If the County sells the Nursing Home, we are due a tax reduction

I am writing in response to The Daily News Editorial of August 26, 2014. The argument for privatization.  http://www.thedailynewsonline.com/opinion/article_a85e2ef8-2e63-11e4-a831-001a4bcf887a.html

The news of the County Legislature deciding to sell the County Nursing Home was neither shocking nor surprising. The people of Genesee County’s acceptance of the lackadaisical oversight for the home are what have been shocking to me, for a long time. You are correct editor, the county manager has been reporting losses for well over a decade and little has been done. It’s true that a few small contributing fires were put out, but the giant blazing bonfire of taxpayer money was ignored. The issue of the unsustainability of the County Home has been ignored and danced around for years. Assuming that the reason for non-action was a desire to try and keep the home, I tried to propose a solution that would be fiscally prudent, protect the employees and continue coverage for our least fortunate. That too was ignored. I admit I was probably too late, the die had been cast; the fate of the home had already been decided. These problems with government won’t change until voters vote for change. Period.

As a Libertarian and a supporter of free markets I firmly believe that a private operator will do a much better job than public management. It’d be hard for them to do much worse. The bar is pretty darn low in my opinion. I’m not criticizing the employees, I’m pointing a finger at the County Legislature which is and has been responsible for the correct operation of the home and has failed. Hopefully, a new operator will add stability and a more efficient manner to the excellent level of care which already exists. I’m glad to see provisions in the RFP to help make this so.

Now, let’s talk about the proceeds. Assuming the home sells for somewhere near to its assessed value of 10 million dollars added to the average of over 2 million spent each year to make up the operating deficit, spread over the next 10 years would come out to 3 million per year (2 x 10 = 20 million plus the original 10 divided by 10 years) plus interest to be spent on bridges, roads, updates to parks etc.

Yes I expect a tax break on property taxes. The County Home has been used as an excuse to raise taxes, so if it is sold then it should be used as a reason for lowering taxes. You can’t have it both ways. Any debt that the home has caused can be amortized out for more than 10 years, knocking the payments down significantly. The money to be used to pay it off could be found by identifying other areas in which glaring inefficiencies exist. I can make up a list, but not in this letter. Or commit funds to paying off the debt for say 3 years and then reduce the tax. The point is to have a plan that reduces the burden on taxpayers, not a plan to find somewhere else to spend our money.

If the home sells for less than it’s assumed (assessed) value, that fault lies as well with the legislature.  A sale or lease or some sort of graduated purchase should have been simmering on the back burner for at least the past year. Interested parties should have openly been invited to propose ideas for a mutually beneficial transition to private management. Instead we are now having a desperation fire sale. I hope we aren’t forced into a fire sale price. Lack of foresight and planning has brought us to this point. I hope this whole mess is well-remembered on Election Day 2015.

I am asking the County Legislature to show us a 10 year plan of how much they will be committing to roads, bridges and other projects. Spread equally amongst the municipalities of the county, so those highway superintendents can start planning the projects they want done. In addition local contractors can have an idea of what work will be let out over the next decade. This can help them decide on equipment purchases, property leases and employment levels.

This 10 year planning can be an economic engine that actually has wheels attached to it, rather than funding the EDC and the uncertainty that goes with their programs. Forecasting a tax decrease over the next 10 years would also be an economic accelerator as it puts more discretionary dollars in everyone’s pockets to spend. Lower tax rates spur housing sales and increase values. It also proves to the citizens of the county, that their government is working for us, not at us. It would signify that we are thought of as partners in government, not just serfs who pay what we are told to pay. Let’s make lemonade, turn a negative into a positive.

Frankly, I’d rather see all the money returned to the taxpayers through property tax reduction and allow the local municipalities to decide how much they want to spend on road maintenance and let the folks in those towns decide what they want to pay for. But I don’t see that happening immediately, so this is the next best thing.

Note that I am not mentioning a specific amount of money to be committed to either roads, bridges and projects or a specific tax decrease amount. Mr. Ferrando and Mr. Cianfrini have said they will be open and transparent. So be open and transparent.

I am also asking, Legislators that you provide this plan to us, the people of Genesee County before you accept a sale of the county home. I ask as well that there be a vote of the public to approve any sale.

Sincerely;

David A. Olsen,

Basom, NY

Chair, Genesee County Libertarian Party