Executive Fiala Delivers 2008 Budget Message
Proposes 4.925% Tax Increase
BINGHAMTON, NY - Broome County Executive Barbara J. Fiala delivered her 2008 Budget Address Thursday, September 27th in legislative chambers. The Executive painted a grim financial picture but said her administration is managing the current fiscal situation and will continue to manage numerous financial challenges.
During her speech, Fiala said Broome County's major challenges include the loss of sales tax revenues and a 54% reduction in its fund balance. Fiala says despite these 2 challenges as well as the increasing costs associated with healthcare, Medicaid and general county operations, spending has been kept to less than a quarter of a percent increase.
In 2006, the Legislature re-allocated sales tax funds passing a larger proportion back to local municipalities. Since then, municipalities have received about $4 million in additional sales tax revenues and the county has received that much less.
Fiala says the previous legislature approved the reconfiguration of the sales tax because a majority argued that the Medicaid problem in Broome County was “fixed”.
Fiala says that is an irresponsible and dangerous message to send to Albany.
“The Medicaid cap is the equivalent of placing a bandage on a deep wound,” commented Executive Fiala during her address. “It slows the bleeding, however, without additional treatment the wound continues to bleed and there is the possibility of it becoming much worse.”
Fiala says she will continue to push Albany to remove the Medicaid burden from local property taxpayers.
Fiala affirmed she will also continue to push her consolidation agenda which she feels will be one solution to ever increasing taxes. She also congratulated and encouraged local municipal leaders who have begun the push for shared services.
“We need to be advocating consolidation and we need to be bringing our communities together instead of encouraging them to build stronger walls of isolation,” stated Executive Fiala. “I have pushed the consolidation issue in Broome County since taking office and it will continue to be a major priority under my leadership.”
The County Executive also described ways in which the County has lessened the burden on taxpayers by reducing the number of employees and eliminating support for five contract agencies.
Fiala said that while she regretted the decision to hold the line on BCC funding, it was a necessary decision in light of the county's current financial situation. Fiala instead has committed more than $1 million in capital improvements at the college and she is working on an initiative with Senator Libous' office to bring BCC arts and music programs to Downtown Binghamton.
“What better way to educate these students than to immerse them in the arts community?” remarked Executive Fiala. “In addition to providing a better learning environment, it will provide another economic benefit for the downtown community.”
As proposed, in the 2008 recommended budget, funds generated by increasing the Hotel/Motel tax are being directed towards sustainable economic development to boost the areas economic climate. Over $550-thousand was allocated to economic development projects in the county.
Broome County lawmakers have until November 15th to review and make changes to the 2008 spending plan. A final budget must be in place by November 27th.
Executive Fiala's address and proposed budget can be found online at: http://www.gobroomecounty.com/countyexec/index.php
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Published Date: 09-28-2007
