New York State Assemblyman Fred W. Thiele, Jr. (I, D, WF-Sag Harbor) today praised Governor Andrew Cuomo for his proposal to utilize $500 million of the State’s $4.2 billion surplus to help local governments consolidate or share services in an effort to reduce property taxes. The surplus is generated by one-shot revenues from a $4.5 billion settlement with BNP Paribas and other banks and insurance companies relating to mortgage practices.

Thiele stated, “The Governor has rightly stated that there is too much government in New York State and has called for consolidations and shared services at the local level. In fact, his 2-year property tax freeze enacted by the State Legislature this year requires local governments and school districts to prepare government efficiency plans in 2015. However, if the State truly wants to see such consolidations, it must put its money where its mouth is. Investing these dollars today to promote consolidation can yield a return of lower property taxes for decades to come by shrinking the numbers of local governments permanently.”

Thiele cited the current Southampton/Tuckahoe school merger as a prime example of where this money could be used to promote consolidation. “The proposed merger generates $4 million dollars in overall savings. However, because of the differences in tax base in the two districts, one district reduces its taxes and one district sees a tax increase. This session, Senator LaValle and I passed two pieces of legislation to mitigate and eliminate these tax impacts. The enactment of this $500 million program to incentivize consolidations could guarantee that all residents see an actual tax decrease from the savings generated by a merger. The key to any merger success is providing equal or better services at a lower cost to the taxpayer.”