BUDGET COMMITTEE

December 16, 2009

** NOT APPROVED **

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Committee Members Present

T. Hopkins, D. Fanton, W. Dibble, T. O’Grady, C. Crandall (Absent: W. Hall)

Others Present

L. Ballengee, D. Burdick, M. Healy, J. Margeson, B. Riehle, T. Ross, P. Schmelzer, R. Truax

Budget Committee Chairman Theodore Hopkins called the meeting to order at 2 p.m.

Approval of Minutes

The November 18, 2009 Budget Committee minutes were approved on a motion by Legislator Dibble, seconded by Legislator Fanton and carried.

Cuts to Child Welfare Funding

NYS Governor Paterson has directed the Division of the Budget to delay state reimbursement to counties for child welfare services. Allegany County’s originally scheduled payment for December 2009 was $522,000, and that amount is being reduced by $222,000 for a total of $300,000. Social Services Commissioner Patricia Schmelzer attended the meeting to explain how this action will affect Allegany County. Mrs. Schmelzer explained that child welfare funds are for preventive services and are financed 63 percent from state aid and 37 percent from local County funds. The Child Welfare Preventive Services provides services to keep children from being removed from the home. Mrs. Schmelzer indicated that one reason the state is anxious to get rid of this funding is because it’s open-ended funding. Allegany County has to spend the money before we can apply for reimbursement; however, the state advances a portion of the money based on historic figures. Reconciliations are about two years behind, and Allegany County does not record the advances as revenue until reconciliation is complete. Fortunately Allegany County has never recorded or booked the state aid as revenue until the money is actually reconciled, but not all counties have been that conservative. The last reconciliation Social Services received showed a shift of the state’s share to the federal liability column, and Mrs. Schmelzer believes the state will push to have it taken out of the budget. County Treasurer Terri Ross stated that Allegany County may never feel the effect of the proposed $222,000 cut because of the way we account for it, and when reconciled we receive the funding from the state or from the feds. Mrs. Schmelzer stated that the Social Services Department tries to do everything they can before removing a child from the home. Legislator Dwight Fanton commented that it could end up being even more expensive if the preventive services are discontinued, and we begin removing more children from their homes.

County Administrator/Budget Officer John Margeson stated that we have not received notice that additional programs are being cut. The Governor has made a decision to delay state aid payments to school districts, towns, cities and villages, and it will be interesting to see if some of these entities end up bringing a suit against the Governor. Legislator Timothy O’Grady commented that the state has indicated that they will potentially reimburse counties as funds become available, but what if funds do not become available?

Sales Tax Report

County Treasurer Terri Ross distributed copies of a Sales Tax Report reflecting receipts through December 14, totaling $15,775,259.82 and interest totaling $2,396.08 which is down about 6.878 percent ($1,165,231.99) compared to last year’s figures. Ms. Ross stated that she will receive two more payments of sales tax revenue to be applied to the 2009 budget. Ms. Ross believes that our sales tax revenue collections will be approximately $1.5 million under budget for 2009.

Ms. Ross also reported that overall the County has spent 78 percent of our 2009 budget and received 83 percent of our revenue. Overall we are in good shape and staying on target.

NYS Retirement System

Legislator O’Grady asked if there has ever been a push to reverse the way the state does the retirement. Legislator O’Grady stated that we should pay more when times are good and less when times are bad. Ms. Ross stated that starting with the new Tier V employees, a personal employee contribution to the retirement system will be required. Some County Treasurers are also pushing for a cap when things are bad. Ms. Ross noted that our contribution is down slightly from earlier estimates. We paid our $1.397 million dollar bill earlier this month. By paying it in December, we were able to save approximately $13,000.

Adjournment

There being no further business to come before the committee, the meeting was adjourned on a motion by Legislator Fanton, seconded by Legislator Dibble and carried.

Respectfully submitted,

Brenda Rigby Riehle, Clerk of the Board

Allegany County Board of Legislators