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Legislature Passes Multiple Deficit Reduction Measures

Legislators pass tax on utility bills to raise revenue but no action on possible 150 layoffs.

 

Rockland County Legislator Jay Hood called it a horrible tax, the worst that’s ever come across his desk. Rockland County Legislator Michael Grant called it the most onerous tax the legislature could raise, and yet the only one they could use to get funds for the county to operate through the rest of the year.


And so, at Tuesday night’s special legislature meeting, a resolution passed by a vote of 14-3 in favor of a new four percent tax on utility bills, which is expected to raise just shy of $12 million per year. The resolution will take effect June 1.

The new tax was just one resolution that legislators spoke out against, but passed Tuesday night. The entire legislature met as the committee of the whole to vote on resolutions as part of the midyear budgeting adjustments to close a $21.1 million gap in the county’s 2012 budget.

“Nothing on the agenda tonight represents what we want for Rockland County. This is not our plan. For that matter, it’s not the county executive’s plan either,” said Legislator Alden Wolfe. “This is what others see as the alternative to a four-penny per $10 increase in the sales tax. Solely because of the lack of action in Albany, this is what we’ve been forced to consider.”

Vanderhoef was at Tuesday’s night meeting and spoke about his proposals at the beginning of the night.

“We submitted to you a proposal which is terribly, terribly difficult,” he said. “It’s difficult from a government standpoint, it’s difficult in terms of fees, it’s difficult in terms of raising fees, but it solves the budget problem for 2012. It closes the gap.”

The county executive urged the legislators to pass the resolutions Tuesday night.

“My proposal, in an effort to keep us from being downgraded once again by Moody’s and [Standard and Poor’s], is precisely what kind of thing they’re looking for to avoid downgrading us again with junk bonds. And what’s at stake is borrowing to keep the county going, keep our operations going. We can’t go down that road,” he said. “So tonight, it’s not just the audience here. Moody’s is watching what happens tonight and how you decide to move forward. They are watching, S&P is watching. We have a meeting on June 14th to tell them the progress we have made to try and get them to change what their perceived notion of Rockland County is. Action is going to be required, and again, it’s not helpful to go back and point any longer to Albany. Now, we need to do what’s required to keep county government operating.”

Because of the , if Rockland were to borrow money, it would have to pay three times as much interest on it, said Legislator Michael Grant.

“This cash flow is absolutely critical to us,” he said. “If we don’t take some of these actions tonight, and those actions include raising revenues, and there are only certain revenues we can raise, Moody’s will downgrade us again, and that triple we’re going to pay in interest is going to go up again if we can find someone to lend us the money.”

At Tuesday’s meeting, two of the resolutions passed that will shift payments to towns and villages. The first was to charge the towns and villages for their full election expenses for the year of 2012, of which the county used to pay for some.

The other involved students from Rockland who attend community colleges outside Rockland. Whereas the county was reimbursing those schools the non-resident tuition of Rockland students who attend there, state education law says Rockland can charge back this cost to towns. This chargeback would be $1.8 million in 2012.

Both resolutions passed by votes of 11-6, with legislators Hood, John Murphy, Christopher Carey, Frank Sparaco, Ed Day and Doug Jobson voting against both. One reason some said they voted against them is because they often complain about the state passing the burden of certain things onto the counties, and this seems like the same thing, except with the county doing it to the towns and villages.

Other resolutions that passed related to the home rule legislation, which they passed back in January, but was not brought to the state level by state representatives.

“That home rule request was to take our estimated deficit of $80 million, ask the state for a bond allowing us to bond that money over 10 years and to raise the sales tax by three-eights of one percent,” Legislator Ilan Schoenberger said.

He added they would’ve paid back the bond with the sales tax, which would’ve been put in a lock box supervised by the state comptroller and would’ve expired once the deficit bond was paid off.

The first resolution was reaffirming the home rule legislation was the best option to fix Rockland’s deficit, which passed 13-4. The second resolution requested that New York State Legislature introduce home rule legislation authorizing the county to finance the deficit by the issuance of bonds. The difference in this bond is that the legislature is asking for $95 million over 20 years, and there’s no sales tax increase.

to help the county’s financial issues was discussed a few times at the meeting, as well. Wolfe said he felt the county’s plan was better because Zebrowski’s “has pretty much the same fiscal protections that ours does, but it adds what I consider to be an intolerable dose of politics.” Zebrowski’s calls for the the formation of a task force appointed by the state and the county to monitor Rockland budget, as well as the county developing a multi-year budget.

After the meeting, Zebrowski released a statement about his plan.

“My deficit reduction taskforce provides sufficient oversight and enforcement so that taxpayers can be confident that the county’s fiscal house will be put in order. The taskforce will ensure that spending reductions will be part of the tough decisions needed to close Rockland County’s deficit. The decreased temporary sales tax contained in this plan coupled with the oversight is preferable to the permanent tax increases, layoffs and cost shifts onto the towns that were proposed in the county’s alternative plan tonight.”

Vanderhoef’s plan also called for the elimination of 150 jobs, but the legislators weren’t presented with a list of those positions until about 5:30 p.m. Tuesday and didn’t have time to really look it over. Schoenberger also said the list seems a bit incomplete and asked for the full list by Friday so the legislature could talk about the positions possibly being cut at their meeting next Tuesday.

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Kathleen May 21, 2013 at 08:55 am
CANDLE Night at the Rockland Boulders Game Join CANDLE for a fun(d)raising game on May 23rd as theRead More Rockland Boulders take on the Trois-Rivieres Aigles. Proceeds from tickets purchased through CANDLE* will support programs that educate & empower youth and reduce substance abuse and violence in Rockland County and beyond.
Heywood Jablohme May 21, 2013 at 02:48 pm
I agree with most of your points, but surely you are not implying that teachers are expected toRead More produce funding to correct school roofs, right? I think you got a bit off topic here, but I agree that our educational infrastructure is in disrepair and is in desperate need of rehabilitation. Maybe if our teacher's unions allowed a little more leeway we could allocate funding a little more appropriately and fund the important things instead of overpaying paying dinosaur teachers who lost interest a long time ago and fight any and all forms of teacher benchmarking.
WGMom May 20, 2013 at 09:10 am
It's entirely true that every professional has out-of-pocket expenses. But as someone who worked asRead More a corporate trainer, I can guarantee you I NEVER had to pay out of pocket expenses for supplies to teach classes. Every piece of paper, supply, and even snacks for the participants were fully covered expenses. If I had to spend out of pocket money to procure supplies, I could submit for a reimbursement, and receive it, no questions asked. I am now in school to become a high school teacher and I can see the stark difference in how the education of folks in a corporate environment is incredibly different, and privileged, than the public school environment. I've sat through numerous classes in the Clarkstown and Ramapo districts, doing observations required for my education certification, and while Clarkstown certainly benefits from certain advantages, the shabbiness of being a public school is still there. Furniture, such as teacher desks, that looks like it was purchased in a garage sale 30 years ago... faculty bathrooms that are dark and dingy, nearly crumbling, and sorely in need of updating. Etc. The public expects teachers to have professional training, act professionally, but they lack sometimes basic resources and are expected to function in an environment that feels more like a dungeon than an institution of learning. The citizens of Clarkstown, if they could get a tour of some of the facilities they are expecting children to learn in, and teachers to teach in, would be very surprised. We do supply some great technology, but then we put it in classrooms with windows that won't stay closed when it's windy, as one example. I spent most of my time in South, which is the best of the bunch, facilities-wise. Clarkstown North is a mess, Woodglen's woods are littered with fallen trees no one's cleaned up after Sandy, Laurel Plains had to be shuttered thanks to that whole foul stench... the district is in a situation where there are major capital improvements that are going to be needed. Buildings are aging, and it seems it's only the most basic of upkeep that happens. The district can't even fix the roofs of the buildings without applying for a state grant.
Heywood Jablohme May 18, 2013 at 07:17 am
What professional doesn't spend $500 per year on out of pocket expenses related to their jobs?Read More Staples offering 10% (or 5 in some cases) is hardly an example of the community getting involved. Thankfully, there are other examples of the community and PTA's getting involved and providing needed services. Clarkstown and surrounding areas hardly have substantial unmet needs in their classroom, thankfully.
Truth4all May 16, 2013 at 11:37 am
I guess better late than never. LaCorte is serving his 4th year as Mayor and was Trustee for I thinkRead More 4 years before that. This year is the only time he has brought the idea to the village about participating in this program. He is motivated by the opportunity of getting positive press for his County Executive campaign. The village should have been involved in this program ( as well as the Americorps program) long before this. On a positive note, hopefully the Village will continue this worthwhile partnership for many years to come.