A long-awaited report was released in Albany today, dealing with the state's high taxes, the high cost of local government, and what could be done to reduce both. There were rumors that the report - the result of a year's worth of meetings and studies - might contain strong language about the need to consolidate local governments. But the report - prepared by the New York State Commission on Local Government Efficiency and Competitiveness - doesn't go nearly that far. Instead, it focuses on steps the state can take to "enable and encourage" local governments to act more efficiently and to cooperate more.

The commission wants the state to encourage governments to share or consolidate services, for example. And it wants state government to make it easier for governments to consolidate if they want to.

The report does call for consolidating some specific services at the county level, including property assessment, tax collection, emergency dispatch, civil service commissions, vital records, and Industrial Development Agencies. The commission wants to require "local consideration" of countywide fire departments.

Although many of the recommendations are mild steps forward, some will likely be controversial. The report suggests that the state require its employees to make at least some contributions toward their health insurance, and that it review state-employee pensions. The report also suggests that in the event of consolidations, union contracts could be reviewed. Some union leaders responded sharply when the Buffalo News included those recommendations in a report it published last week.