Sharing of sales tax looms for county

[steven]

ALBANY - Erie County would be required to share roughly $30 million of its sales tax revenues with local towns, cities and villages under a new proposal by a coalition of Democrats in the Assembly.
The proposal, certain to ignite battles over the next month from the Rath Building to the state Capitol, would require the county to give to municipalities 25 percent of the future collections from the additional penny of sales tax it has been allowed to charge since 1985.

That additional penny takes in about $121 million for the county. Under the Assembly proposal, nearly $31 million would be steered to local governments across the county beginning next January. Of that, about $15 million would go to the City of Buffalo.

The proposal ends 21 consecutive years of what had become a pro forma vote by the State Legislature to approve what came to be known as the "temporary" additional 1 percent of Erie County sales tax.

It promises to bolster the decades-old fight over whether Erie County should be the beneficiary of an extra penny sales tax that has brought in more than $1 billion in revenue since 1985, or if it some of the revenue should be distributed to localities.

"We're trying to be fair with this," said Assembly Majority Leader Paul A. Tokasz, D-Cheektowaga.

Besides the $14.7 million for Buffalo, the Assembly proposal for next year would provide $950,000 for Lackawanna and $780,000 for the City of Tonawanda. The remaining towns and villages in the county would, based on population, receive a total of $14.4 million.

The new Assembly bill, co-sponsored by Tokasz and Buffalo Democrats Sam Hoyt, Crystal D. Peoples and Mark J.F. Schroeder, does not yet have a companion measure in the Senate, but Sen. Dale M. Volker, R-Depew, said he backs the concept. "I think that's a pretty good idea," he said.

Volker said he is worried that County Executive Joel A. Giambra could use the loss of revenue as an excuse to go ahead with a plan, scheduled to start next year, that would shift funding for sheriff's road patrols to local communities. Volker also said that the tax is levied by the county, which ultimately has to agree to any change in revenue sharing.

But the senator said the measure will jump-start talks among the various stakeholders to settle on a fair revenue-sharing plan. "If you're going to have that debate, now's the time to do it," Volker said. "We shouldn't wait until next year."

Giambra did not return calls seeking comment.

The Assembly proposal envisions a nearly one-year delay before the county loses some of its expected sales tax revenues to give county leaders time to look for other measures, such as cost savings, to make up for the projected revenue loss. "They've got a year to plan for this - start working," Tokasz said. "They've got a new legislative body, and they've got a new control board to work with."

The bill would settle the tax issue for two years, instead of the usual one-year extension. It would divvy up the money based on the population formula already used for the existing 3 percent base rate; school districts, though, would not get a share.

State lawmakers say they are merely taking Giambra at his word to share sales tax revenues. Tokasz said that since Giambra first indicated back in 2003 that he would be willing to share the tax proceeds with localities, the state has capped the growth of Medicaid, a major cost factor for the county, and this past week approved a county home-rule request to raise the local portion of the sales tax by a half-cent, to 8.75 percent.

The new bill came the same day Gov. George E. Pataki said his 2006 budget proposal being unveiled next week will include the first phase of a Medicaid cost-control plan for counties that was approved last year. For Erie County, that would amount to $30.6 million in savings this year.

Giambra's past resistance to sharing the sales tax money was tied to Medicaid relief. "For every dollar we can save in terms of Medicaid relief, I'll share half with the city," Giambra said in 2003.

"We committed to find the solution to help the county with its Medicaid costs," Tokasz said. "Now we want [Giambra] to live up to that commitment" to share the sales tax money.

Of the total 8.75 cents of sales tax on the dollar, the state takes 4 cents. The county's base 3 cents is shared with localities based on a population formula. But an additional 1.75 cents, including the new tax increase that kicks in this week, goes solely to the county.

Buffalo Mayor Byron W. Brown, who has been pitching his own proposal for sharing sales tax revenue, declined to comment Thursday.

http://www.buffalonews.com/editorial...13/1055580.asp

[biker]

Gangs have figured out how to make money off poor communities.

It's time for the public sector to borrow a page from the private sector.

The City should hire the State to rub out the County.

[Linda_D]

I think this is a very interesting article. First off, the Dems are definitely going to embarass King Joel, but the one to watch is Volker. He's "warning" Giambra that if he tries to do away with the Sheriff's Patrols, he's toast. This bill will go nowhere without a sponsor in the senate, and Volker won't support it unless Giambra moves on the Sheriff's patrols. The question is, is King Joel smart to understand Volker's message? I wouldn't bet on it; Giambra is delusional.

[biker]

How could Voelker (or anyone) believe Joel? If he says the patrols are OK this week, what's to stop him from ending them the week after the sales tax passes.

Why wouldn't Voelker want to slam Joel. It was exactly one year ago that Joel was on the radio calling for the removal of Tokascz and Voelker. Why wouldn't they want to set up a situation which will torment Joel for the rest of his tenure (i.e., trying to fill another $30 million hole in his budget)

[Riven37]

it is time that all of NYS peoples march on Albany in the spring. Should this bill go through to share our sales taxes with everyone else. EC will have no choice but to raise the sales tax to a 20 % level. You and You and me will loss our homes, cars and life styles.

Albany is saying you have no right to live but to give Albany all our money and if you people don't think this bill wont sink through. Keep your blinders on. Please just close your eyes to what Albany is trying to do to EC...I said it before and I'll say it again. WNY can't place pressure on Albany without getting there pay back later on....

For all our tax revolt this is Albany's payback to us. Albany will try to make us pay dearly for voicing our opinions to the state now, the war has taken a trun and we all need to be ready for a major counteroffensive this year. I'm not political but I can regonize a FY when I see it and Albany is saying load and clear FY Eire County, pay up or die as a dying region.

[biker]

This seems off-topic, but it's germane to this thread.

There have been a few articles saying that the State Senate---held by Republicans forever---wil shortly go Democratic. I don't know why.

Does anyone know what the basis for Senate seats is? I assume it's not population, which is the reason the Assembly has been Dem territory for so long. I used to think it was something like two Senators for every county.

But that breaks down here: Brown's seat was Erie and Niagara Counties. So it must be some basis other than territory. I assume it's population based, but different than the Assembly.

It must be that the upstate area in total must be losing poplulation relative to New York City.

Can someone clear up the State Senate seat apportionment for me?

[LaNdReW]

Maybe this will force the Hard Control Board next time.