With so much federal money in this year’s state budget, why are local taxes still being raided to fund state programs?  

In the past three years, the state has taken more than $677 million in local sales taxes to put in the state’s general fund—equivalent to $618,000 per day over the last three years. To localize this impact, the New York State Association of Counties (NYSAC) has created a chart that details how much local funding has been diverted from being invested locally.

[It shows a sales tax diversion of $747,841 for Sullivan County.]

“These are local taxpayer dollars that should be used for Meals on Wheels, veterans’ services, child care, parks and 911 services, not used to plug holes in the state’s financial plan,” said NYSAC president Martha Sauerbrey, Tioga County chairwoman.  

With the state’s fiscal year having begun on April 1, Sauerbrey and leaders from all 62 counties called on Gov. Hochul and members of the State Assembly and Senate to end the practice of diverting local sales taxes out of their communities and into state coffers.

Earlier this month, the NYSAC board of directors adopted a resolution asking the state to end this practice.

“Local tax revenue should stay in the community where it is collected,” said Marcus Molinaro, county executive in Dutchess and president of the NYS County Executives Association. “This is money that is meant to be reinvested in programs that support the people who pay those taxes in their own communities, not footing the bill for state and federal responsibilities.”

“New York Senator Chuck Schumer championed federal funding to help New York and other states to get back to normal after the economic shock of the COVID pandemic. Now it’s time to get back to normal in this state, and that means returning to responsible budgeting that keeps local tax revenue in local communities,” said NYSAC executive director Stephen J. Acquario.

Acquario noted that counties were grateful to Gov. Hochul for her proposal to eliminate the diversion of local sales taxes to support the AIM program. “Now county leaders are asking that the remaining diversion be allowed to sunset on March 31, 2022, as originally proposed in 2020.”

To learn more about county priorities for the SFY 2023 state budget, visit nysac.org/nysbudget.

The New York State Association of Counties represents, educates, advocates for and serves New York’s counties and the thousands of elected and appointed county officials who serve the public.