Cuts in budget will not lead to cuts in taxes for county residents

As you know from last month’s column, the county executive has submitted his proposed budget for 2011. Since then, the Legislature has conducted budget hearings, at which we heard from the head of every department in the county.

I have also heard from a number of you, expressing concerns about reduced spending in certain areas, such as libraries, cultural groups and jobs. I share these concerns and will seek to offer budget amendments to lessen the impact of reduced spending where feasible.

However, I won’t do so at the cost of a tax hike. Taxes in Western New York are already among the highest in the nation. It is unfair and unwise to increase the tax burden even more. We cannot attract new jobs and grow our economy until we reduce our tax burden.

Although it has not been widely discussed in the media, you may be asking yourself, as I did, how can Erie County eliminate hundreds of jobs, reduce spending on libraries, cultural institutions and in many departments across the county and not have a tax decrease?

All of those budget cuts resulted only in a steady tax rate. The answer is simple and at the same time disheartening. It is time to pay for poor decisions made in the past and continuing to be made elsewhere. More than 80 percent of the budget is mandated by New York State.

Our leaders in Albany come up with ideas and fund them using a combination of state and county tax dollars. Over the past several years, there’s been a trend to increase the share imposed on county taxpayers in order to avoid New York State tax increases.

Next year, Erie County will be forced to spend an additional $30 million for programs offered through Social Services. That is just one department. As a result, in order to keep county taxes steady, we must reduce services provided locally, such as aid to libraries and cultural institutions.

Unfortunately, it impacts these organizations even more, because New York State has also decreased its support of our local libraries and cultural institutions, as well as after-school and other programs for our youth.

Another example of increased costs the county is obligated to pay is pension costs.

As a result of the recession over the past few years, the state pension fund has not had the return on its investment it anticipated.

Therefore, Erie County must pay an additional $14 million this year to make up for the shortfall, using a significant portion of the surplus that Erie County will have for 2010.

Although we had the option of borrowing with an 8 percent interest rate from the State, we decided it did not make fiscal sense to pay a high interest rate, still owe more than $14 million next year and foot the bill for an additional $25 million shortfall next year. While some of my colleagues demanded we take the easy route and mortgage our future, I agree with the decision of fiscal responsibility.

Erie County will post its sixth straight surplus this year. It will be used to meet our charter mandated reserve amount, as well as pay for unanticipated costs imposed upon us by Albany.

It’s not fiscally sound to spend this money just because it’s temporarily in a surplus account. To do so would guarantee huge tax increases in 2012 and 2013, which we can’t afford. This year, many candidates pledged to reduce spending and taxes. Please help me help them keep their promises. Erie County can’t afford for them not to.

(Printed Nov. 4, 2010 in the Orchard Park and East Aurora Bee Newspapers)