After a sometimes heated debate about funding for tourism promotion, Schoharie County supervisors Friday afternoon approved a $62.6 million budget for 2009 that will decrease the average tax rate by about one percent.
Following a lengthy debate, supervisors agreed to up the funding for tourism promotion to $85,000 with the extra funds coming from the county’s fund balance. Supervisors were able to decrease the tax rate by almost one percent for next year lowering the tipping fee subsidies for trash haulers by another $167,290.
The drop in the average tax rate to under $7.85 per $1,000 of assessed valuation does not mean that most county taxpayers will see a decrease when they open their tax bills in January. Taxpayers in 12 towns in the county will see increases and those in Seward, Sharon and Carlisle will still see hikes of nearly 20 percent because of changes in the state equalization rate.
The majority of debate on the budget came on the funding for tourism promotion through the Chamber of Commerce.
The original request was for $140,000 in funding but budget officer and Treasurer Bill Cherry cut that to $10,000. The finance committee pushed it up to $30,000 but supervisors, and members of the public, argued further on what the final number should be.
Chamber members, several local business people said that extra funding was needed to draw tourists, especially during an economic downturn while other argued that business will be the prime benefactors and should fund the increase.
Seward Supervisor Larry Phillips urged supervisors to take action and fund the request.
“We have not been the leaders the residents truly need,” he said. “We’re a wait and see county.”
A debt-free county with a healthy fund balance should find a way to fund tourism, he said.
More tourism, he added, means additional sales tax which lessens the burden on property taxpayers.
Even in tough economic times, the county has to lure tourists, he added.
“If you don’t fish they won’t come,” he said.
Fulton Supervisor Phil Skowfoe was against the increase and asked that anyone on the chamber board or with a vested interest in the Chamber should not vote on the issue which brought a quick response from Mr. Phillips.
Several supervisors spoke about a compromise plan which would give $85,000 for tourism promotion and would allow the county be eligible for I Love New York ad funding.
Broome Supervisor Marie Campbell said the extra money for tourism promotion should come from the county’s fund balance and be considered a loan and be paid back when the occupancy tax (commonly known as the bed tax) comes into effect next year. That tax should bring in about $150,000 a year in the future and would be used to fund the increase in tourism promotion.
Ms. Campbell, and other supervisors said the county has to promote tourism.
“We should try to promote tourism and our local businesses,” she said.
Cobleskill Supervisor Roger Cohn said tourism was important to the future of the county.
“Let’s take that leap of faith and really help the taxpayers of our county,” he said.
Carlisle Supervisor Larry Bradt and Mr. Skowfoe said many people against the increase have contacted them.
Both, along with Bob Mann of Blenheim, voted against the hike.
Mr. Mann said the finance committee increased the funding for tourism by $20,000.
Many people have been asked to make cuts in the budget, he added. Salary raises for supervisors and the election commissioners were cut and salary hikes for department heads were trimmed to 2.5 percent.
“Everybody has felt the pain in this budget,” Mr. Mann said.
Businesses are the primary benefactors of the tourism dollars and should be asked to contribute a little bit more so the Chamber can qualify for the I Love New York program, he said.
Wright Supervisor Susan Loden, who owns the Apple Barrel in Schoharie, said help is needed for local businesses.
“If we don’t have money coming into the county we don’t have it to disperse it,” she said.
It is a time of an economic disaster, she said, and the funding increase could be made with raising taxes.
Board Chairman Earl VanWormer supported the increase.
“It’s not only something we should do but have to do,” he said.
“If you don’t try it we’re definitely not going to get anything.”
He called it a good calculated risk for the county and Supervisors John Barlow of Richmondville and Mike Brandow of Conesville, when they voted in favor of the increase, said they would take a gamble and hope the extra funds would help bring in more tourists.
The only other major change in the budget Friday was decreasing the tipping fee subsidy by $167,290 by lowering the tipping fee subsidy to haulers from $34 to $14 to match the amounts from Montgomery and Otsego counties.
Mr. Bradt and Mr. Skowfoe voted against the budget.