Cornell Cooperative Extension Takes On State Taxing System

By: Shawn Magrath

CHENANGO COUNTY – Rural counties in New York are getting the short end of the stick when it comes to the state’s tax system, according to research from the Cornell University Cooperative Extension.

A recent report from the institution shows that not only are rural landowners fronted the highest taxes relative to home prices in the nation, but rural counties like Chenango lack the tax base to pay the amount of increasing state mandated expenses without passing on the burden to local taxpayers. The report was presented to Chenango County public officials on Thursday in hopes of starting discussions about viable solutions to the state’s notorious claim as the highest taxed state in the country.

Ken Smith, Executive Director of the Cornell Cooperative Extension of Chenango County, says solving the issue might be an uphill battle, but it’s worth talks among legislators in Albany.

“Through some research, there are some patterns that quickly emerge. Our goal is to have legislators understand what our problem is here in upstate New York,” Smith said. “I do think there is a change possible.”

The Cornell Cooperative Extension has a track record of getting Albany’s attention, having developed a dairy strategic plan that inspired state officials to create the statewide $500 million per year Dairy Acceleration Program. Although longstanding efforts to reduce the onus on local taxpayers is a different story, the organization has put forward some solutions which it hopes will ease the burden.

“Unfortunately we’re being told by the state and by the governor that our problem of high property taxes is caused by having too many local governments,” Smith said, citing the push from Albany to consolidate entire taxing jurisdictions including towns, villages, school districts and counties. “Overall, there is an averaging up affect that occurs when you consolidate entire governments. Costs actually tend to go up,” he added. “But when counties and towns, or towns and towns look at individual services versus entire governments, those seem to show savings.”

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A brunt of counties’ expenses are caused by the number of mandated expenses passed down by the state. In Chenango, more than 88 percent of the county budget is influenced by state mandated expenses including Medicaid, public assistance programs, preschool and special education, community college expenses, public health, early intervention, and indigent defense.

Topping the list of unfunded mandates is Medicaid, which the county budgeted for $10 million (nearly $200,000 per week) in 2014 after state reimbursements. Statewide, Medicaid cost taxpayers more than $7.5 billion in local share raised through property taxes.

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