Employee compensation costs didn't cause county cutbacks

[WNYresident]

Full Story from the Buffalo News

Employee compensation costs didn't cause county cutbacks

9/25/2006

The Sept. 15 News article, "Ford worker buyout offer," included comments by Robert Ward of the New York State Business Council. Ward thinks service cutbacks in Erie County were caused by employee compensation costs, and that is why there are fewer dollars for libraries, sheriff patrols and child care workers. That is not true.
Has no one informed the Business Council that Erie County's property tax is 38 percent lower today (5.1 per thousand) than it was in 1993 (8.24 per thousand)? Has no one from the Buffalo Niagara Partnership shared findings of its August 2005 Erie County Stabilization Project report, which shows that Erie County's total budgetary expenditures per capita are substantially lower than similar counties? Per capita expenses were 42 percent less than Monroe County and 112 percent less than Onondaga County.

Drastic service cutbacks were made in response to an avoidable fiscal meltdown, not compensation costs. We now have the spectacle of a state-imposed control board dictating to Erie County to cut even more services so that very low county taxes are not increased. Something is wrong with this picture.

Lynda Stephens

Coalition for Economic Justice

Buffalo

[leftWNYbecauseofBS]

Full Story from the Buffalo News

A couple of points on this post. The tax rate may have gone done but the other number in the formula was not identified.

For example a house with a tax value of 100K in 1993 and at a 8.24% tax rate, would generate $8240 in property taxes. The same house in 2006 adjusted to value 140k with a tax rate of 5.1%, would generate $9996 in property taxes. This is a 20% increase in yearly taxes. This was the trick of the trade in Amherst. Lower the tax rate and increase the assessments.

Furthermore, in comparing Monroe County, you have to look at things like police force are county wide. In Erie County, there is no police force. It is run by towns or the city for the most part. This along side public services will give the difference in spend. If Erie County ran everything from police to public service, county taxes would go up. In proportion, town and village taxes would go down.



PEOPLE DO NOT DRINK THE WATER!

[leftWNYbecauseofBS]

I also took a look at the website for Lynda Stephens. The mission for them is" The Coalition for Economic Justice works with religious, academic, labor, and community activists to improve living standards for the Western New York community.

Membership includes:

Buffalo AFL-CIO Council
Buffalo Musicians Union Local 92
CWA Local 1133,1168, 14177
Hamburg Teachers Association
Hotel Employees and Restaurant Employees Union
IAM Local 75
IATSE Local 10
IBEW Locals 2154, 41
Jobs with Justice
Kenmore Tonawanda School Employees Association
NYS Labor-Religion Coalition
NYSUT
OPEIU Local 212
SEIU State
SEIU Locals 1199, 200-United
Teamsters Local 264
UAW Region 9 CAP Council
UAW Locals 2094, 686, 774
UFCW Local One
USWA Local 9434
West Seneca Teachers Association

[LAsurvivor]

A couple of points on this post. The tax rate may have gone done but the other number in the formula was not identified.

For example a house with a tax value of 100K in 1993 and at a 8.24% tax rate, would generate $8240 in property taxes. The same house in 2006 adjusted to value 140k with a tax rate of 5.1%, would generate $9996 in property taxes. This is a 20% increase in yearly taxes. This was the trick of the trade in Amherst. Lower the tax rate and increase the assessments.

Furthermore, in comparing Monroe County, you have to look at things like police force are county wide. In Erie County, there is no police force. It is run by towns or the city for the most part. This along side public services will give the difference in spend. If Erie County ran everything from police to public service, county taxes would go up. In proportion, town and village taxes would go down.



PEOPLE DO NOT DRINK THE WATER!

Actually, the tax rate is "per thousand dollars of assessed value" so the County taxes on a 100k house would be $824 and, believe it or not, the respective rate was then lowered to about $5.10 per thou or $510. That is indisputable, as I can show you my tax bills. The problem was that spending didn't come down in proportion to the lower revenue and when the pensions escalated ten fold (yes, ten times their previous amount) the bottom really fell out and the one shot revenues dried up.

Everyone had a hand in this at the County level, particularly the legislature. More effort should have gone toward lowering spending.

[leftWNYbecauseofBS]

Actually, the tax rate is "per thousand dollars of assessed value" so the County taxes on a 100k house would be $824 and, believe it or not, the respective rate was then lowered to about $5.10 per thou or $510. That is indisputable, as I can show you my tax bills. The problem was that spending didn't come down in proportion to the lower revenue and when the pensions escalated ten fold (yes, ten times their previous amount) the bottom really fell out and the one shot revenues dried up.

Everyone had a hand in this at the County level, particularly the legislature. More effort should have gone toward lowering spending.

Sorry, I missed a decimal point. One thing that you need to calculate and my point was.... Was was your house assessed at in 93 and what is it assessed at in 06.


You can lower the tax rate to anything and still increase rev by raising the perceived value of what is being taxed.

[LAsurvivor]

Sorry, I missed a decimal point. One thing that you need to calculate and my point was.... Was was your house assessed at in 93 and what is it assessed at in 06.


You can lower the tax rate to anything and still increase rev by raising the perceived value of what is being taxed.

That is the common misconception about reval. Reval doesn't raise taxes, spending does. The "tax cut" in the County was a true tax cut, 30%. Again, you can look at my tax bills - the County bill is 30% lower. My assessment happened to stay the same for that period. If you listen to the Amherst press releases, then, yes, I could see being misled-they routinely play the "But the Tax Rate is lower" game. But the County did reduce their revenue they just didn't reduce spending.