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2014 Executive Budget

Presentation by Ulster County Executive Mike Hein September 26, 2013

The Cahill Crisis

Ulster County still faces the loss of $22 Million in sales tax revenue
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The Cahill Crisis

We will take the steps needed to shield property taxpayers and NOT RAISE TAXES
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This Budget
Protects

the Sheriffs Deputies from layoffs Protects the Community College from cuts Maintains critical programs Helps vulnerable residents

Delivers a budget with NO LAYOFFS

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Golden Hill
Told

it was impossible to sell the County nursing home no longer Public vs. Private It was Open vs. Closed
to let the facility close

Was

Refused

Prevented
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the loss of jobs and the displacement of residents

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Financial Questions
Question: Where did the sale proceeds go?

Financial Reality: Golden Hill was sold for $11.25 million, virtually all of which was budgeted for in 2012 and 2013. After paying all of the liabilities and debts of the nursing home, there was a net $6 million in available revenue, all of which had been budgeted for in 2012 and 2013 by my Administration and the Ulster County Legislature.

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Financial Questions
Question: How are the annual savings spent (former subsidy)? Financial Reality: An elimination of a subsidy does not equate to a financial surplus. Ulster County used one shot revenues to offset the subsidy in 2012 & 2013. In 2014 while the subsidy to Golden Hill no longer exists, neither do the one shot revenues. This financial bridge was part of the benefit of the LDC model
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Without Action
What would have been
400,000,000

380,000,000

360,000,000 Appropration

340,000,000

Status Quo Executive Actions

320,000,000

300,000,000

280,000,000 2008 2009 2010 2011 Year 2012 2013 2014

90% Tax Increase Avoided


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Spending Cut

This Budget includes the largest spending reduction in County history

Spending is down $23.7 million


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Spending Reduction
APPROPRIATIONS
$365,000,000 $360,000,000 $355,000,000

$350,000,000
$345,000,000 $340,000,000 $335,000,000

$330,000,000
$325,000,000 $320,000,000 2010 2011 2012 2013 2014

ADOPTED APPROPRIATIONS
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Doing More With Less


2,000 1,900 1,800 1,700 1,600 1,500 1,400 1,300

1,200
1,100 1,000 2009 2010 2011 2012 2013 2014

Position levels are down 32% since 2009


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The Bottom Linethe Cahill Crisis

Never About

about Safety Net

Assemblymans desire to impose control over local government actions cost taxpayers $4.5 million

Cahills

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In the end

The planned takeover of Safety Net continues

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The Cahill Crisis Legacy

Assemblyman Cahill severely hurt his constituents Visitors will receive a tax break on the backs of the property taxpayers The financial stability of Ulster County and the City of Kingston have been weakened County property taxpayers lost out on a major property tax cut

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Sequestration

$2

million in spending restrictions are included in contingency Sales Tax is budgeted in a designated line to balance this spending

February

There

are a progression of spending cuts that only kick in if timely action is not taken in Albany

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Sequestration

Contract

Agencies Mental Health Contracts Personnel Adjustments Sheriffs Department Department of Public Works Social Services Contracts UCAT Buses Municipal Dues
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Sequestration

Time runs out on February 1, 2014


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How We Pay For It

$400,000,000 $350,000,000

$300,000,000
$250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 $2012 2013 2014

Other Revenue
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Tax Levy

Sales Tax

Fund Balance

One Shot

Fund Balance
Without

Kevin Cahills actions there would be $4 million more in the General Fund Balance
would have left the General Fund Balance at 5.1% because of the Cahill Crisis the 2013 General Fund Balance appropriation leaves only 3.7%

This

Instead,

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Property Tax Levy


2013 Property Tax Levy
2014 Proposed Tax Levy Change 2014 Proposed Tax Levy

$ 78,730,408 -$0 $ 78,730,408

Property Tax Levy

0%
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The Past 5 Years

Reorganized DPW...Buildings & Grounds Stop DWIProbation The Health DepartmentMental Health Traffic SafetySafety Real PropertyFinance YouthHuman Rights

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A.C.E- Accountability, Compliance & Efficiency


Good

government initiative to implement best practices for:

Responsible


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Risk Management Corporate Compliance Program Development Operational Efficiency Grant Management Capital Project Management Internal Controls

Ulster Cares

Approximately

a 50% state reduction to Mental Health funding in the past 5 years

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State and Federal Cuts to Mental Health


18000000

16000000
14000000 12000000

10000000
8000000 6000000 4000000 2000000 0
State & Federal Funding Net County Share

2009 2010 2011 2012 2013

$8 Million less over 5 years


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Ulster Cares

Approximately

a 50% state reduction to Mental Health funding in the past 5 years delivery was at risk

Service

Innovative

public-private partnership with Hudson Valley Mental Health

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Ulster Cares

Improves Results

the Local Government Unit (LGU)

in no Layoffs

Ensures

the continuation of care regardless of ability to pay

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We will always fight to protect the great people of Ulster County

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We will never be like typical governments

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Questions?

Available online at WWW.ULSTERCOUNTYNY.GOV

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