06142005

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Reaction to June 14th Decision by the Erie County Legislature

Here’s our initial take; no “spin” here.  As we learn more, we’ll let you know.

Yesterday’s action taken by the Erie County legislature to deal with the county’s FY05 budget – while seven months overdue – is a necessary and appropriately limited step in bringing about sustaining fiscal and service integrity to county government.  Moreover, given the extraordinarily late date and the looming June 23 “deadline” of the end of the 2005 session of the state legislature, members should feel that the county legislature, by in large (i.e. we had hoped for additional expense cuts now), chose the best package of the short list of “bad options” available:

• 1/4 % sales tax increase was used in lieu of a 1% increase or a huge property tax increase.
• All revenue from the tax  will go to pay off the deficit financing needed to deal with the remaining FY05 deficit (and to provide the modest budget contingency strongly recommended by State Controller Hevesi).
• There is little largess created for FY06 and beyond’s projected budget deficits; deficits which may well be higher than the FY05 gap “closed” yesterday.  Hence, the need for reengineering (i.e. downsizing) county government remains very strong.

So with immediate budget and cash disaster avoided with the adoption of this “best of the bad options”, the next issue is whether Erie County elected officials have learned anything from the past seven month’s craziness.  This is important as the Partnership’s Erie County Stabilization Project will be putting forth recommendations in about 60 days to deal with the structural deficits of 2006 and beyond.  200 Volunteers and staff from both business and organized labor have been conducting an exhaustive top to bottom management review of county government to produce these recommendations.  Their work undoubtedly will entail some strong medicine, but as we have seen, if legislators postpone taking that medicine, the budget illness only gets worse.

Yesterday’s legislation – especially its “best of bad options” package of FY05 gap closing measures – would not have happened without the tremendous advocacy efforts of a team of Partnership members and staff, and without fact of the forthcoming recommendations of our Erie County Stabilization Project.

Thus, our members have reason to see this as the “silver lining” in an otherwise unnecessary and prolonged local government crisis (and media circus!).  It also is reason to have some hope for what has to happen next.  Most importantly, our members can be assured we remain intensely “on this case” on your behalf.