Romaine Budget Comes With Tax Hike
Pointing to increased health care and pension costs for county workers and investments in public safety and cybersecurity, Suffolk Executive Ed Romaine has called for a tax hike in his first budget as chief executive.
"The proposed tax hike is necessary to maintain fiscal responsibility while investing in our future," Romaine said as part of his budget announcement. "While we understand the financial impact on residents, this increase is essential to sustain the level of services the county provides, especially in areas like infrastructure, public safety, and environmental initiatives."
Romaine’s $4 billion spending plan, 3.7% higher than the last budget of his predecessor, Steve Bellone, stays within the state-mandated tax cap of 2%. The average homeowner in Suffolk’s five western towns will see an annual property tax increase of $49, while those on the East End will see theirs go up $4.60. The plan fulfills Romaine’s campaign pledge to bolster law enforcement with funds to hire 225 more police officers, giving the county a net gain of 95 after expected retirements. Thirty new deputy sheriffs and 14 probation officers will be brought on board if the county legislature approves the spending plan.
The county executive, credited with turning around the finances of Brookhaven when he served as town supervisor, faced stiff headwinds in crafting his inaugural budget. Increased employee health care and pension costs came in at about $109 million, and he was also staring down the loss of $8 million due to the red light camera program expiring at the end of the year thanks to the failure of the county to secure its renewal from the state and $13 million in limbo from lawsuits challenging its school bus camera program.
Increased prescription drug costs for county employees are also weighing down the budget, Romaine reported, noting that a switch from Anthem Blue Cross to Aetna for the employee health plan starting in January is expected to save the county $100 million over the next five years.
The county executive also cited inflation and projected decreases in sales tax revenue as additional drags on county resources.
Suffolk derives about $2 billion from its 8.625% sales tax, about half its budget, and is projecting a $50 million shortfall as consumers are expected to pull back on spending. Snagging 4% of Suffolk’s sales tax, the state will also take a hit from the reduced revenues.
Romaine’s budget bolsters the Department of Social Services and its Child Protective Services Division in the wake of the Thomas Valva tragedy, the East Moriches boy killed by his father after numerous complaints of abuse came into the county. He’s also increasing cybersecurity spending to deter attacks like the one that shut down Suffolk’s computer system for months under Bellone. The budget also calls for moving the county’s emergency medical services department from the Health Department to FERS, the Department of Fire, Rescue and Emergency Services. The proposal also funds Romaine’s environmental preservation priorities, including wetland restoration, and improves the county’s parks and historic assets.
According to the county executive, the tax increase will allow the administration to carry its operations without tapping into its reserves, a key factor in a recent bond rating upgrade from the Wall Street agency Fitch from A- under Bellone to A. “This sets the stage for future upgrades as we continue to budget responsibly while we ‘rightsize’ government and deliver the services expected by the residents of Suffolk County," Romaine said. "The rating increase will save millions of taxpayer dollars over the long-term based on the county’s newfound ability to sell bonds at a decreased interest rate."
Suffolk’s reserve fund is nearly 15% of its total spending, according to Fitch, which could drop the county’s rating if cash on hand falls below this cushion. The county still has a long way to go to achieve the AAA rating Romaine secured for Brookhaven.
Romaine appears to have taken a page from the playbook of former county executive Pat Halpin, who also raised taxes during his first year in office, although at double digits. This earned him the moniker “High Tax Halpin,” which he could never shake, leading to his defeat four years later. Romaine, 77, has said he will not seek a second term and can feasibly take unpopular actions such as tax hikes without worrying about reelection. The county executive will need the wiggle room as the contracts with nine employee unions expire at the end of the year, agreements that will most likely result in increased county spending.