
Leave it to our megalomaniac County Exec to spin the independent audit of his 2010 budget into a PR opportunity to tout his greatness and lecture the state Legislature on proper budgeting.
What the f**k is Hein smoking?While providing enough praise to stroke Hein's fragile ego (especially with him shouldering part of the blame for the GOP takeover of the Legislature), the audit performed by a White Plains accounting firm did raise several issues that challenges Hein's self-proclaimed budget wizardry.
Sales Tax Projections - With his million dollar staff, it's unfathomable that Hein overestimated 2009 sales tax revenues by $8 million. The audit found Hein again overestimated sales tax revenues by at least $1 million for 2010. If left uncorrected, Hein's error will create a $2.5 million deficit in 2010.
Fund Balance - In part due to Hein's faulty sales tax projections, the county had to expend $10 million from the fund balance since 2008. $5.8 million in fund balance will be used to balance the 2010 budget. The auditors also found an additional $1 million (not accounted for by Hein) is needed to fund new labor agreements. The county's present fund balance is now at the minimum acceptable level set by the state Comptroller.
One Shot Revenues - Hein proclaims his budget as free of "gimmicks." But, how do you describe the budget's reliance on $5.5 million in federal stimulus funds that will disappear in 2011? Or using the last $3 million from the county nursing home fund (even though only $2 million is in the account)? Pretty gimmicky, huh?
2011- When the Heiny hits the fan! - With a dwindling fund balance, lower sales tax revenues, possible state aid cuts new unfunded mandates and no more stimulus money, the auditors warned the 2011 budget "will be a big challenge" for Hein & the Legislature.
As UC Mojo reported in a previous post, Hein will have no choice but to get "medieval" with the 2011 budget or face a massive tax property tax increase.
With Hein facing re-election in 2011 (hopefully against Jim Quigley) and a new generation of tax-averse Republicans entering the Legislature, look for a contest to see who can swing the mightiest budget axe next year.
Regardless, the Ulster County government will be undergoing a dramatic metamorphosis in the very near future.