ALBANY, N.Y.Local taxes in New York State rose 53 percent, significantly more than inflation, during the 1990s, according to a Public Policy Institute analysis of data just released by the Office of the State Comptroller.
If local tax increases had been held to the level of inflation over the decade, around 30 percent, taxpayers would have saved some $6.4 billion in 1999, the Institute found. Local taxes in New York totaled $43.4 billion, or $2,412 per persona figure that was more than twice the national average of $1,158.
The Public Policy Institute is the research affiliate of The Business Council of New York State. The Institute analyzed data from the Comptroller's Special Report on Municipal Affairs for 1999. The comptroller's office collects financial data from 3,174 counties, cities, towns, villages, school districts and fire districts in the state.
Tax collections by school districts rose more than 60 percent during the 1990s, or twice the inflation rate, to $15 billion. The sharp increase in school taxes occurred despite increases in state and federal aid that were also far above inflation (see table). Statewide school enrollment increased by approximately 12 percent during the period.
In New York City, taxes rose nearly 50 percent, to $16.5 billion in 1999. Combined state and federal aid to the city was up 54 percent.
Outside New York City, county taxes make up the largest share of local tax bills after school taxes, a total of $6.7 billion in 1999. Tax collections in the 57 counties outside New York Citysplit nearly evenly between property and sales taxesrose 46 percent.
The 61 cities outside New York City had the smallest increase in tax collections of any group of local governments, at 37 percent. Spending in those cities increased by slightly less than the inflation rate. Most cities lost population during the 1990s.
"Local tax collections jumped in New York during the 1990s partly because of growth in the state's economy, particularly during the second half of the decade," said Robert Ward, director of research for The Public Policy Institute.
"Local sales tax revenue rises when consumers are buying more, and property tax revenue increases when businesses and individuals have the confidence to invest in new industrial, commercial, and residential developments. At the same time, higher tax rates helped drive tax collections higher, especially in local school districts."
State mandates on local governments contributed to higher spending and taxes in municipalities and school districts, according to the Institute's analysis. For instance, social services spending by local governmentsdriven largely by Medicaid, welfare and other state programsrose 55 percent, to $11.9 billion.
Yet state mandates are not the entire story, the Institute found. For example, general government expenditures-including spending on elected officers and staff, administrative costs, and operation and maintenance of buildings-rose 48 percent over the decade.
Local tax burdens vary widely from region to region in the state. Total local taxes-including those for schools, county governments, cities, towns, villages and fire districts-amounted to $4,490 per person in Hamilton County, $3,253 in Nassau County, $3,132 in Westchester County, $2,773 in Suffolk County and $2,751 in Rockland County.
Local taxes were lowest in Tioga and Wyoming counties, at $1,117 per capita. Other areas with relatively low taxes include St. Lawrence County, at $1,165 per capita; Jefferson County, $1,176; Clinton County, $1,180; Cayuga County, $1,181; and Chemung County, $1,194. For data on local taxes in other counties, contact The Public Policy Institute.
Local Taxes And Spending in New York State, 1989-99(millions of dollars)
Inflation during the period: 30.3 percent 1989 1999 Increase Counties outside New York City Tax collections 4,613 6,728 45.9% State aid 1,521 2,160 42.0% Federal aid 1,034 1,592 53.9% Spending 9,945 15,239 53.2% Cities outside New York City Tax collections 975 1,336 37.0% State aid 394 516 31.0% Federal aid 178 173 -2.8% Spending 2,358 3,000 27.2% New York City (excluding schools)1 Tax collections 11,016 16,490 49.7% State aid 3,162 3,871 22.4% Federal aid 2,345 4,662 98.8% Spending 25,724 38,312 48.9% Towns Tax collections 1,761 2,638 49.8% State aid 348 393 12.9% Federal aid 78 131 67.9% Spending 3,175 4,526 42.6% Villages Tax collections 548 840 53.2% State aid 97 103 6.2% Federal aid 52 68 30.8% Spending 1,153 1,693 46.8% School districts Tax collections 9,331 15,009 60.8% State aid 8,108 11,966 47.6% Federal aid 868 1,849 113.0% Spending 19,414 31,740 63.5% Fire districts2 Tax collections 196 354 80.6% Spending 237 400 68.8% Total Tax collections 28,441 43,395 52.6% State aid 13,630 19,010 39.5% Federal aid 4,556 8,475 86.0% Spending 62,005 94,910 53.1% Spending totals reflect inclusion of other revenues such as license and fee revenues, and interest on investments. 1 New York City figures for 1999 include hospitals and other funds that previously were separate. 2 Data for state and federal aid unavailable. Calculations by The Public Policy Institute; data from Office of the State Comptroller
-30-