Thursday, March 6, 2008 

798-5800

Picente: State Cost-Shifting Hurts Counties

Oneida County Executive Anthony J. Picente, Jr. was joined today by leaders of other Central Upstate New York Counties and the New York State Association of Counties to denounce cost-shifting in the proposed 2008-2009 state budget that could force counties to either cut valuable services or raise taxes.

“The state is trying to dig itself out of a budget hole by burying counties in a pile of higher taxes,” Picente said. “Trickle down costs hitting county governments adds to the local tax burden and is a step in the wrong direction. This budget puts new mandated costs on the backs of county taxpayers without giving county governments any ability to control those costs. Albany ’s old bait-and-switch tactic of shifting state costs onto counties to balance the state budget is a tired political tactic that papers over real issues with false assurances.”

            Oneida County Board of Legislators Chairman Gerald Fiorini also expressed deep concerns over the impact of the budget on Oneida County . “How can the Governor tout property tax relief, but continue to add mandated costs on County governments?  The Governor’s so-called state tax relief is just another example of shifting taxes to the property taxpayers,” Fiorini said.

 Picente noted several areas of concern:

Juvenile detention: The state budget shifts the full cost of juvenile detention onto counties. Costs are currently split 50-50. “This is not reform. This is not trying to use better services to achieve better results,” Picente said. “Counties have no say in the decisions Family Court judges make. All the state wants us to do is pay the bill so it can walk away from costs that keep increasing every year.” Picente said Oneida County would face $1 million in higher costs due to this change.

Welfare costs: The state budget cuts the state share of the Safety Net and Family Assistance programs to drop by 2 percent, forcing counties to pay a higher share. “Not only does this change impact counties that are already into our fiscal years and working in the constraints of adopted budgets that must be cut if the state gets its way, this cost shift to counties comes at a time of rising needs when economic hard times for our people will drive up costs far beyond state estimates,” Picente said, noting that the change will cost Oneida County a projected $542,106 over the next two years. He also noted that another Social Services cost shift reduces state aid  by 35% for Child Protective staff who are required by the state, costing Oneida County $156,000 in 2008 alone.
 

           CHIPS Highway Revenue: “At a time when the infrastructure of County needs increased efforts to be upgraded for the future, this reduction – part of a statewide reduction imposed in the budget – impedes local efforts to upgrade roads and provide for safe highways,” Picente said, noting that the loss to Oneida County is projected to be $102,000.

            Community College aid: “The Executive Budget’s reduction in state aid for Community College students has a serious impact on the county budget. ,” Picente said. “ Mohawk Valley Community College , which has been the access point for higher education for generations of Oneida County residents, would face a $230,000 loss in state aid. That $230,000 would either need to come from the pockets of families already hard-pressed to afford college or from the pockets of Oneida County taxpayers already stressed to meet property tax bills. Either way, it is a cut that hurts those who can least afford to pay.”

            Picente said that a proposal in the budget to allow counties to increase revenue through an increase in mortgage recording fees is not an acceptable solution to the state’s cost-shifting. “Shifting the costs of state programs onto everyday people who pay these fees is just as bad as shifting it onto the backs of property taxpayers,” Picente said. 

            Picente also clarified the impact of the Medicaid cap passed three years ago. “The state cap has prevented huge cost spikes, but it does not take this burden away from County Governments ,” Picente said. “ Oneida County ’s Medicaid costs will rise about $1.3 million in 2008, and continue to rise annually. Medicaid costs the county taxpayers of Oneida County more than $50 million per year. That figure remains a substantial burden on county governments.” 

            Picente also noted that Oneida County ’s fiscal picture is heavily impacted by the state’s lack of action to collect sales taxes that are owed to the state and county on the sales of items by Indian-owned retailers to non-Indians. “ Oneida County and its communities continue to shoulder the additional burden of lost sales tax revenues from Oneida Nation sales to non-tribal members. Oneida County loses out on between $5 million and $10 million per year in sales taxes that – by law – should be collected and that are of even greater importance at a time when sales tax collections are leveling off as consumers slow down on their buying,” Picente said.