A proposal from Gov. Andrew M. Cuomos Tax Relief Commission to reduce property taxes has brought decidedly mixed reviews from county officials in the north country, who agree with the states effort to reduce taxes but fault the commission for its apparent unwillingness to address mandated expenses.
The state currently has a cap on property tax increases of 2 percent per year, or the rate of inflation, whichever is less.
The Commission has proposed that the state provide a tax rebate to homeowners that is equal to the amount of the increase in their tax bill to those who reside in counties that manage to stay within the 2 percent cap.
Jefferson County Administrator Robert F. Hagemann III said that while the county has always focused on lowering or keeping property taxes flat, the states proposal indicates an unwillingness to look at the ever increasing share that state programs take from the county budget.
Despite a high degree of ambivalence about the source, property tax is undeniably the main revenue stream for the county, according to Mr. Hagemann.
You cant simply and arbitrarily take away the lifeblood of local government without a fair and equitable tradeoff, Mr. Hagemann said.
State mandates take more than 80 percent of the total property tax levy in Jefferson County, and St. Lawrence County officials have estimated that mandates drive more than 90 percent of county costs.
needed: mandate relief
Obstacles in creating the budget come from the state to begin with, county officials have said.
While property tax relief would be welcome, the state should get its own house in order before telling smaller municipalities to toe the line, St. Lawrence County Finance Committee Chairman Frederick S. Morrill, D-DeKalb Junction, said.
I think the effort is noble to get the property taxes down but they need to cap our costs at 2 percent, he said. I think a lot of these state mandates are great ideas but when the state has a great idea, then the state should pay for it.
Legislator Joseph R. Lightfoot, R-Ogdensburg, agreed the state should work harder at understanding the effect its decisions have on local governments.
If they scratch themselves, we feel it, he said.
Mr. Morrill is the architect of a five-year plan under which St. Lawrence County is reducing its property tax by more than 14 percent in 2014 in exchange for an increase in the sales tax. The plan calls for no more than a 2 percent tax increase in each of the remaining four years.
The county will have trouble meeting the goal if the cost hikes for pension contributions and other state-mandated programs is substantially higher than 2 percent, Mr. Morrill said.
I think its going to be extremely challenging to meet the five-year plan and the reason for that is unfunded mandates, he said.
Needed: new thinking
The report does offer innovative thinking, St. Lawrence County Administrator Karen M. St. Hilaire said.
I think its exactly whats needed, she said.
Meeting the goals of the countys five-year plan will be tough but can be done so that property owners receive the states rebate check, she said.
Well be able to say to our taxpayers weve met the criteria, she said.
If the commissions proposal is enacted, the state should give credit for government efficiencies already in place, she said.
The county has reduced its workforce by 15 percent which has slashed health insurance and pension costs has eliminated its Certified Home Health Agency, transferred a public bus system to St. Lawrence NYSARC and a dental sealant program to Cerebral Palsy Association of Northern New York.
It has a central salt and sand depot shared by Canton government agencies and a fuel island that is also shared. It has started a vendor management system in the county Highway Department that it may open up to other government groups and is looking at saving money on a joint purchasing program.
We are always looking, Ms. St. Hilaire said.