2014 Executive Budget Presentation by Ulster County Executive Mike Hein September 26, 2013
The “Cahill Crisis” Ulster County still faces the loss of $22 Million in sales tax revenue -2-
The “Cahill Crisis” We will take the steps needed to shield property taxpayers and NOT RAISE TAXES -3-
This Budget… Protects the Sheriff’s Deputies from layoffs Protects the Community College from cuts Maintains critical programs Helps vulnerable residents Delivers a budget with NO LAYOFFS -4-
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Golden Hill Told it was “impossible” to sell the County nursing home Was no longer Public vs. Private… It was Open vs. Closed Refused to let the facility close Prevented the loss of jobs and the displacement of residents -7-
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Financial Questions Question: Where did the sale proceeds go? Financial Reality : Golden Hill was sold for $11.25 million, virtually all of which was budgeted for in 2012 and 2013. After paying all of the liabilities and debts of the nursing home, there was a net $6 million in available revenue, all of which had been budgeted for in 2012 and 2013 by my Administration and the Ulster County Legislature. -9-
Financial Questions Question: How are the annual savings spent (former subsidy)? Financial Reality: An elimination of a subsidy does not equate to a financial surplus. Ulster County used “one shot” revenues to offset the subsidy in 2012 & 2013. In 2014 while the subsidy to Golden Hill no longer exists, neither do the “one shot” revenues. This “financial bridge” was part of the benefit of the LDC model -10-
Without Action What would have been 400,000,000 380,000,000 360,000,000 Appropration 340,000,000 Status Quo Executive Actions 320,000,000 300,000,000 280,000,000 2008 2009 2010 2011 2012 2013 2014 Year 90% Tax Increase Avoided -11-
Spending Cut This Budget includes the largest spending reduction in County history Spending is down $23.7 million -12-
Spending Reduction APPROPRIATIONS $365,000,000 $360,000,000 $355,000,000 $350,000,000 $345,000,000 $340,000,000 $335,000,000 $330,000,000 $325,000,000 $320,000,000 2010 2011 2012 2013 2014 ADOPTED APPROPRIATIONS -13-
Doing More With Less 2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 2009 2010 2011 2012 2013 2014 Position levels are down 32% since 2009 -14-
The Bottom Line…the “Cahill Crisis” Never about Safety Net About Assemblyman’s desire to impose control over local government Cahill’s actions cost taxpayers $4.5 million -15-
In the end… The planned takeover of Safety Net continues -16-
The “Cahill Crisis” Legacy Assemblyman Cahill severely hurt his constituents Visitors will receive a tax break on the backs of the property taxpayers The financial stability of Ulster County and the City of Kingston have been weakened County property taxpayers lost out on a major property tax cut -17-
Sequestration $2 million in spending restrictions are included in contingency February Sales Tax is budgeted in a designated line to balance this spending There are a progression of spending cuts that only kick in if timely action is not taken in Albany -18-
Sequestration Contract Agencies Mental Health Contracts Personnel Adjustments Sheriff’s Department Department of Public Works Social Services Contracts UCAT Buses Municipal Dues -19-
Sequestration Time runs out on February 1, 2014 -20-
How We Pay For It $400,000,000 $350,000,000 $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $- 2012 2013 2014 Other Revenue Tax Levy Sales Tax Fund Balance One Shot -21-
Fund Balance Without Kevin Cahill’s actions there would be $4 million more in the General Fund Balance This would have left the General Fund Balance at 5.1% Instead, because of the “Cahill Crisis” the 2013 General Fund Balance appropriation leaves only 3.7% -22-
Property Tax Levy 2013 Property Tax Levy $ 78,730,408 2014 Proposed Tax Levy Change - $ 0 2014 Proposed Tax Levy $ 78,730,408 Property Tax Levy 0% -23-
The Past 5 Years Reorganized DPW...Buildings & Grounds Stop DWI…Probation The Health Department…Mental Health Traffic Safety…Safety Real Property…Finance Youth…Human Rights -24-
A.C.E- Accountability, Compliance & Efficiency Good government initiative to implement best practices Responsible for: • Risk Management • Corporate Compliance • Program Development • Operational Efficiency • Grant Management • Capital Project Management • Internal Controls -25-
Ulster Cares Approximately a 50% state reduction to Mental Health funding in the past 5 years -26-
State and Federal Cuts to Mental Health 18000000 16000000 14000000 12000000 10000000 State & Federal Funding 8000000 Net County Share 6000000 4000000 2000000 0 2009 2010 2011 2012 2013 $8 Million less over 5 years -27-
Ulster Cares Approximately a 50% state reduction to Mental Health funding in the past 5 years Service delivery was at risk Innovative public-private partnership with Hudson Valley Mental Health -28-
Ulster Cares Improves the Local Government Unit (LGU) Results in no Layoffs Ensures the continuation of care regardless of ability to pay -29-
We will always fight to protect the great people of Ulster County -30-
We will never be like typical governments -31-
Questions? Available online at WWW.ULSTERCOUNTYNY.GOV -32-
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