Sullivan looks at new taxes, job cuts

By DAVID HULSE

MONTICELLO, NY — Over the past 10 years, the cumulative change in Sullivan County taxes has been a two-percent decline. That will likely change this January.

On October 2, County Manager Dan Briggs presented the Sullivan County Legislature’s Finance Committee with a tentative 2004 budget, which was held to a five-percent increase in real property taxes only with the elimination of some 32 county jobs.

Last year, legislators were able to brag that Sullivan was one of only five counties in the state that had not increased property taxes. This year, Legislative Chair Leni Binder said Sullivan is “no different than any other county,” facing increased costs.

Binder said there was a multimillion-dollar increase in unfunded state mandates added to the list of costs that have been absorbed in recent years.

“There has be a breaking point,” she said.

Majority Leader, Legislator Rodney Gaebel said the increase would not have been necessary if the state legislature had not reduced the .75-percent sales tax increase sought by Sullivan this past year to only .5 percent. Gaebel explained that the tax increase amounts to $300,000 for each percentage point of new property taxes, or $1.5 million. “There was an outcry about the sales tax increase, but coincidentally, that $1.5 million is the same amount we projected to raise from the sales tax increase.”

Binder said the schools will be facing similar cost increases passed on from the state. “I don’t know what the taxpayer is to do,” she concluded.

Finance Commissioner Richard LaCondre said a reduction of some 19 positions are directly related to the budget. Some are vacant. Some are not.

“Personnel is advising those people of their rights, which in some cases will include the ability to make a lateral transfer to another vacant position which is being retained,” he said.

In addition to the budget reductions, county departments will make 13 additional job cuts by way of “variances” of vacant positions, making a total 32 positions eliminated at a savings of $1.1 million in salary and benefits.

County payments to the state employees pension fund will increase 11 percent this year and annually at that rate for the foreseeable future. The fund lost heavily in recession-related stock market declines. The cost increase to the county is $3.4 million.

Medicaid is generally funded 50/50 between the state and federal governments. New York, with one of the nation’s most comprehensive Medicaid benefits programs, is one of several states that passes half of the local costs Medicaid-related costs on to the counties.

Medicaid increases next year will cost Sullivan an additional $3 million.

Other major cost increases in 2004 include an 18 percent increase in health insurance and increased costs of oil-based products.

While services in some areas may be delivered at a reduced rate, LaCondre said the new budget does not eliminate any existing county programs.

The county legislature has until December 20 to provide public hearings and any amendments to Briggs’ tentative budget.