Attachment 1: 2008-09 Budget Initiatives with Major County Impacts
- Preschool Special Education Cap: The Executive the 2008-09 Executive Budget addresses NYSAC’s self-described highest priority by imposing a cap on growing county preschool special education costs that is modeled upon the State’s highly successful Medicaid Cap and would save counties $90 million annually by 2011-12, $31 million in 2009 alone. As described in NYSAC’s own December 2007 press release, NYSAC believes that State action to limit rapidly growing county preschool special education costs – like the Medicaid Cap before it – will translate directly into local property tax relief.
- Public Assistance/Youth Detention Reimbursement: As part of an overall effort to address the State’s serious fiscal challenges, the Executive Budget would require counties to pay a combined $38 million for welfare programs and youth detention services. As noted in Attachment 2, this cost amounts to a tiny fraction of total county revenue (-0.3%).
- Medicaid Cap/Family Health Plus (FHP) Takeover: As a result of the Medicaid Cap and FHP Takeover from the counties, the State General Fund will be paying for $372 million in health care costs that would have otherwise been borne by counties in the 2009 local fiscal year alone. (See Attachment 6 for county-by-county savings) Since the State took on this added burden, growth in property tax levies have declined each year – from 4.3% in 2005 to 3.4% in 2007.
- Revenue Initiatives: Along with preschool special education cost relief, NYSAC placed a high priority on securing State authorization to raise county mortgage recording fees to relieve pressure on property taxes. In direct response, the Executive Budget provides each county with the option of raising mortgage-recording fees that have not been adjusted in over twenty-five years – a change that would bring $70 million in new revenues to counties in 2009 alone. In addition, the Executive Budget initiative to collect internet sales tax is expected to increase revenue for counties by $33 million.
- Economic Development Initiatives: All counties will benefit under the Governor’s economic growth agenda. In particular, the proposed $1 billion Upstate Revitalization Fund will provide a massive strategic infusion of economic development capital including: more dollars to improve infrastructure; regionally-specific economic development plans; an Upstate housing and community renewal fund; an Upstate Agribusiness Fund; and new funding to preserve Upstate bridges. At the same time, Downstate counties will benefit from a new Housing Opportunity Fund and a Downstate Revitalization Fund as well as new funding for commuter transportation improvements.
NYSAC Press Release, “County Leaders Say Reforming Pre-School Program will Reduce Property Taxes, 12/12/07.