Albany County Executive Dan McCoy’s 2013 tentative budge calls for a 8.9 percent tax increase, but that number could change for the worse if the County Legislature does not opt to privatize the county nursing home.
The proposed $568 million budget would increase spending by 1.4 percent from 2012. The tax hike, in excess of the state property tax cap, would result in a $60 tax increase for a home valued at $200,000.
The largest cost-saving measure included in the tentative budget is a proposal to privatize the county nursing home. McCoy says closing the nursing home is not an option, but signing an agreement with a private operator would save taxpayers about $1.5 million in the coming year.
“If the Legislature didn’t come to a decision on this deal, the levy would be anywhere from 14 to 22 percent,” said McCoy.
The partnership is estimated save $70 million over 10 years if approved by the County Legislature and state Department of Health. The deal would see the facility leased to Upstate Service Group, a company that runs the Hudson Park Rehabilitation and Nursing Center in the City of Albany, by July of 2013.
McCoy took office as county executive in January after serving as the chairman of the County Legislature. As a legislator, he backed the building of a new nursing home, but he now says that is no longer a viable since the state has denied a certificate of need from the county.
As for the proposed tax hike — on the heels of an 8.7 percent increase last year — McCoy blamed state and federal unfunded mandates and called keeping the tax levy increase below 2 percent “unrealistic.” Nine “mandates,” including Medicaid, public assistance and pension costs, make up roughly 100 percent of the tax levy, according to the County Executive’s Office.
“I would need to lay off about 800 workers and end an untold amount of services to reach that goal,” he said.
McCoy said the tax cap was supposed to be paired with mandate relief, and he called on the state to end the mandates or also cap them at 2 percent.
If his budget is not adopted, McCoy said non-mandated programs like the Crime Victims and Sexual Violence Center, Children’s Dental Clinic, Mental Health Substance Abuse Clinic, Children’s Mental Health and the entire Department of Aging would have to be eliminated.
“It’s a mirage,” he said. “But I will say the cap has made us roll up our sleeves and really look at budget and where we can save.”
The tentative budget forecasts a 6 percent increase in sales tax receipts over last year. About $230 million in sales tax revenue was generated in 2011, with 60 percent remaining with the county and 40 percent being split between the 19 municipalities therein. McCoy had proposed changing the formula to allow for more county revenues, but most legislators did not feel it wise to place more of a burden on municipalities to make up those funds.
Included within the proposal is a plan to add 12 workers — five within the County Executive’s Office and seven within the offices of elected officials.
“We need people who look at things differently and think outside of the box to solve this problem,” said McCoy.
The new positions include a grant writer, two contract investigators and new employees within both the Sheriff and District Attorney Offices. A nearly $30,000 raise is included for District Attorney David Soares, which is part of a judicial raises agreement which stipulates district attorney wages be the same as family court judges.
“It’s essentially an unfunded mandate,” said McCoy. “He could refuse it, but would you?”
To override the tax cap, two-thirds of the 39 county legislators will need to approve of the plan.
“I know that every dollar counts and I submit this budget pledging to continue to work to streamline government and create greater efficiencies without compromising or sacrificing programs and services that protect and serve the people of Albany County,” McCoy wrote within his proposal.
County Legislature Chairman Shawn Morse said he is not sure how he feels about the proposal to privatize the nursing home and has questions he wants answered before making a decision. He said he thinks many others within the County Legislature feel the same way.
“I believe the county government has a mission to care for the poorest people who have no other means,” he said. “If not for us, where would they go?”
Morse said if Upstate Service Group guarantees to meet the same mission as that of the county, than he would not be opposed to the plan. But if not, he would look at cutting further programs to help fund construction of a new nursing home.
“There is not an easy answer, but if I’m not comfortable I won’t support it,” he said. “We may have to work to cut something that is viewed as important to find the money, but in my mind it might not be as important as the nursing home.”
