Legislators could let the extra cent expire, but that's unlikely, based on conversations with local Senators and Assembly members or their staff. But what's unclear is whether legislators, local Assembly Democrats in particular, will let the reauthorization through without changes. Legislation to extend the last penny of sales tax was introduced in both houses earlier this year. The law as-is includes a formula for distributing the funds among the county, city, school districts, towns, and villages.
"It's complicated now by the fact that the county has taken money away from the school districts," says Assembly member Joe Morelle.
Late last month, County Executive Maggie Brooks introduced her FAIR Plan to solve the county's budget crisis. In it, the county gives the state a portion of its sales-tax revenue and in exchange, the state will pay Monroe's Medicaid costs. That same plan includes a 50-percent reduction in sales-tax revenue given to suburban schools. The County Legislature's Republican majority immediately passed the plan, igniting a backlash from infuriated school officials, local residents, and Democratic office-holders. The school districts plan to sue the county over FAIR.
Assembly Democrats could introduce a new law that would extend the extra penny of sales tax, but give more of the proceeds to the school districts and less to the county: the idea being to compensate the districts for some of the money lost because of FAIR.
Morelle says there are "clearly some questions" being raised about the advisability of renewing the law without changes.
But changing the sharing formula requires the cooperation of county lawmakers, who would have to back it through a home-rule message. Morelle says the county does not appear eager to cooperate.
Republican Senator Joe Robach says the matter will probably come up at the Senate's October 22 session. The law will likely be extended without changes, he says.
But if Morelle and the other Assembly Democrats push for a change to the distribution formula, the two houses of the state Legislature could wind up in a standoff. And that would at least postpone renewal of the final penny.
Legislators in both houses, and in both parties, are under pressure. If the Oct. 22 session is held, that will be the Legislature's last chance to approve the sales-tax legislation before the new year. Failure to do so would cost the city of Rochester $3 to $4 million, say city officials. And the county could lose out on $70 million, Morelle says.