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Opinion

Shared services can give taxpayers a break

By State Comptroller Thomas P. DiNapoli
POSTED: December 23, 2009
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Local governments across New York State are struggling to make ends meet. They are seeing sales tax revenues fall amid the recession while pension and health care costs continue to rise.





Tax dollars are tight and families are struggling.  In fact, taxpayers in many areas of New York are already at their limits - the top ten counties nationwide, as ranked by the amount of property taxes residents pay as a percentage of their homes’ value, are all located in New York State.  Now more than ever we need to find ways to cut costs and lower property taxes.





There is a better way.





A recent report by my office shows that local government shared services are a viable option for reducing or slowing growth in spending, and providing services more efficiently. 





In fact, our research indicates that local governments across the state could save as much as $765 million a year simply by sharing certain administrative and business office functions. The potential for savings in program areas – such as public safety, public works, property assessment and health insurance – is even greater. 





Shared services not only save money, they can also help improve service delivery and create new and better ways of doing business.  A good number of local governments are already saving millions in tax dollars by pooling their resources and eliminating duplication.





For example: the Town of Clay estimates it will save more than $16 million over the next decade as a result of consolidating its police force with the Onondaga County Sheriff. This represents a 20 percent cut in costs without affecting service.





The Town of Cape Vincent and the Village of Cape Vincent combined their efforts to purchase a single 500,000 gallon water tank to serve both municipalities. The joint effort has produced $1 million in savings by eliminating the need for tanks in both water districts.





Our report highlights many other local governments who have found opportunities to cooperate and save taxpayer dollars while maintaining or improving services.  You can view the report and our training guide on our website at osc.state.ny.us.





There are 3,175 local governments in New York State. While many localities already participate in some shared services, imagine the possible savings if all of these counties, cities, towns, villages, school districts and fire districts shared services with their neighbors.





Let’s face facts: New York State and its local governments are facing a major fiscal storm.  But this crisis presents an opportunity to reform our operations and do the business of government better, faster and cheaper. 





As we’ve seen from the budget mess in Albany, we need to put our State and local finances on a solid foundation that we can sustain over time. That will make our economy more competitive. 





Every municipality should identify shared services options and begin to explore these options with their neighbors. My office stands ready to provide training and other assistance to help get started. The time to act is now.
 
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