Proposed Budget Cuts Spending And Taxes
by Doug La Rocque
As proposed by Rensselaer County Executive Steve McLaughlin, the 2021 budget reduces spending by 1.1% and the tax rate would drop by 3.6%. It marks the third consecutive year of tax cuts, and according to Mr. McLaughlin, means Rensselaer County has stayed under the state tax cap every year it has been in effect over the last decade.
During his presentation to the County Legislature on Friday, October 16, the County Executive said, “this budget is very much in line with our current times – presented virtually, but aware of the new obligations we all face today. Those new realities and challenges inform and shape in many ways the spending plan for the 2021 fiscal year, while still adhering to the core principles that have strengthened our county’s fiscal standing and provided a path to future prosperity.”
Personnel Savings
Mr. McLaughlin touched on the fact that during 2018 and 2019, the County saved over $1 million in personnel costs. He added, “I am particularly proud to announce that in 2020 we saved over $1.5 million in personnel savings. That savings is one of the foundations of a budget that will extend our strong record of avoiding a tax increase, and also helped create a bedrock for our 2021 spending plan during uncertain times.
These savings are accompanied by a very successful bond refinancing this past summer that will save us $3 million, and thanks to our strong position, saw a sale completed ahead of expectations.”
Sales Tax Revenues
County Executive McLaughlin said “we can expect the unexpected in 2021 in terms of state aid and revenue sharing. New York State Comptroller Thomas DeNapoli said recently, in the second and third quarters of this year, local governments have received 16.9% less in sales tax revenue than over the same period last year. Mr. McLaughlin said in his budget presentation “we believe our sales tax numbers are healthy thanks to some of the factors that propelled our county to such strong results in previous months. Our retail base has expanded and shoppers from our county no longer have to travel out of town for needed or wanted goods and services. Consumers can also shop from home, with those sales credited to our county.”
Reaction From Local Legislators
“This budget trims $4 million off of last year’s budget, yet increases spending on fighting COVID-19 and road paving. In 2020 we paved more roads than ever, and we will do more in 2021,” said Majority Leader Ken Herrington of Brunswick.
“The county employees that have been working harder with fewer personnel, and tightening their budgets deserve a lot of credit. Our highway crews in particular, have done an excellent job paving and maintaining our roads.” This from Legislator Bruce Patire of Eagle Bridge.
“Every county department has stepped up and made cuts where they could and are still able to provide us with great services. The County Health Department and Mary Fran Wachunas have done an excellent job handling the new responsibilities of running contact tracing,” according to Legislator Jeff Wysocki of Hoosick Falls.
Legislator Dan Casale of Brunswick added, “This budget increases funding to fight COVID-19, and administer contact tracing, and provides meals on wheels to our seniors. These are two important services that deserve attention.”
The Minority’s Point Of View
The Eastwick Press also contacted Legislative Minority Leader Peter Grimm of Troy, who said, “it is good to see there is no anticipated tax increase. Although this crisis will continue to present fiscal challenges in the coming year, it is fortunate that we have had a few preceding years with record revenues allowing us to build a substantial fund balance. Having worked on and approved these previous budgets has positioned us well. I hope to see our department heads continue to do more with less as we navigate through these difficult times. The finances of Rensselaer County must continue to be a bipartisan effort.”
The budget now faces a public hearing and scrutiny by the County Legislature, which must approve the spending plan before it can take effect.