Last Rabbit In Clarkstown's Hat?

All politicians should have 3 hats - one to throw into the ring, one to talk through, and one to pull rabbits out of if elected - Carl Sandburg

Supervisor Gromack always has an excuse. The tax rise of 3.5% for 2014 on residential properties was because the County shifted costs to the Towns - as if it really matters who sends the tax bill to homeowners - it is the same homeowner who has to pay.

Then the Palisades Mall was supposed to be Clarkstown's savior until Mr. Gromack lost a tax case and had to pay back $20 million to the mall. $15 million of that came from the School budget which is now nearly bankrupt - the other $5 million had to come from the Town which added it to the $110 million of Town debt.

That $110 million of debt was used in part to revitalize areas like New City with new walkways, flowers and a fountain to attract new businesses to Clarkstown but then Supervisor Gromack put together a 2014 budget of $140.7 million which calls for a 3.5% tax increase for residential properties, and a 17% tax increase on commercial properties. 

According to the Journal News: "In the past five years, commercial town taxes went up by 37.9 percent, while residential taxes went up by 11.3 percent. Clarkstown school district taxes for New City business owners went up by 44.8 percent in the past five years, while homeowners’ rates went up by 8 percent.  Bob Henderson, owner of Hendo Contracting, said he would have to come up with another $500 a month to cover school taxes for his office building on Third Street. “We work with a very small profit as it is. There’s no way we can absorb another $500,” Henderson said. “It’s like buying another truck. It’s like another truck payment.”

It seems like Supervisor Gromack always has another rabbit to pull from his hat.  Now the economic savior is to be The Shops at Nanuet. Citing The Shops at Nanuet, Stop & Shop in New City and businesses along Route 303 Gromack said: “These new businesses will help bring down the cost for all businesses.”

That is, of course, if rising taxation doesn't drive all of them out of business.  There is one "new business" at 'The Shops at Nanuet' - it is the Apple store - the only problem with this new business is that Apple closed its store at the Palisades mall and simply shifted its location. 

Here is Mr. Gromack's exchange with a caller on WRCR prior to the election explaining the effect of the Palisades Mall tax cert case and The Shops At Nanuet on future budgets and taxes: 

Caller: I have a question about the lawsuit with the Palisades mall and taxes.  I want to hear from you what is going to happen with our taxes.  I heard that they won the lawsuit and if that is true with the Nanuet Mall opening up is that going to alleviate some of the tax burden for the taxpayers?

Gromack: I have to mention that, you know, the settlement with the Palisades Mall on the outstanding tax suit was one that the judge had recommended that we move forward indicating to us that if it had to be decided it might not be as advantageous to the School District, the Town, and the County. So we did forge a compromise and settle.  The good news, if there is ever good news about a compromise suit (sic), is that the school district had funds in reserve to take care of their portion. By State law they are allowed to set up a tax reserve and they were able to take that so it shouldn't be any impact.  

Going forward, we certainly don't believe that, you know, that you will see any impact in the Town budget of any substance because, you know, it is a long term effort and because we were able to settle we should be, you know, pretty much right where we are and you won't see any spike.  

For us you won't see any impact in the budgets going forward and you are right with the Nanuet Mall coming on line we are going to picking up, you know, a lot of the money for the assessment that was evened out in the Palisades. So that is also a very positive aspect of it. We also have done a considerable amount of development in the last few years and going forward with some of the smaller strip malls where there has actually been an increase. 

So all that kind of led to the settlement which will certainly have almost no impact at all that you will notice.

Caller: I have one more question. The Nanuet Mall does not help the Clarkstown School District's situation, it helps Nanuet  ...... right?

Gromack: Yea ... it helps the school district of Nanuet but it certainly helps the Town and ... yep ... so the Nanuet Mall goes towards the Town of Clarkstown and the Nanuet School District ....... helps the Town.  So all in all it should work out, you know, very well for the school district and the Town when all is said and done.
 
With a County government running a $140 million deficit and the Town of Clarkstown continuing to add to its $110 million debt the only thing that will bring down costs is for local governments to stop spending and stop lying about revenues that may never materialize.  As it stands the tax hikes are unstoppable so long as the deficits and debt continue to rise - that is Economics 101.   

'Magician economics' is a tax 'rabbit wreck' about to happen and there are no more rabbits that can be pulled from taxpayers' hats in Clarkstown. 

This blog is authored by Michael N. Hull, a retired senior citizen. Hull contributes periodically to the Facebook page Clarkstown: What They Don't Want You To Know.