Officials upset with state’s hold on 911 tax money

By DON LEHMAN dlehman@poststar.com | Posted: Sunday, January 24, 2010 5:05 pm |

QUEENSBURY -- A decrease in state funding for Warren County's emergency dispatch center has prompted county supervisors to talk about a lawsuit over the state's failure to turn over tens of millions of dollars to counties that is collected through phone taxes.

At issue is the money that cell phone customers pay monthly as a 911 surcharge. Each cell phone subscriber pays $1.20 a month that, when enacted, was billed as a fee that would go to help counties provide 911 service.

Instead, the vast majority has been kept -- some say illegally -- by the state. And a report by the state Comptroller's Office four years ago found that most of the money went to the state's general fund and for expenses like dry cleaning and conferences.

Warren County officials learned recently that the county's payment of 911 surcharge money from the state will fall from $34,388 to $30,091 in 2010.

But that drop in funding was just a small part of the issue that had supervisors angry Thursday as Warren County Sheriff Bud York and county Fire Coordinator Brian LaFlure told them of the battle that has been ongoing for years between counties and the state over the money.

LaFlure said $178 million was collected through 911 phone surcharges during one recent year, and the state gave the counties just $10 million of it. The federal government has fined New York $40 million a year for not turning the money over to the counties, but the state feels that paying the $40 million is worthwhile in light of the revenue it gets annually by keeping the surcharges, LaFlure said.

"The 911 Coordinators Association has been fighting this for years," LaFlure said. "It's a travesty."

Queensbury at-large Supervisor William VanNess, chairman of the Board of Supervisors' Criminal Justice Committee, said the New York State Association of Counties is also battling with the state on the issue.

Horicon Supervisor Ralph Bentley said the county should consider a lawsuit over the state on the issue. Supervisors have been looking to challenge the state on unfunded mandates.

"The squeaky wheel gets the grease, and we need to squeak," York said.

"Maybe it's time for a class action lawsuit," LaFlure said.

Glens Falls 2nd Ward Supervisor Peter McDevitt said the county should also see if U.S. Rep. Scott Murphy, D-Glens Falls, can assist on the issue by working to increase the federal fine on the state so that it's not worthwhile for the state to pay it.

The counties should see some more of the money in the 2010-2011 budget under a proposal by Gov. David Paterson last week.

Jessica Bassett, a spokeswoman for the state Division of Budget, said the budget proposal would give $50 million of the money to the counties in 2010-2011, and that would grow to $75 million in subsequent years.

"This was meant to address some of the issues raised by the counties," she said.

Bassett said the state is also hoping to revamp the agencies, such as the state 911 Board, Emergency Management Office and Office of Fire Protection, that deal with these types of issues, combining them under one umbrella to improve service.

York said he is being considered for a spot on the New York State 911 Board. The 13-member board "assists counties in providing the best 911 service possible," according to its Web site, and is overseen by the secretary of state.

Post Star - Glens Falls, NY.