Snow Sleds in the News

New budget proposals on table
County legislators meet today on sales tax hike, spending cuts
By SHARON LINSTEDT
News Staff Reporter
Buffalo News
2/14/2005

When Erie County legislators meet today in an emergency budget session, they are expected to have two fresh proposals in front of them to close the county's $108 million budget gap.
One of the plans, put forth late Sunday night in a joint announcement by County Executive Joel A. Giambra and Legislator Albert DeBenedetti, D-Buffalo, would temporarily boost sales tax revenues by three-quarters of a penny, to 9 percent, while cutting spending by $35 million.
The second proposal, which was hammered out by a trio of court-appointed mediators, with direct input from all 15 county legislators, is also said to boost the sales tax and result in job cuts. The mediation team declined to reveal any details of that plan but said it has "major differences" from the Giambra-DeBenedetti proposal.

Lawmakers and the county's elected officials are expected to spend most of today weighing both plans ahead of a scheduled 5 p.m. legislative session.

The Giambra-DeBenedetti plan would boost sales tax revenues on a temporary basis - starting on March 1 and expiring on Nov. 30 - raising $75 million. The spending reductions would come from a combination of 240 "across-the-board" job cuts; elimination of all legislative and executive discretionary dollars - often referred to as "pork"; and elimination of $12.5 million earmarked to be shared with cities, towns and villages. The City of Buffalo would still receive the $3 million in service assistance from the county.

Giambra, who described the proposal as "fair, rational and reasonable," said the $108 million proposal is the fruit of a compromise reached with DeBenedetti, who had initially supported a prior executive budget fix that included a sales tax increase, but later pulled his backing over concerns that the increased revenues were not being matched by spending reductions.

"We had a similar desire to make sure this extra sales tax wouldn't be permanent. . . . ," Giambra said. "We agreed on a concept of making $35 million worth of cuts and raising sufficient revenues to keep this county government afloat."

DeBenedetti, whose stormy relationship with Giambra in recent weeks has been well-documented, credited the county executive for "opening the door" in a spirit of compromise.

"He took the initiative to call me, and we sat down and worked out a package which is in its simplest essence is $35 million plus in spending cuts and $73 million in new revenues, in a new sales tax," the lawmaker said.

The plan would also trim county borrowing for capital projects by $50 million, and set up an early retirement incentive program.

Speaking for the mediation team, businessman Robert Gioia described the as-yet-undisclosed competing proposal as a four-part strategy that would make "serious cuts in spending," while enhancing revenues through a sales tax increase, along with changes in revenue sharing to municipalities and general spending reforms.

Gioia declined to speculate which proposal has the power to attract the necessary 10 votes to increase revenues via a sales tax increase.

"It's premature for me to characterize which has a better chance. We'll continue our negotiations (today). It wouldn't do any good to speculate. Our purpose is to bring everyone together and let them decide on a solution to this budget problem," Gioia said.

The mediator said a hybrid of the two strategies is a distinct possibility.

Whatever county officials decide, they have to do it quickly if a sales tax increase is part of the budget fix. Because a tax increase requires approval by the State Legislature, they will have to approve a hike in time to get it before state lawmakers before they adjourn their session in Albany on Wednesday.

"We're quickly running out of time on this. We have a lot to settle in a very short period of time," Gioia said.

On Sunday Gioia and fellow court-appointed mediators David Rutecki and Dennis Penman spent several hours behind closed doors at Erie County Court Judge Joseph Makowski's chambers meeting with all 15 county legislators and the county's five elected officials, including Giambra.
Giambra admitted that he is back in the same position he was in November when he released his initial 2005 budget, in need of legislative support.

"At this moment we still need nine votes to increase the sales tax. At this moment we have no commitments they will be there," he said.

Earlier in the day, a small group of protesters gathered at the barricaded entrances to Erie County's Chestnut Ridge Park in Orchard Park to speak out against the park closures. Led by Andy and Wendy Amato of East Aurora, the group called on county officials to stop using the parks as "pawns" in the budget wars.

"I guess we're at the scene of the crime," said Wendy Amato. "Parks are for sledding, and skiing and enjoying a beautiful sunny day like we're having today. They shouldn't be used as pawns in this budget drama."

The county's parks have been closed for more than a week as the Giambra administration and county legislators have battled over how to handle the county's fiscal crisis. Chestnut Ridge, like other parks, has a "closed" sign at its entrance, along with "No Trespassing" notices, despite the fact no parks workers have been furloughed.

Sunday's blue skies and temperatures in the low 30s caused dozens of county residents to make their way around the barricades and enjoy an afternoon of sledding, tobogganing and snow boarding on the park's snow-covered hill.

"Giambra and the legislators should come out here and get some fresh air, maybe it would clear their heads," said Karen Bender, of West Seneca.

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