from Rich Crist, Legislative Liaison
The Rensselaer County Legislature approved a 2011 County budget that protects needed services and the County’s solid financial standing, along with reducing the amount of a proposed property tax increase.
Thanks to a cooperative effort between legislators and the County Executive, progress has been made in reducing a proposed 4.9 percent property tax increase. The spending plan protects needed County services and includes a modest 2.5 percent property tax increase.
The 2011 budget would follow a 2010 County budget that avoided a property tax increase.
Next year’s budget was drafted and considered during considerable fiscal pressure on the County. Spending for State and federal mandated programs continues to increase amid an ongoing economic downturn. The 2011 budget also included millions in new expenses due to the state ordered expansion of the County jail.
The amount of mandates, increased pension costs and other factors would have caused a property tax increase of between 12 to 15 percent if unaddressed, legislators noted.
The budget as first presented included 38 job reductions, and the changes incorporated following the introduction of the budget add back four positions. The job reduction was reduced by a nearly $300,000 reduction in spending in legislative offices, reductions in estimated overtime spending and utility expenses, a decision not to purchase three vehicles and other revisions. The reduction of the proposed tax increase did not result in additional borrowing or special fee increases.
The budget plan also maintains needed reserve funds as the County navigates a difficult economy and ongoing fiscal problems on the state level that can negatively affect County finances. The County has earned positive ratings in recent years for fiscal management and has maintained a solid bond rating.
Legislators said that if mandates continue to increase in 2011, County officials will face increasingly tough decisions regarding funding for needed County services. County officials have also supported State plans for a tax cap but have said tax caps will not be effective if mandates are not reformed.