LITTLE VALLEY - A tentative $212 million Cattaraugus County budget for 2010 was introduced Wednesday. It is more than $8 million above the 2009 budget of $203.8 million, but $6 million less than had been requested by department heads.

The tentative budget presented by County Administrator Jack Searles carries a $12.64 per $1,000 full-value property tax rate, up from $12.06, a 4.8 percent increase.

There are no new positions being proposed in the county administrator’s budget, although nine new jobs were requested by department heads that would have added $290,000 to the tax levy. No job cuts are recommended in the tentative budget.

The tax levy, or amount to be raised by property taxes next year, would increase by $3.1 million to $47.9 million, or 7.1 percent over the 2009 levy of $44.7 million, Mr. Searles said. Each $479,000 in spending equals about 1 percent on the tax levy, he said.

The county administrator said he is proposing to use $1.5 million of the county’s undesignated fund balance, or surplus, to reduce the tax levy in 2010, the same amount as in the 2009 budget. Another $3.4 million in Intergovernmental transfer funds will be used so the county’s two nursing homes will not be subsidized by tax dollars in 2010. He noted, however, the Olean and Machias nursing homes are expected to continue to operate at a deficit.

Mr. Searles said the county will pay New York state $15.8 million as its share of Medicaid costs in 2010, that is up 3 percent, or about $289,000. He said county official across the state fear the state budget crisis could result in the Medicaid cap being eliminated. The cap, begun in 2005, holds the county’s annual increase to 3 percent.

“Removal or manipulation of the (Medicaid) cap will have dire consequences” for the county, Mr. Searles emphasized. “The single largest challenge (of 2010) is the uncertainty of state funding.”

One-fifth of the county budget revenue is state and federal funding.

He noted that Gov. David Paterson has called state lawmakesr into special session next week to try to address a $3 billion to $4 billion budget deficit. Besides Medicaid cuts, across-the-board cuts in local assistance are being proposed, he said.

The 2010 tentative budget includes more than $18 million for continued support of county road and bridge maintenance, repair and rebuilding efforts. Purchase of new machinery also continues in this tentative budget, he said. There is $1.4 million included in highway and refuse equipment purchases for the Public Works Department, which will be partially offset by $475,000 from motor vehicle surcharge funds.

Separate bonds for road, bridge and culvert will be proposed next week.

With one-third of the roads in the county damaged by August flooding, Mr. Searles said that while the Federal Emergency Management Agency (FEMA) funding is available for repairs, the county must pay a 12.5 percent local match.

The Sheriff’s Office’s impact on the tax levy increases by more than $807,000 in the 2010 tentative budget. Replacing road patrol and prisoner transfer vehicles is expected to cost $195,000, of which about $95,000 is offset by revenues. That leaves a tax levy impact of just under $100,000.

Mr. Searles said costs of the county’s self-insured health insurance plan are expected to increase by $1.1 million next year. Employees and retirees pay a portion of the plan’s costs.

Retiree health insurance costs to the county next year are projected at $4.2 million, up almost $400,000 from this year. More than 30 county employees are expected to join the retiree ranks this year.

The county administrator said the proposed 4.8 percent tax rate increase in the tentative budget translates to wide variations in tax rates in the towns and cities after state equalization rates are applied.

The city of Olean, for example, will see a 91.8 percent decrease in its county tax rate (from $154.30 per $1,000 of assessed value to $12.65 per $1,000) after a revaluation that raised its equalization rate from 7.95 to 100 percent. The town of Carrollton, which also revalued and has a 100 percent equalization rate, will see a 13 percent county tax rate decrease. Machias will see the biggest increase of any town, 16.8 percent.

Other area town tax rates and their increase are: Allegany, $12.64, up 4.8 percent, Hinsdale, $12.64, up 4.8 percent; Olean (town) $15.81, up 4.8 percent; Portville, $12.93, up 4.8 percent. The city of Salamanca is looking at a rate of $65.32, up 7.4 percent.

Budget review by legislative committees starts Monday and continues next Thursday. The Finance Committee will review committee-approved budgets on Thursday, Nov. 19 at 6 p.m. A public hearing on the budget is scheduled for Tuesday, Nov. 24 at 3 p.m.

“It’s a solid budget,” commented Finance Committee Chairman Michael O’Brien, R-Portville. “I believe we have to look at it more closely.

Minority Leader Dick Giardini, D-Allegany, said, “I think it’s a pretty lean budget. There’s no new employees proposed.”

(Contact reporter Rick Miller at rmiller@oleantimesherald.com)

Reader Comments

There are 4 comment(s) comments to this story.
The following are comments from the readers. In no way do they represent the view of bradfordera.com.

Don1776 wrote on Nov 5, 2009 10:36 PM:

" A 4.8% increase in the property tax rate and a 7.1% increase in the tax levy is unacceptable.

This budget is hardly "solid" as described - it is out of control spending in Little Valley, yet again.

The inflation rate is about 1 or 2%, and the county needs to live within our means. Our property taxes are #6 in the entire country, out of 790 counties, as a percentage of tax to property value.

There should be layoffs, and there should be cutbacks if this is the best they can do.

Stating that the budget is less than the empire-building department heads wish-lists requested is a misleading farce.

THe budget should be no more than inflation, period. We are being ripped off again by the good old boys in LV. "

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Don1776 wrote on Nov 6, 2009 10:12 AM:

" The county spending increase is unconscionable in the current economy. Catt County is already #6 in the nation (out of 790) in the ranking of property taxes as a percentage of property value.

Apparently our legislators in Little Valley are shooting for #1.

No spending cuts, just more spending increases. What is more disturbing is that the legislators are proud of this piece of work. They know the state is going to push more spending down to the county level, but they propose increased local spending anyway.

Throw the bums out – every one of them. "

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Tom wrote on Nov 6, 2009 3:05 PM:

" Thats just wonderful.

NYS is in a deficit, the country is Still in an economic recession. Health care rates are increasing. Some fools solution, why not ask for more money from the taxpayers.

Are these people idiots? Let's give more companies and businesses reasons to leave the state/area. Lets give more reasons for working families to pick up and move out of NY. Lets give more reasons for intelligent, educated college graduates to move out of state. Lets increase the number of foreclosures in the community. Lets increase the number of wellfare recipiants in CATT Co. Lets increase the number of unemployed in the area.....and bring in more drug dealers and vagrants to the area to get on welfare while increasing the population.

Again, this is the work of idiot politicians, who obviously do not have realistic accounting skills. Smoking mirrors that's all i got to say....

I am so sick and tired of individuals trying to be something they're not at the expense of the taxpayer. Penny-millionaires......While the rest of society has to suffer for thier incompetance and irrational thinking. Any fool can see, if things are down, if times are tough you control cost, minimize staffing, cut wages. Look at ways to save money. You do not hike up taxes and expect the people to bail out some idiot politicians or some government officials stupidity.

These scumbags need to be audited, and or replaced with competant people with realistic views and intelligence. I hope the idiots that made this decision read these comments.

When will this crap cease. Probably when the state is vacant of all good, working class families and individuals and that all are left are the idiots that fabricated the whole mess in the first place. "

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Annie Jarvo wrote on Nov 11, 2009 5:39 PM:

" I can't believe the total amount of this budget. What are the Legislators thinking? How could McClune, Snyder, Vecchiarella and others even think of raising any taxes?
During these bad economic times created by the previous federal administration, they are adding insult to injury. "

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