Local News
ERIE COUNTY: Budget gap concerns widen
Erie County’s control board is echoing the assertion from County Comptroller Mark Poloncarz that the 2009 budget isn’t balanced.
With sales tax and state aid — the county’s two main revenue sources — looking to be significantly lower in 2009, Poloncarz said he’s concerned that the 2009 budget leaves the anticipated state aid levels unchanged from what the county received in 2008. He argues that, with the state’s budget deficit growing to at least $12.5 billion next year, the odds that no local spending cuts will occur are slim.
Add to that a projected slacking off of sales tax revenue as the Canadian dollar loses value and the American economy stagnates, and there’s even more cause for concern.
On the expense side, County Executive Chris Collins has cut some jobs, but has also advocated for raises for some of his top appointees. Road repair funding and other capital improvements were also found to be underbudgeted, but Poloncarz’ main concern is $16 million in Erie County Medical Center expenses, which he said Collins has agreed to pay over three years but didn’t add to the budget or four-year plan.
“Obfuscating the facts and intentionally withholding material information from this office, the legislature and the (control board) does nothing to benefit the taxpayers and only breeds an environment of mistrust,” Poloncarz said.
Collins contends that he is working on getting ECMC to forgive some of that debt, but the $5.3 million due next March isn’t factored into the proposed budget.
The executive has said he provides the necessary cushion by raising property taxes, but both parties in the legislature oppose that move, so Poloncarz is skeptical that the increase will pass.
Erie County Legislature Chairwoman Lynn Marinelli said this budget season is like any balancing act, though the difficulties are leading to interesting questions that don’t present a simple answer.
“Not only do you have a gap, but how do you cut into the property tax raise?” Marinelli said. “We have to craft an amendment plan that still keeps us operational, but I do anticipate reduction packages. That’s the only way to close the gaps.”
Most of the county’s budget is state-mandated, so the only cuts that the legislature can make will hit parks, cultural institutions and libraries. Marinelli said those are the things people want maintained when times are tough, but with thin times for state aid around the corner, there may be no other alternative.
The legislature still has a month to get any gaps under control. But if they can’t, and the budget is proved to be unbalanced, Collins’ hopes of the control board moving back into an advisory status could remain wishful thinking.
Contact reporter Daniel Pye at 693-1000, ext. 158.
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