Local legislators in Albany are hoping to do away with an annual back-and-forth for state aid.
The Albany Common Council unanimously passed a resolution saying so-called “Capital City” funding in the amount of $15 million dollars should be permanent in the annual New York state budget.
Councilors say Democratic Mayor Kathy Sheehan shouldn't have to make the visit to “tin cup day” at the capitol every year to request capital city funding to help offset the cost to Albany of hosting state government.
The city budget is typically completed with expectations the state funding will come through, but that often isn’t clear until the state budget is passed months later.
Owusu Anane, a Democrat who represents the 10th ward, introduced the resolution. He says without the money, Albany faces a choice of either severe cuts services or unprecedented tax hikes in the 20 to 25% range. He argues that residents and businesses will bear the brunt of the financial impact if the funding is denied. He spoke at the panel's most recent meeting, just prior to the vote.
"Even the amount we're asking for doesn't cover the full cost of hosting state government," said Anane. "Yet we ask for $15 million dollars as a recognition in part that Albany has a burden that no comparable city in our state does have. We need the state to act as a partner and better assist our city with the challenges of hosting state government."
The request by Albany mayors is nothing new. In 2017. Sheehan told lawmakers homeowners and residents throughout 25 unique neighborhoods bear a disproportionate burden of the Albany's tax levy.
"It is a city that doubles in population nearly every day, and that's great for the economy but it's actually a both of a mixed blessing for the city of Albany, because those employees, most of them, walk into tax-exempt buildings," said Sheehan. "Our largest employers, other than state government, are Albany Medical Center, St. Peter's Hospital, the VA, Memorial Hospital, UAlbany, SUNY Poly, the Center For Disabilities Services. Those are the large employers in this area, and all of them enjoy tax-exemption. And we, while we would benefit from sales tax revenues that employees generate at lunch time, many of these large institutions, actually all of these large institutions, provide on-site dining and sales taxes here countywide. So the sales tax dollars generated in the city of Albany are taken by the county and then distributed countywide based on population."
$15 million is the highest amount the city has ever received. In previous years the city had asked for $12.5 million. Sheehan reacted to the passage of the council's resolution:
"It doesn't have legal teeth," Sheehan said. "But it certainly is helpful to have the support of the council with respect to our capital city funding. It's something that we work with the council on every year. And they are supportive of that request and supportive of making it permanent. And so I'm grateful to them for taking this action again. And we continue to make the case, I think that we have demonstrated that we are great stewards of taxpayer dollars, and that the capital city needs to ensure that with the huge amount of on taxable property that we have in the city, that we're able to provide a central city services to those workers who are coming into our city to work in those large institutions."
Sheehan says fellow Democrat Governor Kathy Hochul has served in local government and understands the challenge.
"I think we've had some very productive conversations," Sheehan said. "It's something that we continue to work on. I am very active in the New York Conference of Mayors. And so this isn't just about the city of Albany, but it's about really looking at our cities across the state, which are economic engines for the state, and understanding the resources that they need and what we can do working together with the state to ensure that we have those resources in place."
Hochul's office offered a brief response to a request for comment: “The Governor will announce the details of her FY 2024 Executive Budget next month,” noting that fiscal year 2023 is the first time the budget included the funding; in prior years it was added later during negotiations.
