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Legislature Considers Alternatives Should Sales Tax Renewal and Increase Fall Through
Sales tax revenue over $1 million behind projected amount at close of first quarter
by Margaret Sternberg
Most of the April 23, 2007 meeting of the County Legislature's Audit & Administration Committee was taken up with concern over several aspects of the County's budget, but in particular a recent letter from Assemblyman Greg Ball announcing a public forum on May 5, sponsored by the Assemblyman and Legislator Vinny Tamagna, on what was termed the "budget crisis," a term vehemently objected to by several legislators at the meeting.
Committee Chairman Legislator Tony Hay neatly summarized the feelings of several legislators when he stated, "There's not going to be a budget crisis if Greg Ball does his job" alluding to concerns by many legislators that the County's sales tax renewal and increase resolution might not be presented to the State Assembly, although that has never been publicly stated by the Assemblyman. The State must approve the sales tax renewal and increase before they can be implemented by the County.
Legislator Hay explained that "Assemblyman Ball could have his opinions, but he has been asked by another municipality [Putnam County] to address something at his level, and he's refusing to do it because of his own, personal feelings towards it... He can bring forward the sales tax resolution to Albany and vote no." Hay added that Ball had "been elected by the people of Putnam County to represent the Putnam County. The government of Putnam County has made this request, but one person has decided 'I'm not doing that; I know better than all of you.'"
Legislator Terry Intrary said, "Greg Ball has a responsibility to bring our sales tax increase forward to the State Assembly, and he has a right to vote any way he wants on the issue, but it is irresponsible for him not to bring it [the sales tax renewal and increase, which were passed by the County Legislature together in one resolution] forward.
Legislators asked the County's Commissioner of Finance, William Carlin, what the County's options would be in the event the sales tax revenue that would be provided by the renewal of the .5 percent sales tax increase of two-years ago and the .5 percent increase that was recently authorized by the County Legislature do not get proposed or passed. Although no specific ideas were proposed, the purpose of the question appeared more toward thinking about future options.
In his 2007 State of the County Address, County Executive Bob Bondi stated that "failure to either renew or increase the Putnam County sales tax rate, in and of itself, will result in a $12 million lack of revenue to balance the 2008 County budget. This will have to be offset by either a 44 percent property tax increase or a minimum 20 percent reduction in the size of the County operating budget that will result in the across the board elimination of core county services, or a combination of both."
In another budget-related item, the Committee reviewed the sales tax revenue figures which, at the close of the first quarter, show the county running approximately $1, 085,000 behind the amount needed to meet the budgeted figure of $46,033,000 in sales tax revenue for 2007.
The next meeting of the Audit & Administration Committee will be Tuesday, May 29, at 7pm.
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