Politics & Government

Multi Million Dollar Shortfalls In Proposed County Budget

Rockland County Legislative Budget & Finance Chairman Michael Grant said the proposed 2014 budget has multimillion shortfalls because of errors repeated from the 2013 budget. He also estimated the 2013 budget deficit would increase to approximately $140 million from $128 million at the end of 2012. 

After Tuesday’s night legislative meeting ended Grant spoke with reporters about the questionable line items in the proposed $760,864,295 budget that were carried over from this year’s budget. Several items that were incorrectly considered as revenues in the 2013 budget have been treated the same way in the proposed 2014 budget and he said that has to be addressed.

Grant said last year there was disagreement over how a portion of a $5 million bond taken out to pay tax certiorari settlements should be treated in the budget. Grant said $2 million was paid for tax cert decisions and the remaining $3 million was listed as revenue instead of being placed in reserves for debt service on future multi year tax cert payments. He said initially the Budget & Finance Committee was told the remaining funds had been categorized as reserves for 2014 but it turns out that is not the case.

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“What it does is create a $3 million hole for us,” said Grant.

Overestimated revenue from the county’s residential energy use tax also appears in the proposal. The budget anticipates $14 million being collected but the amount that has been paid is $5 million less because the tax does not fully apply to residents who use alternate energy suppliers and do not purchase all their utility service through Orange & Rockland.

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Grant said the county’s auditor had recommended $2 million be put aside to cover the shortfall in tax collection because not all taxpayers pay their bills. The money was not put aside for 2014.

Grant said reconciliation of the budget’s expenses and revenues is required because mortgage and sales tax revenues appear to be higher than expected for 2013. 

The Budget & Finance Committee has been meeting to review each county department’s draft spending plans since the county executive submitted the proposed budget on October 24. Auditing firm O’Connor Davies will give a presentation on the proposed budget at tonight’s committee meeting at 7 p.m. The legislature will vote on adopting a 2014 budget on Thursday, Dec. 5. 


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