For More Information:

William R. Steinhaus
Dutchess County Executive
(845) 486-2000 countyexec@co.dutchess.ny.us

For Immediate Release

January 31, 2002

Dutchess County Executive William R. Steinhaus Issues
Annual Report to Legislature

Dutchess County Executive William R. Steinhaus today released his 2002 Report of Dutchess County Finances & Activities of the Executive Branch of County Government to the Dutchess County Legislature as required by the Dutchess County Charter. Highlights of the report include:

Dutchess County Government Was Prepared for the Recession of 2001!

• Steinhaus reform agenda during past decade made it possible to both employ a smaller workforce today than in the 1980’s and also cut the previous rate of expenditure growth.
  
   
• Unlike other governments that became bloated with pet programs that sounded good in a strong economy, Dutchess County, for the most part, remained focused on its traditional core mission.
  
   
• The majority of county legislators rejected an ill-advised proposed sales tax exemption that would have decreased expected annual sales tax revenue which would have required a 12% property tax increase to maintain essential county programs and services.
  
   
• Decision to accumulate fund balance over several years provides cushion for the “rainy days” of 2001, 2002, and likely 2003.
  
   
• 2002 Budget cuts property taxes for seventh time in the ten budgets under the Steinhaus administration.
  
   
• County government tax levy lower in 2002 than in 1989.

Dutchess County Financial Statistics Compare Favorably With Other New York State Counties!

• Dutchess County per capita property taxes are 17% below statewide average.
  
   
• Dutchess County per capita spending is 24% below statewide average.
  
   
• Dutchess County property taxes represent only 23% of constitutional limit.
  
   
• Dutchess County indebtedness represents a mere 9% of constitutional limit.

Dutchess County Bond Rating Remains Strong!

• Dutchess County is one of only two New York State counties to earn Aa1 bond rating.
  
   
• Dutchess County bond anticipation notes earn highest rating possible—MIG1.
  
   
• Moody’s Investors Service cited Dutchess County’s stable financial position, improved liquidity, ending fund balance, expanding economy, renewed job growth and our manageable debt position.

New York State Budget Has Direct Impact on Dutchess County’s Finances

• 2001-2002 New York State “baseline” budget (which was adopted in August and supplemented in October and November) omitted $450,000 to maintain county roads and $700,000 for Dutchess Community College—the budget and property tax impacts for which will certainly be compounded in future.
  
   
• State passed landmark health care initiative which could increase Dutchess County’s mandated Medicaid costs by $1.4 million over three years if State’s financing plan does not materialize.
  
   
• Mandated Medicaid expenses thrust upon New York State counties total $.73 of each dollar paid by taxpayers to support Dutchess County government. 

2002 is a year of Fiscal Uncertainty

• While not demanding the extraordinary budgetary reduction measures necessitated by the IBM downsizing of the early 90’s, 2002 will require close attention nonetheless.
  
   
• County Executive Steinhaus is preparing to implement 2002 budget controls as may be required, such as the setting of departmental quotas and allotments.
  
   
• Good faith bargaining will continue with employee unions to reach agreements that are fair and equitable to our highly valued and dedicated employees and to the property taxpayers of Dutchess County and within the context of the current economy.
  
   
• Dutchess County Legislature is called upon to exercise caution in creating new cost centers or expanding current ones; to resist initiatives which supplement or supplant dried-up state and federal revenues with local tax dollars; and to reject those voices that unwisely advocate spending down the County’s “rainy day” fund balance.

County Executive will deliver his State of the County Address on Wednesday, February 6, 2002 before the Southern Dutchess Chamber of Commerce at 7:30 p.m. at the Holiday Inn Fishkill.