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New Plan Could Cut Potential Hole in Half by $75 Million
Hauppauge, NY -- Suffolk County Executive, working in a true bipartisan effort with the Suffolk County Legislature, has announced the passage of an omnibus resolution that will help save taxpayers from a looming budget short fall next year, due to a slumping economy.
Tough times have led to a reduction of Suffolk County’s sales tax and real estate related revenue. The Suffolk County Executive’s Budget Office and the Legislative Office of Budget of Review have projected that this slowdown will lead to a budgetary shortfall for 2009 in the range of $130 million and $156 million.
“By taking decisive actions now to avoid this projected shortfall, the need for service reductions, staff reductions or tax increases in 2009 will be mitigated,” said Levy.
Working with the County Legislature, Levy was able to devise a cost savings plan that was agreeable to all and could cut the potential short fall in half by $75 million.
“Good government is attained through compromise, and by realizing that it is the people who need to come first,” Levy said. “I commend my colleagues in the Legislature for working together to approve this important measure as quickly as possible.”
By adopting this cost savings plan through Certificate of Necessity at the Tuesday Legislature General Meeting, Suffolk County could boast a less inflated shortfall to overcome at its Wednesday morning bond rating review meeting. Suffolk County has seen its highest bond rating ever in recent years, and with a looming recession on the national scale, Levy said it is critical the County maintains its superior bond rating.
Early Retirement Incentive Program and Wage Freezes
In an effort targeted to humanely reduce the size of government, early retirement incentives are being offered to county employees age 55 and over who have worked for Suffolk County for at least 10 years as of July 31, 2008. This program is available to up to 10 percent of the fulltime employees in any county department.
In order to preserve long term savings, no more than 20 percent of the positions vacated through these means will be rehired at a cost equivalent to that being paid to the former employee. This measure is likely to plug $10 million of the County’s budget deficit.
In addition, all Suffolk County government appointees will see freezes in wage step increases for 2009.
Suffolk County Tobacco Asset Securitization Corporation and Sale of Real Property Tax Asset Revenue
Studies will be conducted to decide which of two large proposals would be the more fiscally and socially prudent measure for Suffolk County take to draw down the looming budget deficit. These measures include the securitization of tobacco sales, an action that has already been taken by New York State and dozens of counties throughout the state and nation, and the sale of real property tax asset revenue. It is estimated that the sale of tobacco securitization could provide $50 million in revenue to Suffolk County for the upcoming year.
Requests for Proposals and/or Expressions of Interest to sell the tax liens and tobacco securitization will be issued, and after thorough legal and financial analysis and review, the option warranting a better compromise will be pursued by the County Executive.
“I will continue to do all that I can to make sure that Suffolk County taxpayers are not burdened by any new taxes, just as I have done for the last four years,” Levy said. “It is my hope that my partners in the County Legislature will continue to work with me to spare our residents any additional financial hardships during these economically unsteady times.”
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