The 2018 budget County Manager Jay Gsell is filing contains a property tax rate increase of six cents, to $10.13 per thousand of assessed value.
The manager's budget only becomes law if the County Legislature fails to pass a budget before the end of December.
At a meeting of the whole yesterday, no member of the Legislature expressed outright support for the increase and several said they oppose it and want to hold the rate at $10.07.
To do that, legislators will need to appropriate another $186,000 from reserve funds or find an equal amount of spending to cut.
Gsell's budget already calls for spending down the reserves again by $1 million.
“We’ve got the money, we should use it," said Chairman Ray Cianfrini. "I don’t think we should be hitting the public with another tax increase. Right or wrong, I think they think perception-wise that the Nursing Home money is money we have to apply toward this. I’m just throwing that out as my recommendation.”
Legislator Marianne Clattenburg said, “You’ve got to remember, people’s assessments went up, so their taxes are already going up.”
Both John Deleo and Ed DeJaneiro expressed opposition.
"I don’t think I could vote for a budget unless we went to $10.07," DeJaneiro said.
Now that Gsell has submitted the manager's budget, legislators will have two weeks before a public hearing to make their suggestions for fine-tuning the revenue and spending plans.
The county's spending plan for 2018 calls for a total expenditure of $130,180,842, which will be paid for by a combination of state and federal reimbursements and local property and sales taxes along with miscellaneous fees and use taxes.
The property tax levy under Gsell's plan is $29,492,783. That's an increase in the levy of $268,120, which is within the state's two-percent tax cap mandate.
That mandate is being made tougher by Albany. The Raise the Age law passed earlier this year -- which will bring more 16- and 17-year-olds accused of crimes into the Family Court system -- was written to withhold funds for reimbursements for additional expenses from the law to counties that fail to hold the line on the two-percent cap.
This is also the first year the county is not saddled with the expense of the Genesee County Nursing Home, with its 160 jobs (full-time equivalents) and $16 million budget, which was draining as much as $2 million from local taxpayers each year.
There remain 540 FTEs on the county's books. Personnel is the largest expenditure for the county, but the pressure of the expense has been mitigated the county's share of the state's pension program remaining flat for 2018, more employees falling under Tier IV of the pension program, and the cost-savings success of the county's health coverage program, which now has employees contributing 10 to 20 percent of the premiums.
Unfunded state-mandated expenses continue to eat up a good portion of the tax levy. The 8-9 programs cost local taxpayers $22,315,765, or 76 percent of the levy. Medicaid is $9.4 million of that expense.
In all, Department of Social Services provides health aid to 12,500 senior citizens, children and adults in need at a cost of $95 million (most of which is covered by State and Federal expenditures). About 60 percent of the expenditure is for long-term nursing care.
Other unfunded mandates include indigent defense, pre-K/elementary handicapped education services, probation, mental health, the jail, Safety Net, family assistance, child welfare and youth detention, according to Gsell's budget message.
Another mandate Gsell knocks in his message is the requirement from Albany that counties give raises to district attorneys. On April 1, the DA's salary will go up to $193,000 and there's nothing local elected officials can do about it.
"This is merely a reflection of the unilateral and paternalistic attitude of Albany and the disregard for local county government fiscal constraints," Gsell said.
The most significant personnel change in the budget is the addition of a compliance officer, who will report the county manager and oversee compliance with state and federal regulation related to the more than $11 million in grants the county receives so that revenue isn't inadvertently jeopardized.
"(The position) has been strongly recommended by our outside/consulting corporate compliance attorney and our independent auditors," Gsell said.
As for proceeds from the sale of the nursing home, DeJaneiro wanted to know if the state could mandate what the county does with the money. Gsell said that is one thing the state leaves entirely up to local discretion.
There are still accounts to settle related to the nursing home, so the final total of the proceeds (profits) from the $15 million sale is not yet available, but whatever the amount, it will likely be placed in the capital improvement fund.
DeJaneiro suggested it go to help pay for repairs to roads and bridges and Gsell said that is one possibility, but the county is looking at the state soon requiring the county to build a new jail with a potential price tag of $43 million.
As expenses continue to go up every year in a county budget that for years has held the line on tax increases and cut personnel and services year-after-year, one concern for legislators about the tax cap is if they don't raise the property tax by six cents, then the amount they can raise taxes in future years if dire circumstances require it is diminished.
To get around this Legislator Bob Bausch asked if the county could raise the rate by six cents and then on the tax bill immediately turn around and rebate property owners the six cents per thousand, thereby increasing the total amount of the levy without actually taking more from taxpayers.
"I think it’s sort of a gimmick," DeJaneiro said.
Bausch replied, "Of course it’s a gimmick. The whole thing is a gimmick," meaning the state's arbitrary tax cap.
"Fight gimmicks with gimmicks," Legislator Andrew Young observed.
No vote was taken on the budget. There will be another budget discussion next Wednesday.