“There have been countless hours and days of work put into this plan by many people and some 30 agencies since mid-August,” he said, “and I think our residents will appreciate their efforts to minimize the impact on real property taxes.”
 
“We believe that it is a reasonable spending plan that will keep the county government operating during what promises to be a very unstable year,” said Board of Supervisors’ Deputy Chairman Philip Williams.
 
The tentative budget—to be presented to the Board of Supervisors at a public hearing on December 10—marked by a $2,8 million increase in spending and a sizeable decline—$1.4 million—in anticipated revenues.  
 
The county-wide tax rate, reflecting a 14 percent hike in assessed valuation, provides a reduction from $6.118 to $5.484 per $1,000 assessed value. Chairman Baer estimated that, “A home assessed at $150,000 should see a county tax hike of about $34 next year.”
 
“No one wants any increase in taxes,” the chairman acknowledged, while adding that the “tremendous effort put forth by the Board, the Treasurer’s Office, and department heads has mitigated and minimized the effect the current economic climate will have on next year’s budget.”
 
The tax rate increase was lessened by the County’s “aggressive efforts in reducing expenses and increasing efficiency in government operation,” Baer said, “and the foresight of having money in reserve to use to keep taxes down.” 
 
The County designated $10,514,005 in reserve funds—$2.5 million more than last year—as appropriated fund balances to reduce the amount needed to be raised by taxes, noted Columbia County Treasurer and Budget Officer Kenneth Wilber.  
 
Adding to the higher appropriations is $1,312,000 to cover Phase One of a three-year upgrade of the County’s Emergency Microwave Communications System and another $250,000 earmarked to begin planning for improving the current accounts payable and payroll systems.
 
The proposed appropriations also include an expected contract settlement with three of the four unions representing most of the county’s more than 900 employees. These negotiations, currently in mediation, could cost the County more than $2 million over the life of the contracts.
 
While calling the tentative budget “realistic,” Baer warned that “next year is going to be very financially challenging. We will continue to be conscious and vigilant with spending and controlling cash, but if revenues continue to erode we must be prepared to take further action.”
 
He said the County would take proactive measures to avoid unanticipated costs that could result in reduction of services to county residents. “We don’t have a crystal ball,” said Chairman Baer. “We don’t know what Albany or Washington is going to do for us—or to us—as far as local aid and funding goes.” Sales taxes and mortgage taxes, other key sources of revenue, are impacted by the economy “and beyond our control,” he said.
 
The chairman continued, “In addition to holding our departments accountable for spending, we are implementing a hiring freeze, looking at curbing overtime, and, if necessary, employee layoffs, and program reductions. It is not something we want to do, but it is something we have to consider if it becomes necessary to further reduce costs and minimize taxes.”

Highlights of the tentative budget include:

• An increase in Medicaid costs to $10.38 million and a decrease of $2.6 million in federal and state reimbursement, which will raise the local/county share of the programs by 8 to 46 percent.
• Capital Fund Budget projects for design and construction work at the county court house, planning and design for the Ockawamick County Campus, sand and salt building construction, and work on the Public Safety Building.
• Road and bridge projects at nine to twelve sites for which 95 percent is federal and state reimbursed. Design and construction work at the airport, which also is federal and state reimbursed.
• Capital improvement projects at Pine Haven Home to include upgrades of showers, heating and air conditioning, and replacement of the water tower.
• A reduction of $54,435 in the debt service requirements and a drop of $235,000 in the county’s New York State ERS payment.
• Increase of an estimated $400,000 in the County’s health insurance costs. The County, however, will self-insure the pharmacy portion, helping to stabilize costs in 2009.
• An estimated $1.5 million in highway CHIPS funds from New York State.
• Distribution of $400,000 from the 2000 Tobacco Securitization, currently in the county’s debt service savings, to the eighteen towns and the City of Hudson to defray EMS costs.