Albany inaction threatens tax rates

The New York State Legislature’s inability to decide how to run New York City Schools could cost Madison County property owners a significant chunk of change.

Last week, the state Assembly and Senate failed to pass a traditionally routine sales tax extender which would allow counties to exceed the allowed 3 percent in sales tax. Currently, 53 of New York’s 57 counties have sales tax rates above 3 percent and require Legislative action every two years to continue to enact higher sales tax rates.

Using 2016 sales tax numbers, these are the projected losses in sales tax revenue if Madi-

son County was capped at a three-percent rate:

•Town of Brookfield - $79,909

•Village of Canastota - $132,548

•Town of Cazenovia - $388,949

•Village of Cazenovia - $157,421

•Village of Chittenango - $158,274

•Town of DeRuyter - $77,791

•Village of DeRuyter - $12,689

•Village of Earlville - $12,934

•Townof Eaton- $139,377

•Townof Fenner - $72,799

•Town of Georgetown - $30,866

•Village of Hamilton (Eaton) - $106

•Village of Hamilton (Hamilton) - $91,357

•Village of Hamilton (Madison) - $4,563

•Town of Hamilton - $93,194

•Town of Lebanon - $64,494

•Townof Lenox - $179,008

•Town of Lincoln - $75,503

•Town of Madison - $151,455

•Village of Madison - $9,139

•Village of Morrisville - $26,699

•Village of Munnsville - $11,588

•City of Oneida - $1.08 million

•Town of Stockbridge - $50,130

•Town of Sullivan - $478,228

•Village of Wampsville - $18,904

The above losses were calculated using the 2016 figures.

Without the sales tax extender, the county would lose $6.53 million in revenue. However, $2.723 million of this would be shared with the towns and villages, resulting in a net loss to the county of $3.80 million.

If the county was forced to make up this $3.80 million by raising property taxes, the result would be a county tax levy increase of about 10.5 percent. That levy increase would be separate fromany cities, towns, or villages increasing their property tax levy in response to their loss of revenue as well.

According to the Times Union out of Albany, the reason the Legislature failed to enact the routine sales tax extender is because the bill was tied in with legislation regarding the control of New York City Schools. The Times Union reports that New York State Republicans want more charter schools in New York City while state Democrats want to ensure New York City Mayor Bill de Blasio retains control over schools. Caught in the middle of the feud over school choice are those 53 of 57 counties seeking their biannual (since 2004) sales tax extenders.

“They are using Upstate New York as a bargaining chip,” said Madison County Administrator Mark Scimone. “It’s a home rule deal. It should be our authority on the 1 percent (sales tax increase.) It’s not fair to residents in Upstate.”

According to the New York State Association of Counties (NYSAC), home rule authority was written into the state constitution to ensure that local communities, represented by locallyelected leaders, are able to properly address local issues. Further, NYSAC warns that the consequences of inaction on these home rule extenders include the possibility of property tax increases, program eliminations, service reductions, and staff layoffs.

“I want to voice my displeasure with the Assembly and the Senate walking out on 53 counties,” Madison County Chairman of the Board of Supervisors John Becker said, adding that there has never been a problem passing the sales tax ex- tender in the past. “It’s never been a problem. It’s going to screw everybody up if they keep monkeying around.”

Becker continued, saying that many municipalities begin working on the next year’s budget in August, and the lack of certainty is harmful to upstate communities.

“Traditionally, these have been uncontroversial decisions,” said Oneida Supervisor Joe Magliocca.

Both Senate and Assembly majority leaders pointed the finger across the aisle for blame as the legislative session came to an end in Albany last week.

“It is unconscionable that the Senate departed, leaving our local governments with so much uncertainty. Whether it is a fiscal decision to extend a local tax or allowing localities to make decisions about their own school districts, we have always put the needs of our constituents at home ahead of political interests in Albany,” said Assembly Speaker Carl Heastie in a statement on June 21. “The Assembly acted responsibly by extending mayoral control for New York City schools as well providing the certainty that our local governments so desperately need in order to function properly. Unfortunately, the Senate Republicans did not.”

On the same day, Senate Majority Leader John Flanagan also released a statement on the subject.

“I support the renewal of mayoral control, as do my Senate Republican colleagues. Under our leadership, the Senate has approved three different bills to extend mayoral control. Unlike the Assembly, our bills dealt wholly with education in the City of New York, and would give Mayor de Blasio new tools to ensure every child has a shot at a first-class education,” he said. “The Assembly needlessly tied renewal of mayoral control to dozens of unrelated local tax extenders requested by counties to fund important services for their residents.”

On Wednesday, Gov. Andrew Cuomo callied lawmakers back to Albany to extend Mayor Bill de Blasio’s control of New York City schools, with some lawmakers also calling for immediate action on the city’s beleaguered subway system.

Cuomo intended for the special session to focus on renewing mayoral control, but the list of issues under consideration grew by the hour to include emergency funding for the city’s troubled subway system and aid for upstate residents affected by recent flooding. Other issues up for debate include help for a struggling Vernon Downs harness racetrack and casino; more speed cameras for New York City; the extension of county sales taxes; and the naming of the new Tappan Zee Bridge.

Lawmakers hope to wrap up their work before the July Fourth holiday weekend.

“Everything is on the table,” said Sen. Jeff Klein, D-34. “What everyone is focused on is making sure mayoral control continues.”

Top lawmakers from both parties agree on the benefits of mayoral control, yet they so far haven’t been able to agree on an extension. Senate Republicans wanted to tie an extension to the authorization of more charter schools. Assembly Democrats balked at that idea, but tried to link the extension to the renewal of local sales taxes, a move that irked Senate Republicans.

On Wednesday Klein said charter schools were no longer part of the negotiations to extend mayoral control. Heastie declined to go into specifics about the discussions.

“We’re still talking,” he told reporters huddled outside of Cuomo’s office. “We want to try to make everybody in the world happy.”