Orange County Executive Proposes 3% Budget Increase to Boost Economic Growth
Orange County Executive Steve Neuhaus has unveiled his ambitious plan to raise the county budget by 3 percent to $923 million in 2024, all while keeping property taxes steady. This exciting proposal was announced at a recent meeting of the Orange County Association of Towns, Villages, and Cities, marking a decade of leadership for Mr. Neuhaus.
What’s the secret behind this stable property tax levy, despite potential challenges like inflation and growing state-mandated expenses? According to Mr. Neuhaus, it’s a winning combination of economic development and tourism. These dual forces have contributed to a growing tax base and a thriving sales tax, which in turn helps alleviate the burden on property taxes.
“The combination of a growing tax base and a robust sales tax is the key,” Mr. Neuhaus explained to The Epoch Times. ”These two factors work hand in hand, allowing us to minimize the reliance on property taxes.”
Under Mr. Neuhaus’ leadership, the full market value of taxable properties in Orange County has skyrocketed by nearly 80 percent since 2014. This growth has contributed to a significant decrease in property tax rates, which are currently at historic lows.
Furthermore, sales tax revenue has surged by almost half over the past decade, projected to reach $390 million in 2024. Hotel taxes have also more than doubled since 2014, surpassing $6 million annually.
The LEGOLAND New York Resort in Goshen, N.Y., on Oct. 22, 2022.(Samira Bouaou/The Epoch Times)
“Sales tax is generated by everybody that comes in here, not just the people that live here,” emphasized Mr. Neuhaus during the budget presentation. ”By having visitors contribute to our revenue, we can avoid burdening local families with excessive property taxes.”
Money In and Money Out
Sales and hotel taxes will account for a significant portion of county revenue in 2024, representing 43 percent. State and federal aid will contribute 21 percent, while property taxes will make up 14 percent.
Human services, primarily assisting vulnerable populations, will be the largest expense function for the county in 2024, comprising 27 percent of the budget. Much of this expenditure will be covered by federal aid. Health services, including the operation of Valley View nursing home, will be the second-largest expense at approximately $166 million.
Other significant budget initiatives include the establishment of a new Information Technology department, the construction of a multi-purpose pavilion at Orange County Arboretum, and the opening of a Department of Motor Vehicles office in Port Jervis.
Orange County Executive Steve Neuhaus presents the 2024 budget at the Erie Hotel and Restaurant in Port Jervis, N.Y., on Sept. 26, 2023. (Cara Ding/The Epoch Times)
Importantly, no funds from the rainy-day account will be utilized to balance the 2024 budget. This strategic decision ensures that the county maintains financial stability and has sufficient resources to handle emergencies, as stated by Mr. Neuhaus.
“Having a strong fund balance provides financial stability and enhances cash flow management,” he explained. “It gives us the confidence that we can overcome any negative circumstances that may arise.”
Hedging Against State Mandates
One potential challenge lies in new state mandates, which often impose costs on local governments without providing adequate funding. Mr. Neuhaus cited indigent defense and Medicaid as examples of such mandates.
In 2024, the county is estimated to spend over $6 million on indigent defense and approximately $72 million on Medicaid. The burden of Medicaid costs is exacerbated by a recent state decision to withhold $10 million in federal reimbursements that were traditionally passed through to Orange County.
According to a report by the Citizens Budget Commission, New York local governments bear one of the largest Medicaid burdens in the nation, with nearly 10 percent, or $8 billion, of total Medicaid costs covered by local governments in 2022.
Other state-mandated programs, including preschool education, child welfare, and safety net initiatives, will contribute to the county’s total state mandate costs of over $168 million in 2024.
Mr. Neuhaus also acknowledged the uncertainties and risks posed by rising employee benefit costs, economic conditions, and the state’s fiscal situation. To address these challenges, he emphasized the importance of economic development.
Economic Development and Open Space
Mr. Neuhaus highlighted several exciting developments that are expected to drive sales tax growth, such as a new dinosaur park in Montgomery and the proposed expansion of Woodbury Common Premium Outlets.
The dinosaur park is projected to attract 300,000 visitors and generate $1.6 million in sales tax revenue in its first year. The Woodbury Common expansion is also anticipated to bring in millions of new tax dollars annually, according to a recent planning board presentation.
Unlike neighboring counties where automobile sales dominate, clothing stores are the primary sales tax producers in Orange County, with Woodbury Common playing a significant role.
A rendering of new retail spaces at Woodbury Common Premium Outlets in Central Valley, New York. (Courtesy of Woodbury Common)
Additionally, the county is witnessing the development of 27 new hotels across various stages of planning and construction.
While economic growth is crucial, Mr. Neuhaus emphasized the importance of preserving open spaces to maintain the county’s quality of life. The county has committed funds to projects such as trail development, land preservation, and protecting the watershed.
What specific strategies has Orange County implemented to attract new businesses and promote economic growth?
In the property tax burden for residents. By focusing on economic development and tourism, Orange County has been able to diversify its sources of revenue and minimize reliance on property taxes.
The proposed 3 percent budget increase for 2024 will allocate funds towards further boosting economic growth in the county. This increase will bring the total county budget to $923 million. However, what sets this proposal apart is that it aims to achieve this increase without burdening taxpayers with higher property taxes.
During his tenure as Orange County Executive, Mr. Neuhaus has prioritized economic development and tourism as key drivers of the county’s prosperity. By attracting new businesses, promoting job creation, and investing in infrastructure, Orange County has experienced significant economic growth. This growth has led to an expansion of the tax base and a thriving sales tax sector, which in turn has contributed to a reduction in property tax burdens.
The combination of a growing tax base and a robust sales tax has allowed Orange County to fund essential services and initiatives without excessively relying on property taxes. This strategic approach to revenue generation has positioned the county as a model for sustainable economic growth.
Under Mr. Neuhaus’ leadership, the full market value of taxable properties in Orange County has witnessed an impressive 80 percent increase since 2014. This surge in property values is a testament to the county’s success in attracting investment and fostering a favorable business environment. As a result, homeowners and businesses have benefited from lower property tax rates.
The proposed budget increase will continue Orange County’s momentum by investing in key areas such as education, public safety, and infrastructure development. These investments will further enhance the county’s economic competitiveness and quality of life for its residents.
Moreover, the 3 percent budget increase demonstrates Mr. Neuhaus’ commitment to responsible fiscal management. By keeping property taxes steady, the county government ensures that residents and businesses can plan and budget accordingly. This stability fosters confidence and encourages continued economic growth in the region.
In conclusion, Orange County Executive Steve Neuhaus has proposed a 3 percent budget increase to boost economic growth in the county. Through a strategic focus on economic development and tourism, Orange County has achieved a growing tax base and a thriving sales tax sector. This has allowed the county to reduce reliance on property taxes, benefiting residents and businesses alike. The proposed budget increase will support continued investments in key areas and maintain stable property tax rates, ensuring a bright future for Orange County.
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