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COMPTROLLER POLONCARZ

Poloncarz Issues Report on New York State Executive Budget

Report Examines Potential Negative Financial Impact on County

February 21, 2008

Erie County Comptroller Mark C. Poloncarz today released his office’s review of Governor Eliot Spitzer’s 2008-2009 New York State Executive Budget (“Executive Budget”). The review specifically examined preliminary areas and programs for which the Executive Budget might or will have a negative financial impact on Erie County (“County.”)

The Comptroller’s review finds several areas in which the Executive Budget may and/or will negatively impact the County in 2008 and future years. The review highlights two (2) areas with a very real potential for a significant negative impact: a shift in the state-county formula for the Family Assistance and Safety Net programs and a loss of state aid for the county’s secure and non-secure youth detention programs and facilities. The review also finds that the Executive Budget failed to address the growing problem for the County of a Medicaid-related intergovernmental transfer (“IGT”) financial obligation involving Erie County Medical Center Corporation (“ECMCC”) which costs the County millions of dollars per year.

Poloncarz said: “While full and comprehensive details from the State are presently not available, the Executive Budget’s failure to address the IGT issue with ECMCC and the state’s shifting of financial obligations onto all county governments for certain welfare and youth detention costs will negatively impact the County and will likely lead to additional costs to the County in 2008 and future years.”

Among other notable areas with a potential negative impact are:

  • Changes to State Aid for Preschool Special Education
  • Reductions in State Aid for the Consolidated Highway Improvement Program
  • Continued State Costs for County-Held Prisoners/Detainees
  • Reduction in State Community College Aid
  • Loss of Video Lottery Aid


  • Poloncarz cautioned that the Executive Budget is not the final adopted state budget and is subject to legislative review and scrutiny: “As we all know, the State Assembly and State Senate always amend the Executive Budget and they will undoubtedly do the same this year.” He noted that such amendments might address the County’s concerns, but that the final adopted state budget will not be known for some time and the County could be left trying to address significant negative variances in the middle of its 2008 fiscal year.

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