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Schenectady's tab to school district: $4M
City's reimbursement is to cover delinquent property taxes
By Lauren Stanforth
Published 11:48 p.m., Tuesday, October 9, 2012

SCHENECTADY — This cash-strapped city must come up with $4 million next year to pay the city school district its share of delinquent property taxes.

Three years ago, under Mayor Brian U. Stratton, the city decided to save money by deferring the annual payment to city schools for property owners who did not pay their school taxes. The state requires a city or county to make school districts whole — because only municipal governments foreclose on tax delinquent properties to recoup losses.

No payment was budgeted this year, so the city must write the school district a $4 million check for 2013. Schenectady Board of Education President Cathy Lewis said it's her understanding that the money will be provided in May.

The payment was absent in Mayor Gary McCarthy's proposed 2013 spending plan on the printed copy provided to the Times Union at the budget announcement on Sept. 30. But a review of the budget on the city's website shows the first page was left off the hard copy, and that in fact the $4 million is accounted for as a negative under "allowance/school whole."

McCarthy said the city, which has a little less than $75,000 in its rainy day fund now, will be able to cover the $4 million in part because of the city's increased efforts to collect delinquent taxes. This year, by threatening foreclosure on hundreds of properties, the city has collected $6 million of $18 million outstanding.

But McCarthy is also balancing the budget by delaying Schenectady's payment into the state pension system, a process called amortization. As a result, Schenectady will reduce its pension payout next year from $7.7 million to $6.3 million. Local governments try not to amortize because they will owe interest on the pension amount they do not pay.

Moody's Investors Service recently downgraded the city's bond rating two places because of the high ratio of debt the city is carrying, and auditors from the state comptroller's office are now reviewing the city finances.

Lewis said because of the city's financial constraints she's not convinced the school district will receive the money it's owed. The school district's auditor recently scolded the district for budgeting $3.4 million from that tax bill as definite revenue – when the payment isn't expected until near the end of this school year.....................>>>>...............>>>>...............Read more: http://www.timesunion.com/loca.....03.php#ixzz28tQ03eiq

Thank You Mayor McCheese! But he pushed the sales tax screwing. What about the poor kids? Millions for an
Erie Boulevard narrowing, $25 MILLION for a City Garage no one wanted but nothing for City schools. The priorities
of these DEM morons are sickening. Hooray for me-screw you.

     The school board should go directly to the Governor and demand the State withhold this money from City Hall.
That would end the charade in City Hall. Smoke and mirrors and liars over a hole.

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But McCarthy is also balancing the budget by delaying Schenectady's payment into the state pension system, a process called amortization. As a result, Schenectady will reduce its pension payout next year from $7.7 million to $6.3 million. Local governments try not to amortize because they will owe interest on the pension amount they do not pay.

Moody's Investors Service recently downgraded the city's bond rating two places because of the high ratio of debt the city is carrying,

Thanks to the dems, the interest will be even higher !!!!!!!!!!   HIP HIP HOORAH !!!!!!



But according to those who shake the pom poms for the dems, the dems are making all the right decisions for the city.

Today you can pay $10 but if you don't pay today, you can pay $12 tomorrow, but because your credit rating is lowered, you will pay $15 tomorrow instead.


Then of course, McC will probably not run again, hope for a different party to get in when he leaves the city bankrupt and then he and his little board cheerleader will prance around together saying the subsequent administration ruined the city.

Look, no comments from the board cheerleader for the dems.   Too embarrassing to admit the truth, easier to avoid any comment.

No one is defending these DEM idiots. They stole from our kids to pay tax exemptions for millionaire
developers and Fat Morris. No one dares blame Fat Morris, Death Ray and the DEM destroyed County Leg for the
complete collapse of finances. AND they are building a NEW County Home! Even Albany is privatizing it. The State
should take over the County too. And A-Jello actually wants a promotion? ROTFLMAO!

Schenectady County too small for a County/Too big for an insane asylum.

Quoted from benny salami

Thank You Mayor McCheese! But he pushed the sales tax screwing. What about the poor kids? Millions for an Erie Boulevard narrowing, $25 MILLION for a City Garage no one wanted but nothing for City schools. The priorities of these DEM morons are sickening. Hooray for me-screw you.

The school board should go directly to the Governor and demand the State withhold this money from City Hall.

That would end the charade in City Hall. Smoke and mirrors and liars over a hole.

Wasn't this McCheesy's catch phrase during the City's taking over foreclosures "We need to get the message out that people need to pay their taxes."

Well, McCheeseball...PAY YOUR TAXES!!!!!!!

Wasn't it all Al Jurcynski's fault 7 or 8 years ago, now it's the taxpayers fault. Somewhere in between is Stratton, no blame for him? Haven't heard the Mayor mention his name.

Quoted from Dirt2

Wasn't it all Al Jurcynski's fault 7 or 8 years ago, now it's the taxpayers fault. Somewhere in between is Stratton, no blame for him? Haven't heard the Mayor mention his name.

Yep, it's Jruzynski's fault, it's the republican's fault at the local level, it's the state's fault, it's the homeowner's fault, it's the fault of the homeowners who can't pay their property taxes because they have paid for downtown's taxes and reno.   But it's not the city dems, county dems, nor plex's fault.