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As Legislators prepare for their annual Budget Retreat this week, County Administrator Joe Mareane cautions that local impacts of a global recession has produced an “extraordinarily difficult” situation for Tompkins County, as it begins to prepare the 2010 County Budget.

Mareane told the Legislature’s Budget, Capital and Finance Committee that the property tax levy would have to rise by close to 15% next year simply to sustain current operations, an approach that would clearly not be a viable option, especially at such a “fragile” economic time for local residents and businesses.  Because of the nature of county government, he noted, county budgets vary directly with the economy, more than any other local government.

Some of the major drivers include an $2.5 million anticipated decline in revenues—from such sources as sales tax, state aid, and reserves—coupled with a projected $1.7 million increase in mandated expenditures—for such items as pension expense, temporary assistance, legal aid and services for children with special needs.  The administrator warned that conditions upon which the projections are based could always change—for example, if the County experiences further cuts in state aid, beyond the $700,000 currently projected.

Even a tax levy increase of 5%, he cautions, would require $3.6 million in structural program changes in the small discretionary portion of the County’s budget.  Administration has presented four potential budget scenarios for the April 29 budget retreat, as had been requested by the budget committee, with tax levy changes to the “maintenance-of-effort” budget ranging from 0% to 6%.  Administrator Mareane recommends the 5% level as a starting point, but said that this year’s conditions make a recommendation “very difficult” and that “a very active dialogue” will take place with departments as administrators work to meet the challenge of whatever target the Legislature sets.

As part of the thoughtful discussion about the impending budget situation and whether to enter the budget retreat with a committee recommendation, the committee first considered entering discussions with the 5% recommendation, which failed by a 2-3 vote (Legislators Nathan Shinagawa and Kathy Luz Herrera in favor; Mike Hattery, Pam Mackesey and committee chair Jim Dennis voting no.)  Luz Herrera said it is valuable for the committee to demonstrate leadership and maximize transparency through offering a recommendation; those opposed expressed the view that, with the complexity of this year’s challenges, all legislators should have the chance to review the situation before a recommendation is presented.

If recommended, a 5% levy increase would carry with it a tax rate increase of 3.5% to a rate of $6.14 per thousand assessed valuation.

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