County Executive News

Economy Forces Breslin to Make Tough Choices

Click here to see the County Executive's 2010 Executive Budget.

County Executive Mike Breslin presented his 2010 budget proposal today, which drastically cuts spending by over $11 million due to economic conditions, while beginning to downsize the County Nursing Home.

The 2010 budget proposal reduces county spending by $11.6 million and uses $6.6 million of reserves to meet a $21 million revenue loss in 2010. The spending cuts and use of reserves keep the real property tax increase to 5.9 percent, for a real property tax levy of $71.9 million. For a taxpayer with a home valued at $150,000, this represents an increase of $19 to $42 a year, depending on the municipality.

The budget proposal includes 109 layoffs and the elimination of 130 vacant positions.

"While downsizing the Nursing Home will not achieve major savings in 2010, it is absolutely essential to prepare for 2011, 2012 and beyond," said Breslin.  "In 2011, we will begin with a $25 million hole as federal stimulus money runs out and employee healthcare and pension costs continue to escalate."

Continuing to run the nursing home would require deeper cuts in other County services and significant property tax increases.  In 2010, the nursing home subsidy is estimated to be $10.3 million. A subsidy of over $20 million in 2011 and a property tax increase of 13 percent are projected if downsizing steps are not taken.  In 2012, the subsidy would be about $22.5 million, which would be an additional almost 2 percent tax increase.

Breslin said, "The already bleak fiscal outlook over the next few years is clear. We can build a new nursing home and be committed to providing institutional care for a limited number of people for the next 30 years while placing a tremendous burden on property taxpayers and other County services. Or we can implement an enhanced system that provides more choices across the entire long term care spectrum, from those needing skilled nursing care to those who want to remain at home, at a lower cost to County taxpayers. We cannot afford to do both."

The spending cuts are driven largely by a combination of declining revenue from sales taxes and State aid.  The severe economy has slashed sales tax revenue by over $12 million for this year, and Breslin's budget assumes only a modest increase for 2010 of less than one percent.  State aid revenues are estimated to be $6.8 million lower than 2009.

Employee pension costs will rise 42.9 percent and health insurance will rise by 7.3 percent adding $53.8 million to the budget, while the economy continues to press social services spending.  As unemployment continues to rise, the Department of Social Services anticipates the number of individuals in need of assistance to increase. The proposed budget increases Family Assistance by $589,000 and the Safety Net program by $1.6 million to meet the expected demand.

Continuing his commitment to meet the increased demand for home and community based care, Breslin's budget also increases funding for the Expanded In-Home Services for the Elderly Program by more than $500,000.

"As the unemployment rate continues to rise, we just don't see light at the end of the tunnel as far as County finances are concerned.  We must make lasting cuts in spending to protect our taxpayers and those we serve in the years ahead," said Breslin. 

The proposed budget now goes before the County Legislature for its review.

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