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Thread: Share The Penny

  1. #1
    Gold Member Night Owl's Avatar
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    Share The Penny

    Article in The Buffalo News

    CITY FINANCES
    Lawmakers huddle to discuss sharing sales tax
    1/10/2004

    As Erie County prepares to ask the state for another one-year extension of the extra 1 percent sales tax, city and state lawmakers are making behind-the-scenes efforts to snare additional county aid for Buffalo.
    Few are expecting a sharing of the revenue this year, but some are shopping around for other options.

    Late Friday afternoon, County Executive Joel A. Giambra and members of his staff met with Sam Hoyt, Robin L. Schimminger, Brian Higgins and Crystal D. Peoples of the Assembly.

    "I would characterize the discussions as productive and cooperative, with a shared sense of wanting to reach an amicable resolution by all parties involved," Hoyt said Friday night.

    That hasn't happened yet, Hoyt said, adding that he's optimistic there will be an announcement in the next week to 10 days. Giambra couldn't be reached to comment Friday night.

    While Hoyt declined to describe the options on the table, there's talk of asking the county to pay more than $600,000 in annual interest costs associated with the city's planned borrowing of $7.8 million to close a deficit.

    Other options include a county commitment to provide the city with money to help maintain highways or demolish decaying buildings.

    "If the sales tax is going to be extended, there has to be some city-mindedness there," said Council President David A. Franczyk. "And this isn't a gimme, gimme handout. (The city) has shown we're moving in the right direction."

    But Giambra said he has already advanced a series of reforms - including a county takeover of city public works functions - that he insists would save Buffalo $16 million. Giambra said the county continues to grapple with rising Medicaid costs and is in no position to provide aid beyond what he has already proposed. "We do not have any extra money to give the City of Buffalo," he said.

    The extra penny is set to expire in seven weeks, and before a bill is introduced in Albany, Hoyt said the local state delegation wants to see a commitment by the county to help Buffalo.

    "There's a consensus among the Assembly Democrats that the county needs to provide some type of assistance to the city," he said. "But we're not holding a gun to anyone's head and specifying exactly what type of assistance."

    While many advocates for sharing the extra penny claim they're optimistic a formula will be devised, they doubt it will happen this year.

    "We recognize that it would bankrupt the county at this time," said Hoyt. "We have no intention of shutting down county government."

    But State Sen. Byron W. Brown, D-Buffalo, is insistent that some type of sharing formula be implemented this year. He said this week's promise by Gov. George E. Pataki to aggressively push for Medicaid reform bodes well for the county.

    "I won't support an extension this year without a sharing (of the extra penny)," he said.

    The city and its school district would have received between $27 million and $29 million in additional revenue each since 2000 if the extra 1 percent tax was shared in the same way that the remaining county tax is shared.

    Franczyk plans to file a Council resolution this month urging officials to come up with new ways to assist Buffalo. But Franczyk agreed with Giambra that the county and city must take decisive steps to consolidate some services.

  2. #2
    Member Curmudgeon's Avatar
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    get rid of the 18-year "emergency penny" tax entirely.
    Data is not the plural of Anecdote.

  3. #3
    sbGUY27
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    I second that notion.

  4. #4
    Member citymouse's Avatar
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    They can't.
    The county can't meet it's payroll and Joel already drained his cash (tobacco money) reserve.
    "If you want to know what God thinks of money just look at the people he gave it to."

    By the way, what happened to biker? I miss the old coot.

  5. #5
    Gold Member Night Owl's Avatar
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    how much longer to we have to be in debt with the county? is what I am wondering. The city gave in to help the county and now with this penny thing, it's like a life-long debt for a favor.

    what ever happened to the expression 'you scratch my back and I'll scratch yours' ? the county should be chipping in to help the city. IMO- I think the people have paid too much for too long... it's time to give back. Giambra's all about 'moving ahead' but I am beginning to see it's more for his own agenda to screw the city of Buffalo sideways now.

    I say move ahead Mr. County Executive, and give us our penny!

    Oops, sorry. I thought this was the 'blow off your steam' section of the metro community news

  6. #6
    Member Curmudgeon's Avatar
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    I think the people have paid too much for too long... it's time to give back

    So do I! get rid of the penny entirely and keep the money where it belongs - in the taxpayers pocket. I think we're on the 18th year of the "emergency".....
    Data is not the plural of Anecdote.

  7. #7
    Tony Fracasso - Admin
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    Originally posted by citymouse
    They can't.
    The county can't meet it's payroll and Joel already drained his cash (tobacco money) reserve.
    My concern is my business not if they can't pay thier payroll. I have come to the conclusion that if they don't care about the residents or businesses in WNY I don't care about thier payroll. I dont mean the actual labors I'm talking upper management and the politicians.

  8. #8
    Gold Member Night Owl's Avatar
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    My concern is my business not if they can't pay thier payroll. I have come to the conclusion that if they don't care about the residents or businesses in WNY I don't care about thier payroll. I dont mean the actual labors I'm talking upper management and the politicians.

    This, I agree with.

    The city of Buffalo is not asking for all of the penny profits, just a percentage.

  9. #9
    Member citymouse's Avatar
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    That penny was a temporary measure passed when Rutkowski was county exec to help the county get in the black. Once that was achieved it was supposed to end. Every year the state has to ok it's contiuance.
    Just like any tax once they got it they won't give it up with out a fight. Joel in particular has the county budget so screwed up he can't afford to share it.
    The city doesn't want to take money from the other towns in Erie county. They just feel that since a lot of this one penny is collected in the city, and the original objective of this temporay tax was achived years ago, then a Percentage of what is collected in Buffalo, and Buffalo alone , should be shared with the city.
    Not an Unreasonable request, particularly since the city went along with the measure in the first place to bail the county out. Turn about is fair play.
    I wonder if this is a contridiction of "no hand out no bail out" when the county relies so heavly on the renewing of this "Bail out" money each year
    "If you want to know what God thinks of money just look at the people he gave it to."

    By the way, what happened to biker? I miss the old coot.

  10. #10
    Member Curmudgeon's Avatar
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    They just feel that since a lot of this one penny is collected in the city,

    Absolutely not.

    In fact, I'd be willing to bet the actual percentage of sales tax reveue collected by merchants in the city is less than 10% of the entire sales tax take of the county.

    This is an easy one: Ask the tax dept to break don tax receipts by town/city. A cood compromise would be to let the city keep it's TRUE share of the penny, based on revenue collected.

    So let's say the city collects 8% of the total "pennys" in the county - then the city gets 8% ofthe pennys. simple.


    I wonder if this is a contridiction of "no hand out no bail out" when the county relies so heavly on the renewing of this "Bail out" money each year

    Trust me, there's a net flow of money INTO the city FROM the county, year after year. The city ain't bailing out anybody....
    Data is not the plural of Anecdote.

  11. #11
    Member citymouse's Avatar
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    Why should I trust you.
    show me where the city receives money from the county to offset it's operating exspense.
    The only money the county puts in the city is in maintaing assets open to use by all Erie county residents. Things like Klienhans (I don't think too many people from the Perry projects have philharmonic season tickets), the Buffalo Zoo and Dunn tire park.
    The city would love to have what ever percent, and only whatever percent of the extra revenue that it generates within it's boundries. If you would listen closley you would realize that is exactly what they are asking for.That is what they feel is thier share. The one percent was passed for a specific purpose, that purpose was met years ago and the county continues, with the sates blessing, to keep collecting it and not giving any of it back to the municipalities that agreed to bail them out in the first place.

    But you can be forgiven for that error it is a common misconception that many suburban residents have, perpetuated by people like Giambra.
    "If you want to know what God thinks of money just look at the people he gave it to."

    By the way, what happened to biker? I miss the old coot.

  12. #12
    Member Curmudgeon's Avatar
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    That is what they feel is thier share.

    Show me one instance where "fair share" was linked to actual sales-tax revenue generated within the city.

    I've got news for you: that sum of money is rather trivial and won't help anyone much. That being said, you can have it.
    Data is not the plural of Anecdote.

  13. #13
    Member citymouse's Avatar
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    We will take it gladly, is it up to you to give it?
    Since you are so sure it isn't much than you must know exactly what the amount is.
    How about sharing that figure with the rest of us?,
    "If you want to know what God thinks of money just look at the people he gave it to."

    By the way, what happened to biker? I miss the old coot.

  14. #14
    Member yokes's Avatar
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    provided my math is correct the "extra penny" only amounted to about 2.5 million last year.

    if it was distributed like the rest of the sales tax (25% goes to the City) that would amount to an additional $625,000

  15. #15
    Member yokes's Avatar
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    ok so my math isnt right

    total sales tax reciepts were around 250 Million
    making me a decimal off

    25 million
    6.25million is shared like the rest of the sales tax money

    darn decimals alwas screw me up

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