Agency seeks change in funding
Move to forgo pay aims to avert county attempt to recoup money
Malta A sharp decline in hotel occupancy taxes in Saratoga County is forcing Saratoga County Prosperity Partnership, which is funded by the tax, to propose a new funding agreement with the county.
SCPP President Shelby Schneider said the organization – one of the county's two economic development agencies – will forgo its fourth quarter payment of $125,000 from the county in exchange for the county relinquishing its right to recapture any portion of the $375,000 it already paid the organization in 2020. It’s a move the county could make as SCPP is limited to receiving half the county’s occupancy tax, which as of November, totaled about $308,000. That means the county is only obligated to pay the group $154,000, not the $500,000 doled out quarterly the county agreed in January to pay SCPP this year.
A county decision to recapture money already paid would be a blow to the organization that has been operating “as lean as possible,” Schneider said,
“If we cut money to economic development, we would be the only county in New York state that would try to defund support for economic development during the global pandemic,” Schneider said. “That would be unfortunate.”
The deal would require an amendment to the 2020 budget and also includes a stipulation for the county to pay SCPP $450,000 in 2021 regardless of how much money the county reaps in hotel tax in the coming year. The proposal, which has already been approved by the county’s economic development and law and finance committees,
is on the agenda of Tuesday’s county Board of Supervisors meeting.
“What we are asking for is a level of stability.... a contract like we had every single year, funded up front,” Schneider said. “It will allow us to have enough operational stability so that we can keep going so we can go after outside funding.”
Prior to Schneider’s appointment to head the SCPP in January, the organization did little to seek external funding. Aside from sponsorships for events and marketing, the SCPP, established in 2015, was once fully funded by the county at an annual rate of $775,000. Considering SCPP was only expecting $500,000 this year, Schneider sought and received additional funding: $81,803 in federal CARES Act money and $95,000 from the USDA Rural Business Development grant.
“My initiative was to bring in as much money as possible to not only support the partnership, but put money back into our communities,” Schneider said.
She is expecting some push back from supervisors but believes there is support for the proposed measure. She also said that in 2022 the partnership would go back to its current agreement with the county to be funded with 50 percent of the bed tax, which usually runs at about $1 million.
While those who have historically opposed the generous county funding of the partnership have not yet weighed in on the topic, the Saratoga County Chair of the Libertarian Committee has. He said recasting the funding structure for the Partnership is a bailout for those that are well-connected politically while residents and businesses continue to suffer under the COVID economy.
“This is just another sad example of county leadership being tone deaf to these important issues,” Rob Arrigo said.
SCPP is not the only economic development entity that has not yet received its full county funding. The Saratoga Economic Development Corporation, which was promised $150,000 from the county this year, didn’t get its fourth quarter payment, due in October. President Dennis Brobston said he expects it will come in as SEDC'S agreement with the county is not contingent on other county revenues.
Chad Cooke, deputy county administrator, said he believed SEDC'S fourth quarter payment “is in the pipeline.”
As for SCPP, Schneider said the agreement for 2021 would provide her and her board with clarity on funding going forward.
“Either they are going to support it or they won't support economic development in Saratoga County,” she said.