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General News: Proposed Village Budget Nears $4 Million

January 05, 2010

The mayor of Cornwall-on-Hudson has prepared a draft budget for 2010-11 that is nearly half a million dollars greater than the current $3.5 million budget and includes a 26.5 percent tax increase if adopted without changes.

Mayor Joseph Gross, however, says that he is not happy with the proposed budget but made it public because he wants all of the trustees and the residents of the village to understand the tough decisions that will have to made in order to create a more realistic budget. The trustees will discuss the proposed budget at a work session next Monday at village hall.

Mayor Gross says he came up with the $3.99 million budget by adding in everything that department heads have said they need to operate next year. He also recognized trustee Doug Vatter’s push to alleviate an annual cash shortage at the end of the year by adding $300,000 to the contingency budget – a line item that was only $37,000 this year.

“I’m not saying this is what I want, I am putting it out for consideration,” Mayor Gross said in a phone interview, noting that by making the choices public, he hopes the trustees and the residents will see the difficulty of deciding whether to raise taxes or lower services. “I want people to see what we are up against,” he said.

The mayor also explained that by making the draft budget public, he is trying to deflect criticism that he got last year when he spearheaded cuts to village departments, including the police and fire (see story). “I came under a lot of fire because I made what I thought were a lot cuts,” Mayor Gross said. “The benefit of a public meeting is that it is out in the open and people can witness it and participate.”

In a year when the state of New York is facing a record deficit, the village is still counting on a steady infusion of state aid, with no drop in state revenues expected. The budget does forsee a 4.3 percent drop in county sales tax revenue and a 25 percent drop in building fees, which, along with the loss of a $6,400 state grant for police services, amounts to a projected loss of $31,750 in revenues next year. Part of the anticipated revenues will also come from garbage fees, which Mayor Gross said he thinks will be raised this year.

The projected expenditures, which include a new $4,000 MTA tax and the payment of a $146,102 revenue anticipation bond approved in December, would push spending $195,000 above the current year’s level. Add to that the $300,000 allotted to contingency and the spending nearly hits $4 million.

Download the full budget proposal below.




Comments:

Umm - uh - NO! PLEASE do not raise our taxes 26.5%!!!! I know this isn't what the mayor is advocating. I know we all like our services and our fire and police depts, our building dept etc. This constant increasing in taxes HAS to stop though. So I say - CUT away Joe and we the people will support you.


posted by Chuck Trella on 01/05/10 at 3:29 PM

slash away Joe!


posted by Walter Dorritie on 01/06/10 at 8:31 AM

It's easy to govern when times are good. When times are tougher, so are the choices. But we already have sky-high taxes, so raising them now is a choice voters won't buy.

We all have to live within our means, so what I expect from my government is to do more with less, to face the budget squarely and distribute the pain by making tough but smart cuts. All departments should bear their share of the burden. No exceptions.

This won't be easy but it has to be done. There is opportunity in adversity and we expect our leaders to have the wisdom to see it and the courage to seize it.


posted by Jon Chase on 01/06/10 at 9:39 AM

As John Lennon once sang: Instant Karma's gonna get you/ Gonna knock you right off your feet"

What Mayor Gross has done, quite effectively I think, is to use the budget process to starkly illustrate a snapshot of where we are, fiscally speaking, in the village. In past years, without adequate input from the village treasurer, the village board has essentially made a series of educated guesses to create a budget which was simultaneously rational and hopeful. Our fabled "five-year plan" (which seems to exist in name only), was basically a mission statement to discipline ourselves toward austerity budgets which, we had hoped, would get us over the hump of a disproportionate amount of debt. Trustee Vatter has brought to the fore an additional wart on our village complexion; namely, our rolling deficit. This condition is very much real (and has been for as long as most can remember), and it is most certainly hindering us as a village, in terms of our standing with vendors, our credit rating , and the rates we are quoted when considering any possible financing. Add to this the difficulties which our business community is struggling through (and to remind everyone to shop locally as much as possible).

Sadly, all of these chickens have come home to roost at the worst possible time, economically speaking. As we face the prospect of greatly diminished revenue from the county and state on very large revenue lines for us (namely, sales tax and real estate tax revenue), while biting the bullet on contractual obligations for increases in pension benefits, salary increases, and healthcare costs, we have little or no wiggle room left in our control. Additionally, any gains we might realize in our upcoming contract negotiations or in possible healthcare plan savings will only come after this budget is required by law to be finalized. As any sailor would do, we need to batten down the hatches, and prepare for the worst.

That being said, I do believe that we can find a balance to schedule our debt obligations in an efficient way, and to get EVERYONE on the village's payroll to function in the most cost-conscious way possible. We need to come together as a village to meet this challenge. To our credit, we can find some solace in the fact that we consciously set out on this debt reduction path years before our country woke up to the predicament it's now in, so that we are now in less danger of being debt slaves than we would otherwise be.

The mayor and board are not looking to drive a stake into our collective heart. I remain optimistic that we will get through this, and onto sustainable economic footing for our future.


posted by Rick Gioia on 01/06/10 at 9:11 PM

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