Relates to providing additional funding to counties to cover the costs of unfunded state mandates

1 Co-sponsor

• George Latimer

BILL NUMBER:S5996

Title of bill

An act to amend the state finance law, in relation to providing additional funding to counties to cover the costs of unfunded state mandates; and providing for the repeal of such provisions upon expiration thereof

Purpose

To provide counties funding for state laws, rules and regulations that require county action without providing funding for the actions.

Summary of provisions

Section 1 titles this act as the "County Payment Relief."

Section 2 of this bill amends Article 4 of the State Finance Law by adding a new section 54-M. County payment relief to counties outside of New York City of twenty dollars per resident commencing in 2014 increased by ten percent each succeeding fiscal year until two thousand twenty-four. The County payment relief shall in addition to aid already provided. Counties are to utilize funds to pay for costs associated with currently unfunded mandates imposed by the state.

Section 3 provides that this section shall take effect April 1, 2014 and shall expire and be repealed after December 31, 2024.

Justification

Dutchess County faces a $27 million budget gap. As a result, various taxes are being proposed and local municipalities are losing their share of sales tax from purchases that occur within their boundaries. The county is seeking to add these new taxes at a time when residents are getting even less services in return for those ever increasing taxes. Residents are fleeing and businesses are moving or starting in other states.

Dutchess County is not alone. Other counties around the state are running budget deficits and eight are currently considered as distressed by the Comptroller of the State of New York. State mandates are one reason for rising expenses in county budgets - though some counties have been able to meet these fiscal challenges and maintained balanced budgets despite these unfunded mandates. New York State has mandated hundreds of millions of actions to counties. County executives around the state are stating that 70 to 80 % of county budget is comprised on unfunded mandates.

These mandates have among other things led to high property taxes and driven jobs out of the state.

Legislative history

This is a new bill.

Fiscal implications

This bill would provide $20 per resident to counties outside of New York City to pay for unfunded mandates. The state would provide approximately $227 million from state general fund for use by counties outside of New York City. The payment created under this legislation would return some of the costs of mandated programs from counties to the state. The payment would provide counties with additional room for discretionary services that are requested by county residents.

Effective date

This section shall take effect April 1, 2014 and shall expire and be repealed after December 31, 2024.