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Home » » LEGISLATURE STUFF - Excess or Never Too Much Extra

LEGISLATURE STUFF - Excess or Never Too Much Extra

Written By The Mountain Eagle on 11/6/24 | 11/6/24

By Michael Ryan

CATSKILL - An expected floor fight did not materialize when the Greene County Legislature held a public hearing on the proposed 2025 county budget, this past Monday night.

Lawmakers formally presented a fiscal package showing a $5 million rise in overall spending but no increase in the individual taxpayer burden.

Legislative budget office Charles Martinez (District 2, Coxsackie) unveiled the plan, last month, gleefully noting the tax levy to the 14 towns was remaining flat for a sixth straight year.

While total appropriations have climbed from $131 million to $136 million, the use of fund balances and estimated revenues produced an Even Steven scenario for se mules of taxation.

County administrator Shaun Groden, giving a power point presentation on the budget, pointed out the usual suspects are responsible for the appropriations ascent.

Those traditional taxpayer pickpockets include Personal Services, various contracts and contributions to the retirement system, etc.

Plugging in Fund Balances and a bounty in Sales Tax revenue (which has come in approximately $10 million above estimates) has let government leaders not raise taxes while also creating debate.

Even as Martinez was unwrapping the budget, legislative Majority Leader Matthew Luvera (District 1, Catskill) suggested too much stockpiling was occurring.

“We have to [put a maximum] on these excess fund balances,” Luvera said. “Come up with some plan so we can give this back to the taxpayers.

“Maybe we could do something that is best for each community,” Luvera said. “I’m not saying to give anyone a blank check. I’m saying let’s be honest with the People that we have a ten million dollar surplus.”

Legislature chairman Patrick Linger questioned the wisdom of removing dollars from the piggy bank and took exception to Luvera apparently suggesting the legislature was not being transparent.

“We just passed, by resolution, all of these other Reserve Accounts. I’m not sure how we could be more honest than that, saying what we are establishing and exactly what it is for,” Linger said.

“I’m not sure there are ever excess funds. We can never guarantee sales tax. I would rather have this money in the bank than disperse it as a one time deal, then have to go back to taxpayers when the economy dips.

“We are in an enviable spot compared to many other counties,” Linger said, “but it has taken [fiscal] discipline to get where we are now.”

Linger was not alone in thinking the money should stay in reserve, ready to handle unexpected surprises that are sure to arise, so it was expected the debate would extend to the public hearing.

It did not, though two residents from Luvera’s home district did voice their opinions at the hearing, as did former legislator Larry Gardner.

Daniel Ward, a Catskill resident and village trustee, said, “I come before the board tonight to discuss the allocation for the excess sales tax revenue while hoping to also open the minds of the board to look into giving back a percentage to the towns and villages on an annual basis.”

Referencing Luvera’s stated perspective on the funds, Ward said, “legislator Luvera’s idea has now sparked my interest.

“As a village trustee, I know how tight budgets for the towns and villages are on a yearly basis. By supporting the towns and villages this way, you will positively impact the taxpayers of the county…helping prevent the towns and villages from raising taxes to offset the costs that have drastically gone up and are not sustainable,” Ward said.

Joe Izzo a Catskill resident and former legislator who regularly speaks at the budget hearings, opined there is more to the matter than a welcome plethora of sales tax inflow and what to do with it.

“You are anticipating issues that may arise which is fine, but when that fund balance is so high, take a hard look at this budget and make some changes, even if only minor changes,” Izzo said.

“How much money have you saved taxpayers since 2020?” Izzo said. “Who is losing here? The taxpayers. They aren’t saving a dime in these budgets. You are doing nothing to save taxes in those towns and villages.

“If there is that much fund balance (which includes millions of dollars also set aside in multiple Reserve Accounts for specific purposes such as equipment replacement, etc.) you are budgeting wrong,” Izzo said.

Groden, following the hearing, responded to Izzo’s comments, saying, “we don’t over-budget. We underspend. There is a very big difference.

“We don’t artificially inflate the budget,” Groden said. “When we have things like job vacancies that are open for two months and budgeted for twelve months, it results in unspent money” on salary, health care, etc.

“From a budget standpoint, you want surplus. And we should want it. What do you want, deficits?” Groden said, emphasizing the proverbial gorilla in the room is that sales tax is “totally out of the control of the county.

“We have a long history of putting fund balances back into the budget. We have seen consistent growth the past couple of years [in sales tax] but we often worry how long that increase can occur.” Groden said.

It is uncertain if redistribution talks will resume prior to the budget passage, slated for later this month. Luvera, asked if he would again bring up the subject, said, “I’ve made my statement. That’s what I’m sticking to.”

Gardner, who retired from the legislature three years ago after a nearly 40-year career, recommended, “cautious, slow thinking before you give up funds. You want them at the county level for use for the public good.

“I remember when the county took over solid waste management. It cost a fortune. The towns were not able to do it anymore.

“Many things have come along and will come along that can’t be addressed at the town level. I urge you not to give the funds up,” Gardner said.


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