Like a high-powered baseball team, Medicaid, public assistance, child welfare protection, preschool education, indigent defense, probation, early intervention, youth detention and pensions make up the nine programs batting a bill of $10 billion a year out to state taxpayers ”“ and New York”™s counties are mandated to catch every single one.
Medicaid is considered “the mother of all mandates.” It is the counties”™ biggest, most explosive program, with more than $2.2 billion being spent on it annually outside the five boroughs; include New York City, and the state pays $7.7 billion for the program every year ”“ “with no end in sight,” said Stephen Acquario, executive director of the New York State Association of County Executives.
Several mid-Hudson county executives were in Albany for the statewide meeting, including Michael Hein of Ulster, William Steinhaus of Dutchess, Scott Vanderhoef of Rockland, Edward Diana of Orange and Robert Bondi of Putnam. Rob Astorino of Westchester, working to complete his county”™s budget, was unable to attend the Dec.10 meeting.
“How did things used to get done?” asked Westchester”™s William Ryan, NYSAC”™s president. “Fifty years ago people did things for themselves; then they chose to pay property taxes and have someone do it for them … now they pay the highest property taxes in the nation.
“Governor (Nelson A.) Rockefeller enacted rules requiring the counties and New York City to share the cost of the Medicaid program in 1966. As Medicaid and other health and human service programs shifted to taxpayers, it allowed the state to spend more than it could afford. Medicaid spending  has gone from $115 million in 1966 to over $7 billion in 2010 and growing at a rate of $200 million annually.”
“From our perspective,” said Acquario, “even with the proposed property tax cap, the state did not include a moratorium on these eight other state-funded mandates. We”™re calling for aggressive realignment of services. Fiscal responsibility for services should reside with the level of government providing the programs.”
Outside New York City, the 2010 property tax levy was just over $4.4 billion. “Since 90 percent of the property tax levy is consumed by these nine mandates, a property tax cap will not cut costs; ironically, it will only serve to preserve the status quo,” Acquario said.
“What we are talking about here is future of the state,” Hein said. “County government has been doing an enormous amount of work to deliver services, but we cannot continue to be ”˜leading”™ with 79 percent higher property taxes than the national average. It is not a climate that creates jobs or helps families manage. We must reform the service delivery system to effectively reduce property taxes.”
County executives acknowledge the hundreds of special interest groups lobbying Albany for their share ”“ “but as county executives representing the taxpayers who are shouldering this cost, we feel this is a way for us to partner with the new governor and legislature.”
“The road to property tax may begin and end in Albany, but it goes through every county,” Acquario said.
NYSAC has prepared a blueprint for reform titled “The County Call to Cut Property Taxes in New York State,” for Gov.-elect Andrew Cuomo, already delivering it to him and counting on his cooperation in reducing spending and thus reducing the counties”™ tax burden. “We”™re very optimistic the roadmap we prepared will bring reform to state and impact each county positively,” Acquario said. “We are committed to working with Governor-elect Cuomo and the new administration coming in.”
Steinhaus, who also represents New York in the National Association of County Executives, described “the huge ”˜sucking”™ sound” coming from Albany. “The only way to control property taxes in the state was not just to cap taxes, but to cap mandates as well.”
Whether Republican or Democrat, county executives want the state to be attractive again to businesses and families. They collectively pledged to keep taxpayers in mind “First and foremost and our 9 for 90 reduction plan is in concert with those goals.” To read the recommendations, visit nysac.org.
