Earlier this month, Governor Paterson took to the airwaves to warn New Yorkers about the state’s fiscal crisis.  There is no doubt that New York State is facing tough financial times, as are most hardworking taxpayers as we all continue to pay more for the goods and services we use every day.

Erie County is facing its own financial issues.   Sales tax is the largest single revenue source in the County’s budget.  Although Erie County has collected more sales tax revenue than budgeted in our first six months, we are expecting sales tax revenue to slow the last six months of the year.  Consumer confidence is at an all time low and gas and food prices continue to rise dramatically.  The County is also impacted by rising prices, especially fuel.  In addition to the increased expense of keeping the county fleet on the road, oil based products like asphalt are spiking in price, making necessary and timely road repair projects all the more expensive. 

My administration was prepared for these hurdles months ago and is prepared to face them today.

Just weeks after I took office in January I asked each department to cut its discretionary budgets by 25 percent.  To lead by example, I restructured the County Executive’s office and trimmed $95,000 from our budget.  Months ago, I also implemented a new hiring program designed to maximize the hiring of employees who work 39 hours a week, but receive half of the regular employee time off benefit package.  This move will save nearly $800,000 a year.  Recently my administration went further and initiated a hiring freeze.  New hires will be limited to: positions having significant federal/state reimbursements; health and safety openings; and positions needed to fulfill the core mission of each department.  I have also asked department heads to evaluate the necessity of all non-mandated programming.

My administration’s Six Sigma program continues to gain momentum and realize true savings.  County employees are currently working on 12 Six Sigma projects aimed at increasing efficiency and customer focus.  With the pilot funding we have today, we can expect approximately $1.1 million in Six Sigma savings in 2008 alone.   Under our space utilization initiative, my staff is undertaking a comprehensive review of our buildings and getting smart about how we are use county owned facilities.  Thanks to an efficiency grant from the Control Board, and in collaboration with the County Clerk, we are moving both the DMV and the County Attorney’s office into the Rath Building next year, saving over $400,000 in yearly rent. 

We also undertook a comprehensive review of all county cell phones and take home vehicles, asking employees to justify their use.  In the end, we eliminated more than 250 phones, pagers and other electronic devices, a reduction of over 35 percent.  These cuts impacted all employees from rank and file to commissioners.  In the process, we will save nearly $150,000 annually.

My administration will continue to focus on controlling and cutting discretionary spending, and improving efficiency in county government.