ONONDAGA COUNTY --
Thursday’s Ways and Means Committee meeting of the Onondaga County Legislature painted a grim financial picture. This year’s budget has already been dealt with but it’s 2011 and beyond that everyone was talking about. Federal stimulus funds will be running out and the county is already facing a large budget gap. The county’s solution could be a problem for the city of Syracuse and all the towns. The county may keep more money from sales tax revenues
Currently, Onondaga County collects sales tax and then shares it with the city and towns according to a formula. The formula is up for review in 2010.
Several supervisors Action News spoke with today said they would oppose any change to the current formula.
There are two ways cities and towns can use the money. The Village of Baldwinsville takes their share of the sales tax money in cash, putting it towards the town budget. The Town of Lysander decided the money would go towards county property tax credits for homeowners. Supervisor Barry Bullis says any change could mean a new line on homeowners’ tax bills.
"Based on last year's calculations for a 200 thousand dollar house, if the town lost 100%, all of its sales tax credits, it would mean an extra 664 a year to a homeowner," said Bullis.
There are only two other counties in the state as generous as Onondaga when it comes to sharing sales tax money but it doesn’t appear likely that will last much longer.
James Rowley, the county’s Chief Financial Officer said “It's certainly going to be an option we're looking at.”
Democratic Legislator Mark Stanczyk said he wishes the current distribution could stay the same, but that it just isn’t realistic.
"In good times it's probably reasonable to be as generous as we've been, now all of a sudden it's hard times and it probably makes sense for us to be a little less generous with cities and towns and a little more concerned with making sure we have sufficient funds for our own needs,” said Stanczyk.
Discussions about the sales tax sharing formula are expected to start in 2010.
