{"id":37850,"date":"2024-11-18T17:35:39","date_gmt":"2024-11-18T22:35:39","guid":{"rendered":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/?p=37850"},"modified":"2024-11-18T17:35:39","modified_gmt":"2024-11-18T22:35:39","slug":"warren-county-officials-attempt-to-address-increasing-fiscal-issues-at-recent-seminar","status":"publish","type":"post","link":"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2024\/11\/warren-county-officials-attempt-to-address-increasing-fiscal-issues-at-recent-seminar\/","title":{"rendered":"Warren County Officials Attempt To Address Increasing Fiscal Issues At Recent Seminar"},"content":{"rendered":"
\"\"
ARCC President\/CEO Tricia Rogers recently moderated a panel discussion with (l-r) Kevin Geraghty, John Taflan, Heather Bagshaw and Frank E. Thomas on Warren County fiscal issues.
Courtesy of Adirondack Regional Chamber of Commerce<\/figcaption><\/figure>\n

By Paul Post<\/p>\n

Warren County officials say a sales tax increase is inevitable as the state keeps passing costly programs on to local government.<\/p>\n

Medicaid, juvenile detention and mental health services are among the fiscal burdens contributing to a $4 million gap in the county\u2019s proposed $207.1 million 2025 budget that\u2019s $14.3 million higher than this year\u2019s spending plan.<\/p>\n

A public hearing is scheduled for November 15.<\/p>\n

\u201cCosts are going up, we\u2019re going to have to find revenue somewhere either now or in the future,\u201d said Board of Supervisors Chairman Kevin Geraghty, of Warrensburg. \u201cWe do get aid from New York State, but they always seem to find a way to shift costs to us each year.\u201d<\/p>\n

Budget Officer and Stony Creek Supervisor Frank E. Thomas said a 1 percent sales tax hike from 7 percent to 8 percent would raise an estimated $12 million, enabling the county to cover rising costs for at least several years. The county would keep approximately half this amount with the rest distributed to towns and the City of Glens Falls.<\/p>\n

<\/span><\/span><\/strong><\/span>\u201cDo it now or do it later,\u201d said Thomas, regarding a higher sales tax. \u201cSooner or later we\u2019re going to have to.\u201d<\/p>\n

Geraghty, Thomas, county Administrator John Taflan and tourism Director Heather Bagshaw discussed a variety of issues during a recent \u201cWarren County Outlook\u201d seminar with dozens of local business leaders on hand at Crandall Public Library.<\/p>\n

Warren, Washington and Saratoga are the state\u2019s only counties with a 7 percent sales tax. Every other county is at 8 percent or higher.<\/p>\n

But January 1, 2027 is the earliest a higher rate could take effect. Even if the county adopts such a plan next year, both houses of the state Legislature and governor would also have to approve it, which wouldn\u2019t occur till 2026.<\/p>\n

\u201cIt does quite frankly make a lot of sense and I think it will be something we ultimately have to do,\u201d Taflan said. \u201cBut we are probably in a hold pattern. I suspect there\u2019s a good chance we will not move until Saratoga and Washington counties also want to do that.\u201d<\/p>\n

While acknowledging the need for a higher sales tax, Geraghty said, \u201cThe only way I would ever vote for (it) is if we lowered the property tax in the county.\u201d<\/p>\n

\u201cWith all the visitors we get in, maybe we should get them to share some of the burden (with higher sales tax),\u201d Geraghty said. \u201cI believe it would be doable.\u201d<\/p>\n

Tourism is one of the county\u2019s main economic engines especially during the busy Lake George summer season.<\/p>\n

The overall property tax levy increased by 6.1 percent under the proposed budget. However, a $1.1 billion countywide increase in property values sees the countywide tax rate decrease by two cents to $3.262 per $1,000 in assessed value.<\/p>\n

Rates in each municipality vary based on equalization rate.<\/p>\n

Thomas said sales tax, which had increased about 5 percent annually for several years, only rose 2 percent in 2024, which he attributed to overall economic conditions. \u201cWith inflation I think people are buying what they need more than what they want to buy,\u201d he said. \u201cI think that\u2019s probably the cause.\u201d<\/p>\n

Inflation has also impacted county operations across the board, from higher food prices for county jail inmates to expensive highway paving projects related to high oil costs.<\/p>\n

\u201cAnd an increase in salaries kind of blows each budget apart,\u201d Thomas said. \u201cEveryone wants a pay raise. As you increase the pay, that inflates the budget. It goes around and around and gets harder and harder.\u201d<\/p>\n

Retirement benefit and health insurance costs have gone up 14 percent and 9 percent, respectively, and severe storm damage cost the county $5 million during the past year.<\/p>\n

Thomas said state-imposed mandates are especially problematic, with various requirements affecting many departments from law enforcement to public works.<\/p>\n

For example, there are court-ordered psychiatric exams and treatment for a defendant or accused person that the court determines isn\u2019t competent for trial.<\/p>\n

\u201cThey\u2019re sent to a state-run facility to gain competence so they can go on trial, but the state decides when the time is up and we pay the bill,\u201d Thomas said.<\/p>\n

Such costs, which previously didn\u2019t exceed $50,000, are now almost $2 million, he said. \u201cNew York State used to pay half; not any more,\u201d he said.<\/p>\n

Similarly, the only juvenile detention facility is in Westchester County, which \u201ctakes two deputies down and back to them bring back to court,\u201d Thomas said. \u201cIt gets very expensive, very quick.\u201d<\/p>\n

Regarding highway projects, the state now requires much larger \u201cclimate-resilient\u201d culverts. \u201cThey\u2019ve gone to an extreme,\u201d he said. \u201cYou\u2019ve got to study the wetlands and do all kinds of engineering. It\u2019s added all kinds of unnecessary expense. A culvert that might have cost $800,000 to $1 million is now $2 million.\u201d<\/p>\n

Thomas said the county saved $100,000 by combining its Civil Service and Human Resources departments under the new budget and that more consolidation might be forthcoming. \u201cIn 2025 the county will begin hauling waste for the towns, a 50 percent reduction in cost to towns. Overall it\u2019s not the best budget in the world, but it is what it is.\u201d<\/p>\n

Pressing issues such as rural broadband and cell phone service, expanded public transportation and affordable housing for middle-income workers such as teachers, first responders and healthcare employees were also discussed. But officials said there appears to be no near-term solution for any of them.<\/p>\n

\u201cI was at a meeting in Lake Placid where the governor\u2019s representatives told us everyone would have broadband the next year,\u201d Geraghty said. \u201cThat was in 2016. It\u2019s still not solved. During the pandemic kids in outlying towns had to sit in town hall parking lots to use their computers.\u201d<\/p>\n

Taflan said more than 1,300 sites have been identified where broadband is needed, but not available. \u201cWe can apply for grants to see if we can get assistance from the state for some of those areas, but connecting all of this county is going to be a very difficult challenge to get to 100 percent,\u201d he said. \u201cWe need support from the broadband service providers, but they aren\u2019t going to spend $40 million to $60 million to connect the rest of our folks.\u201d<\/p>\n

Similar profit-driven fiscal challenges are preventing more complete cell phone service, officials said.<\/p>\n

Geraghty said many people in northern towns need rides to work in Glens Falls, now served by Capital District Transportation Authority, but there are no immediate plans to expand such service.<\/p>\n

Housing for essential middle-income workers is a serious issue as many jobs don\u2019t pay enough for people to buy homes in the $250,000 to $300,000 price range. Most new-home construction is a great deal more as the cost of building materials has gone up and contractors need to make a profit.<\/p>\n

Recent studies have addressed the situation, but the issue is quite complex and would require a commitment from builders and government alike to make housing both affordable and financially possible.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Paul Post Warren County officials say a sales tax increase is inevitable as the state keeps passing costly programs on to local government. Medicaid, juvenile detention and mental health services are among the fiscal burdens contributing to a $4 million gap in the county\u2019s proposed $207.1 million 2025 budget that\u2019s $14.3 million higher than […]<\/p>\n","protected":false},"author":89,"featured_media":37851,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-37850","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news"],"yoast_head":"\r\nWarren County Officials Attempt To Address Increasing Fiscal Issues At Recent Seminar - Glens Falls Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.glensfalls.com\/glensfallsbusinessjournal\/2024\/11\/warren-county-officials-attempt-to-address-increasing-fiscal-issues-at-recent-seminar\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Warren County Officials Attempt To Address Increasing Fiscal Issues At Recent Seminar - Glens Falls Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"By Paul Post Warren County officials say a sales tax increase is inevitable as the state keeps passing costly programs on to local government. 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