Citizen Budget Advisory Committee Finds Astorino's Proposed Budget is Imbalanced: County Budget Borrows from the Future to Cover Expenses

Democratic caucus members of the Westchester County Board of Legislators (BOL) expressed continued concern that County Executive Rob Astorino’s Proposed 2015 County Budget borrows from the future to pay current operational expenses and relies on one-shot revenue sources. The Citizens Budget Advisory Committee’s (CBAC) presentation to the BOL’s Budget Committee this week reinforces these concerns.

The biggest problems CBAC found in Astorino’s proposed budget were:

· Operating expenses are not fully funded by operating revenue

· The budget raids the funds that consumers pay on their cell phone bills for 911 service

· Cumulative borrowing to pay for ongoing operating expenses is over $100 million

with interest costs of over $20 million

· Short term project are being funded by long-term debt, which costs taxpayer more for

added interest.

“Debt [in the budget] is proposed to fund expenses inappropriately,” states the CBAC report.

“The CBAC report clearly supports what I have been saying all along: there is too much borrowing for operational expenses in the proposed budget,” said Legislator Peter Harckham (D-North Salem).

“This budget has a baked-in tax increase of at least 3%, and the Administration proposes to cover these expenses by borrowing ” said Legislator Ken Jenkins, (D-Yonkers) “Westchester families know that living on your credit cards cost more in the long run, and it totally unsustainable for our county’s future prosperity.”

“As a new legislator, I find it very disconcerting that the proposed budget has a significant amount of borrowing to cover operating expenses such as vehicle purchases, payment of tax refunds, and other regular and ongoing expenses,” said Legislator Catherine Parker (D-Rye), “In my former elected role as a Rye City Councilmember, I would never vote for a Rye budget that included this level of borrowing and one-time revenue sources that will not be available in subsequent years.”

“This 2015 budget, which the administration touts as a ‘no tax increase’ budget, clearly represents reckless financial action that mortgages our children’s future and also jeopardizes the near future of our own generation, since we will have to begin paying for this in the next three to five years,” said Legislator Alfreda Williams (D-Greenburgh). “Borrowing to pay for tax certioraris, road repairs and pension costs will cause a reduction in our financial rating going forward.”

Added Williams: “Increasing salaries of already highly paid department heads, in this budget, while ignoring the needs of employees earning under $50,000 per year, only demonstrates the total lack of concern of the Administration for low- and middle-income residents.”

Democratic Priorities Highlighted in Budget

Monday, December 1, was “Adds Day” for the proposed budget. The Democratic caucus “adds” to the budget included additional revenue sources and reprioritizing of expenditures, such as road and infrastructure improvements, support for a number cost-effective safety net programs and a restoration of the money for subsidized child care. The dollar amount of revenue adds exceeded the expenditure increases, creating a net positive impact of about $1 million on closing the structural budget gap.

“The adds to the Department of Public Works and to the capital budget address the urgent needs of our aging infrastructure,” said Legislator MaryJane Shimsky (D-Hastings-on-Hudson). “The additional engineering positions will help the County begin to address it $1.1 billion capital projects backlog; the road maintenance crew and supplies will put minor road repairs back in the operating budget where they belong; and the new capital projects will help address the more pressing needs of our crumbling roads, bridges and other facilities.”

“The County Executive’s proposed budget relies too much on borrowing and one-shot revenues,” commented Legislator Ben Boykin (D-White Plains). “All of this borrowing will hamper future county administrations and legislators from any flexibility on future operating budgets because of onerous interest costs. This budget is a threat to the long-term well-being of our residents and our county’s fiscal health. Right now, the legislators are hard at work trying to identify places in the budget to reduce spending so some of the borrowing items can be returned to the operating budget.”

“We are committed to working with our Republican colleagues and creating a budget for the county that relies on less borrowing and moves the county to a responsible, sustainable budget,” said BOL Majority Leader Catherine Borgia (D-Ossining). “Westchester deserves a budget that creates a sound financial future for all residents.”

“The fiscal analysis of the independent professionals tells us that borrowing for operating expenses will result in potentially large tax increases in the future,” said BOL Majority Whip Lyndon Williams (D-Mount Vernon).