Lansing taxpayers will not get tax relief from the impact of the reduction of the Cayuga Power Plant this year. Assemblywoman Barbara Lifton and Senator Pam Helming introduced two bills in early June that would have expanded the definition of communities suffering tax revenue loss from power plants within their districts and allowed the Lansing Central School District to create a Tax Stabilization Reserve Fund. But Lifton's Counsel Jordan A. Lesser, Esq. notified Tompkins County Legislator Martha Robertson Wednesday that the two bills will not move forward in the current legislative session.

In an email to Town of Lansing and Tompkins County officials Robertson wrote, "Bad news from Barbara Lifton's staff person, about the revision to the Transition Fund and the option for Lansing Schools to create a reserve fund. I guess they were long shots. Better luck next year?"

State transition funding was made available to communities with power plants that entirely close. The first bill would have expanded the definition of eligible communities to include districts that experience a 20% or more reduction in their taxable value and at least 15% of their electricity production.

The Lansing power plant lost $100 million of value from 2009 to 2016, and will loose an additional $40 million by 2019 according to the latest negotiated PILOT (Payment In Lieu Of taxes) agreement between the County and Cayuga Operating Company. But while it still operates at all transition funding is not available, and property taxpayers are shouldered with the burden of making that tax revenue up. With this year's $25 million reduction in the plant's taxable value, Lansing taxpayers may see a significant impact when the school tax bills are mailed. State Urban Development Corporation transition funding could have mitigated the rise in taxes.

For several years now, the Lansing School District has been squirreling away money in various reserves and funds against the possibility of a dramatic tax rise in anticipation of further reductions to the plant's value or -- the worst case scenario -- the plant's closing. A recent State Comptroller's audit found the District may have over-taxed, kept too much money in reserves without spending the reserves down, and overestimated appropriations when deciding on the budget and setting the tax levy. But school officials defended the practice, saying that the uncertain fate of the plant could cause a dramatic rise in homeowners' taxes that could be relieved, in part, by using the money to reduce the tax rate.  A Tax Stabilization Reserve Fund would have created an official reserve for the money that would also satisfy the Comptroller's guidelines.

Town Superviso Ed LaVigne was particularly unhappy with the news the two bills were stalled.

"Words can not describe the pain my fellow residents are feeling," he told Robertson. "I fail to find any comfort in this 'better luck next time' attitude."

He chided Robertson for not supporting the proposed West Dryden Road gas delivery pipeline, and said all county legislators should cease using natural gas immediately.

Robertson replied that the county government does support Lansing, placing the blame on Albany.

"Albany is good at creating disappointment, the sales tax extenders being a crucial issue right now, for example," she said. "We at the county take Lansing's situation very seriously, which is why (County Administrator Joe Mareane), (County Assessor Jay Franklin), and I took the initiative to look for alternative ways to help the Town and School District. As you surely know, most bills don't make it through the state the first time, but I hope we can have a better result next year."

Robertson provided information on the affordability and use of heat pump technology that she says is affordable as natural gas for new developments, and offered to arrange a presentation to Town officials on the topic.

School district officials are working on making this summer's tax bill as palatable as possible in the face of a further $25 million reduction that brings power plant value to $35 million, down from $160 million in 2009-10. Additional drops in the following two years will reduce the value to $20 million. But Lesser said the bills, while stalled this year, may be revived in the next legislative session.

"Barbara was informed that the transition fund bill will need to be taken up in next year’s budget, and she will push for it then," he told Robertson.

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