ADVISORY PANEL RECOMMENDS CHANGES TO COUNTY BUDGET PROCESS
The Budget Community Advisory Panel, a 10-member group with representatives from the business, not-for-profit, local government, and higher education communities, has met six times to analyze the County's budget process and the challenges ahead. Last night, panel member John Neuman presented a draft interim report to the Legislature that included preliminary recommendations for revising the budget process, reducing costs, and increasing revenues. While some of the recommendations are still to be considered in the draft stage, Neuman said the panel had reached "full and enthusiastic consensus" on some of its advice, including a recommendation that the County "start where you would really like to end." Instead of starting with a large set of budget requests and then reducing the requests to reach a final budget, the panel is recommending that the Legislature start with a scaled-back target budget and then vote to add requests. The panel feels that this distinction between voting to add funding as opposed to voting to cut finding will result in a budget that is more affordable to taxpayers. The panel also recommends that the Legislature set a target for a tax levy increase before it starts to build its budget, a measure that has already been discussed in the Budget and Capital Committee. Among other recommendations in the draft interim report are looking beyond a one-year budget horizon, designing a system for evaluating programs and capital projects, working cooperatively with the workforce to stabilize labor costs, and looking for new sources of revenue. The Budget Community Advisory Panel will continue to refine its recommendations and is scheduled to present a final report to the Legislature in early June. Contact: Michael Koplinka-Loehr, Chair, Budget and Capital Committee, 257-2329.

LEGISLATURE PREPARES FOR BUDGET RETREAT
Budget Committee Chair Michael Koplinka-Loehr gave a brief preview of the April 27 "budget retreat" for Legislators. Koplinka-Loehr said his hopes for the retreat are that, through discussion and straw votes, the Legislature can agree on a charge to the County Administrator that will make priorities and a range of funding limits clear at the beginning of the budget process. These decisions will be put in resolution form to be voted on at the next Legislature meeting on May 4. If a majority of the Legislature agrees on a specific funding level directive to the County Administrator, the Administrator's recommended budget, due this year in early September, will take on a different significance than in previous years. The Administrator's budget - prepared from department and agency requests - will become the default, preliminary budget, Koplinka-Loehr noted, rather than a recommendation. The Legislature has already agreed that it will forego program committee review of the budget, a step many have felt was redundant, in favor of a committee-of-the-whole review. These changes represent both a streamlining of the process and a focus on available revenues rather than desired spending as a starting point for reaching a final budget. Contacts: Michael Koplinka-Loehr, Chair, Budget and Capital Committee, 257-2329; Steve Whicher, County Administrator, 274-5551.

LEGISLATURE SUPPORTS TRANSIT REORGANIZATION
Following a presentation by Tompkins Consolidated Area Transit (TCAT) General Manager Rod Ghearing, the Legislature passed two resolutions in support of a reorganization of the transit entity. Formed in 1998 with the consolidation of City of Ithaca, Tompkins County, and Cornell University transit systems, The TCAT system has been a success, said Ghearing, who pointed out a 19 percent increase in ridership since the consolidation. The system is unique, however, in that it operates as three separate employers and has other weaknesses associated with its management structure. On April 26, the New York State Public Transportation Safety Board (PTSB), which has worked with TCAT on safety issues since the 2001 accident in which a bus driver died, gave TCAT a 90-day deadline to form a more conventional management model. Cornell University, as the only partner potentially liable for punitive damages in the event of personal injury or fatality, has also stated its wish for a different organizational structure. After considering various models, including becoming a state transit authority, or a department of City of County government, the TCAT board of directors determined a strong preference for a local authority in the form of a public benefit corporation. This structure - which requires approval by all three partner organizations - provides the most advantages to the organization and each of the partners. State legislation to create the local authority/public benefit corporation must be passed by late June to avoid the loss of $2 million in state funding. Ghearing explained that the local authority would not have taxing ability but would be able to issue revenue anticipation bonds. The current three-way equal funding by the City, County, and Cornell would not change, and service is not expected to change. A local authority will have more autonomy and less County oversight than under the current arrangement. Only Dooley Kiefer opposed the resolution in favor of the local authority. The Legislature approved, with Kiefer and Nancy Schuler in opposition, another resolution to create a 501(c)3 not-for-profit corporation to run the transit system if establishment of a local authority fails. The County is the first to approve the two measures. The City is expected to take up the issue at the May Common Council meeting. In a related matter, the Legislature unanimously approved an advance of $2 million to TCAT in anticipation of state funds, a process it has followed in the past without problems. This year, the issuance of the state funds is dependent on TCAT's successful reorganization. Contacts: Rod Ghearing, TCAT General Manager, 277-9388, ext 444; Barbara Blanchard, Chair TCAT Board of Directors, 277-1374,

TASK FORCE ASKED TO STUDY AIRPORT, MAKE RECOMMENDATIONS
In an effort to deal with the budgetary consequences of decreased flight usage and diminished consumer choices at the Ithaca-Tompkins Regional Airport, the Air Service Task Force has been asked to undertake a detailed and comprehensive effort. The Legislature unanimously approved a charge to the Task Force that directs it to review the airport's operations and budget, and to prepare a contingency plan in case the lone air service carrier, USAirways, does not continue its contract beyond this year. The Task Force will look at alternatives to the current funding and operational structure at the airport. The group, which is currently made up of community business leaders, airport users, and elected officials, may enhance its membership to meet this challenge. It has been asked to prepare an interim report for the Facilities and Infrastructure Committee within 90 days and to present its final recommendations to the Legislature by the end of October. Contacts: Dick Booth, Chair, Facilities and Infra-structure Committee, 272-6573; Edward Marx, Planning Commissioner/Deputy County Administrator, 274-5560.

SALES TAX REVENUES RISE STEADILY IN FIRST THREE MONTHS OF 2004
Finance Director David Squires reported that sales tax revenues have topped the 2004 budget estimate by $700,000 at the end of the first quarter. County government has received $6.1 million as compared to last year's first-quarter receipts of $5.4 million, an increase of 13 percent. The town and village shares of sales tax revenue are up by 18 percent, and the City of Ithaca's share is up by 6.4 percent, said Squires. The growth of the sales tax revenue in the first quarter of 2004 is unprecedented, said Squires, in that it moved steadily upward with no dips. Another positive note, said Squires, is that the County's 2004 income from the tobacco industry settlement will be $674,000, slightly above the budget estimate of $650,000. Mortgage tax revenues, which are collected by the County Clerk and distributed semi-annually to municipalities, are reported at $800,763 as compared to last year's $908,946, said Squires. Squires also reported that an analysis of 2004 property tax payments shows that 3,159 taxpayers elected to pay their bill in two installments, an increase of only 4 participants over last year. Contact: David Squires, Finance Director, 274-5544.

LEGISLATURE APPROVES SOLAR PANEL MITIGATION
The new parking lot being built on South Cayuga Street will block a portion of the solar panels mounted on the roof of the Tompkins County Public Library. An analysis of possible options for making up for the loss of energy to the library has shown that replacing the shadowed panels is less cost-effective than initiating other energy saving measures at the library. The Legislature voted unanimously to support a proposed agreement that will require the City of Ithaca and Community Development Properties, Inc. to pay the County up to $41,000 for energy efficiency improvements, including a new entranceway, at the library. Contacts: Dick Booth, Chair, Facilities and Infra-structure Committee, 272-6573; Edward Marx, Planning Commissioner/Deputy County Administrator, 274-5560.