MAYDAY FOR MANDATE RELIEF

1. MAYDAY FOR MANDATE RELIEF WARREN COUNTY TOWN HALL MAY 16, 2012

2. MANDATES IMPACT EVERYONE

3. What is an unfunded mandate? • An unfunded mandate is when a federal or state government passes a law, statute or regulation requiring a state or local government to perform certain actions, but provides no, or only partial, funding for fulfilling the requirements. • Thus a law passed by one government body becomes the responsibility of another to pay for the implementation of the law.

4. What is an example of an unfunded mandate? • The largest unfunded mandate local governments must pay is for Medicaid. • New York State places a much higher financial burden for Medicaid on local governments than any other state. • The local share of Medicaid payments in New York is 16% of total Medicaid spending; compared to the next highest state California at only 2.5%.* *Source: Citizens Budget Commission

5. Other unfunded or partially funded mandates In 2010, NYSAC (New York State Association of Counties) identified nine State mandates that consume 90 percent of the county property tax levy statewide (outside of New York City). These mandates have been a direct cause of property tax increase over the past five decades. • Medicaid - $7 Billion ($2.2 billion outside of NYC) Note – Medicaid payments grew from $6.5 billion in 2008 to $7 billion in 2010. • Public Assistance/Safety net - $1 billion local tax impact • Child Welfare protect/prevention - $800 million local tax impact • Pre School Special Education - $420 million local tax impact • Indigent defense - $300 million local tax impact • Probation - $340 million local tax impact • Early intervention - $185 million local tax impact • Youth Detention - $84 million local tax impact • State Pensions - $600 million local tax impact Source: www.nysac.org

6. Why does there need to be mandate reform? • The projected growth in unfunded mandates based on current trends, coupled with the 2% local property tax cap, is not sustainable. • As time goes on the trend points to a scenario where local community spending and services will be choked out because of the growth of unfunded mandates. • This unintended consequence will not be a good thing for local communities.

7. Conservative Revenue Growth - Limited Expenditure Reductions 2009 – 2020 Cumulative deficits 2012 – 2020: $32 Billion Assumes slow economic growth with property tax receipts capped at levy limit + economic growth factor of .25% Other revenue sources projected at historic trends (2000-2009). All expenditures predicted at historic growth rate (2000-2009). 2020 aggregate annualdeficit of more than $6 billion. Cumulative deficits 2012 to 2020 will exceed $32 billion. *OSC Data – Compilation and Trending by NYSAC. Values represent aggregates for all Counties (excludes NYC) Source: www.nysac.org

8. Mandate Impact on Community Services Warren County Assumptions: 1) no property tax increases, 2) 10% increase in mandated expenses, 3) 5% - 15% increases in other county expenditures, e.g. pension, medical, other.

9. Local Community Services (partial list) • Road Maintenance and Repair • Law enforcement • Nursing homes • Adult homes • Office of the Aging • County or Municipal Airports • Parks and Recreation • Senior centers • Economic Development initiatives • Local cultural efforts • Libraries • Emergency services

10. What is the solution? Three actions must be taken: • Scrutinize county budgets for efficiencies and savings • Reform the mandates to lower their overall cost – including Medicaid and pensions • No new unfunded mandates County Action – a smaller piece of the pie State Actions – the much bigger piece of the problem The counties will do their part, but the State must come through on their part, or it won’t make any difference!

11. What can we do? The County: • Implement the Fulton County “Truth in Taxation” program to inform taxpayers where their property tax dollars are going. • Pass the Mayday for Mandate Relief Resolution from NYSAC that declares the month of May Mayday for Mandate Relief month, and requests the NY State Legislature pass meaningful mandate relief legislation this session. • Work to find every efficiency and saving in the county budget, document it and show the state legislators the county is doing everything possible to responsibly cut expenses and stay within the property tax cap of 2%. • Submit to the Governor’s Mandate Relief Council a request for mandate waivers - www.governor.ny.gov/mandatereliefcouncil. Citizens: • Contact the Governor’s Mandate Impact Council and your state legislators to voice your concerns and to ask for mandate relief for your community and schools this legislative session. • Inform your friends and family on the impact of unfunded mandates on community services and ask them to get involved. • Go to www.stopnymandates.com and sign the petitions linked there.

12. Let your state leaders know how you feel about unfunded mandates The Honorable Andrew M. CuomoGovernor of New York StateNYS State Capitol BuildingAlbany, NY 12224 www.governor.ny.gov/contact/GovernorContactForm.php www.governor.ny.gov/mandatereliefcouncil To find your state legislators contact information, go to: www.nysenate.gov/senators www.assembly.state.ny.us/mem

13. Other contact information Warren County Board of Supervisors: www.warrencountyny.gov/gov/bos.php NYSAC540 Broadway, 5th Floor Albany, NY 12207(518) 465-1473info@nysac.org www.enoughmandates.com www.stopnymandates.com

14. MANDATES IMPACT EVERYONE