CHENANGO COUNTY TENTATIVE BUDGET Preliminary Budget For Board Review

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Bertina Daniels
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1 CHENANGO COUNTY TENTATIVE BUDGET Preliminary Budget For Board Review

Chenango County Guiding Financial Precepts 2017 Budget 5) Maintain a minimum of $15,000,000 general fund surplus (i.e. not otherwise. earmarked).

2 1) Have a balanced budget using reasonable revenue and expense expectations. 2) Other than in exigent circumstances adhere to the tax cap. 3) Maintain a NY State Comptroller's rating of "not in fiscal stress. 4) Remain debt free. Chenango County Guiding Financial Precepts 2017 Budget 5) Maintain a minimum of $15,000,000 general fund surplus (i.e. not otherwise. earmarked). The estimated current surplus balance is about $ ) Over the course of the next four years, reduce the application of General Fund surplus applied to the following year's budget to $1,500,000 (< 2% of the General and Social Services budgets).

3 2017 Chenango County Tentative Budget Fact Sheet 1) Under the tax cap for the sixth straight year - of $186,000 by about $8,000. 2) The average tax rate increases by $.06/$1,000 of assessed value or.47% from 2016 (about $6.00 per average residence). Individual town rates will vary depending on equalization rates and assessed value totals. 3) Chenango County qualified, based on adhering to the Tax Cap and having a State approved Efficiency Plan for the NYS Tax Freeze program for 2017 for STAR eligible properties. Taxable values are up three-tenths,.29% of 1%. Equalized values are down (.45)% for the second year in a row. 4) The County remains debt free. 5) Maintains a NY Comptroller's rating of "not in fiscal stress. 6) Maintains our repaving and equipment replacement programs for the County Road system.

4 2017 Chenango County Tentative Budget Fact Sheet Continued 8) Completes the development of Landfill Cell Four at a cost of $4.2 million without incurring debt. 9) We are now operating a school based Mental Health Service in the Norwich, Otselic Valley and Oxford School Districts 10) Our self funded health plan has a 2017 cost increase of just 2.5% compared to the national average of 5%. 11) All 2016 programs are continued in ) Spending is up 1.05 million, up 1.16% from 2016 s 88.4 million spending level and only 3% from ) Revenues, while achievable, continue to be at very at robust levels. 14) Lessens the application of 2016 General Fund Surplus toward reducing the 2017 budget by $150,000 to $2,050,000. This is the sixth consecutive reduction from the $3,683,000 applied to balance the 2011 budget. 15) Positions us to reduce the application of General Fund surplus by $150,000 per year over each of the next four years to reach a target application of $1,500, ) Nearly 40% of our local real property tax levy of 25 million goes to Albany to support Medicaid. Notes: A) Subject to Board of Supervisors action/revision B) Subject to minor adjustments until public filing date of 11/15/16

6 NYS Comptroller s Fiscal Stress Report For Counties Based on 2015

The summary graph projects a fiscal stress score based on a three-year trend analysis. This score is not based on data submitted by the municipality.

Financial information provided on this page is pulled from reports submitted by the municipality. OSC performs a formal review of the information on an annual basis.

7 The summary graph projects a fiscal stress score based on a three-year trend analysis. This score is not based on data submitted by the municipality. The predicted score is most reliable for municipalities which have followed a level trend but is less reliable for municipalities with scores that do not follow a steady trend. Financial information provided on this page is pulled from reports submitted by the municipality. OSC performs a formal review of the information on an annual basis. However, OSC is unable to verify the accuracy of all the data elements upon which an entity s prior year fiscal stress score is based. Note: Fiscal data may change after fiscal stress scores are released for a given year. As a result, the data presented in this workbook may vary from previously released data. As of 31-AUG-2016 NYS Comptroller s Fiscal Stress Summary for Chenango County

8 Fiscal Indicators Value Scores Assigned & Unassigned FB/Gross Exp 1 (General Fund) 21.9% 24.8% 0 0 Assigned & Unassigned FB/Gross Exp (Combined Funds) 22.9% 26.2% 2 Total FB / Gross Exp (General Fund) 30.8% 32.1% 0 0 Total FB / Gross Exp (Combined Funds) 32.0% 33.9% # of Operating Deficits in Three Years or last year's deficit <= -10% 4 Cash Ratio (Cash/Current Liability) 714.2% 698.3% Cash as a % of Monthly Exp 467.1% 515.6% Short Term Debt Issuance (Debt/Revenues) 0.0% 0.0% Short Term Debt Trend (consecutive debt or BN in last year) Pers Srvc and Emp Benefits as a % of 8 Revenues (3 yr avg) 46.2% 47.4% Debt Service as a % of Revenues (3 yr avg) 0.1% 0.0% 0 0 Environmental Indicators Value Score 1 Change in Population -1.8% 3 2 Change in Median Age 11.7% 0 3 Median Age of Population Child Poverty Rate 18.7% 0 5 Change in Child Poverty Rate -1.4% 0 Change in Property Value (4 year 6 avg) 0.6% 0 7 Property Value Per Capita $47, Change in Unemployment Rate Unemployment Rate 6.2% 0 10 Change in Total Jobs in County -0.2% 1 11 Reliance on State and Federal Aid 24.1% 0 12 Change in State and Federal Aid 10.1% 0 13 Constitutional Tax Limit N/A N/A 14 Change in Sales Tax Receipts -0.8% 3 # NYS Comptroller s Indicator Scoring Summary For Chenango County

9 CHENANGO COUNTY DEMOGRAPHIC TRENDS

11 Chenango County Fiscal Score (Weighted)

12 Percent Exhausted 85 Chenango County Constitutional Tax Limit 10 Year Comparison of Percent Exhausted

13 Tax Rate Per Thousand Chenango County 10 Year Tax Rate Comparison Tax Cap Imposed Tentative Year

14 Millions Chenango County Sales Tax Year Comparison Tentanive Years

15 Billions

16 Millions Chenango County Ten Year Comparison Of Actual Expense To Revenue General Fund Revenues Expenses Year

$7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Applied Fund

17 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Applied Fund Balance Appropriation Of Surplus During The Fiscal Year Chenango County 10 Year Comparison Of Use Of General Fund Surplus 10 Year Average $4.4 Million

Home And Community Svces 3.56% Health 11.

38% Federal Aid 13% Other 2% Applied Surplus 3% Real

18 Transportation 21.02% Public Safety 12.27% Culture And Recreation 0.16% Economic Assistance 30.52% Education 1.45% CHENANGO COUNTY 2017 TENTATIVE BUDGET APPROPRIATIONS Home And Community Svces 3.56% Health 11.71% General Government 6.92% Fringe Benefits 12.38% Federal Aid 13% Other 2% Applied Surplus 3% Real Property Taxes 28% CHENANGO COUNTY 2017 TENTATIVE BUDGET REVENUES State Aid 16% Departmental Income 20% Other Tax Related Items 2% Sales Tax 16%

CHENANGO COUNTY 2017 TENTATIVE BUDGET HOW THE COUNTY TAX LEVY IS DISTRIBUTED BASED ON AVERAGE TENTATIVE COUNTY RATE FOR EVERY ONE THOUSAND DOLLARS IN TAXABLE FULL VALUE CHENANGO COUNTY 2017

39 Health $ 0.77 Legal and Court Facilities $ 0.74 Education $ 0.37 Home & Community Services $ 0.39 General Government 2.92% County Roads & Transportation 18.49% Health 5.

19 CHENANGO COUNTY 2017 TENTATIVE BUDGET HOW THE COUNTY TAX LEVY IS DISTRIBUTED BASED ON AVERAGE TENTATIVE COUNTY RATE FOR EVERY ONE THOUSAND DOLLARS IN TAXABLE FULL VALUE CHENANGO COUNTY 2017 PROPERTY TAX RATE DISTRIBUTION Economic Assistance $ 6.41 Public Safety $ 1.86 CHENANGO COUNTY 2017 PROPERTY TAX RATE DISTRIBUTION County Roads & Transportation $ 2.49 General Government $ 0.39 Health $ 0.77 Legal and Court Facilities $ 0.74 Education $ 0.37 Home & Community Services $ 0.39 General Government 2.92% County Roads & Transportation 18.49% Health 5.73% Legal and Courts 5.48% Education 2.75% Home & Community Services 2.87% Culture & Recreation 0.35% Culture & Recreation $ 0.05 AVERAGE COUNTY RATE PER THOUSAND $ Public Safety 13.82% Economic Assistance 47.60%

20 THE IMPACT OF MANDATES IN MAINTAINING COMPLIANCE WITH THE PROPERTY CAP

21 2015 NEW YORK STATE RANKING FOR USE OF LOCAL GOVERNMENT PROPERTY TAX DOLLARS AS A REVENUE SOURCE TO FUND STATE GOVERNMENT Source:

22 CHENANGO COUNTY 2017 TENTATIVE BUDGET IMPACT OF STATE PROGRAM MANDATES ON THE COUNTY PROPERTY TAX LEVY Mandated programs require a county to strictly adhere to rules set by the state, which define the scope, eligibility, frequency and level of service, amount of benefits, etc. The State also controls the levels of funding participation for these mandated programs Counties have virtually no ability to control the cost of these state dictated mandates. According to NYSAC, over the next several years the State will implement state tax rebate check programs and tax breaks for select special interest groups and industrial sectors, not including STAR, that will exceed $3 billion on an annual basis none of which will actually reduce any homeowner s or small businesses property tax bills. New York State has required county taxpayers to finance with local property taxes dozens of state mandated programs that, for the most part, other states do not finance through property taxes. We believe that one of the best ways to improve New York s economic climate and competitiveness is to not just to slow the rate of growth in property taxes, but to actually lower them from today s levels. We believe that aligning the cost of the state s mandated programs with the State Government, that defines and controls them, will result in an historic and sustainable reduction in county property taxes and create a more appropriate and equitable distribution of program costs. Combined, the following ten mandated programs make up 84.69% of the tentative County tax levy for 2017 compared to 81.18% in 2016.

CHENANGO COUNTY MEDICAID COSTS $10,500,000 $10,400,000 $10,300,000 $10,200,000 $10,100,000 $10,000,000 $9,900,000 $9,800,000 $9,700,000 2012 2013 2014 2015 2016 MEDICAID- Each week

Counties in New York spend more on Medicaid than all the counties in the rest of the nation combined. These are big numbers and they have big impacts on local property taxpayers.

23 CHENANGO COUNTY MEDICAID COSTS $10,500,000 $10,400,000 $10,300,000 $10,200,000 $10,100,000 $10,000,000 $9,900,000 $9,800,000 $9,700, MEDICAID- Each week counties and NYC send $140 million in local taxes to State bank accounts, in order to cover costs for the State Medicaid program. Counties in New York spend more on Medicaid than all the counties in the rest of the nation combined. These are big numbers and they have big impacts on local property taxpayers. The positive thing is that the state capped the growth in local Medicaid costs to no more than 3 % per year beginning in 2005, and beginning in 2015 these costs are to no longer grow. Impact to 2017 Tax Levy 9,936,000 Percent of 2017 Tax Levy 40.2%

24 CHENANGO COUNTY TEMPORARY ASSISTANCE FOR NEEDY FAMILIES COSTS $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ TEMPORARY ASSISTANCE FOR NEEDY FAMILIES-(TANF)-provides time-limited cash assistance and non-cash support services to low income families. The impact of the state withdrawing its fiscal commitment to their programs puts counties at full financial risk for administering these programs and has shifted more than $300 million annually to counties taxpayers in order to backfill the loss of state administrative funding. Impact to 2017 Tax Levy $850,000 Percent of 2017 Tax Levy 3.44%

CHENANGO COUNTY SAFETY NET COSTS $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2011 2012 2013 2014 2015 2016 SAFETY NET-While the program historically was funded

25 CHENANGO COUNTY SAFETY NET COSTS $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ SAFETY NET-While the program historically was funded 50 percent by the State and 50 percent by counties, the State budget increased the local share to 71 percent and dropped the State share to 29 percent. Indigent burials mandated under this program are subsidized by the State at $ per burial. Impact to 2017 Tax Levy $855,000 Percent of 2017 Tax Levy 3.46%

CHENANGO COUNTY CHILD WELFARE COSTS $1,700,000 $1,650,000 $1,600,000 $1,550,000 $1,500,000 $1,450,000 $1,400,000 $1,350,000 2011 2012

Over the last two budget cycles the State has cut its share of non-federal funding from about 65 percent down to 62 percent, shifting

26 CHENANGO COUNTY CHILD WELFARE COSTS $1,700,000 $1,650,000 $1,600,000 $1,550,000 $1,500,000 $1,450,000 $1,400,000 $1,350, CHILD WELFARE-Counties administer and fund a share of the costs of providing child welfare services to children and families in need. These activities include services, interventions and investigations designed to prevent child abuse and protect children s welfare. Over the last two budget cycles the State has cut its share of non-federal funding from about 65 percent down to 62 percent, shifting about $60 million in costs to counties, which now cover 38 percent of the costs for Child Welfare. These cost shifts result in direct cost increases for local Property taxpayers to support State program. Impact to 2017 Tax Levy $1,375,000 Percent of 2017 Tax Levy 5.57%

CHENANGO COUNTY INDIGENT DEFENSE COSTS $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2011 2012 2013 2014 2015 2016 INDIGENT DEFENSE-As required by constitutional mandate, New York enacted

27 CHENANGO COUNTY INDIGENT DEFENSE COSTS $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ INDIGENT DEFENSE-As required by constitutional mandate, New York enacted Article 18-B of the County Law that requires each county to establish a plan to provide counsel to indigent defendants. One of the major problems with this system is that it places significant financial burden on the counties as well as potentially huge, unexpected cost swings between fiscal years. Current legislation passed unanimously by the State Legislature, currently sits on the Governor's desk unsigned. Impact to 2017 Tax Levy $481,702 Percent of 2017 Tax Levy 1.95%

CHENANGO COUNTY PRESCHOOL EDUCATION AND EARLY INTERVENTION COSTS $965,000 $960,000 $955,000 $950,000 $945,000 $940,000 $935,000 $930,000 2011 2012 2013 2014 2015 2016 PRESCHOOL SPECIAL EDUCATION and

Federal and state law places responsibility for the program with the education system and gives decision-making authority to school districts.

28 CHENANGO COUNTY PRESCHOOL EDUCATION AND EARLY INTERVENTION COSTS $965,000 $960,000 $955,000 $950,000 $945,000 $940,000 $935,000 $930, PRESCHOOL SPECIAL EDUCATION and EARLY INTERVENTION -Even though counties continue to bear the financial burden for service. Federal and state law places responsibility for the program with the education system and gives decision-making authority to school districts. The early Intervention Program (EIP) provides services to children 0-3 years of age who have developmental delays or disabilities. Since its inception, the cost to provide services to eligible children has increased dramatically and now exceeds $650 million annually, with counties responsible for $330 million of this total. Impact to 2017 Tax Levy $1,056,786 Percent of 2017 Tax Levy 4.28%

CHENANGO COUNTY PROBATION COSTS $380,000 $370,000 $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 $300,000 $290,000 2011 2012 2013 2014 2015 2016 PROBATION-Probation services are provided by

29 CHENANGO COUNTY PROBATION COSTS $380,000 $370,000 $360,000 $350,000 $340,000 $330,000 $320,000 $310,000 $300,000 $290, PROBATION-Probation services are provided by counties as mandated under New York State Executive Law. Over the last several decades, State reimbursement to counties for probation has dwindled, leaving counties to shoulder an increasing share of the costs for this program 82.76% of costs are now supported by county taxpayers. Impact to 2017 Tax Levy $376,755 Percent of 2017 Tax Levy 1.53%

30 CHENANGO COUNTY CORRECTIONAL FACILITY COSTS $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ JAIL AND CORRECTIONAL FACILITY-Counties are required under State law to operate and maintain local jails at local expense. The State determines the standards for the operation and maintenance of jail facilities including mandatory staffing levels, size and construction of the facilities with little regard for cost savings and efficiencies Impact to 2017 Tax Levy $1,403,023 Percent of 2017 Tax Levy 5.68%

CHENANGO COUNTY NYS RETIREMENT FUND COSTS $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2011 2012 2013 2014 2015 2016 NYS RETIREMENT

31 CHENANGO COUNTY NYS RETIREMENT FUND COSTS $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ NYS RETIREMENT FUND-Counties are required to participate in the New York State Public Employees Retirement System, along with other local governments. However, counties have no control over pension costs or benefits awarded to their own employees as these benefit levels are determined by the Governor and State Legislature. Impact to 2017 Tax Levy $3,,328,185 Percent of 2017 Tax Levy 13.48%

32 COMMUNITY COLLEGE CHARGEBACKS EST 2016 General Charges High School Charges COMMUNITY COLLEGE FUNDING-Costs associated with community colleges were established under state law as a three way partnership between the state, county and the student with an expectation and statutory requirement that each would share equally in the cost of providing educational services. Over the years the equal sharing of costs arrangement has been breached by the State legislature through permanent law formula overrides as part of the annual State budget process and to address state budget shortfalls. A recent trend is for community colleges to sponsor credit bearing courses in district high schools using district staff and facilities and charging back counties for sponsored FTE units as well as capital chargebacks for on-campus infrastructure improvements. Community college charges associated with these courses increased mandated chargeback costs by 22.75% in Impact to 2017 Tax Levy $1,260,000 Percent of 2017 Tax Levy 5.10%

2018 Preliminary Budget For Board Review

2018 Preliminary Budget For Board Review 1) Have a balanced budget using reasonable revenue and expense expectations. 2) Other than in exigent circumstances adhere to the tax cap. 3) Maintain a NY State