County Taxes:
Can Mamaroneck Avoid Another Huge Hike?

by Judy Silberstein

(November 18, 2003) This year may be just as difficult as last year for Westchester County’s budget, and that may mean another major tax increase for Town of Mamaroneck taxpayers. However, County Executive Andy Spano is once again attempting to stave off stratospheric property tax hikes by means of alternate approaches – chiefly a 1% hike in the sales tax. County Legislator for Mamaroneck, George Latimer is open to the idea, and Town Supervisor Valerie O’Keeffe is willing to consider it, though she has a number of reservations.

The County Executive presented his $1.4 billion budget to the Westchester Board of Legislature on Friday, November 14 and launched a series of press conferences and press releases to explain the approach he will be taking this year.

Spano's proposed budget, if adopted, would represent an increase of approximately $77 million or around 6% above last year’s final budget of over $1.3 million. Covering the costs only through property tax increases would require a 25% raise, which Spano declared unacceptable - though it approximates what Town of Mamaroneck taxpayers ended up paying last year. For 2003, county taxes rose an average of 15%, but in Mamaroneck, the increase was closer to 23% because of a complex “equalization rate” that considers a community’s economic status relative to the rest of the county.

As he did last year, Spano blamed most of the budget boost on increases in programs mandated by New York State, including: $6.6 million more for welfare programs; $14.6 million more in pension contributions; $4.6 million more to provide attorneys for indigents; and $2.3 more for children with disabilities.

He also noted significant shortfalls in revenue, including $14 million in funds that will not be coming from a settlement with the tobacco industry (RJR Tobacco Co. has taken a hit in the bond market) and $21.7 million less than last year from the fund balance.

In sum, that makes a budget gap of over $100 million – or almost exactly what it was at this point in last year’s budget cycle.

If the County were again to rely on the property tax to raise the bulk of the money, Spano estimated it would take a hefty hike. He predicted on Friday, “There will either be a property tax increase of 25 percent, further cuts in county government which will, in effect, dismantle it, or something in between.” He added, “Everything we have worked so hard to achieve would be imperiled.”

Instead, Spano has proposed a smorgasbord of financial approaches that includes a 2% property tax increase, a 1% boost to the sales tax, a hike in vehicle registration fees and some cuts to county programs.

The cuts include abolishing 319 county jobs, and reaping savings by outsourcing some jobs to lower cost private vendors, eliminating some vacant positions, and reducing some levels of service. To attain these savings, Spano needs to shepherd that aspect of his budget through the County Legislature over the opposition of organizations representing the employees and their clients.

The revenue enhancements would entail an increase in vehicle registration fees (by $5 or $10, depending on the size of the vehicle, to raise $4.5 million) and other fees (to raise approximately $1 million). “Adding a penny” to the County sales tax could raise $87.9 million over ten months, but would require authorization by the State Legislature. Last year, the County Legislature gave Spano the OK for the extra sales tax, but he was turned down in Albany.

Has anything changed?

“This year’s situation is far worse than last year,” commented Westchester County Legislator George Latimer, whose district includes the Town of Mamaroneck. “It stands to reason that we don’t want a second consecutive year of high property tax increases.”

Latimer has been keeping an eye out for potential cuts to Mamaroneck services and does not see any looming on the horizon – yet. He is more concerned about the potential for large property taxes in Mamaroneck, Rye and other prosperous areas. “If tax rolls shrink elsewhere, the remaining, more affluent areas pick up a larger percentage of the tax,” he explained.

“Our sales tax in our area is the lowest rate in the state,” said Latimer who supported the 1% sales tax proposal last year. “If we’re faced with raising taxes, it does not make sense to further burden property owners,” he added.

It’s still early in the budget cycle – the County Legislature has until December 27 to pass its final budget. In the interim, Latimer said, “I’ve been talking with a wide group of people in Larchmont and Mamaroneck to get their opinions of the difficult choices we face.”

In the Town of Mamaroneck, officials are in the middle of preparing their own budget. Asked about Spano’s sales tax proposal, Town Supervisor Valerie O’Keeffe replied, “I’m willing to look at it.” But she had some major concerns.

“One thing that has bothered me and continues to bother me,” she said, “is that the proposed sales tax hike would be levied only in towns and villages, but not in cities. That doesn’t seem fair.” The proposal would raise the sales tax everywhere but in the major cities (Yonkers, Mount Vernon, White Plains and New Rochelle), where there already are higher sales taxes that are shared with the municipalities.

“Also,” she added, “there doesn’t seem to be any provision for sharing the increased income with the towns and villages. It would make it much more palatable if we got some of the money back.”

Nevertheless, she is more open to the proposal than she was last year. “We don’t want our county tax to shoot up 23% like they did last year,” she said.

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