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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