Suozzi Talks Taxes At GC Hotel

Suozzi Talks Taxes At GC Hotel Photos and Story By Geoffrey Walter  

For those who want to see more cuts in expenditures Suozzi said "I don't know where else to cut. Just tell me which specific thing you want me to cut and how much money we'll save. Most of what we do is mandated by the State."

"This is a very, very tough time for everybody economically," Tom Suozzi said as he spoke before a Chamber of Commerce luncheon at the Garden City Hotel last Wednesday afternoon. Asked to move his speaking engagement up by one month, the County Executive's speech on the ongoing local tax issue could not have come at a more à propos time given the current economic conditions both locally and nationally. Obvious issues such as the County budget and property taxes were included in the address, as was economic development, and an idea to reverse the steady stream of youth migration towards the city, called "cool" downtowns.

Nassau's two major sources of income are property and sales taxes, the latter accounting for one billion of the County's $2.5 billion budget last year. While sales taxes have historically grown at a rate of 3.5 percent per year, they only grew at a 2.1 percent in 2008, which amounts to a projected 45 million shortfall for 2009. Adding to the problem is that the County's investment income and park usage are down, while the number of people on public assistance is up and the cost of fuel is rising. "We've got a $100 million problem we're facing," Suozzi said.

The County Executive touted that under his administration, the budget had only grown an average of 2.7 percent per year, half the current rate of inflation. Reducing the County workforce and receiving concessions from the police dept. union and other contracts were among the reasons he gave for the low increases. But despite these efforts, the budget grows by about $75 million every year. "We haven't raised the County portion of your property taxes for five consecutive years," Suozzi told Chamber members, explaining that the growth in sales tax and cuts helped to alleviate the increases in expenditures. "Because of that the County portion of your property tax bill has gone from what was 22 .5 percent of your bill... now down to 17.5 percent." For 2009 the County will implement $70 million in cuts, and a 3.9 percent increase in property taxes to generate $30 million. For those who want to see more cuts in expenditures Suozzi said "I don't know where else to cut. Just tell me which specific thing you want me to cut and how much money we'll save. Most of what we do is mandated by the State." In response to a question if the decrease in housing assessments would impact the budget, Suozzi said that as home assessments increased, he changed the County tax rate while keeping the tax levy flat. "I have not brought in more money by increasing... I kept the levy flat for five years... so the decline in assessments will not affect our budget."

Suozzi currently serves as chairman of the State Commission on Property Tax Relief and was reappointed after Gov. David Patterson (D) took office. Currently local New York State taxes are 79 percent higher than the rest of the country, with three of the most taxing counties in the country: Westchester, Nassau, and Rockland "This is a Statewide systemic problem," Suozzi said. One of the primary reasons Suozzi gave for the high amount of taxes is that New York spends more per student than any other state in the country, yet ranks around 30th in academic achievement overall. There is also only two revenue sources for school districts - property taxes and State Aid. Currently, Long Island taxpayers send $3 billion more to Albany than they receive back in State aid for school districts. "We're subsidizing them," Suozzi said of the counties North of Rockland. New York also lags behind the rest of the country in spending in State Aid - giving 43 percent where the national average is 45 percent.

Going forward, Suozzi said that there are only three choices: reduce the expenses or reduce the rate of growth of expense via a tax cap; increase the State Aid; continue to pay for the schools by continuing to increase property taxes at their current rates. Gov. Patterson and Suozzi's commission have advocated taking the third option off the table in favor of the four percent annual tax cap on school budget increases. Unfunded mandates also place a heavy burden on school districts. For example, defibrillators - while life saving - cost school districts as much as $100,000. "Stop having us pay for it through our property taxes!" Suozzi said.

Characterizing the County as "suburban sprawl," and filled with NIMBYism (Not In My Back Yard), Suozzi advocating creating more of a downtown area, similar to the revitalization that has occurred in the boros of Brooklyn, Queens, and Manhattan, which have lured more and more young working people in recent years. Part of the economic development plan involves what has become known as the "Nassau Hub" - a transit system with the Nassau Coliseum, Roosevelt Field, and Hofstra as its center, as well as over 100 acres in Bethpage in addition to tourism and the "cool downtowns, " however, the challenge with the Hub is finding a way from the Mineola train station to the Coliseum without taking a car and "nobody wants to use the Garden City secondary line."

While cities were founded on "FIRE" - finance, insurance, and real estate - Suozzi advocated "ICE" - ideas, culture, and education - which will attract "young college graduates," who currently are not moving to or staying in the County because it is "boring and because it's expensive." Suozzi's "cool downtowns" involve multi-story housing near a railroad station, restaurants and shops, and office buildings. He pointed to Garden City, Rockville Centre, Great Neck, and Long Beach as models that other places like Hicksville, Freeport, Glen Cove, Port Washington, Lynbrook, Valley Stream and Hempstead needed to replicate.

"The bottom line is, this is still a great place to live," Suozzi said. "We've got to continue to keep it great and to do that we can't just play defense, hanging on to yesterday... we have to think of how to make it better."