WHITE PLAINS CITIZENETREPORTER SETS RECORD VISITS FOR YEAR 7,017,658 VISITS! 2,098,003 VISITORS MADE 6 VISITS A DAY EVERY DAY. 63,330 UNIQUE VISITORS MADE 133,730 VISITS IN DECEMBER. WPCNR AVERAGED 17,284 VISITORS A WEEK, VISITING 31,270 TIMES.

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WPCNR WHITE PLAINS MONEY By John F. Bailey. April 19, 2004. Update 1 P.M. E.D.T.: Last week City Budget Director Anne Reasoner predicted she saw “no problem” in making the $37.8 Million sales tax receipts called for by the city’s proposed 2004-05 $110.5 Million budget.

 

As of March 31, the city had collected approximately $27 Million in sales tax in the first 9 months of the city’s fiscal year, meaning that the city must be expecting $10 million to be coming in from the state tax coffers within the next two months, because the budget sales tax projection for 2004-05 may only budget the sales tax receipts collected up through May 27 when the budget is adopted unless there is a way the June figures can be counted in the new budget.

Up 8.6% in March. Come on Baby!

 

Taking the city budget figures into perspective as of last week, Ms. Reasoner said the city had  in the first three quarters, prior to reconciliation with the sales tax offices in Albany, noted that  March sales tax receipts were up 8.6%  over last year. In March 2003, the city  collected $2,464,375 in sales tax, without the benefit of City Center’s Target, Circuit City, Applebee’s  and theatres being opened.

 

Based on income being up 8.6%, according to Ms. Reasoner, the March, 2004 receipts with Fortunoff, Target, Circuit City, Applebee’s and the theaters opening, project at $2,676,311.  But that could go up during reconciliation.

 

Now when you take the City Sales Tax Receipts for the previous 8 months, stated in the 04-05 budget as $24.6 Million,  the city is sitting on a “ sales tax handle” of $27,276,311 through three quarters.

 

                             Sales Tax Numbers

 

             FY 2002-2003       FY 2003-2004

 

               First Quarter       First Quarter         Pct. +/-

 

July         $2,661,236         $2,861,692          7.53%

August      2,560,810           2,715,226          6.03%

Sept          3,326,249           3,175,566          -4.5%

         

 Total 1Q  8,548,295           8,752,484             2.39%

 

Second Quarter          Second  Quarter

 

Oct      2,750,303          2,797,544               1.72%

Nov     2,709,222         2,696,723                (0.46%)

Dec     3,491,176         4,519,408                29.45%

 

    Total 2Q     8,950,701         10,013,675               11.88%

 Total 6Mo   $17,498,996        18,766,159               7%

 

            Third Quarter         Third Quarter

 

Jan        3,506,297               3,218,961                 -8.19%

Feb        2,808,606              2,614,880*                 -7%

Mar        2,464,375              2,676,311                    8.6%

 

Total 3Q    8,779,278             $8,510,152                 -3%

 

Total 9 Mos  26,278,274        $27,276,311               4%

 

Total Figures compiled by WPCNR based on figures provided by  the Budget Department, February 18, 2004.

 

* Estimated based on Total Sales Tax Collections Reconciled  Through February ($24.6 Million for 8 months)  reported in the 2004-05 budget.

        

A reconciliation of the March numbers could add more jing  in the city till.  Let’s say another $750,000 just for the sake of argument, the city could be looking at a handle of $28,000,000 through three quarters. This leaves a $10 Million sales receipt gap to be made up in the months of April and May, if the city is going to be able to budget $37.9 Million.  (City projects $37.9 Million in Sales Tax in 2004.)

 

Rosy Scenario

 

WPCNR notes that this is an ambitious projection, because the city has not come close to hitting $5 Million a month in sales taxes in the last 32 months. The closest to $5 Million in sales taxes in a month occurred this past December, when the city collected $4.5 Million, a 29% increase over the previous December, thanks obviously to the opening of Fortunoff, Target and Circuit City, and the theaters.

 

However the sales tax numbers have not come close to that for three months. Previous to that was in December, 2001, when we hit $4.1 Million.

 

According to Robert Greer,  Chair of the City Budget Committee, he recalls the sales tax figures being adjusted very late in May during The Westchester Mall opening eleven years ago, but he reports that the city budget sales tax contribution has to be established based on figures in prior to May 27, the Budget Adoption Date.

 

It could be Close

 

In Fiscal Year 2002-03, the city collected $8,135,166 in Sales Taxes in April, May and June, but only $5,135,454 in the months of April and May.  Openings of Legal Sea Food (last week)  and Barnes & Noble coming up in the next few weeks, could help considerably, but it is going to be close.

 

Last Quarter  Sales Tax Receipts Fiscal Year 2002-03

 

 

April:     $2,513,972

May:       2,621,482

June:      2,999,712

 

TOTAL 4^th Quarter: $8,135,166

 

TOTAL 12 MONTHS: $34,413,440

 

 

 

What if?

 

The city might see a sales tax short fall as small as a million or as large as $4 Million, if the anemic 2003 numbers do not spike by a good million  to a million and a half in April and May.

 

Say the April May numbers jump to $3.5 Million, the city is still 3 Million short of its $37.9 Million Sales Tax “Handle” they need to go with the projected budget.

To make up that gap, the tax rate increase would need to rise an additional 12%.

 

If you could include the June sales tax numbers, things would look rosier, but according to Mr. Greer, the city cannot do that.

 

 If the sales tax actuals do not spike to eye-brow rising proportions,  the Council might have to raise the city tax rate increase, from the currently projected 7.9%.

 

 Budget Director Reasoner , WPCNR reminds readers, expects “no problem” in meeting the numbers, which is a good thing.

 

If they chose the tax rate route, they would have to go where from 3% to 12%, on top of the 7.9%  if they chose to go with the figures through May only. For every $1 million in expenses, the city has to raise the tax rate 3%.

 

Cross Your Fingers Option. Bond?

 

Another option might be to go with the $10.5 Million budget as projected, and bond for any shortfall short term, banking on restoration of the dwindled fund balance (now sitting on $12 Million.), to play catchup ball in 2005-06.

 

 

 Expected sales tax windfalls from the City Center, its rentups, and its new tenants, Barnes & Noble, Legal Seafoods, Zanero’s,  Filene’s Basement, and Atlanta Bread Factory, might ride to the rescue of the ever decreasing fund balance.

 

However, sales tax windfall in the next year cannot be appropriated to the fund balance until the budget year 2005-06.

 

Fund Balance Blues.

 

According to the 2003-04 budget, for three of the last five years, 1997 through 02-03 expenditures have exceeded revenues. As the beginning of the five year period, fund balance totaled $21.4 Million (down from a high of $23.2 Million in FY 96-97), but last year (02-03) fell to $19.7 Million, and was forecast to be down to $12 Million by the end of 03-04.

 

There is more troublesome news. The 2003-04 Budget reports “It is anticipated that the City could have $4.4 Million or less in fund balance available to balance the FY 2004-05 Budget.”

 

It was predicted in last year’s budget, that “During FY 2003-04, the City expects to see significant increases in sales tax revenues which should contribute to a re-growth in fund balance’ however that increase cannot be appropriated until FY 2005-2006.”

 

Unfortunately that increase according to the most recent figures released by city, has not happened in as significant growth as expected.

 

Assuming the city gets in $6 Million to $7 Million in Sales Taxes in April and May, they could use that last remaining $4 Million to balance the budget, just getting in under the budget wire.

 

2004-05 Budget Assumption:Shrinking Fund Balance.

 

According to the 2004-05 Proposed budget,  it recommends an appropriation of $5.6 Million to balance the budget. However, it also notes the appropriation of fund balance for 04-05 is $2.6 million less than the current year. The budget notes “It is anticipated that the City could have $4.3 million or less in fund balance available to balance the FY 2005-2006 budget.”

 

The Ending fund balance forecast for 2004-05 is $16.4 Million.  Howver, those numbers are not there yet, since it depends on the acceleration of sales tax revenue.

 

New Establishments Cannot Open Fast Enough. 

 

It should be noted that Zanero’s, Filene’s Basement, Barnes & Noble, and the Bread Factory have not opened yet at the City Center.

 

Including the June revenues would certainly help to make that $10 Million number, however, according to Greer, the sales tax figures have to be based on figures available just prior to Budget Adoption night, May 27. Perhaps a reprieve to consider the June figures in the budget would be the answer.

 

 

 

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WPCNR EAST END GATEWAY. April 19, 2004: The White Plains Historical Society will honor their longtime President and Treasurer, Jack Harrington and Peg Harrington, respectively at the Society Annual Dinner May 6 at the Crowne Plaza Hotel. Frank E. Sanchis III, Executive Director of The Municipal Art Society of New York, and author of American Architecture: Westchester County, New York, Colonial to Contemporary will be the Guest Speaker. Tickets are priced from $35 to $100. For information call 914-428-7766.

LONGTIME FIREBRAND, SAVIOR OF THE BAR BUILDING, Jack Harrington, left, makes a strong point at one of  the School District Annual Budget Committee meetings in March. Marc Pollitzer looks on. Harrington and his wife will be honored May 6.

Photo From WPCNR News Archive.

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WPCNR’S ADAM IN ALBANY. By District 89 Assemblyman Adam T. Bradley. April 17, 2004: The Assembly recently passed a plan which I sponsored to reform New York’s antiquated Rockefeller drug laws. This legislation gives judges the discretion to sentence some non-violent drug offenders to compulsory drug treatment programs instead of prison.

 

 

The plan could save New York as much as $164 million annually, reducing prison crowding while cracking down on violent offenders and treating the causes of drug-related crime. This figure does not include the savings from families that would otherwise go on public assistance or from children who would enter the foster care system if a parent was forced into mandatory incarceration.

 

I hope we have learned after 30 years that if we want to fight drugs and drug crimes, we must first fight addiction. Treatment has proven to be a much more effective tool than incarceration in most circumstances involving first-time offenders, and this measure gives the criminal justice system the flexibility to find the most appropriate sentence.

 

Drug treatment is 15 times more effective than mandatory-minimum sentences in reducing serious crimes committed by drug offenders, according to a Rand Corporation study. Chief Administrative Judge Jonathan Lippman has estimated that graduates of drug court diversion programs commit two-thirds fewer crimes than offenders who are simply incarcerated. The empirical data is clear that drug treatment is much more successful than incarceration in reducing crime by first-time, non-violent drug offenders.

 

The Assembly bill (A.7078-A) would:

 

·                    give greater discretion in recommending drug treatment as an alternative to prison;

·                    create a new drug-related Class B-II felony for certain lower-level sale or possession

cases involving relatively small amounts of controlled substances; and

·                    give judges more flexibility in sentencing individuals on Class B and lower felonies.

 

New York has made great strides in reducing crime. If we also make a concerted effort to fight substance abuse and addiction, we can bring crime levels down even further.

 

Reforming a broken, outdated system

 

The Rockefeller drug laws – first enacted in 1973 – are infamous for their harsh and inflexible mandatory-minimum sentences. The law has also been criticized for having a disproportionate impact on minorities.

 

 Thousands of non-violent people are locked up each year for possessing small amounts of controlled substances. Many of these low-level offenders would benefit greatly from monitored substance abuse treatment, giving them a real chance to break their drug dependency and succeed in life.

 

 

 

Treating the causes of crime

 

With these reforms, prosecutors and judges will be able to order certain felony drug offenders whose non-violent crimes resulted from drug abuse to treatment programs instead of prison. Prosecutors would first evaluate whether or not a non-violent drug offender should be diverted from prison to drug treatment. During that evaluation, the court wouldn’t be able to take any action. After the evaluation, the judge would make the final determination on whether an offender is sentenced to a mandatory drug treatment program or prison.

 

This plan provides more tools to fight drug addiction and reduce crime. Everyone will benefit. Addicts will be able to get treatment, the court system will be able to concentrate on more serious offenders, and taxpayers will be safer and save money.

 

Ending drug laws that hit minority communities the hardest

 

Many Westchester minority families have been disproportionately affected by the Rockefeller drug laws, which are among the harshest mandatory-minimum drug laws in the nation.

 

Almost every person – 94 percent – incarcerated under the Rockefeller drug laws are African-American or Latino, even though they make up less than a third of New York’s population. And that’s despite the fact that all races use drugs at about the same rate. Every New Yorker deserves fairness and justice, and we have to make sure they get it.

 

Combating drug-related gun violence

 

Recognizing the deadly connection between the drug trade and firearms, the new legislation imposes a mandatory five-year prison sentence on anyone convicted of possessing a loaded handgun with the intent to use it while selling or attempting to sell drugs. The plan also retains life sentences for drug kingpins who engage in major drug trafficking.

 

This reform will give us the ability to deal with drug use and drug crimes fairly, quickly, and, most important, effectively. I call on the Senate and the governor to support our efforts to truly reform the outdated and ineffective Rockefeller drug laws.

 

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WPCNR TEEN NEWS. From The Mayor’s Office. April 16, 2004:  The White Plains Youth Bureau is receiving the Agency Award from the Greater White Plains Council of Community Service on Monday, April 19, 8 am. at their Annual Breakfast