County Executive Bill Steinhaus (R) announced his proposal to cut county taxes for 2008 with a dramatic 5 percent decrease in the tax levy (the total amount collected countywide from property taxes). In comparison, last year’s tax levy increased by 15 percent. Released less than one week before elections, his announcement set eyes rolling in the Democratic camp.
Steinhaus’ budget reins in spending growth to 2 percent, which comes in under the rate of inflation, and reduces the property tax rate by 16 percent to $2.17 per $1,000. While that rate is the lowest since 1973, the real impact to taxpayers’ wallets is also determined by equalization rates and property assessments. For example, in 2007 the tax rate remained constant at $2.57, though many residents in Hyde Park and the Town of Poughkeepsie saw tax increases on the order of 14 percent.
The $394 million proposed budget includes state mandates, such as a $2 million increase in spending for the Medicaid program – the appropriation totals $394 million – and $21 million for the Preschool Special Education and Early Intervention programs. Another mandated expense: an $11 million increase in utility costs.
The budget continues Steinhaus’ initiatives on prevention of tobacco use among children with $525,000 in funding to the Children’s Health Initiative. By at least one measure, that program has been successful: Choices for Change Coalition found a 33 percent decrease in tobacco use among southern Dutchess teens. The budget also devotes money to the Comprehensive Cancer Control Program and other initiatives (see list).
“Our 2008 budget reflects our bold vision for Dutchess County,” said Steinhaus. “We are maximizing our use of every tax dollar. County governments continue to face major fiscal challenges including state mandates beyond our control.”
His budget proposal now goes to the Dutchess County Legislature for review and adoption. At first glance, majority leader Noreen Reilly (R-Hyde Park) had positive things to say. “I’m very pleased with what I see so far,” she said. “It’s a solid budget, it provides services, keeps tax low for families and brings the best we can for citizens.”
Minority leader Roger Higgins (D-Town of Poughkeepsie/Wappinger) gave it one thumb up. “I’m very happy to get tax cuts, it would just be great to get tax cuts in a non-election year,” said Higgins. In 2007, county property taxes rose 14 percent for Higgins’ constituents. “For me, it’s laughable, but it’s great to have a tax cut.”
Higgins also said Steinhaus’ proposal snatches an idea from the Democrats by dipping into the fund balance (the amount held in reserve) on the order of $10 million to sponsor the tax cut. That accomplishes “exactly what we wanted to do last year,” Higgins said. “Last year we were told, ‘God forbid.’ We couldn’t take money out of the fund balance,” he said. Democrats also opposed a mortgage tax increase in 2007 of .25 percent (for a 1.25 percent tax, taken at closing) that passed with support of the Republican majority. If a tax cut was on the way for 2008, Higgins questions whether that was necessary. “Did we really need a mortgage tax? For me there’s a whole credibility gap there,” he said.
Key initiatives
• Veterans: New veterans counselor and transportation funding.
•Environmental Protection and Preservation
• Inter-municipal Land Conservancy Project: $75,000 to preserve open space.
• Comprehensive Well Water Testing: next phases of ongoing project.
• Economic Development Agency and Tourism Promotion: $1.1 M including $100,000 for the Hudson-Fulton-Champlain Quadricentennial Celebration.
• Children’s Health Initiative: $525,000 for Tobacco Use Prevention and Childhood Obesity Prevention.
• Child Protective Services – additional case workers: $200,000.
• Comprehensive Cancer Control Program: $110,000 to reduce the risk of cancer.
• HEART Safe Community Program: $25,000 for 12 additional automated external defibrillators (AED).
• Senior Transportation Coordinator: $20,000 for Phase II of Senior Transportation Study.
• DC Youth Gang Prevention: $115,000 to continue prevention programming.
• Sheriff: Two additional Sheriff’s Deputy positions to ensure public safety.
• Providing Emergency Responders with the Tools They Need: $370,000 including resources for emergency first responder training and equipment.
• Parks and Infrastructure: including development of Quiet Cove Riverfront Park.
• Inter-municipal Conference “Sustainable Living Communities:” healthy community development to combat obesity-related illness and serve the needs of seniors.