(September 20, 2013-Hauppauge, NY) Today, Suffolk County Executive Steve Bellone announced his Recommended Budget of $2.75 billion for fiscal 2014 which cuts spending below 2012 levels, is under the 1.66% New York State property tax cap, freezes general fund taxes and dramatically reduces the deficit while continuing to provide vital services. Overall, the $2.756 billion budget is $22 million below last year’s adopted budget.
“This budget continues the work of reforming this government by cutting spending below 2012 levels,” County Executive Bellone said. “We must continue the reform work of delivering services as efficiently as possible and reducing the deficit while holding taxes below the tax cap. This fiscally responsible path will make sure Suffolk County will not go the way of so many other municipalities who are mired in debt. I urge the Legislature to adopt this budget.”
The budget demonstrates the success of efforts to control spending. While there was a $156.6 million deficit carried into 2013, that number was reduced throughout the year to $14.25 million at year’s end, and the deficit disappears entirely if this fiscally responsible balanced budget is adhered to.
Sales tax is the County’s largest revenue source, however from 2008 through 2012 the County lost over $1.2 billion in sales tax revenue. While sales tax revenues have begun to recover, the County must be fiscally prudent as it moves forward to not rely on increased sales tax projections to fund new or enhanced program expenditures and increase staffing levels. The projected sales tax growth for Suffolk County for 2014 is 3.88% which was forecasted in conjunction with the County’s economic consultant, Moody’s Analytics, a national economic and financial risk management firm.
County Executive Bellone noted that the foundation of this balanced budget was built on the difficult decisions made in conjunction with the Legislature, including; reducing the size of the County workforce by over 1,000 employees since the beginning of 2012, saving approximately $100 million in annual salary and benefits for 2014; recurring savings of $17 million a year on health care costs through labor negotiations, and closure of the County nursing home, saving $10-12 million on a recurring basis. The budget also reflects successful initiatives with New York State, including the creation of the Traffic and Parking Violations Agency which has brought in millions in additional revenue, exceeding the approved 2013 budget by $1.5 million.
The 2014 Recommended Budget continues to reduce reliance on one-shot revenue sources and puts Suffolk County on a path to addressing the structural budget imbalance which has existed since 2008. Between 2008 and 2011, 17% of budget mitigation actions were structural or recurring in nature. This number jumped to 48% in County Executive Bellone’s first budget in 2013 and in the 2014 Recommended Budget, recurring savings measures comprise 65% of budget mitigation measures.
Among the initiatives included the budget:
• Expanding Federally Qualified Health Centers (FQHC): Suffolk County will expand on the successful transition of the Elsie Owens Health Center in Coram to Hudson River HealthCare which as an FQHC and the upcoming consolidation of the East End clinics. The FQHC model shifts the costs for medical malpractice from the County to the Federal government. In return, the Federal government sets productivity standards for health centers which must be met, such as the number doctor-patient visits, and provides enhanced ancillary services such as dental and mental health care. In contrast, Suffolk County’s losses have been increasing due to state aid cuts. By transitioning the remaining health centers to FQHCs, we can ensure that we save an additional $3 million in 2014 and provide enhanced health services to the populations in need at a lower County cost.
• Improving Parks Security: Because using of Suffolk County Parks is primarily seasonal, use of 36 year-round Parks Police typically means that the agency is overstaffed in the off-season and understaffed during the summer, leading to high overtime costs. This budget seeks State legislation to transfer all current Parks Police Officers to the Suffolk County Police Department and hiring Park Rangers and Public Safety Officers to provide enhanced security at Parks during peak season. This initiative would save Suffolk County $1 million on an annualized basis and could help reduce 2014 police summer overtime if it is promptly implemented.
The transferred Parks Police officers would complement police classes which are scheduled for 2013 and 2014.
• Debt Restructuring: Debt service is anticipated to rise by $31.7 million in 2014 because of the expiration of the county’s securitization of tobacco bonds. This budget seeks State legislation to allow for a debt restructuring through the AAA-rated Dormitory Authority to smooth out debt payments. This restructuring would be in conjunction with ongoing efforts enacted as part of the 2014-2016 Capital Budget to reduce the size of the capital program in order to reduce future debt service payments.
• Consolidation of Treasurer and Comptroller: The budget has savings of $833,000 of recurring savings if Suffolk County voters approve a referendum to merge the offices of Comptroller and Treasurer into a new department headed by an elected Chief Financial Officer. This new consolidated office would result in improved cash flow, improved IT services and better monitoring of finances.
