An Innovative Message from the Office of the County Executive --- But does his Proposal Fairly Address the Financial Problems of the City, towns and villages?

The March 1, 2004 message from Onondaga County Executive Nick Pirro to the Legislature contains a number of proposals which purport to improve the economic viability of Onondaga County and the entire Central New York region. (It can be found on the web at www.ongov.net.)

This was no business as usual address. Confronted by a County budget imbalanced by an anticipated $50 to $55 million deficit largely brought about by State mandated Medicaid and pension costs, Mr. Pirro had to choose between severely cutting services or looking for new sources of revenue. At a time when our community is actively competing to create job opportunities by attracting new business, it would be counter productive to slash services and thereby reduce the quality of life of its citizens. Our excellent park system, first rate zoo, and well attended cultural events are publicly supported attractions that enrich all of Central New York and provide selling points for those engaged in promoting the area’s economic development.

The County Executive has recommended that additional revenue be raised by imposing a 1% increase in the local sales tax. This option has long been resisted by governmental and community leaders. However, in the present difficult economic climate, it appears to be the least painful revenue source. If enacted by the Legislature, it will bring the combined state and local sales tax to 8 1/2 %, an amount already in effect in Monroe, Erie, Albany and nearby Cortland and Tompkins counties. With our property tax the highest in New York State, the County Executive correctly elected to seek a portion of the needed revenue from those who live outside of Onondaga County but utilize our roads and other public services.

There is a hitch, however, with respect to the manner in which the sales tax collections will be distributed. Unlike proceeds obtained under the existing formula which shares the collections with governmental subdivisions of the County, here Mr. Pirro would have all of the proposed increase retained by the County. The financially strapped City of Syracuse is entirely correct in objecting and demanding that any new revenue from this source be allocated on the basis of the present distribution arrangement.

Perhaps the most significant part of the message is the recognition that our community is a world apart from where it was a couple of hundred years ago when our political boundaries were established. Mr. Pirro points out that as recently as two generations ago the City of Syracuse contained almost all of the area’s residents, industries and commerce. Today, more people currently live in the four towns of Cicero, Clay, Manlius and Salina than in the City of Syracuse. Over the past four decades City government has been on the decline in importance while the influence of County government has risen.

The message to the County Legislature and other governmental subdivisions is that the old formulas need reexamination. In many instances, one agency can more efficiently do the tasks now being performed by two or more. Mr. Pirro has renewed his proposal that the County Purchasing Department take over the purchasing needs of the City thereby saving Syracuse taxpayers $400,000 annually. The City administration has in the past rejected this idea. Mayor Driscoll and County Executive Pirro should be able to sit down and work out the details of such a transition that would bring about a cost saving but retain the City's governmental integrity. Similar logic favors the consolidation of the economic development, accounting and data processing offices of the City and County. Other areas that invite consolidation are in the categories of parks and recreation, roads and law enforcement. But these are big ticket items and before any major changes can take place in these areas, there will have to be a groundswell of public support for meaningful change. No such movement is presently on the horizon.

Nick Pirro's proposal would at least seem to move local governments away from a state of complacency. There will be an ensuing debate and this will hopefully bring about some recognition that the old ways of doing things no longer work.