Tompkins Weekly

County’s 2022 budget reflects improved economyFree Access

Sales tax revenue rebounds, more certainty returns


Deputy County Administrator Amie Hendrix (left) stands with Interim County Administrator Lisa Holmes earlier this year. Holmes presented her recommended 2022 Tompkins County budget, totaling $194 million, last month. Photo by Sheryl Sinkow Photography.

Last month saw many updates relating to the county’s economy and budget. Interim County Administrator Lisa Holmes presented her recommended 2022 Tompkins County budget, totaling $194 million, to the County Legislature, and county departments and organizations presented their budgets shortly after. And just last week, the County Legislature approved the use of up to $7 million of the county government’s unassigned fund balance for its Community Recovery Fund Program.

The county’s 2022 proposed budget is significantly higher than 2021’s, reflecting the economic recovery the county has experienced since the COVID-19 vaccine led to a large decrease in case numbers.

“We’re certainly in a different place than we were last year at this time, predominantly with COVID-19 and with the economic shutdown from last year versus where we are this year,” Holmes told Tompkins Weekly. “Last year, at this time, it was more of a fiscal austerity budget, with 47 positions that were not recommended for continuation in 2021. This year, we’re in a much better place in terms of more fiscal certainty and with the economy reopening. So, we’re able to provide restoration of funding that was cut from last year’s budget.”

Holmes’ recommended budget proposes a property tax levy increase of 2.7%, which adds roughly $42 a year to the tax bill of a median-valued home in the county.

The last time Tompkins Weekly discussed the county’s economy was in the context of the American Rescue Plan Act (ARPA) funds allocated to the county and residents’ input on where the money should be spent. Since then, the allocations have been finalized, with most of the funds going to support county operations.

“Basically, all of it goes to county operations, but three-quarters of it will go to cash for capital,” said Deborah Dawson, Tompkins County legislator and chair of the Budget, Capital, and Personnel Committee. “Approximately $15 million of it will go to cash for capital, which is estimated to save the county $1.67 million a year in debt service costs for the next 10 to 15 years. And then, the remaining $5 million went into the budget this year. It’s used for one-time over-target requests.”

Over-target requests (OTRs), Dawson explained, are for any expense that is greater than a department’s or organization’s target, or its basic operations cost. Several of the ARPA-funded OTRs in the proposed budget address the main priorities residents outlined in their responses earlier this year — providing support to nonprofits, businesses and households affected by the pandemic.

“The biggest concern that I hear in my community continues to be lack of quality child care and the expense on working families,” said County Legislator Shawna Black in an email. “I will be sponsoring an OTR that will add a position [to] the Child Development Council that will focus on recruitment and training for providers and child care workers. The other concern that we hear about is lack of ‘affordable housing.’ There is a request from INHS and also OAR that look promising and could make a dent on our housing issues.”

ARPA funds are also being used to free up county monies that can be directed at those priorities through the Community Recovery Fund Program.

“We do believe we can respond to most of the kinds of needs that we’ve heard about through this recovery fund, funded with our own fund balance,” said County Legislator Martha Robertson. “We won’t be as dragged down by federal requirements, … and we’ll be able to use ARPA money for important projects on the county side and free up other money for community needs.”

While there hasn’t been much community feedback on the county’s budget so far, sources interviewed for this story said the proposed budget has a lot of support from county organizations and departments.

At Ithaca Area Economic Development (IAED), for example, President Heather McDaniel said the county’s proposed budget aligns with advice she has given the Legislature in the past to “invest in projects that are going to grow your revenue, that are going to grow municipal tax base and sales tax” and “invest now in infrastructure that will enable capital investment.”

“The county took a route that ultimately will end up in a very positive place,” McDaniel said. “They have allocated, I think, a pretty significant portion of the recovery funding to developing a process that will do just that — invest in our collective future. And so, I’m fairly optimistic that we will see those funds start to flow later this year, early next year, into projects that all of our stakeholders and partners are already developing today.”

The 2022 budget is still a work in progress, and already, those involved are expecting to make some changes before it gets finalized. At the Department of Social Services (DSS), for example, DSS Commissioner Kit Kephart said that there is new incoming legislation that will require adjustment of the department’s budget, mainly the Family First Prevention Act, which just went into effect Sept. 29.

“The intent of the Family First legislation is to discourage congregate care placements in favor of placements of family-type settings with a particular emphasis on kinship placements,” Kephart said in an email. “Tompkins County DSS’ Children’s Services Division has had great success in minimizing the number of children in congregate care placements. However, this legislation will add pressure to utilize foster care and other community supports to keep children out of care facilities.”

Though there is more certainty in this budget round than last year, officials and leaders are trying to stay fiscally conservative, as the far-reaching effects of the pandemic have yet to be fully realized.

“The long-term impact really is going to be a severe drain on the economic health of our community,” said Leslyn McBean-Clairborne, chair of the Tompkins County Legislature. “It’ll have … long-term impact on those businesses that just can’t bounce back no matter what. But I also think we’ll stabilize well. I think we’ve done some great planning and anticipation and putting systems in place that would help us to not just tank entirely as a local economy.”

And there are still many residents facing pandemic hardships, as Robertson explained.

“We know, for example, that hundreds of Tompkins County residents applied for emergency rental assistance for past rent, future rent and utilities,” she said. “For those folks, I’m sure they don’t feel any more confident or optimistic until those checks come than they did before. There’s a promise of help, but until you’ve got it, you’re still insecure. So, there are a lot of people who are in real dire economic straits.”

Overall, county leaders are optimistic regarding the county’s economic prospects over the next year, but there is still a long journey ahead.

“I do hope that as a community, we can continue that spirit of collaboration, looking out for one another’s health and safety and well-being by taking all of the public health precautions that we can to successfully emerge from this pandemic all the stronger,” Holmes said. “The pandemic recovery will be vital to our success in the future in terms of the county’s budget and where we go in the coming year.”

The County Legislature will be holding a public forum on the 2022 recommended county budget Oct. 7 at 7 p.m. The forum will be hosted via Zoom and simulcast to the county’s YouTube channel (t.ly/uq9w). Register for the Zoom event by visiting t.ly/MyAx.

After the public forum, the next steps include proposing and reviewing any amendments to the budget by mid-October, with the final budget expected to be completed by early next month.

For more information on the 2022 recommended budget, visit www2.tompkinscountyny.gov/ctyadmin/2022budget. Members of the public may provide comments to the Legislature at any time through www2.tompkinscountyny.gov/legislature/publiccomment.

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