Notes a Number of Ambiguities, Exaggerations and Errors in Plan Submitted for Approval by County Control Board
ERIE COUNTY, NY—Today, Erie County Comptroller Mark Poloncarz sent a letter to the Erie County Fiscal Stability Authority (“ECFSA” or the “Authority”) detailing his concerns with the county executive’s revised Four-Year Plan 2011-2014 (the “Plan”), which was submitted to the ECFSA on March 31, 2011, and expected to be voted on by the Authority later this afternoon.
“The county executive’s Four-Year Plan includes a number of ambiguities, exaggerations and errors that I am concerned about and I believe the ECFSA should consider as they decide on approving the Plan,” said Poloncarz. “Although this Plan shows no budget gaps in the out-years, as has been the case in the past, the potential budget gap closers are vague at best and cannot be confirmed without the addition of meaningful detail.”
In the letter, Poloncarz notes specific areas of concern including:
- Overoptimistic sales tax growth—Plan relies heavily on a 3% growth in sales tax even though there is little data supporting that assumption;
- Lack of detail regarding elimination of 300 positions—Claims of $9.5 million in savings and alleged impact of Six Sigma cannot be substantiated by any data within the Plan;
- No budgeted increase in Unemployment Insurance (“UI”) Benefits—Last year, in conjunction with the elimination of 220 filled positions UI expenses rose to more than $2.9 million, yet no such increase is budgeted for 2012 in conjunction with the elimination of positions noted above;
- Lack of detail regarding plan to increase auto purchases—Program’s success is predicated on a number of factors which are not detailed in the Plan and until a thorough cost-benefit analysis is performed actual cost savings cannot be substantiated;
- Debt retirement figures are incorrect, misleading—$190 million figure cited in the Plan incorrectly includes $101 million ECMCC bond guarantee and more than $37 million in debt retired between 2007-08, before Collins took office;
- Errors in Undesignated Fund Balance (“UFB”) calculation—Items are inappropriately added to the audited 2010 UFB, boosting the Estimated 12/31/14 UFB more than $10 million to $29.3 million; and,
- Downplays $8 million property tax increase from 2011—Cites an estimated $10 million surplus made almost entirely of $8 million in property tax levy from 2011 that is still subject to pending court ruling.
Click here to view a copy of the letter sent by Poloncarz to the ECFSA