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The Legislature’s budget committee today authorized its Chair to recommend to State officials a plan that would establish permanent rate thresholds concerning several State-authorized county revenue sources, currently subject to State approval through “home rule” requests.

The proposal would give counties “modest additional latitude to consider, debate, and determine the mix of revenues they find most equitable and appropriate for their communities, as well as the stability and ability to plan that is currently undermined by the need for revenues to be periodically reauthorized by the State.” The committee, by a 4-0 vote (with Legislator Kathy Luz Herrera excused), authorized Chair Jim Dennis, acting on the committee’s behalf, to prepare and distribute a letter to appropriate State officials proposing  the plan to raise thresholds for five revenue sources—changes that, it was noted, in most cases, reflect current reality.

The plan would call for a maximum 4% rate for local sales taxes; 0.5% for local Mortgage Recording Taxes; $1 per $500 for local deed transfer taxes; $1 per line per month for land line emergency communications telephone surcharges; and $1 per month for wireless emergency communications telephone surcharges.  It was noted such a plan would not force a county to adopt them, nor prevent any county from seeking special authorization to exceed those thresholds.  The proposal would not seek to raise those taxes, but would provide counties the ability to make their own decisions about establishing rates within those thresholds without seeking State approval.

With an eye toward the expected end of the Legislative session before the end of June, the committee authorized the Chair to send the letter to get the proposal before State officials as soon as possible.  It is likely the full County Legislature will be asked to join in support at its next meeting June 7.

The committee also recommended fiscal targets for County budgeting units to use to enable the County Administrator to prepare a 2012 budget proposal in line with guidelines already approved by the County Legislature.  The Legislature has directed that a budget be presented that can be supported by a 2% tax levy increase, and by a recommended tax levy increase of 5.4%.

To achieve those guidelines, it is recommended that fiscal targets contained in the 2011 adopted budget be decreased by 7.8% (not including one-time funding or prior year adjustments), and that budgeting units also prepare a 2012 budget option which decreases the 2011 adopted budget by 11.2%.  The recommended provisions apply to not-for-profit agency grants, for towns and villages seeking reimbursement for countywide services, and for human service and criminal justice agencies receiving reimbursement  related to the sales tax agreement between the County and City of Ithaca.  For County departments, the 2011 fiscal targets would be adjusted to include funding for the required fringe rate increase, then the modified fiscal targets decreased in the two scenarios by the 7.8% and 11.2%.

County Administrator Joe Mareane noted these would represent “very significant cuts” for units that have already experienced cuts in the 6% range for each of the prior two years.  Budget chair Jim Dennis expressed concern that some will not be able to survive cuts of that magnitude, saying that it will be important for the Legislature to determine its priorities for 2012.

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