Ulster County News

FROM: ULSTER COUNTY PUBLIC INFORMATION OFFICE

DATE: August 1, 2002  

The Ulster County Legislature met in special session July 31^st to continue the process of dealing with a potential $22 million dollar budget deficit. That deficit has been caused by a dramatic increase in medicaid costs, a cut in revenue sharing, a reduction in funding for the Health Related Facility and other unfunded, mandated programs. To assist in off-setting those costs, legislators approved a resolution to increase the sales tax from 7 3/4 % to 8%. The new rate will take effect on September 1, 2002. The higher sales tax is expected to net the county an additional $4.7 million in 2003. Under the revenue-sharing agreement the county has with its municipalities, the hike will mean an additional $628,000 for the City of Kingston and an additional $164,000 to be divided among the 20 towns.

"Ulster County’s money troubles are not unique. Many other counties are facing similar problems heading into 2003, largely because of sharp increases in mandated Medicaid spending", stated Majority Leader Richard Gerentine.

Chairman Ward Todd noted that New York State has the most comprehensive, expansive and costly Medicaid program in the country. According to Chairman Todd, "The increase in Ulster County’s local share of Medicaid is expected to rise 12% to the astounding figure of $4,045,150. Ulster County is faced with several other factors in a decrease of funding for the 2003 budget. Revenue from the residential home energy tax is being phased out over a four-year period that began in 2002 and will be completely phased out in 2005. The tax will reduce revenue by 2.4 million dollars. Health insurance costs are expected to increase by 15-20%. This increase amounts to between 1.3 million and 1.8 million in county share. Ulster County will also lose approximately $341,000 in State revenue sharing. This revenue sharing initiative was instituted last year to offset the cost of the Family Health Plus Program. It never actually offset this cost and it is now being completely eliminated.

Chairman Todd has asked all department heads to budget conservatively and responsibly. The Chairman has also called on department heads to propose innovative ideas for cost savings. The Legislative leadership in conjunction with the County Administrator, Bill Darwak has requested that each department submit a cost savings plan for the remainder of 2002 by July 31, 2002. Chairman Todd has stated that the Ulster County Legislature will take every possible step to institute efficiencies that result in an acceptable spending plan for 2003.