Purpose of Budget Review
The purpose of our budget review was to determine whether the significant revenue and expenditure projections in the County’s proposed budget for the 2023 fiscal year are reasonable.
Background
The County of Rockland, located in the downstate area and bordered by Orange, Putnam and Westchester counties, was authorized to issue debt not to exceed $96 million to liquidate the accumulated deficit in the County’s general fund as of December 31, 2012. Additionally, New York State Local Finance Law Section 10.10 requires all municipalities that have been authorized to issue obligations to fund operating deficits to submit to the State Comptroller each year, starting with the fiscal year during which the municipality is authorized to issue the deficit obligations, and for each subsequent fiscal year during which the deficit obligations are outstanding, their proposed budget for the next succeeding fiscal year.
Key Findings
- Based on the results of our review, except for the item mentioned below, we found that the significant revenue and expenditure projections in the 2023 proposed budget are reasonable.
- The 2023 proposed budget includes County sales tax revenues of $261 million, which is a decrease of approximately $560,000 from the actual revenue received in the 2021 fiscal year and an $8.6 million decrease from projected 2022 revenues of $269.6 million. Based on our projection, the County could accumulate additional revenues of approximately $12.1 million, contributing to an overall operating surplus and the accumulation of additional fund balance.
- The County’s proposed budget includes a tax levy of $144,140,465.
Key Recommendations
- County officials should reassess whether budgeted sales tax revenues are realistic and, if not, increase the sales tax revenues estimate.
- In adopting the 2023 budget, the Legislature should be mindful of the legal requirement to maintain the tax levy increase to no more than the tax levy limit as permitted by law, unless it properly overrides the tax levy limit.