POTENTIAL SALE OF TOWN COMMUNITY CENTER IS LATEST HARMFUL BUDGET GIMMICK PROPOSED BY MAHAN ADMINISTRATION
October 19, 2011
POTENTIAL SALE OF TOWN COMMUNITY CENTER IS LATEST
HARMFUL BUDGET GIMMICK PROPOSED BY MAHAN ADMINISTRATION
Central Avenue Community Asset Identified in Mahan Budget for Possible Sale
Town’s Deficit Issues Continue Despite Costly, Taxpayer-Financed One-Shot Deals
COLONIE – Town of Colonie Supervisor candidate Denise Sheehan today informed residents that Supervisor Paula Mahan is actively considering selling the Town Community Center on 1653 Central Avenue. Mahan’s proposed 2012 budget identifies the Community Center as a parcel to be sold and resulting revenue transferred to town coffers. The sale of another valuable town asset is the latest in a series of one-time financial gimmicks designed to cover up the ongoing deficit problems and harmful budget practices of the current administration.
Sheehan held a press conference today at the Community Center, which supports more than 40 community organizations in Colonie, including youth sports groups, child day care services and adult education classes, among others (a list of organizations is attached). The Community Center was originally owned by the South Colonie Central School District. The School District sold the Center to the Town for $1 several years ago, based on the expectation that it would be used for community services.
“Once again, Colonie residents are about to pay a steep price for the financial mismanagement of the Mahan Administration,” Sheehan said. “For four years, the Supervisor has failed to get her fiscal house in order and has sent our town deficit skyrocketing – and here is the result. Another one of our most prized and valuable community assets will be made available to the highest bidder. The South Colonie community suffers because the Mahan Administration overspends, under-thinks, and relies on disastrous one-shot gimmicks to correct their mistakes.”
At today’s press conference, Sheehan outlined a pattern of alarming financial mismanagement on the part of the Mahan Administration which caused the Town’s deficit to grow by $11 million in only 16 months between 2009 and 2010. The Town’s own auditors recently determined that Mahan’s budget practices are in violation of New York State Town Law. Results of the Town’s own independent audit, whose report was only recently released, stated that:
“The ‘General, Library, Capital Projects and Environmental Services Funds have generated significant deficits and have deficit equity positions at December 31, 2010. These deficits were primarily the result of (1) the Town’s overspending on various cost/activity categories, and (2) budgeted revenues being overstated. The Town is not in compliance with New York State Town Law.”
During the last four years, more than $31 million has been collected by the Mahan Administration through a “one-time tax” and sale of town assets. Heritage Park was sold for $2.7 million, town residents paid the “one-time tax” of $5.6 million in 2009, and the controversial landfill deal provided a $23 million payment – resulting in a total of $31.3 million being sent to Town Hall since 2008.
Despite collecting an enormous amount of funds through one-shot budget gimmicks, Colonie still maintains a multi-million dollar deficit. Analysis of Mahan’s current budget plan shows that deficit will likely exceed $10 million by the end of 2012.
“We can no longer afford the kind of leadership now being provided in Town Hall. Budgets are crafted in secret, financial projections are pure fantasy, and as we’re seeing here – Town residents suffer greatly for the poor performance and flawed fiscal decisions from this Administration,” Sheehan said. “Colonie taxpayers have paid more than their fair share, but we still face an alarming deficit and our town is being sold off piece by piece.”
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