BILL NUMBER:S5996

TITLE OF BILL:  An act to amend the state finance law, in relation to
providing additional funding to counties to cover the costs of
unfunded state mandates; and providing for the repeal of such
provisions upon expiration thereof

PURPOSE:

To provide counties funding for state laws, rules and regulations that
require county action without providing funding for the actions.

SUMMARY OF PROVISIONS:

Section 1 titles this act as the "County Payment Relief."

Section 2 of this bill amends Article 4 of the State Finance Law by
adding a new section 54-M. County payment relief to counties outside
of New York City of twenty dollars per resident commencing in 2014
increased by ten percent each succeeding fiscal year until two
thousand twenty-four. The County payment relief shall in addition to
aid already provided. Counties are to utilize funds to pay for costs
associated with currently unfunded mandates imposed by the state.

Section 3 provides that this section shall take effect April 1, 2014
and shall expire and be repealed after December 31, 2024.
              

JUSTIFICATION:

Dutchess County faces a $27 million budget gap. As a result, various
taxes are being proposed and local municipalities are losing their
share of sales tax from purchases that occur within their boundaries.
The county is seeking to add these new taxes at a time when residents
are getting even less services in return for those ever increasing
taxes. Residents are fleeing and businesses are moving or starting in
other states.

Dutchess County is not alone. Other counties around the state are
running budget deficits and eight are currently considered as
distressed by the Comptroller of the State of New York. State mandates
are one reason for rising expenses in county budgets - though some
counties have been able to meet these fiscal challenges and maintained
balanced budgets despite these unfunded mandates. New York State has
mandated hundreds of millions of actions to counties. County
executives around the state are stating that 70 to 80 % of county
budget is comprised on unfunded mandates.

These mandates have among other things led to high property taxes and
driven jobs out of the state.

LEGISLATIVE HISTORY:

This is a new bill.

FISCAL IMPLICATIONS:


This bill would provide $20 per resident to counties outside of New
York City to pay for unfunded mandates. The state would provide
approximately $227 million from state general fund for use by counties
outside of New York City. The payment created under this legislation
would return some of the costs of mandated programs from counties to
the state. The payment would provide counties with additional room for
discretionary services that are requested by county residents.

EFFECTIVE DATE:

This section shall take effect April 1, 2014 and shall expire and be
repealed after December 31, 2024.