $1,000 of assessed value, a 4.8% increase over 2008. This is 35% greater than proposed by the County Executive.

"As a result of their mistakes, they have raised property taxes 35% more than my conservative proposal," said County Executive Collins. "This is an outrageous mistake and I will not stand for it. This afternoon, I have instructed my senior management team to work overtime on devising a legal and financial way to fix the legislature's mistake and return this money back to County taxpayers. This is a fiscal shell game designed to bolster election year prospects. I will not let county taxpayers foot the bill for the Legislature's political gamesmanship. Our first step toward protecting county taxpayers and returning this money to them will be to veto the significant pork and patronage additions included in this package. The Legislature can help me fix their mistake by upholding my vetoes and respecting the County taxpayers hard earned dollars."

In a news conference, the County Executive highlighted significant problems with many of the amendments made by the Majority. In its failed attempt to craft a budget, the Legislature Majority ignored the County Charter.

The Legislature can increase or decrease expenses and it can decrease revenue, but it cannot increase revenue. But that is exactly what the Majority did. As a result, many of the Majority's amendments are null and void or increase the property tax rate over the Executive's proposal.

•The Majority voted to increase revenue in the County Clerk's office by $5.2 million. In accordance with the Erie County Charter, this is an illegal act and is null and void.

•The Majority voted to increase the Vacancy Turnover Account by $1.7 million. In accordance with the Erie County Charter, this illegal act is null and void.

•The Legislature also attempted to gut the Road Fund by $2.4 million, putting off critically needed road and bridge repairs throughout Erie County. Fortunately for the taxpayer, the Legislature Majority's resolutions involving the Road Fund are fatally flawed and are null and void. But the Majority's attempt to ignore the County's crumbling infrastructure while adding pork and patronage to the County Executive's proposed budget is obvious.

•The Legislature Majority is loading the budget with pork and patronage, while at the same time cutting vital county services. Worse yet, the Legislature cut county services without taking into account the state and federal aid that pay for most, if not all, of these services. As a result, the Legislature's cuts have little to no impact on the budget.

"The most onerous of the Legislature's attempted cuts are in Mental Health and Social Services- services that are 100% reimbursed by the state and federal governments," said Collins. "Erie County has now lost these vital services without any meaningful cut in the county budget. At a time when our citizens are most vulnerable, it is a tragedy that these cuts were made. My administration will attempt to restore them with amendments put forth in January that will not cost the taxpayers one dime."

•The Majority also raided the County's Risk Retention Fund for $2 million, against the advice of the County Attorney and Comptroller. Erie County is self insured and this fund is how it pays for settlements and judgments in the numerous lawsuits filed against the County each year. Erie County is facing significant lawsuits; include cases involving the Holding Center.

"Taking $2 million from the Risk Retention Fund leaves Erie County vulnerable and ill-prepared to meet the legal challenges we face," said Collins.

The County Executive also criticized the Majority for continuing to inappropriately micromanage executive departments by cutting critical positions and professional services. "My proposed budget was my first opportunity as County Executive to reorganize executive departments in an effort to increase efficiency and effectiveness," said Collins. "These political games hinder my ability to reform our government and rebuild our economy."

The total impact of the Legislature Majority's failed budget on the on Erie County taxpayer is a property tax increase that is 35% higher than what the County Executive has proposed. The County Executive pledged to respect county taxpayers and will veto the pork and patronage added by the Legislature to reduce this unfortunate tax increase.

"I call on the Legislature to recognize its improper actions and to let the vetoes stand," said Collins. "The taxpayers deserve an end to the financial gimmickry of the past. We cannot - and should not - shift the problems of today into the future and expect our children and grandchildren to shoulder the burden. We need to solve our problems and put this county in position where it is prepared and poised for growth."