By Rick Moriarty Staff Writer Onondaga County legislators, hoping to avoid huge increases in county property taxes in many suburban communities, are looking to cut $50 million to $60 million from County Executive Joanie Mahoney’s proposed 2011 budget — and they’re giving hints about how they’ll do it. County legislators spent all week reviewing Mahoney’s proposed $1.12 billion spending plan....
By Rick Moriarty
Staff Writer
Onondaga County legislators, hoping to avoid huge increases in county property taxes in many suburban communities, are looking to cut $50 million to $60 million from County Executive Joanie Mahoney’s proposed 2011 budget — and they’re giving hints about how they’ll do it.
County legislators spent all week reviewing Mahoney’s proposed $1.12 billion spending plan. On Friday, legislative leaders said they’ve set a goal of chopping $50 million to $60 million from the proposed $180.88 million property tax levy, the money the county raises from property taxes.
They said they will likely do it by cutting spending, tapping the county’s fund balance and revising upward projections of the money the county will take in next year in sales tax revenues.
“My sense is we’re going to have to make severe cuts,” said Floor Leader Richard Lesniak, R-Lysander, following a five-hour review of the budget by the Ways & Means Committee.
He said legislative leaders already have given county department heads some “rough numbers” for the amounts they would like to see slashed from the spending plan and asked them to revise their budget proposals accordingly.
“They can do it or we can do it,” he said of the cuts.
Lesniak, whose party holds a 12-7 majority in the Legislature, said the cuts will be painful but are necessary.
“There are areas that, in a normal environment, I probably couldn’t cut,” he said. “We’re in a unique situation this time.”
Mahoney’s budget would lower the county tax levy by $3.1 million, from this year’s $183.9 million to $180.8 million in 2011. However, a cut in the sales tax revenues it shares with towns and villages, combined with a change in the formula for distributing that money, will result in some towns seeing a doubling or near doubling of the county property tax rate as it applies to their residents.
Not all spending cuts would translate into layoffs of county workers, lawmakers said. Legislature Chairman James Rhinehart, R-Skaneateles, noted that more than 300 county workers are taking advantage of the state’s early retirement program, but that half of their positions are slated to be filled. He said it may be possible to not fill more of those empty positions or to fill some with part-time rather than full-time employees.
“To think we’re just here head-hunting, that’s not the case,” he said.
Legislators also are looking closely at dipping into the county’s general fund balance, which is projected to be $64 million at the end of this year. The fund balance is a reserve the county keeps on hand to pay its bills in the event of an unexpected drop in revenues.
Lawmakers also hinted this week they would like to tap some of the unreserved balances in other accounts, including the water environmental protection fund, which is projected to have a $32 million balance at the end of this year. The Mahoney administration has said most of the balance in the water protection fund is designated to satisfy the requirements for local dollar matches in state and federal aid programs, and to mitigate sewer rate increases associated with the cleanup of Onondaga Lake.
Lawmakers took $7.9 million from the general fund balance to close a gap in its 2010 budget.
Mahoney has said she will oppose any use of the fund balance in 2011, warning that it could cause the county to receive a lower bond rating and drive up the interest costs on its borrowings.
Tapping fund balances also would help create a budget gap in 2012 because the county would be using a one-shot revenue to pay recurring expenses — in effect, kicking its troubles down the road instead of dealing with it now, she said.
Lawmakers said it’s OK to tap the fund balance as long as the money is restored later.
“Nobody’s here to decimate the fund balance,” Rhinehart said.
Lawmakers also indicated that they may make cuts in the subsidies the county provides to a host of nonprofit agencies and organizations. The county executive’s budget designates $2.88 million to such organizations, the largest single amount ($1.3 million) going to the Syracuse Convention & Visitors Bureau to promote tourism. The next largest amount is the $425,000 slated to go to the Syracuse Symphony, a $21,000 increase from what it’s getting this year from the county.
Rhinehart said legislators also may make changes to the county’s assumptions about sales tax revenues next year. The Mahoney administration is estimating that sales tax revenues will rise 1.1 percent in 2011. Some legislators say the administration is being too conservative with the estimate.
“There are some very distinct differences of opinion there,” said Rhinehart.
You can reach Rick Moriarty at rmoriarty@syracuse.com or (315) 470-3148.
Previous coverage of Onondaga County's proposed 2010 budget.