By Joyce Kryszak
Buffalo, NY – The Erie County Fiscal Stability Authority heard details Wednesday of the Giambra administration's revised four-year plan that would halt sales tax sharing with school districts.
The complicated plan would save the county roughly 24 million a year by getting the state's STAR program to pick up more of the tab for more local school taxes.
Acccording to county officials, taxpayers would be held harmless, with any difference between state aid and the inevitable increase in school taxes to be offset by a new Erie County STAR pprogram. Money for the program would come from sales tax revenue savings.
It's actually similar to what most counties in the state already do. County Budget Director James Hartman says it is a creative solution that benefits everyone.
Some board members were quick to agree. To make it happen in Erie County would require agreement with the three cities in the county, including Buffalo, as well as legislation from the county and the state.
And Control Board Member Ken Kruly was fast to point out Buffalo might not be able to sign on.
To qualify for the increased sstate aid, the plan would require the city to raise taxes beyond its legal taxing limit.
Without the city participating, the savings for the county drops about seven million a year. Kruly and others also complained that the plan doesn't carry any real savings, calling it merely "a tax shift."
Another major hurdle is whether or not the plan could be implemented in time for the next fiscal year as needed to keep the four-year plan in balance.
According to the 1977 law that established the current sales tax sharing formula, a one-year notification is required to make any changes.
Still, most board members were open to at least exploring the plan. They have asked the county legislature to call a special session and offer their opinion on the proposal before the board's next meeting on September 6.
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