The economy might be sinking to depths not charted in decades, but Saratoga County is probably the best place to weather the storm intact.
That was the message county officials delivered to a meeting the Saratoga County Chamber of Commerce this morning, as County Administrator David Wickerham and Chair of the Board of Supervisors Arthur Johnson gave an informal state of the county address.
In comparison to some parts of the state, we're still pretty solid here, said Johnson. "I think we'll recover faster than some parts of the state."
Still, it was agreed that the challenges facing Saratoga are daunting. The county reached into its general fund for $4.2 million this year, and will probably use about $3 million in 2009 just to keep taxes from going up, leaving the county with around $25 million in savings.
"It's the first time in memory that we've had to see our fund balance shrink," said Wickerham.
He said that raising taxes is not in any plans at the moment, and called taxes "counterproductive."
"We have always made raising taxes in this county the last option, and I fully expect we will continue to do that," said Wickerham.
Though sales tax revenue for 2008 was $1.7 million less than projected and property taxes were down in kind, the most onerous burden for the county cannot be reduced by spending cuts or prudent budgeting.
"Medicare is, without a doubt, the most expensive item in the county budget," said Wickerham.
In New York, the state requires localities to chip in for Medicare costs. Luckily, the federal government, which usually pays for half of the state's Medicare costs, will be increasing the Federal Medical Assistance Percentages based on a state's unemployment, meaning New York will likely get around 10 percent relief, or more.
The change will save Saratoga $8 million over two years, but the stimulus will expire then.