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Orangetown Board Votes Against Overriding Tax Cap

Supervisor Paul Whalen and Councilmen Tom Diviny and Michael Maturo voted against a law that would have allowed the town board to override the 2% tax cap.

The Orangetown Town Council voted 3-2 against a local law that would have allowed the town to override the two percent tax cap for the 2012 Orangetown Town Budget during its regular meeting Wednesday.

Supervisor Paul Whalen and Councilmen Michael Maturo and Tom Diviny voted against the law. Councilman Denis Troy and Councilwoman Nancy Low-Hogan voted for it.

Town attorney John Edwards recommended that the council pass the law, in part as a protection from potential issues with the enforcement of the 2 percent tax cap, which was passed by the state earlier this year. He was not the only one to express disagreement with the vote.

"I cannot believe these people pivot," said Orangetown Director of Finance Charlie Richardson. "A month ago, people were not willing to make cuts. Now all of a sudden they are magically going to happen. I cannot believe this. This is unbelievable."

The Supervisor's proposed 2012 budget calls for a tax increase between 7 and 7.5 percent, mostly due to the $2.36 million tax settlement with Pfizer and other settlements. It cannot pass without an override of the tax cap. The deadline for the town council to pass a budget for 2012 is Nov. 20, so the board has less than two weeks to cut more than $2.4 million from the budget. Due to exceptions in the tax cap law, the actual number the town has to reach is 2.23%.

Whalen called for a meeting with the Orangetown department heads Thursday to discuss potential cuts. The council discussed setting an official meeting for the budget, but did not settle on a day.

"This should have been going on all the way down the line," Troy said. "This is the Supervisor's budget. We are sitting here Wednesday night talking about a 7.5% (increase). Now, poof, that goes away and we have to get to two percent.

"You better tell me how you're going from 7.5 percent down to two. That's quite a challenge."

Public Hearing

At the beginning of Wednesday's public hearing on the law overriding the tax cap, Troy asked Edwards to explain why he was recommending the law be passed.

"The danger as I see it in not overriding derives from the fact that it is a new law that has to be applied, interpreted and will be applied and interpreted at the state level," Edwards said. "If you adopt a budget which requires a tax levy that is ultimately in excess of the two percent tax cap, but you haven't overridden the limitation set by the state law, you have to take the excess amount collected in taxes and put it in reserve to apply for use next year, which would leave a shortfall funding 2012 expenses."

Edwards explained that for the first year of the law, he believes there is too much uncertainty not to pass the override just in case it is needed.

"To me it's like buying a first-edition phone or car and you expect there will be some glitches and you have to deal with those," Edwards said. "You might be better off waiting until the second model comes out.

"The board can strive to meet the two percent limitation. You can think you will meet the two percent limitation. I would still encourage you to override the cap simply to protect yourself from the uncertainties inherent in a newly-enacted statute that has never been interpreted before."

There were 10 residents that spoke up during the hearing, nine of which opposed passing the law overriding the cap. Former Orangetown Councilwoman Eileen Larkin spoke in favor of passing the law.

"The idea of even thinking about raising the cap ...for 2012 is an insult to the residents of this town who are trying to survive an economic crisis," said Michael Mandel of Pearl River. "It's time to think of ways to reduce spending, not tax our way out of a problem that creates more problems."

Beth Riso of Nyack criticized the salaries of town employees that she found in the budget as being too high.

Carol Silverstein of Orangeburg said that the board had no right to pass such a law, in part because three members of the board will not be there in 2012. Though the results are not official yet, Whalen lost a close race to Andy Stewart for Orangetown Supervisor Tuesday night. Low-Hogan won the District 17 seat on the Rockland County Legislature and Maturo chose not to run to keep his town board seat.

The Vote

In the end, Whalen and Maturo voted not to pass the override. Maturo said it was because he believes the town should use more of its reserves to reach the cap. But he also defended the board from charges that it has not worked hard enough to make cuts.

"To have anybody in the public saying that somebody here is doing anything wrong or evil is disingenuous," Maturo said. "I do not believe we have used enough fund balance. The only reason it is there is for a rainy day and it has been pouring for three years. We have already made brutal cuts."

He added that it is a gamble that the town and the public can find other ways to maintain services that might be lost to further cuts.

Diviny said he has had problems with the proposed budget all along and sent an email to the rest of the board Nov. 4 saying that he would vote against the override. Whalen said only that he had no problem with getting down to two percent.

Low-Hogan and Troy both said they voted for the override because they were concerned that the council would not be able to get the budget down under the cap.

"I'm telling you we are committed to working to get down to two percent, but I don't know if we can do that without layoffs," Troy said.

"We have to allow for the possibility that we may have to go over the two percent. It may be 2.5 percent. I'm going to vote yes," Low-Hogan said.

Barbara November 10, 2011 at 04:41 PM
As soon as the Governor finally did something for the taxpayers of Rockland (who pay the 4th highest real estate taxes in the Nation), along comes the Orangetown Board who try to over-ride the governors 2% tax cap and throw a 7% tax increase on property owners in Orangetown. Consider this - as one of the highest taxed counties in the country, a 2% tax increase would be too high. However, our trusted, elected legislators in Orangetown, instead of doing the hard work and cutting expenses (and if you look at the town budget you will see that there are so many bloated expenses to cut), chose the easy way of politicos - pile it on the taxpayers once again. I AM DISGUSTED. Yes - as angry intelligent taxpayers spoke at the meeting, Supervisor Whelan, and trustees Maturo and Diviny seemed to change their minds, but Low-Hogan and Troy stood firm in their decision to take the easy way out of debt. Don't do the work and earn the money that WE pay you, but shove it to the taxpayers once again. WHAT GOVERNMENT!!!!!
Mike November 10, 2011 at 09:13 PM
I am all in favor of lower taxes and in general like the idea of a cap, but I tend to agree with overiding THIS year only as there is a tremendous amount of uncertainty. Perhaps the state budget cap law itself should of had a phase-in aspect. For Orangetown, to get back to the 2% cap, we need to cut 5.5% which is appx $3.5M from the budget. And thgis needs to be done in 10 days. Sometimes you have to be careful about doing thing too much and too quickly. To hit these numbers, it will aboslutely require layoffs. Now, if there is redundancy and non-essentail services then that is something we can handle. Now as stated up front, I want less tax....but what happens in the middle of the winter if roads don't get plowed for a day or the Town dump is only open a few days, fill in the blank...in others words will people be ok with less services. That is the consequnce. What about the OPD- they represnet 35% of the budget outlay- does thsi get touched? If not then that means even bigger cuts in the remaining 65% of the budget. These are not simply issues to resolve and yes its too bad these were not discussed and worked on prior to the "11th hour". So again, yes lets cut the budget and spend wisely, but in a systematic way that protects all of our citizens that rely upon the services of the Town. BTW, it would be interseting if you aske dyour poll question in this manner: Would you like to override the cap to help preserve Town services and arrive at a budget in an orderly fashion?
Robert Tompkins November 11, 2011 at 02:04 AM
I agree with Mike. My concern is there was no plan B presented at the meeting as to how to cut the additional $2.45 million. This points to a weakness of the Council/Supervisor system and the budget process. A professional town manager would have the budget reduction options spelled out in advance so Board Members and the public knew the ramifications of that vote.
Faith Fusillo November 11, 2011 at 02:47 PM
Would someone please post a link to the proposed budget? Thanks in advance.
Kevin Zawacki (Editor) November 11, 2011 at 03:02 PM
Hi Faith, here's a link to the budget in full, and our story: http://nyack.patch.com/articles/proposed-2012-orangetown-budget-could-include-68-tax-increase
Mike November 11, 2011 at 03:56 PM
I suspect (hope) that on the Town's website, one could obtain greater detail about the budget? This all seems very top line which for most of us is ok. The problem still comes down to this the financial situation the Town faces was created over years of finacial mismangement. This is not meant to be a partisan attack-just facts- the people (from both parties) that we elected to govern us did a very poor job in finacial management. We can sit here all day arguing about it and placing blame or we can roll up sleeves and fix it. However, since the problem developed over years, I don't see the "fix" coming in one year because the state passed a hard and fast cap. These should have been a phased in cap so that we could have an orderly transition to better fiancial management. The Governor and Albany has to adjust or there will be too great a shock to teh system in terms of services provided by the Town. Remember, we will be going through a similar exercise soon with school dsitrcit budgets. I think we all agree- spending needs to be lowered and budgets cut- lets just do it in an orderly fashion that will require a multi-year plan. We then need to hold the Town and schools responsible for more controlled future spending- reduction in workforce, restructuring benefit plans, and perhaos seeking ways to share service with other Towns, etc. Lets remove the politics and instill sound planning and good finacail people- the folks in there now don't appear to be doing the job.
Faith Fusillo November 11, 2011 at 04:35 PM
Thanks, Kevin!

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