The 2017 budget has been adopted. The tax rate is at a historic low at $5.07 and the property tax levy, as proposed by the administration, was reduced by more than $1.75 million dollars. We also managed to eliminate the proposed $20 increase to the sewer unit charge.
Throughout my tenure in public service, this was undoubtedly the most challenging budget I have encountered — costs are up dramatically, revenue forecasts continue to be low and tough decisions were needed. Left unchecked, the county was facing a $20 million deficit.
Employee health care, which is a collectively-bargained expense driven solely by claims, is increasing by nearly $12 million. Additionally, several union contracts were settled this year, resulting in substantial salary and benefit increases. In total, these fixed personnel costs increased the top line by $22 million.
As usual, federal and state mandates continue to hammer our bottom line. Medicaid will cost $99 million in 2017. The state must find ways to reduce this burden to county taxpayers.
While lower gas prices have been great for all of us at the pump, they also reduce sales tax revenue. My view on this is simple — tighten our belt, make do and thank goodness for entertainment and tourism generating sales tax from out-of-towners to offset reduced revenue.
Thanks to the ingenuity of the administration, the majority of the $20 million gap was closed with a voluntary retirement incentive program of which more than 200 employees took advantage. Many positions will eventually be refilled, but at lower salary and pension costs, saving millions of dollars.
Lastly, we also authorized the merger of the Metropolitan Water Board and the Onondaga County Water Authority, combining the wholesale distributor (MWB) and the retail supplier (OCWA) into one entity. This will save the county more than $10 million annually and will be seamless to ratepayers.
Unfortunately, 11 county employees were laid off. This was a difficult but necessary decision to balance the budget. Next, a local law to codify salary increases for elected officials was presented as part of this budget. Consistent with my position from the very beginning, I voted against it and will leave it at that. The frivolous lawsuits, childish bickering and disingenuous political grandstanding on this and other matters need to end.
With all of the challenges, the legislature was still able to adopt a balanced budget with a tax rate decrease, continued funding for opioid treatment services and veterans and infrastructure funding for towns and villages and Land Bank investments, including funding earmarked for Baldwinsville.
Brian May represents the first district, which includes the town of Lysander and the western portion of the town of Clay.
