State Comptroller: 2014 Proposed County Budget Needs Revision

When Rockland County’s request for authority to issue $96 million in bonds to pay down its deficit was approved, one of the caveats was that the New York State Comptroller’s Office would review the county’s proposed budget.  The comptroller’s office analyzed the proposed 2014 spending plan and sent a report on Monday listing five shortcomings.

The report notes that the county has not included any provisions in the proposed budget to start paying down the deficit that stills remains. The county’s deficit grew to $127.1 million at the end of 2012, leaving an additional $31.3 million gap that is not addressed in the proposed budget. 

The review states the county is over-estimating the revenue from the new residential energy tax. Instead of the projected $14 million of revenue included in the 2013 budget, the comptroller anticipates that $8.7 million will actually be collected by the end of the year, a difference of $5.3 million. The 2014 budget proposal includes the same amount of revenue, which the report states could result in another shortfall. 

State Senator David Carlucci who had pushed for state fiscal oversight said it is key to helping the county’s finances improve and that the appropriate changes will have to be made in the budget.

“In that report he goes into detail and I think it’s a great tool for the county legislature and the county executive to work to make sure that they’re making the right fiscal decisions to move the county in the right direction,” said Carlucci. “And I also believe that this legislation will allow our bond rating to move in a positive direction.” 

Additionally the review recommended that the county legislature should reduce the revenue estimate for premiums on obligations such as tax anticipation notes to a more realistic amount based on amounts received in previous years. In 2013, the county budgeted $2 million while $700,000 actually went into its coffers. 

Another recommendation is for the county legislature to place any excess proceeds from its proposed $5 million tax certiorari borrowing into a debt service fund and use those proceeds to pay down that debt. The 2014 budget includes payment of $2 million in tax certs even though $5 million is being borrowed for that purpose.

The final recommendation calls for the county legislature to consider establishing a tax overlay account and include appropriations in the budget that will be sufficient to cover estimated uncollected property taxes in 2014. The fund for uncollected taxes is planned at $500,000 but the comptroller points out the yearly average not collected from 2009 through 2012 was $2.4 million.

Legislator Michael Grant, who is chair of the Budget & Finance Committee, had raised some of these issues at a meeting last week.

The legislature’ Budget & Finance Committee is meeting Monday, Dec. 2 at 7 p.m. The full legislature is scheduled to vote on the budget on Thursday, Dec. 5 at 6 p.m.