Its politics as usual in Albany. Once again we appear to be pawns in a larger
game of Chess. The expensive “part time”
State Legislature ended its 2017 session on Wednesday (June 21st) without
renewing the sales tax rates for 53 counties, which means the rates and
resulting income for those counties will drop in December unless the
legislators return to Albany to perform that normally routine duty.
According to “Reclaim New York”, a center for government
reform and accountability, county governments in New York must get state
permission every two years to charge anything higher than 3 percent in sales
tax, the default level authorized in state law. Most of the 57 counties outside
New York City do set higher rates, and the Legislature usually approves
so-called extenders to continue them without a hitch. Without them, the rates
would revert to 3 percent.
But those extensions got gnarled this week in two unrelated
pieces of Albany politics. The Democrat-controlled Assembly grouped the
sales-tax requests in a single bill, and tethered it to an extension of mayoral
control of New York City schools, something that also requires state approval.
The Republican-controlled Senate, which is demanding the
state, allow more charter schools in return for renewing the mayor’s control of
the school system, balked at the Assembly bill. Instead, it passed individual
sales-tax extensions for each county.
The session ended Wednesday night with neither chamber
blinking and no sales tax extensions. The current rates expire Nov. 30. At
stake locally is an additional 1.50 percent in sales tax which translates to
around $6.5 million.
County Administrator Timothy Boyde, in a press release,
explained what the ramifications might be should we lose this revenue and he
mentioned the following about the matter before us:
“It should be noted
that our local legislative representatives, Senator Cathy Young and Assemblyman
Joe Giglio, have supported the sales tax extender legislation. They understand the importance of these
funds. In conversations with Senator
Young, she is confident the matter will be resolved. We hope that this is the case. It would, however, be woefully irresponsible
for us to assume that everything will be fine.
We simply cannot base the needs of our constituency on the hope that the
Tax Extender Legislation will be renewed.
County staff has already begun to examine cost cutting measures that have
the potential to reduce our operating budget by 5 percent.”
I applaud his effort to forewarn the public about the
possibility of a future financial problem. In my opinion, and others, Allegany
County government has grown fat and lazy wallowing in this additional revenue.
Building a $3.5 Million dollar surplus for 2016 - when you’re hoping and
praying that you won’t have to dip into savings to make ends meet – speaks
volumes. The “surplus” now stands at
over $32 Million. Up from $29 Million
last year.
In my view, we should always foster an environment that
encourages “county staff” to constantly examine cost cutting measures and we
should always be working to reduce our operating budget. Waiting for the sky to
fall is not the answer to our problems.
Please know that some of your County Legislators did in fact
vote against the additional 1.50 percent extender last fall. We would love to have the rate fall to 7% but
in reality that might be too big a bite to take all at one time. Parity, being at the same rate as our
neighboring counties, is what we were looking for. It’s not 2005 anymore. We have millions in the bank and – according
to the leadership – the best financial position we’ve been in since the dawn of
man. Why not give our people a break?
I have great confidence in Senator Young and Assemblyman
Gilio. The 53 counties thus affected
obviously will have a voice and the extender will get a due hearing. Probably in September. In the mean time, I’m
hoping that the exercise of creating two budgets – one with and one without the
additional $6.5 Million in revenue - might turn up ways we can get off of this
Merry Go Round and set things right. The
8.5% County Sales Tax needs to go away.
In any event, you need to make sure your voice is heard in
Belmont. Call your County Legislator and
let them know your opinion on these issues.
It’s an election year and your voice – and vote – is more important than
ever! Go to www.alleganyco.com for details.
Karl Graves is an
Allegany County Legislator, representing District IV, Wellsville/Andover.
