COOPERSTOWN _ Budget woes dominated Wednesday's meeting of the Otsego County Board of Representatives, with the county over budget for 2009, while it tries to get ready for 2010.
For the current year, the county estimated it would collect $33 million in sales-tax revenue but is on track to collect about $30 million.
Next year may mirror this one, some board members said, leaving the county again $3 million short in sales-tax revenue compared to 2008. That year's revenue was approximately $33 million.
At the same time, labor costs are going up, as the board ratified a five-year contract with the CSEA on Wednesday. The contract, which calls for raises of 3 percent a year for the years 2007 through 2011, will sharply increase Otsego Manor's budget, according to Rep. Donald Lindberg, R-Worcester, chairman of the Otsego Manor Committee.
``It's going to cost us about $700,000 to catch up and another $700,000 next year,'' he said.
Keeping services and property taxes at the same level while collecting 8 percent less sales tax is ``an impossible situation,'' Rep. Sam Dubben, R-Middlefield, said.
``This county is facing the worst financial deficit we've seen since I've been on the board,'' Rep. Greg Relic, R-Unadilla, said. Relic joined the board in 2002.
Rep. Stephen Fournier, R-Milford, said the county should make sure it preserves essential services, even if it has to raise taxes.
``Our county's tax rate is continually lower than surrounding counties. We could double our tax rate and still be lower,'' said Fournier, who added that he doesn't advocate such a tax hike.
In an e-mail to The Daily Star, Fournier provided information that the county's equalized tax rate is about $2.20 per $1,000 of assessed value, compared to $3.44 in Delaware County, $7.78 in Schoharie County and $15.48 in Chenango County.
To prevent a large tax hike, the county's Administration Committee has been pushing to cut expenses for 2009 and 2010. Not all board members are pleased, however, as they have not been adequately informed of changes, according to Rep. Katherine Stuligross, D-Oneonta.
In a transparent government, board members should be apprised of all budget modifications, not just given the new bottom line, Stuligross said. She also said she objected to a move by the Administration Committee to stop all non-mandated training sessions, noting that some sessions are inexpensive or free.
Board Chairman James Powers, R-Butternuts, asked board members ``to lighten up on Admin.'' Powers said he had asked the committee, which is chaired by Rep. James Johnson, R-Otsego, to close the budget gap.
Johnson noted that Administration Committee meetings are open to all members. ``We're looking for suggestions,'' he said. ``We talk about how government is hurting. Equally hurt are the taxpayers trying to pay the bills.''
Perhaps an indicator of the depth of the money problem was a vote Wednesday to close senior meals sites in Cooperstown, Worcester and Unadilla, despite an impassioned plea from former county Rep. Joseph Kenyon, D-Worcester.
Rep. Donald Lindberg, R-Worcester, proposed an amendment that would have kept the centers open for $34,800.
Reps. Richard Murphy, D-Oneonta; Marty Stayton, D-Oneonta; Cathy Rothenberger, D-Oneonta; Stuligross, Powers and Fournier voted against the amendment, which failed.
The board then voted to keep the meals program at better-attended sites, agreeing to a $807,360 contract with Prestige Services Inc. of Clifton Park.
Fournier, chairman of the county's Health and Education Committee, said the committee will look for rent-free spaces in the affected areas to keep the program there at lower cost.
This Friday, starting at 10 a.m., the Administration Committee is scheduled to meet and continue working on the 2010 budget.
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