Suffolk County Executive Steve Bellone has signed a 2014 budget previously amended by county legislators earlier this month, though the amended plan has environmental groups preparing to sue over how the county is balancing its books.
Signed on Monday, the $2.7 billion spending plan – which calls for no tax increase in the county’s general fund – calls for using nearly $33 million from the county’s sewer stabilization fund, a reserve account created when Suffolk County taxpayers approved the Drinking Water Protection Program via referendum in 1987.
The fund comprises one of several dedicated revenue streams created by the sales tax — another being open space preservation, for example — which is one-quarter of one percent, and critics say the choice to use it to close a budget gap violates the terms under which voters agreed to tax themselves.
“The public has repeatedly voted to tax themselves – and they are paying 2.5 times the national average as it is – to protect their drinking water with the explicit assurance that the writing can’t be altered for any other purpose,” said Long Island Pine Barrens Society executive director Richard Amper. ”There’s no justification for violating this solemn contract with the public.”
Suffolk voters last agreed to renew the tax in 2007 — approving a ballot measure to maintain the tax through 2030. The recent plan laid out by the county intends to start paying back into the sewer stabilization fund – which is used to offset spikes in sewer rates – in 2017.
The balance currently hovers around $140 million, leaving over $100 million left in the sewer stabilization fund.
Mr. Bellone, in the budget he presented to the Legislature, had suggested closing the budget gap through borrowing from the New York State Dormitory Authority, a path that would have required legislation approved at the state level. A report from the County’s Budget Review Office identified that plan as a risk because of the necessary legislation.
Legislator Tom Barraga (R-East Islip), who spent over 20 years in Albany as an assemblyman, voted along with legislators Jay Schneiderman (I-Montauk) and Tom Cilmi (R-Bay Shore) against the county Legislature’s budget – pointing to past bailouts in New York City and Nassau County as evidence the legislation would not be much of a risk at all.
Supporters of the decision to use the funds said the plan will save over $40 million in interest payments from what they would have paid if they borrowed from the Dormitory Authority.
“It’s a huge savings,” said North Fork Legislator Al Krupski (D-Cutchogue), who added that he wasn’t exactly sure how the use of the funds was legal.
He said that’s “a legal issue for the lawyers to decide.”
An opinion of the county attorney’s office, provided by a spokesperson for Mr. Bellone, pointed to case law — considered analogous with Suffolk County — that held that “The New York Court of Appeals has endorsed the statement that ‘laws proposed and enacted by the people under an initiative provision are subject to the same constitutional, statutory, and charter limitations as those passed by the legislature and are entitled to no greater sanctity or dignity.’”
While the county and some environmental groups remain in court over similar action taken in 2011, Bob DeLuca, executive director of Group for the East End — which did not take legal action then — said his organization’s members are deciding for themselves whether or not to sue.
Mr. DeLuca questioned whether or not the sewer fund would ever be replenished as promised.
“Anybody can promise anything in order to get a short-term gain,” Mr. DeLuca said. “But in 2017, to go back to the Legislature and say, ‘You promised to put the money back’ — there will be different people in place and different priorities. Maybe there will be another economic downturn.”
Aside from the county’s decision to use reserves from the sewer stabilization fund, an attempt to bring back about $120,000 more in revenue to the East End, generated through the county’s hotel/motel tax, stalled in the Legislature’s economic development and energy committee.
In addition, the Legislature rejected measures to adjust its police revenue sharing program — a move that would have brought over $500,000 to Riverhead, more than $400,000 to Southold and over $50,000 to Shelter Island — as well as an attempt to fund the Vocational Education and Extension Board, part of the county fire academy for a full year, as opposed to six months.
Pointing to the police revenue sharing defeat, the decision not to fund VEEB, and the loss of additional hotel/motel revenue — as well as use of the sewer stabilization funds — Mr. Schneiderman voted against the budget for the first time in 10 years.
“I don’t feel this year’s budget was great for the East End,” said Mr. Schneiderman, who was just re-elected to a sixth and final two-year term in office under term limit laws.
Mr. Krupski, meanwhile, said that some hotel/motel funds were brought back to the East End during the budget working group meetings, a closed-door process that has earned criticism on its own.
He also pointed to success “keeping revenue projections in a more realistic place,” and added that police revenue sharing is something that needs to be addressed on a percentage basis, rather than the hard numbers currently negotiated.
While he said the budget’s end product might not be exactly what East End voters would want, he said, “I did have some constructive input on it, but everything doesn’t always go my way or my district’s way. Every dollar was allocated evenly.”
As far as going to court over the use of sewer funds, Mr. Amper said the Pine Barrens Society’s board of directors has already approved litigating the topic. Group for the East End is still considering, while a request for comment from the Citizens Campaign for the Environment, another major environmental group in the region, was not immediately returned.