The budget proposal, which Metzger presented at Marlborough Town Court in Milton Tuesday, makes investments in housing and infrastructure without increasing property or sales taxes.
Speaking with WAMC, the Democrat says keeping the tax levy flat required some careful planning on the county’s part. The budget actually ups spending by $32 million from 2023, most of it tied to contractual agreements and mandated spending for three state programs: Medicaid, the Safety Net, and the Early Intervention Program.
"They're critical social services that serve our communities, but there was, in the area of Medicaid, there was a cost shift of a portion of Medicaid spending from the state to the counties," Metzger explains. "So all counties in the state have taken a bit of a hit on that."
New York State Comptroller Tom DiNapoli has warned local governments to limit spending as they develop their budgets for the coming year, citing high inflation and dwindling funds from the American Rescue Plan Act. Metzger expects Ulster County’s unrestricted fund balance to exceed $110 million going into 2024, based on a yet-uncertified analysis of the county’s books by an independent accounting firm. Given the unofficial status of those numbers, Metzger says her plan reserves 20 percent of the county’s operating expenses as rainy-day funds, the maximum allowed by county policy.
The budget also includes investments in several initiatives having to do with housing, infrastructure, broadband coverage, mental health, and the environment. Earlier this year, the county legislature approved the creation of a Housing Action Fund and seeded it with $15 million from the budget surplus to promote the development of affordable housing. To keep it running, Metzger’s budget calls for an increase in the occupancy tax rate from 2 to 4 percent, and for 25 percent of that revenue be dedicated to the fund each year.
"And it really makes to focus on the occupancy tax as a source of revenue, because the occupancy tax is the bed tax on motels, AirBnbs — and since short-term rentals is one of the drivers of the housing crisis, it just really makes sense to put that revenue to use in expanding permanent housing options for our residents," she notes.
Metzger says the budget proposal would also create a new housing and homelessness unit within the department of social services, to more quickly help those in need of emergency housing. The department of public works would also see added positions, as part of a $20 million investment in improving roads and bridges.
"We have a backlog of bridges that need to be repaired," says Metzger. "We also have new challenges in the face of climate change, with 100-year storms happening every 20 years, and we have a lot of work to do on culverts, on bridges, in our built environment, our infrastructure, to keep people safe."
On that note, Metzger’s budget also calls for the creation of a Decarbonization Capital Reserve, using $18 million from the budget surplus, to fund projects reducing emissions at government buildings. Earlier this year, Metzger signed an executive order aligning the county’s climate goals with the New York Climate Act, calling on the county to meet 100 percent of its electricity needs with clean energy.
Some of the budget continues projects initially launched with ARPA funding. For example, Metzger’s plan allocates $3.8 million to continue mental health supports in middle schools across the county. Metzger says the county has allocated the vast majority of its ARPA funding by now, but it is still distributing the funds. She says the county plans to launch a $2.5 million program providing grants to municipalities for solar projects next year.
"The main focus of this budget, really, is to make sure that we're investing in our infrastructure needs, in our housing needs, and helping our community members to thrive — but doing it all in a fiscally responsible way. That's the goal," says Metzger. "And we think we've put together a very solid budget for 2024."
The budget now goes to the county legislature for review, where it must be approved by the end of the year.
