Richard Brodsky's assertions in his Aug. 26 column — that Albany's budgets have been balanced by gimmicks, that we have received special treatment from the state, and that our financial challenges are of our own making — are wrong on all counts.
In 2010, a study by The PFM Group found Albany to be an efficiently run municipality that had made significant strides toward prudent fiscal management, at a time of great national and state pressures — a finding affirmed by the city's AA-bond rating, the highest for any major city in the state excluding New York City. PFM and the rating agencies specifically cited the city's effective management, its prudent borrowing practices, and its efforts to keep property taxes low — noting that the city had used less than 50 percent of its constitutional taxing limits and less than 35 percent of its borrowing limits.
At the heart of Albany's financial challenges are two issues largely beyond our control. First, Albany receives far less in state AIM aid than its peer cities — only $128.80 per capita. Syracuse receives $494.80; Yonkers, $553.95; Rochester, $417.70; and Buffalo, $612.47. The inequity is outrageous.
This disparity occurred because state aid has been allocated, historically, based on legislative whim and political influence. Struggling cities were bailed out with "one-time" special assistance that then became institutionalized. Well-managed cities like Albany received the short end of the stick.
If Albany received the average AIM funding of its peer cities, it would get nearly $35 million more. We'd be able to balance our budget and use the rest to lower tax rates, do more for our neighborhoods, for economic development, and for those struggling with poverty.
Second, a staggering 60 percent or more of Albany's property is tax exempt, most of it owned by the state. To address this issue, and Albany's unreimbursed expenses attendant to our capital city status, I aggressively lobbied the state to make payments-in-lieu of taxes on the Empire State Plaza and Harriman Campus. In pressing for these payments, we have repeatedly demonstrated the steps we have taken to reduce expenditures and maximize revenues. We have cut hundreds of personnel, saved millions on employee health insurance, refinanced and lowered the cost of our outstanding debt, and found better and smarter ways to provide critical services to our residents.
Unfortunately, costs largely beyond our control have risen dramatically. In 2000 when we received our first PILOT payment on the Empire State Plaza, our state employee pension contribution was $500,000. Today it is over $17.5 million dollars.
As the PFM report found, "Albany has done what it can, but it simply isn't enough... these budgetary (challenges) are not reflective of poor planning on the city's part, but rather irrational and inequitable policies and compensation — namely from New York State."
Undoubtedly we will again ask the state for an advance on the Empire State PILOT money. Such an advance is not a gimmick, or a handout, or a favor to Albany. It is money Albany deserves and I reject the idea that it is borrowing from the future.
Bear in mind that this money did not exist until my efforts in 2000, and again in 2006 when payments were increased and extended from 2030 to 2034 to an amount over half a billion dollars. The fact is Albany needs this money to help now as we continue to press for state payments that don't shortchange Albany taxpayers. The Cuomo administration made such advances in 2012 and 2013 because it understood the arguments I made, and the inequitable position Albany faced.
Mr. Brodsky is right on one point, that the best way to improve the chance of avoiding a financial catastrophe is to acknowledge the problems. The problems are getting New York state to fix the AIM funding inequity, pay Albany an equitable PILOT on the Harriman Campus, and compensate Albany for the additional municipal services we provide as the seat of state government.
Our capital city deserves no less.