Despite objection from residents, the Saratoga County Board of Supervisors voted to adopt a $308.3 million spending plan for next year that includes a 3.5 percent property tax increase. It is the first increase in nearly a decade.
On Wednesday, Dec. 14, Supervisors Joanne Yepsen, D-Saratoga Springs, and Phil Barrett, R-Clifton Park, voted against the plan because of the tax hike, while all other members voted in favor.
Yepsen called the increase “inappropriate” given the economy, even though county officials claim the property tax will remain the lowest in the state. Barrett said he couldn’t vote on a tax increase without a more detailed financial plan for the future to present to residents.
Board Chairman Tom Wood, R-Saratoga, called the increase “modest.” Under the new budget, the average county tax rate will rise from $2.15 to $2.23 per $1,000 of assessed property value. A house assessed at $200,000 will be charged a $16 tax increase in the coming year.
“We continue to focus on maintaining the quality of life and aspects of living in Saratoga County,” Wood said. “We are proud of our county and our past achievements. And we know in the future we will continue to serve all of our residents in the most cost efficient manner.”
Nearly $10 million was cut from the original budget proposal.
The final budget reinstated funding to various programs and projects within the county that had seen financial support completely cut. Money was also found by defunding vacant positions, cutting postage costs and using a new health insurance system.
The restorations were proposed by Supervisor Art Johnson, R-Wilton.
Brookside Museum, the Saratoga County Fair and Saratoga Arts all had 50 percent of their funding restored, but were told not to expect financial support in 2013. In addition, nearly $54,000 in funds for the Capital District Regional Planning Commission were fully reinstated after the county learned it was legally obligated to support the organization.
Money was not restored to the Saratoga Performing Arts Center or the Water Authority.
To cut costs, the board voted to defund vacant positions within the sheriff’s office, probation department, nursing home and public health nursing service, saving the county nearly $891,000. County officials were also instructed employees to reduce internal postage expenses by over $39,000 and communicate more through e-mail.
Additional funds were found by implementing a new health insurance system through Blue Shield. The county expects to save nearly $1.3 million on insurance premiums by self insuring. The county will now pay an administration fee to Blue Shield, but will use the $23.3 million it would have previously paid the company to pay the premiums itself. The funds saved equal the difference between expected claims by employees and the total rate that was usually pocketed by Blue Shield as profit.
According to Johnson, the county has additional insurance to pay for claims that exceed what was previously paid.
After public outcry at a meeting earlier in the month, plans were rejected to ask non-union employees and some managers to pay 15 percent toward their insurance premium. The final budget also restores retiree Medicaid Plan B payments the county was going to cut, after union officials threatened to sue the county. This added an additional $1.1 million to the budget.
Johnson, who is also chairman of the county Personnel Committee, said those items will be negotiated with the union to cut those costs in the future.
In the end, $7.2 million is planned to be taken out of the county’s fund balance to make up the difference for budget restorations and the dismissal of an increased sales tax, leaving only $5 million in the fund for next year.
Although 20 supervisors voted in favor of the budget, most said they realize the current process will be unsustainable going into 2013.
Preston Jenkins, D-Moreau, said he was disappointed in the process. He hopes all members participate in budget negotiations starting in January to utilize the time they are given.
“With this budget, if we don’t change anything between now and next year at this time, we’re going to be short about $10 million of funds to run the following year without any increases,” he said.
Yepsen called the process “flawed,” and explained she felt negotiations should be more transparent to the public. She said while boards members were in back rooms making deals, she was talking to citizens, many of whom had cost saving ideas that went unnoticed by the board.
“The process led to a bad product,” she said.
Others felt the board did the best they could given the county’s financial situation.
Supervisor Patti Southworth, I-Ballston, she would prefer not to see a tax increase, but “unfortunately, so much is out of our direct control that with the decreases we have in our property taxes in the last few years, I don’t see we have any other option at this time.”
Wood said unfunded state mandates are the biggest issue faced by the county, with 110 percent of the taxes collected in Saratoga sent to Albany. But lobbying efforts to reduce the mandates “have fallen on deaf ears.”
“Our state government has not reduced mandates, and our state legislators did not support efforts suggested by the board to provide revenue to meet the state mandates,” Wood said.
Board members have said they will continue to seek options for the Maplewood Nursing Home, which is losing millions annually. Also, the board may potentially seek bids for the unused landfill to help balance the budget in 2013.
“Down the road it is an issue we’re going to be dealing with,” Wood said of the facilities.
