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 COMMON COUNCIL CHRONICLE-EXAMINER. Special to WPCNR. February 19, 2009: Commissioner of Finance Gina Cuneo-Harwood painted a bleak picture to the Common Council of the city budget eight months into the current fiscal year. She presented fiscal scenarios indicating that the city is currently running a projected $11 Million behind on the current 2008-2009 budget.

According to WPCNR’s correspondent, Harwood projections estimated about a $4 Million shortfall in the sales tax at the present rate, a $1.9 Million shortfall in Mortgage Tax Collections, $2 Million behind in Building Permits; a $2 Million loss of the payment this year for the land where 55 Bank Street affordable housing towers were to be built, and the city is $800,000 behind in parking fines and permits collections for a rough total of $11 Million.

No reports on union negotiations were provided, and according to first reports no details on the Mayor’s budget cuts were provided.  Previously it has been indicated by Paul Wood, City Executive Officer, that the city might have to use undesignated fund balance to balance this year’s budget if the present trends continue, and if the sales tax stream does not pick up.

The meeting was highlighted by a series of sharp, heated exchanges between Mayor Joseph Delfino, Councilman Benjamin Boykin and Councilman Tom Roach over the Mayor’s assertion the city would not be in such a situation of the council had not rejected the extra ¼ % sales tax the Mayor suggested last year. Had that 1/4% been in effect the last six months of last year the city would have ran more of a surplus.

The Civil Service Employees Association reportedly urged the council seek to raise the city sales tax portion another 1/4%.

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WPCNR FASTPITCH NATION. From The Philadelphia Force, The Northeast Major League Fastpitch Leader. February 18, 2009: National Pro Fastpitch Commissioner Cheri Kempf hosted the National Pro Fastpitch Senior Draft in Akron, Ohio, today, live for the first time in league history over the internet on The Softball Channel website, hosted by the Akron Racers, the pioneer pro fastpitch team from the old WPSL of the 1990s.

The Force who open 2009 play in June selected Brette Reagan thirdbaser for Baylor University who has clobbered 32 homers, 126 RBIs and a .638 slugging percentage in her college career. The Force drafted fourth overall. Ms. Reagan will be belting out in Allentown this season.

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WPCNR QUILL & EYESHADE. By John F. Bailey. February 18, 2009: The City Assessor, Lloyd Tasch, reported progress in the Board of Assessment Review efforts to adjudicate the over 800 challenges to city assessments filed in January. Based on preliminary judgments, the Assessor told WPCNR there would be an “all-time record” in assessment adjustments based on preliminary evaluation of the challenges to the 2009 Assessment Roll, indicating a further costly erosion of the assessment roll.

Asked for the additional negative impact on the Roll, currently sitting on $288.4 Million, Tasch said “It’s too early to tally up. Call me on March 1.”

Tasch said the three person Board of Assessment Review has disposed of 75% of the challenges, and they have until February 27 to complete the process.

Lloyd Tasch, the City Assessor reported to WPCNR in January,  that grievances filed with the Assessor’s Office over this year’s assessments totaled 858 properties. He said last year 500 grievances were filed, of which 179 were residential. This year, of the 858 grievances about 450 were residential homeowners, and the rest commercial.

The preliminary feeling the City Assessor confirms the softening of real estate prices in White Plains where the average median price of a home based on actual real estate sales has eroded to $680,000 as of the end of December, up from $650,000 at the close of November according to city-data.com. In Westchester County the average price of a home (the mean) has declined 16.7% since December of 2008.

The prospect of further softening of the Assessment Roll compounds the conundrum the School District faces which has to make up the $1.7 Million already by increasing the tax rate – if they keep the school budget at the present $184.4 Million.  The City Assessment Roll is slightly different from the school district, based on who the city gets to tax as opposed to the school district tax customers. The Common Council may wish to ask some questions about that at their budget briefing Thursday evening.

Presently, just to set the stage for you the school district  faces this problem:

Should the assessment figure remain at the $288.4 (rounded off here from $288,371,173)  Million figure, the decline to $288.4 Million  creates a  current $1.7 Million revenue shortfall (projected) in district revenues which in and of itself increases the tax rate from $503 to $510 per $1,000 of assessed valuation just to pay the current budget level of $184.4 Million.

If property owner challenges lower assessments more as Mr. Tasch is indicating, the shortfall will necessitate further increases in the school tax rate — putting extreme pressure on their budget cutters. They better be crossing their fingers that a ton of ObamaBucks will be heading White Plains way.

 Relation of Assessments to Tax Rate.

For those unfamiliar with the formula of how Assessments drive the tax rate: Here is a simple explanation:

This budget year 2008-2009 assessments were at $291.8 Million for the School District In the new Budget Year 2009-2010, the Assessor as of Jan 1 pegs them at $288.4 This year’s Tax Rate was $503.01

How was it figured? Here’s how:

One thousand dollars divides into $291.8 Million, 291,800 times. 291.8 times the present school tax rate $503.01 equals $146.8 Million – this year’s 2008-2009 tax levy.

Since preliminary assessments are down 3.4 Million (from $291.8) this means that at this year’s tax rate you only generate $145.1 Million in levy, leaving a shortfall of $1.7 Million in revenue. By adding $7 to the tax rate the district makes up that shortfall. ($510 x 288.4 produces $147 Million dollars. ) Sooooooooo, the school district needs to cut the budget  BELOW $184.4 Million to $182.7 Million to generate a zero tax increase this year.

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WPCNR SCHOOL DAYS. February 17, 2009 UPDATED 4:51 P.M.: While White Plains schools are closed this week for winter vacation, the School Board will be worrying about the budget. They will be wondering how many “ObamaBucks”Governor David Paterson’s New York State Economic Recovery and Reinvestment Cabinet will be floating down the Hudson River to White Plains, and of course, whether or not the legislature will ease the Governor’s stealth property tax increase via his suggested cut of 18%  off STAR Basic and Enhanced Exemptions.

Meanwhile the Board of Education is sticking by its request of outgoing Superintendent of Schools Timothy Connors to slice more off the $190.3 M School Expense Budget submitted two weeks ago. 

Here is the schedule of upcoming meetings:

The Governor’s “manna distributors” in his Reinvestment Cabinet will have $1.7 Billion to distribute statewide to school districts spread over 2009-2010 and 2010-11, according to the Governor’s news release last week. The funding will be provided directly to school districts through the State Education Department, subject to specific federal formulas. The state also has $7 Million to distribute for education of homeless children; and $61 Million for education technology to share.

Meanwhile, the legislature according to Assemblyman Adam Bradley is attempting to restore cuts to the STAR Basic and Enhanced Exemptions “floor” which exacted a hidden property tax increase last year, forcing White Plains residents to pay for about 75% of their increased state education aid the school district received last year and claimed enabled them to cut taxes. Actually the increased state education aid given White Plains last year resulted in a school property tax increase. 

The 18% cut  in the STAR Basic and Enhanced Exemption floors which Governor Paterson’s office has suggested for  the 2009-2010 budget would mean about $109 Million less in reimbursements to school districts, which would be paid instead by state property tax payers,  according the Geoffrey Gloak of the Office of Real Property Services. 

Here are the big meetings coming up, released by the School District today:

            The next meeting of the Board Finance/Audit Committee will take place to discuss the Superintendent’s proposal prior to the meeting on the budget prior to the crictical Monday night, February 23 proposal:

                        Monday, February 23rd,  Board Finance/Audit Committee 5:30 P.M. at Education House — Open

            February 23:     Special Meeting, Education House, 7:30 P.M. The Superintendent of Schools is expected to unveil the Preliminary Budget — cut from the $190.3 Million figure now in play.

                        February 25:     Special Meeting, High School B-1 Room, 7:30 P.M.

                                                     Community Budget Forum: The public will be presented with the budget that the Board settles on based on the February 23 meeting.

                        March 9:          Regular Meeting, Education House, 7:30 P.M.

                                                     (Note change of location from listing in calendar)

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WPCNR ALBANY ROUNDS. From The Governor’s Press Office. February  16, 2009 Governor David A. Paterson announced Saturday that a preliminary analysis of the American Recovery and Reinvestment Act shows New York can expect to receive at least $24.6 billion over the next two years. This critical legislation will provide significant funding for State fiscal relief, as well as for education aid, infrastructure projects, direct benefits to low income and unemployed New Yorkers, and other critical priorities.

“With New York State at the epicenter of a nationwide financial crisis, I have been working for months with governors around the country advocating for federal aid to help states weather the current economic storm,” said Governor Paterson.  “I am grateful to Speaker Pelosi, Majority Leader Reid, Senator Schumer, Senator Gillibrand, Congressman Rangel and the entire New York Congressional Delegation for taking swift action on President Obama’s economic recovery agenda.

Governor Paterson this week created the New York State Economic Recovery and Reinvestment Cabinet to manage the development of State and local infrastructure projects financed through these federal funds. The cabinet will be composed of State agency heads and senior members of the Governor’s staff, and will work closely with local governments to ensure federal dollars reach critical projects and put people to work as quickly as possible.

Senior Advisor for Infrastructure and Transportation Timothy J. Gilchrist, who leads the Cabinet, said: “These funds will allow critical infrastructure projects to progress at a time when state and local governments cannot move these projects forward alone. Now we must work with local officials to outline an aggressive agenda to ensure that the State utilizes these funds quickly and efficiently, for job-creating projects with lasting value across the State.”

National Overview

Overall, the national cost of the provisions included in the legislation is expected to total $789 billion. This includes approximately $463 billion in spending and $326 billion in tax cuts. Of the $463 billion in spending, $374 billion is for programs that directly impact our State.  New York is expect to receive $24.6 billion of that funding.  

State and Local Fiscal Relief

Several portions of the federal stimulus legislation will provide direct fiscal relief to State and local governments, many of which are addressing significant budget deficits. Some of these major provisions include the following:

Federal Medical Assistance Percentages (FMAP)

The stimulus bill provides a total of $87 billion in fiscal relief through increased Medicaid reimbursements (FMAP). New York’s share of that funding (which includes funding for the State, counties, and the City of New York) is nearly $11 billion over a 27-month period – $1.9 billion in 2008-09, $5.0 billion in 2009-10, and $4.2 billion in 2010-11.

Based on preliminary analysis, it is expected that approximately 70 percent of this relief will accrue to the State and the remainder will be provided to local governments.

Education

The legislation includes a State fiscal stabilization fund that totals $53.6 billion over two years, which primarily consists of funding for education.

There are three main components of this fund.

• Education Restorations.  New York is expected to receive $2.5 billion out of a total of $39.5 billion that will be provided to restore proposed reductions in funding for education. The federal legislation requires that this money be used for that purpose.  It is expected that half of the $2.5 billion will be committed in 2009-10 and the remainder in 2010-11.
  
  
  
• Flexible Relief.  New York is expected to receive $556 million out of a national total of $8.8 billion provided for other fiscal relief to state governments over the next two years. Like FMAP, this funding would be flexible and can be dedicated to support any government service.

• Incentive Grants.  An additional $5 billion in education grants will be available for states meeting key performance measures as determined by the United States Department of Education. While the amount New York would receive is subject to the grant awarding process, we expect that New York will be in a strong competitive position to receive substantial funding.

Other Education Funding

New York is expected to receive $940 million out of a total of $13 billion in Title I funding for high needs students and $760 million out of a total of $12.2 billion in IDEA funding for special education over the next two years.  Both of these funds would be split roughly evenly between the next two fiscal years. This funding will be provided directly to school districts through the State Education Department subject to specific federal formulas over which the State has no discretion.

Other major education funding for New York includes increasing the maximum award for Pell Grants by $500 (National Share: $15.6 billion, State Share: $180 million), and providing substantial increased support for education technology (National Share: $650 million, State Share: $61 million) and the education of homeless children (National Share: $70 million, State Share: $7 million).

Infrastructure and Energy

The stimulus legislation delivers substantial support for infrastructure projects. At the national level, this includes $48 billion in funding for transportation capital projects ($8.4 billion for mass transit, $27.5 billion for highways and bridges, $9.3 billion for rail, $1.3 billion for airport improvement projects; $1.5 billion for discretionary surface transportation projects). Of this total, New York is expected to receive at least $1.25 billion for the mass transit and $1.1 billion for highways and bridges. The Economic Recovery and Reinvestment Cabinet will be working with State agencies and local governments to aggressively seek funding from other sources of transportation funding.

The legislation also includes $16.8 billion for energy efficiency and renewable energy projects and technologies, including research and development. New York will receive $126 million through the State Energy Program and $31 million in alternative energy block grants. It provides $4.5 billion for energy research and development projects nationwide, including $2.0 billion for energy storage technologies, which could provide funding for the Governor’s proposed battery storage consortium. 

New York State is also projected to receive $435 million from the Clean Water State Revolving Fund; $85 million from the Drinking Water State Revolving Fund; and $404 million to help weatherize the homes of low-income individual.

Other Major Spending Provisions

The federal legislation will also provide funding for a number of other critical initiatives over the next two years. New York is expected to receive $1.3 billion in enhanced food stamp benefits; $1.3 billion to fund 33-week expansion of unemployment benefits (to a total of 59 weeks), as well as provide additional weekly benefits through December 31, 2009 instead of March 31, 2009; and $100 million for child care services for low-income individuals.

In addition the federal legislation provides funding for several programs that will be administered at the federal level.  The Economic Recovery and Reinvestment Cabinet is analyzing the legislation to identify programs that the State and local governments can take apply for funding.