February, 2006
SPENDING CONTINUES WITHOUT LOOKING FOR SAVINGS

On January 15, 2006, all Erie County residents took another hit with a .5% sales tax increase raising the total tax to 8.75%... only second to Oneida among 62 counties in New York State. This newest sales tax spike is on top of increased property taxes for 2006, skyrocketing property assessments and hundreds of new employees added to the payroll. The latest sales tax increase is a result of state mandates and Erie County's continued practice of increased spending without looking first to make cuts. As long as the majority in the Legislature repeatedly votes to approve additional spending, they will be forced to continue to increase taxes. The .5% increase in sales tax which is set to expire in November 2007 will never leave us unless cuts are made and we reform the way Albany and Erie County conducts business.

At our first session this year, the Legislature voted 14-1 to approve a lawsuit settlement between Erie County and Erie County Medical Center. ECMC will receive $19 million for 2005, $20 million in 2006 and $14 million in 2007 in subsidized payments. Figures for 2008 and 2009 would bring the total amount over $100 million. Additionally, Erie County would give ECMC $15 million for employee concessions. I voted against this proposal because there were no reforms made to the hospital compensation structure and work rules, and there was no money provided for it in the budget. I also feel that this vote makes the increase in the sales tax to 8.75% permanent and guarantees future property and sales tax increases. Unnecessary spending continued when the Legislature, also by a 14-1 vote, approved adding $100,000 for Legislative staff, including a $78,000 a year Democratic Chief of Staff and hiring former legislator Ray Dusza. It's no wonder why the residents of Erie County do not think well of government.

And yet again, in spite of the fact that additional reform needs to be made in the delivery of County government before increased spending, the legislature voted on January 19, 2006 to approve an additional $700,000 for cultural organizations, which had already been restored from 2005 cuts, including $400,000 to the Buffalo Museum of Science and $150,000 to the Film Commission. Needless to say, I did not support this resolution, because Erie County just cannot afford it.

There is also currently a battle brewing between some Albany Democrats and Erie County over sharing the original additional 1% sales tax with the City of Buffalo and other cities, towns and villages. This 1% sales tax has been levied by Erie County since 1985 and is set to expire in March 2006. Assembly Democrats want to share the 1%, which amounts to $30 million. According to population, the City of Buffalo would receive $14.7 million. Other large towns such as Amherst would receive $2.6 million, Cheektowaga $1.9 million, and Tonawanda $1.45 million. The residents of Clarence and other towns will not benefit from this sales tax revenue sharing scheme because they would pay more in property taxes. If Albany does not renew the additional 1% sales tax without sharing this year, the County budget would be even further out of balance and property taxes will increase even more than already expected. It's unfortunate that these state lawmakers who cripple us with state mandates now tell us that we should give more money to other governments so they can increase spending which will then lead to larger county property tax increases.

As the year unfolds, I will continue to advocate for state mandate relief and sensible and responsible ways to cut the cost of government. We must continue to make reforms rather than inflict tax increases on our already over-taxed residents.

As always, if you have comments or concerns, please feel free to contact my office: 8860 Main Street, Williamsville, NY 14221 or call 631-8695 or email ranzenhofer@erie.gov.