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A Pathway to Financial Health

2014 ALBANY COUNTY

EXECUTIVE BUDGET

DANIEL P. MCCOY COUNTY EXECUTIVE DAVID J. FRIEDFEL COMMISSIONER WWW.ALBANYCOUNTY.COM COUNTY EXECUTIVE'S OFFICE
DANIEL P. MCCOY
COUNTY EXECUTIVE
DAVID J. FRIEDFEL
COMMISSIONER
WWW.ALBANYCOUNTY.COM
COUNTY EXECUTIVE'S OFFICE
PHONE (518) 447 ‐ 7040
FAX (518) 447 ‐ 5589

A Pathway to Financial Health

2014 ALBANY COUNTY

EXECUTIVE BUDGET

DANIEL P. MCCOY

COUNTY EXECUTIVE

DAVID J. FRIEDFEL

COMMISSIONER

P. MCCOY COUNTY EXECUTIVE DAVID J. FRIEDFEL COMMISSIONER WWW.ALBANYCOUNTY.COM COUNTY EXECUTIVE'S OFFICE PHONE

WWW.ALBANYCOUNTY.COM COUNTY EXECUTIVE'S OFFICE PHONE (518) 447 7040 FAX (518) 447 5589

COMMISSIONER WWW.ALBANYCOUNTY.COM COUNTY EXECUTIVE'S OFFICE PHONE (518) 447 ‐ 7040 FAX (518) 447 ‐ 5589

© 2013 County of Albany Printed by the Department of General Services, Central Prin ng Services

2014 EXECUTIVE BUDGET

TABLE OF CONTENTS

INTRODUCTION AND HIGHLIGHTS Budget Message from the County Execu ve …………………………………………………… ………………………………………………………. County Elected O cials ……………………………….………………………………………………………………………………………………………… County Legislators …………… County Departments ………………….…………………………………………………………………………………………………………………………… How to Use the Budget Publica on ………………………………………………………………………………………………………………………… Economic Forecast …………………………………………………………………………………………………………………………………………………… County Fiscal Strategies/Financial Plan ………………………………………………………………………………………………………………………. FUND BALANCE AND RESERVES Fund Balance …………………………………………………………………………………………………………………………………………… Reserves …………………………………………………………………………………………………………………………………………………… SUMMARY BUDGETS ……………………………………………………………………………………………………………………………………………… Proposed Appropria on and Revenues Summary of All Funds Appropria ons Summary of All Funds Revenue Summary of All Funds LOCAL GOVERNMENT EXEMPTION IMPACT REPO RT……………………………………………………………………………………………… A FUND EXECUTIVE DEPARTMENT BUDGETS 18B Public Defense Payments ………………………………………………………………………………………………………………………………… Aging ……………………………………………………………………………………………………………………………………………………………………… Alternate Public Defender ………………………………………………………………………………………………………………………………………… Board of Elec ons ………………………………………………………………………………………… Capital District Transporta on Authority ………………………………………………………………………… Children, Youth and Families ……………………………………………………………………………………………………………………………………

Civic Center ……………………………………………………………………………………………………………………

……………………………………… Civil Service ……………………………………………………………………………………………………………………………………………………………… Community College Tui on ……………………………………………………………………………………………………………………………………… Con ngent Account ………………………………………………………………………………………………… Cornell Coopera ve Extension ………………………………………………………………………………………………………………………………… County Execu ve ………… ………………………………………………………………………………………………………………………………

………… Crime Vic m and Sexual Violence Center ……………………………………………………………………………… ………… ……………………… Economic Development, Conserva on, and Planning ………………………………………………………………………………………………

Ethics Commission …………………………………………………………………………………………………………………………………………………… General Services ……………………………………………………………………………………………………………………………………………………… Health …………………………………………………………………………………………………………………………………………………………………… … Hockey Facility ………………………………………………………………………………………………………………………………………………………… Human Resources ………………………………………………………………………………………………………………………………………………… Jus ces and Constables …………………………………………………………………………………………………………………………………………… Law (County A orney) ……………………………………………………………………………………………………………………………………………… Management and Budget …………………………………………………………………………………………………………………………………………

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2014 EXECUTIVE BUDGET

TABLE OF CONTENTS

A FUND EXECUTIVE DEPARTMENTS (con nued) Mental Health ……………………………………………………………………………………………………… ……………………………………………… Proba on ………………………………………………………………………………………………………………………………………………………………… Public Defender ……………………………………………………………………………………………………………………………………………………… Re rement Stabiliza on……………………………………………………………………………… …………………………………………………… … Social Services ………………………………………………………………… …………………………………… Soil and Water Conserva on District ……………………………………………………………………………………………………………………… Veterans Service Bureau ………………………………………………………………………………………………………………………………………… A FUND SEPARATELY ELECTED DEPARTMENT BUDGETS Audit and Control (Comptroller) ……………….……………………………………………………………………………………………………………… Coroners ………………………………………………………………… …………………………………………… County Clerk and Hall of Records (County Archives) ………………………………………………………………………………………………… District A orney ……………………………………………………………………………………………………………………………………………………… Legislature ……………………………………………………………………………………………………………………………………………………………… Sheri……………………………………………………………………… A Fund Summary ……………………………………………………………………………………………………………………………………………… CD/ CS/ D/ DM/ G/ NH FUND DEPARTMENT BUDGETS Community Development Fund ………………………………………………………………………………………………………………………………

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CD Fund Summary ……………………………………………………………………………………………………………

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Risk Reten on Fund ………………………………………………………………………………………………………………………………………………

CS

Fund Summary ……………………………………………………………………………………………………………………………

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Public Works/Road Machinery ……………………………………………………………………………………………………………………

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D Fund Summary …………………………………………

DM Fund Summary ……………………………………………………………………………………………………………………………… ……

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Sewer District …………………………………………………………………………………………………………………………………………………

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G Fund Summary ……………………………………………………………………………………………………………………………………

Residen al Health Care Facili es (Nursing Home) …………………………………………

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NH Fund Summary …………………………………………………………………………………………………………………………………

DEBT SERVICE FUND ……………………………

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V Fund Summary ………………………………………………………………………………………………………………………………

CAPITAL PROGRAM

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A

Fund Projects ……………………………………

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D

Fund Projects ……………………………

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G

Fund Projects ………………………………

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NH Fund Projects………………………… …………………………………………………………………………………………………….………

GLOSSARY OF TERMS …………………………………………………………… ACCOUNT CODES …………………………………………………………………………………………………………………………………………………

2014 ALBANY COUNTY EXECUTIVE BUDGET INTRODUCTION AND HIGHLIGHTS MESSAGE FROM YOUR COUNTY EXECUTIVE Daniel P.

2014 ALBANY COUNTY EXECUTIVE BUDGET

INTRODUCTION AND HIGHLIGHTS

MESSAGE FROM YOUR COUNTY EXECUTIVE

Daniel P. McCoy

County Execu ve

David J. Friedfel

Commissioner of Management & Budget

J. Friedfel Commissioner of Management & Budget County of Albany | State of New York |

OFFICE OF THE COUNTY EXECUTIVE

112 State Street, Room 825 Albany, New York 12207 Phone: (518) 447 7040 Fax: (518) 447 5589

Daniel P. McCoy, County Execu ve County_Execu ve@albanycounty.com

Bradley Fischer, Deputy County Execu ve Bradley.Fischer@albanycounty.com

John T. Evers, Director of Opera ons John.Evers@albanycounty.com

2014 BUDGET MESSAGE FROM DANIEL P. McCOY

October 2013

To the Members of the Albany County Legislature and the People of Albany County,

I present to you a 2014 Execu ve Budget that is balanced; meets our duciary responsibili es as well as moral obliga ons; and

is a path to nancial health for Albany County. This budget meets th e need s of Albany County residents and is un der the prop

erty tax cap, a remarkable accomplishment given the nancial burden that the County has been under since 2008. In fact, this increase of 1.6% is the lowest in the last 5 budget years. When I took oce in 2012, it was apparent the nancial hardship th e County was shouldering. Facing an inherited $15 million rolling decit, my administra on has aggressively sought to reduce spending, streamline opera ons and con nue to eciently deliver vital services. Innova ve thinking and diligence have elimi

nated millions from our decit, reducing it to $10.9 million. Likewise, our general fund reserves increased from $23.2 million to $27.4 million during 2012. It is important that this gure con nues to grow in order to ensure that our bond ra ng does not

su er. This was not achieved through a oneshot tax increase or budget tricks but with true savings during a me of nancial crisis. As County Execu ve, I am proud that this administra on has been able to step up and deliver a budget that is under the property tax cap.

A debilita ng recession forced us to nd eciencies and cost savings since day one of my administra on. During my second

State of the County Address in March 2013, I talked about a road to nancial recovery. Internally, physical consolida on of

many County departments has also achieved drama c savings and increased revenues.

I’ve taken this cost savings and consolida on message to each of our municipali es during a State of the County tour. Leaders throughout Albany County agree that with all local governments facing similar nancial constraints, we need to work together.

In furtherance of that eort, this year the County has successfully obtained a grant for a countywide shared highway services

study. We’ve worked with the Sheri ’s Oce to consolidate dispatch centers in several municipali es and will con nue to explore each and every op on to share services and maximize our limited resourc e s while we regain our nancial foo ng.

In stride with our eorts to bring Albany County into the 21 st century, my administra on has created Team Green which focus

es on environmentally valuable and crucial cost saving ini a ves. Each of these eorts is noted throughout this booklet by a leaf logo. Addi onally, our Team Green subcommi ee, which consists of representa ves from each county department, meets regularly to discuss progress on green ini a ves and to collaborate on new ideas. Through improvements in our recycling poli cies, paper reduc on eorts and the implementa on of our countywide County of Albany Legisla ve Management (CALM)

system, we are mi ga ng our environmental impact while also saving money. This is truly essen al and exci ng progress for Albany County.

Perhaps one of the most transforma ve accomplishments for Albany County in 2013 was the reopening of Lawson Lake to the public. In my State of the County Address, I highlighted Lawson Lake as one of our area’s greatest assets, pledging to work with Albany County SheriCraig Apple and Albany County District A orney David Soares to revitalize the grounds so that kids could once again experience summer at the lake. The immediate renova ons and developments included rehabilita on of exis ng buildings and facility improvements such as air condi oning, landscaping, increased Sheripatrols and new trail markings done by the Albany County Sheri Explorers. These renova ons were done in part by the Boys and Girls Clubs of Albany and the In mate Workforce provided by the Albany County Sheri .

In conjunc on with our in valuable partners, St. Catherine’s Center for Children, The Pride Center of the Capital Region, Boys &

Girls Clubs of Albany and CDTA, we were able to host a free day camp in July and August. The ability to partner with public and

private en es to revive a moribund facility is a shining example of what we can accomp lish. Our ul mate goal is to open up Lawson Lake for overnight guests and restore all buildings and grounds

2014 BUDGET MESSAGE FROM DANIEL P. McCOY

for use. We can con nue to improve our County and create unique opportuni es for our residents with partnerships of this kind. There are a number of other programs and services provided by Albany County that I would like to highlight. Our Department of Social Services Welfare Fraud Unit has worked with the Sheri’s O ce to inves gate fraud which resulted in a numb er of arrests. The Welfare Fraud Unit has iden ed more than $270,000 in funds for recovery from cases closed due to fraudulent DSS child care claims. Our foster care costs are the lowest in the State when compared to other coun es of our size, a credit to the work of our Department for Children Youth and Families. Our Veterans Service Bureau has partnered with many private and nonpro t en es to provide coats for homeless veterans and to spread the word about the Veteran’s Tax Exemp on deadline in Marc h. This is just a snapshot of our progress and improvement to necessary programs and services that Albany County o ers.

One issue that dominates the budget discussion in Albany County is the fate of the Albany County Nursing Home. Opera ons cost the County one million ($1,000,000.00) dollars per month. One year ago, I proposed a solu on that would protect our vulnerable seniors and their caregivers; protect our taxpayers and accept nancial responsibility. My proposal to lease the facility to a proprietary operator would have saved taxpayers no less than $100 million over the next ten years. The Legislature did not agree to this straigh orward solu on th at would have protected our seniors while providing addi onal services to seniors resid ing in the community. A er months of discussion and nego a on with majority leadership, I agreed to hire an administrator for the nursing home to con nue running the facility while the Legislature creates a Local Development Corpora on. This budget reects County funding for the nursing home un l June 30, 2014, by which me the Local Development Corpora on will take over opera ons. Such ac on will put Albany County on be er and more stable nancial ground.

Another detriment to our nancial health is the issue of unfunded mandates. Par cularly there are eight unfunded mandates dispropor onately driving our tax levy. Those mandates are Medicaid, public assistance, child welfare, preschool educa on, indigent defense, proba on, early interven on, and youth deten on. These expenditures are beyond our control, but there is good news. Increases to weekly Medicaid contribu ons rose less than expected in 2013, which speed up future savings into 2013. Similarly, early reports indicate that our weekly Medicaid share in 2014 will be stable or decrease slightly. In order to rein in our indigent legal defense costs, this budget includes grant monies that have been awarded, which will allow us to hire a coordinator who will focus on ensuring only those who truly are indigent receive our 18B assigned counsel servic es. Finally, a er years of double digit increases in state pension contribu ons, rates have begun to stabilize. While we cannot take full advantage of this benet due to past amor za ons, it provides much needed relief from the constant escala ons of the recent past. I con nue to work with the New York Associa on of Coun es and my counterparts in the Greater Capital Region to lobby our legisla ve lead ers for mandate relief. A list of the most expensive mandates can be found on the back cover of this budget book. An addi onal expense to the County involves the cost for Albany County residents to a end community colleges. We have two community colleges in our immediate area: Hudson Valley Community College (“HVCC”) and Schenectady County Community College (“SCCC”). Everyone should have access to higher educa on, but the County is paying a dispropor onately large amount per student to HVCC. Albany County paid $8.7 million in 2012 for its residents to a end HVCC. State Educa on Law provides that the cost of tui on for any student a ending a state community college shall be divided using a formula: 1/3 paid from the State, 1/3 by the student and 1/3 from the county that the student resides. This formula hasn’t been used. We are dispropor onately subsidizing HVCC and have no control, oversight or input on how these funds are allocated by the College. We are required to pay millions of dollars but there is no accountability to th e taxpayers of Albany County.

In an eort to provide educa onal and economic opportuni es to Albany County residents and reduce this nancial mandate, I have engaged in a new partnership with SCCC. In 2014, SCCC will be o ering classes in the

2014 BUDGET MESSAGE FROM DANIEL P. McCOY

County oce building in downtown Albany. This will energize our downtown area, enable more people from our County to enroll at SCCC and help with the issue of chargebacks.

With so many cost issues out of our control, we turn to our revenue. The two main sources of County revenues are sales tax and property taxes. The sales tax is collected by the State and we cannot increase the rate without its explicit authoriza on. Losses due to the recession con nue to have a nega ve impact. Sales tax revenues are rela vely at in 2013 and this budget an cipates the con nua on of this trend. We split ou r sales tax revenue with each of our 19 municipali es. Albany County keeps 60% and sends 40% to the ci es, towns and villages in Albany County enabling them to keep their property taxes down. It is a generous split approximately 62% of coun es across th e State either keep a greater percentage of the sales tax they collect and 12 coun es keep 100% of sales tax revenues. In 2012, Albany County generated roughly $239 million in sales tax revenue and distributed over $95 million of it to municipali es. That represents a 3.4% in c rease over 2011. A er accoun ng for Federal and State revenues, the gap between what we bring in from sales tax revenue and what we spend is the best representa on of our tax levy.

The budget I am proposing will s ll leave Albany County with one of th e lowest property tax rates in New York State and enable us to con nue to pay for many programs and services that are not mandated but serve a cri cal need. This tax levy will mean a homeowner with a $200,000 home will see an increase in their County tax bill of only $1.25 per month. I have been able to achieve this without making draconian cuts to programs like our Crime Vic ms and Sexual Violence Center, Children’s Dental Clinic, Mental Health Substance Abuse Clinic, Children’s Mental Health, and our en re Aging Department. Some of these departments, par cularly Ag in g, have already su ered from cuts due to federal sequestra on. This tax levy is the direct result of consolida on, in creased eciencies and the shi of the nancial burden of the Albany County Nursing Home. It would not have been possible without the input of and compromise with members of the Albany County Legislature.

The budget I am presen ng reects the hard work of my administra on and commitment to the declara ons I made when I took oce. It is an equitable budget that responsibly reduces spending while balancin g ecient delivery of our vital services. I will con nue to work to streamline government and create greater eciencies without compromising or sacricing programs and services that protect and serve the people of Albany County.

I pledged in my rst State of the County to work relessly to ensure that we would be on the road to nancial recovery. It is with your coopera on and partnership that I am able to present a budget that remains commi ed to these goals while also mee ng the property tax cap. I can assure you that Albany County is on the path to nancial health.

ALBANY COUNTY ELECTED OFFICIALS

Honorable Daniel P. McCoy County Execu ve

Honorable Craig D. Apple County Sheri

Honorable Thomas G. Clingan County Clerk

Honorable Michael F. Conners, II County Comptroller

Honorable P. David Soares District A orney

County Coroners Honorable Timothy J. Cavanaugh Honorable John G. Keegan Honorable Paul L. Marra, III Honorable Charles Smoot

Legisla ve Leaders Honorable Shawn Morse, Chairman Honorable Frank J. Commisso, Majority Leader Honorable Chris ne M. Benedict, Minority Leader

ALBANY COUNTY LEGISLATORS

Honorable Lucille McKnight District 1

Honorable Merton D. Simpson District 2

Honorable Virginia MaaTobler District 3

Honorable Norma Chapman District 4

Honorable Christopher T. Higgins District 5

Honorable Noelle M. Kinsch District 6

Honorable Douglas A. Bullock District 7

Honorable Donald W. Rahm District 8

Honorable Jus n O. Corcoran District 9

Honorable Gary W. Domalewicz District 10

Honorable Frank J. Commisso Distri ct 11

Honorable William M. Clay District 12

Honorable Raymond F. Joyce District 13

Honorable Alison McLean Lane District 14

Honorable Robert J. Beston District 15

Honorable Sean E. Ward District 16

Honorable Shawn M. Morse District 17

Honorable Gilb ert F. Ethier District 18

Honorable Timothy D. Nichols District 19

Honorable David B. Mayo District 20

Honorable J. Brian Hogan District 21

Honorable Peter B. Tuney District 22

Honorable Richard P. Jacobson District 23

Honorable Peter R. Crouse District 24

Honorable Joseph E. O’Brien District 25

Honorable Patrice Lo ckart District 26

Honorable Chris ne M. Benedict District 27

Honorable Dennis A. Feeney District 28

Honorable Lee R. Carman District 29

Honorable Bryan M. Clenahan District 30

Honorable Travis D. Stevens District 31

Honorable Mary Lou B. Connolly Distri ct 32

Honorable Herbert W. Reilly, Jr. District 33

Honorable Th omas J. Cotrofeld, Jr. District 34

Honorable Charles S. Dawson, Jr. District 35

Honorable Richard W. Mendick District 36

Honorable Peter T. Clouse District 37

Honorable L. Michael Mackey District 38

Honorable Deborah M. Busch District 39

ALBANY COUNTY DEPARTMENTS

AGING Vacant, Commissioner

BOARD OF ELECT I ONS Ma hew J. Clyne, Democra c Commissioner Rachel L. Bledi, Republican Commissioner

ALTERNATE PUBLIC DEFENDER Sherri J. Books, Alternate Public Defender

GENERAL SERVICE Vacant, Commissioner

CHILDREN, YOUTH AND FAMILIES Gail Geohagen Pra , Ac ng Commissioner

HEALTH James B. Cruce , M.D., M.P.H., Commissioner

CIVIL SERVICE

Vacant, Director

HOCKEY FACILITY Paul W. Hebert, Manager

CORNELL COOPERATIVE EXTENSION Lisa Godlewski, Execu ve Director

HUMAN RESOURCES Evelyn Kinnah, Commissioner

COUNTY CLERK Thomas G. Clingan, County Clerk

LAW Thomas J. Marcelle, County A orney

COUNTY COMPTROLLER Michael F. Conners, II, County Comptroller

MANAGEMENT AND BUDGET David J. Friedfel, Commissioner

COUNTY CORONER Honorable Timothy J. Cavanaugh Honorable John G. Keegan

MENTAL HEALTH Stephen J. Giordano, Director

Honorable Paul L. Marra, III Honorable Charles Smoot

PROBATION Patricia L. Aikens, Director

COUNTY EXECUTIVE Daniel P. McCoy, County Execu ve

PUBLIC DEFENDER James P. Milstein, Public Defender

COUNTY LEGISLATURE Shawn M. Morse, Chairman

PUBLIC WORKS Darrell R. Duncan, Commissioner

COUNTY SHERIFF Craig D. Apple, Sheri

RESIDENTIAL HEALTH CARE FACILITIES Vacant, Execu ve Director

CRIME VICTIMS AND SEXUAL VIOLENCE CENTER Karen L. Ziegler, Director

SEWER DISTRICT Richard J. Lyons, Execu ve Dire ctor

DISTRICT ATTORNEY P. David Soares, District A orney

SOCIAL SERVICES David Kircher, Ac ng Commissioner

ECONOMIC DEVELOPMENT, CONSERVATION AND PLANNING Vacant , Director

VETERANS SERVICE BUREAU Charles Burkes, Director

2014 ALBANY COUNTY EXECUTIVE BUDGET INTRODUCTION AND HIGHLIGHTS How to Use this Budget Publica on

2014 ALBANY COUNTY EXECUTIVE BUDGET

INTRODUCTION AND HIGHLIGHTS

How to Use this Budget Publica on

Daniel P. McCoy

County Execu ve

David J. Friedfel

Commissioner of Management & Budget

J. Friedfel Commissioner of Management & Budget County of Albany | State of New York |

HOW TO USE THIS BUDGET PUBLICATION

INTRODUCTION This budget document presents informa on about every appropria on and every revenue for each County department and program. Our goal is to present this budget in a format that is both informa ve and readable for a diverse audience of Albany County residents, legislators, employees and others interested in County opera ons. With this goal in mind, each year we rene the content and format and intro duce features to ensure that the budget informa on you need is easy to nd and presented accurately, clearly and understandably.

The sec on you are reading now, “How to Use This Budget Publica on,” is a good place to begin your examina on of the budget. It briey explains how this document is organized, describes the budget development process, and provides helpful hints for users.

THE BUDGET PROCESS Albany County’s scal year coincides with the calendar year, commencing on January 1st and ending on December 31st. The process for developing and adop ng the annual budget is contained in Ar cle 6 of the Albany County Charter. While the County Charter provides a specic schedule for the adop on of the budget, many other “unocial” steps have been implemented as the budget process has evolved. The following descrip on of Albany County’s budget proc ess therefore contains both the formal requirements contained in the County Charter and the informal processes used to comply with these requirements. Any dates for required ac on, however, are prescribed by the County Charter.

The County Execu ve sends his budget call le er to County departments in early May. This le er no es departments of the schedule for developing the annual budget. County departments are required to develop and submit their requested budgets to the County Execu ve on or before July 1st. Despite this formal meline, however, many County departments have ins tuted a yearround process for formula ng the budget. This process is o en used as a planning and nancial tool to revise and rene programs.

The Department of Management and Budget reviews and analyzes these requests and makes recommenda ons to the County Execu ve. The County Execu ve then submits the Execu ve Budget to the County Legislature by Oc tober 10th.

The County Charter also contains a series of steps to be taken by the County Legislature as it deliberates on the budget. The Legislature must conduct an ini al public hearing on the Execu ve Budget no later than October 30th. A er th e public hearing, the Audit and Finance Commi ee generally holds a series of hearings or mee ngs to prepare the Legisla ve Budget report, which contains its recommended addi ons and dele ons to the Execu ve Budget. The Legisla ve Budget report must be led with the Clerk of the Legislature by November 20th. A public hearing on the Legisla ve Budget report must be held no later than December 1st.

The en re County Legislature must meet to consider the Execu ve Budget and Legisla ve Budget report by December 8th. At this mee ng, th e Legislature can ocially vote to make changes to the Execu ve Budget. If the Legislature makes no changes to the Execu ve Budget, then the Execu ve Budget automa cally becomes the Adopted Budget.

Should the Legislature make any changes to the Execu ve Budget, the revised document is returned to the County Execu ve for examina on and considera on. The County Execu ve may approve the document or return it with his/her objec ons to any addi ons made by the Legislature, no later than December 12th. The County Execu ve can only ob j ect

HOW TO USE THIS BUDGET PUBLICATION

to increases in the budget.

The County Legislature must act on the County Execu ve’s objec ons, if any, by

December 16th. A twothirds vote by the Legislature is required to override any

of the County Execu ve’s objec ons. If the Legislature fails to override any

objec ons by December 18th, the document is adopted without the addi ons

to which the Co unty Execu ve objected.

If for any reason a budget has not been nally adopted by the Legislature on or

before December 20th, the Execu ve Budget, with all of the Legislature’s

addi ons or dele ons, to which the County Execu ve has not objected ,

becomes the Adopted Budget.

Property Tax Cap Process

In order to override the 2% Property Tax Cap, the Legislature must take up a

resolu on, sponsored by a member, or members, of the legislature. The

resolu on must have a Public Hearing which is authorized through the

Commi ee process. Once the Public Hearing has occurred, the Legislature may

vote to enact the resolu on.

The local law must be adopted prior to the Legislature vo ng to adopt the

budget. If the local law fails to be adopted, and a budget contains a tax levy

that exceeds the property tax cap is adopted which is greater than 2%, the

excess is placed in a reserve held by the NYS Oce of the State Comptroller

which can not be touched by the County un l the following scal year in which

it can be used to lower the future tax levy.

BUDGET AMENDMENTS

Ar cle 6 of the Albany County Charter contains two separate procedures for

handling budget amendments. Generally, the County Execu ve is empowered

to make minor budget amendments via a le er to the County Comptroller. In

certain instances, however, a budget amendment requires approval by

resolu on of the County Legislature.

Legisla ve approval is required if the proposed bu dg et amendment would:

 Result in an increase exceeding $10,000 to any one line in the

adopted budget;

 A ect any salary rate or salary total, except as expressly permi ed

by the County Charter or New York State law;

 Reect a gure greater than ve percent of th e annual

appropria on for an administra ve unit; or

 Transfer funds between administra ve units.

Early May Call le er to departments

July 1st Departments submit requested budget to County Execu ve

October 10th Execu ve Budget submi ed to Legislature

October 30th Public hearing on Execu ve Budget should have been conducted

November 20th Legisla ve Budget report must be led with the Clerk of the Legislature

December 1st Public hearing on Legisla ve Budget should have been conducted

December 8th County Legislature meets to consider the Execu ve and Legisla ve Budgets

No changes to the Execu ve Budget The Execu ve Budget automa cally becomes the Adopted Budget.

Changes to Execu ve Budget The Budget is returned to the County Execu ve for examina on and considera on.

December 12th A er oering County Execu ve’s approvals or objec ons to the County Legislature’s addi ons, the Budget is returned to the Legislature.

December 16th Legislature must act on County Execu ve’s objec ons, if any. If Legislature fails to act on or override any objec ons, Execu ve Budget becomes Adopted Budget.

December 20th If Execu ve Budget, plus all of Legislature’s dele ons, addi ons, and increases to which the Execu ve has not objected, has not been adopted by the 20th, it will auto ma cally become the Adopted Budget.

Legisla ve approval is also required to accept any grant revenues that may be realized during the scal year that were not

HOW TO USE THIS BUDGET PUBLICATION

accounted for in the Adopted Budget.

ORGANIZATION OF THE BUDGET PUBLICATION This document is divided into two volumes. Volume 1 is the County Execu ve’s proposed “Tenta ve Budget.” Volume 2 will include the adopted budget and all related documents. Released at the same me as Volume I will be a budget Brie ng Book.

Volume 1 includes:

Introduc on and Highlights This sec on contains a message from the County Execu ve, economic forecasts which are key to revenue forecasts and other descrip ve material concerning the organiza on of County government, County funds, revenues and expenditures. It summarizes some of the major highlights and changes in the current budget.

Countywide Summary Budgets This sec on contains three summaries:

 A onepage summary of all County appropria ons and revenues for the current budget year;  A summary of all appropria ons by account number for the current and two previous budget years; and  A summary of all revenues by account number for the current and two previous budget years.

Department Budgets This sec on presents informa on about every County department and program, including:

 A department narra ve, describing the department’s mission, program ac vi es and services, the outcomes it seeks to achieve, performance targets and strategic ini a ves, organiza onal structure, 2013 accomplishments and challenges, and a summary of any substan ve budget changes included in the 2014 execu ve budget.  Summary tables depic ng proposed agencywide appropria ons and revenues. It also shows the proposed change from the prior year’s adjusted budget in both dollar and percentage terms.  Line item detail of every account for both appropria ons and revenues.  Many departments have included a brief story of an interac on with Albany Cou nty residents.

Volume 2 includes:

 All of the aforemen oned sec ons.  Any Resolu ons or Local Laws pertaining to the budget adop on process.  Any changes made by the Legislature.

2014 ALBANY COUNTY EXECUTIVE BUDGET INTRODUCTION AND HIGHLIGHTS ECONOMIC AND REVENUE EXPECTATIONS Daniel P. McCoy

2014 ALBANY COUNTY EXECUTIVE BUDGET

INTRODUCTION AND HIGHLIGHTS

ECONOMIC AND REVENUE EXPECTATIONS

Daniel P. McCoy

County Execu ve

David J. Friedfel

Commissioner of Management & Budget

J. Friedfel Commissioner of Management & Budget County of Albany | State of New York |

ECONOMIC AND REVENUE EXPECTATIONS

INTRODUCTION This section of the budget provides a survey of economic indicators and an outlook for the year ahead with a view to providing context for some of the estimates contained in the budget.

NATIONAL OVERVIEW Overall, the national economy has continued growing at a moderate pace. National job growth and labor income remain con strained, with the unemployment rate hovering around 7.3 percent accord in g the US Department of Labor, with significant numbers of longterm unemployed. The national housing market has not fully recovered, although it is improving at a steady pace with increases in housing permits and starts. Likewise, demand for commercial real estate has shown steady, albeit slow, growth throughout most of the nation (Federal Reserve Beige Book).

Going into the coming year, the following uncertainties may serve to undermine future economic growth automatic decreases in federal expenditures better known as sequestration, Federal budget disagreements that threaten to shutdown the federal government for an extended period and continuing political turmoil in the Middle East. Depending on the outcome of these factors and other unknowns, economic growth could once again stagnate.

The national unemployment rate at the end of August was 7.3 percent, down from a high of 10.0 percent in October of 2009, but still above historical averages (US Bureau of Labor Statistics). As has been the trend in recent decades, manufacturing fared worse than other employment sectors, while service industries experienced growth in employment that outpaced other sec tors.

REGIONAL AND LOCAL ECONOMY

Preliminary August figures from the United States Bureau of Labor Statistics report 5,000 nonfarm jobs were added in the Albany region between August 2012 and August 2013, for 1.1 percent growth. This is the most nonfarm employment in August since 2008. Likewise, the unemployment rate was 6.4 percent in August in the Capital district, the lowest rate since December of

2008.

While the national housing market experienced a series of unprecedented growth followed by devastating decline, the local housing market remained relatively stable. Local home sales did not over accelerate in the prerecessionary market and generally remained in line with actual value. Both average residential sale price and median residential sale prices remain relatively constant in the past 4 years within Albany County.

According to RealtyTrac, “the Capital Region is one of the three top markets leading the nation's housing recovery.” Likewise, housing values are on the rise, increasing by 2 percent in August of 2013 over August 2012, and median sales prices have in creased by 3 percent according to The Greater Capital Association of Realtors. Specific to Albany County, yeartodate closings through August have increased 11.6 percent and days on the market have decreased by 13.1 percent – both good signs.

Meanwhile,