February 6, 2008, FARMINGVILLE, NEW YORK -- Brookhaven Town Supervisor Brian X. Foley announced that in the wake of an increasingly worsening national fiscal climate he is taking pre-emptive measures to protect Brookhaven taxpayers. Foley is requiring all commissioners and department heads to develop plans for a 5 percent across-the-board cut on all non-personnel expenses in their departments. 

   Citing national economic trends such as the loss of 17,000 payroll jobs in January 2008, another spike in oil prices, the poor holiday retail season, and the abysmal .6 percent growth of the economy in the 4th quarter of 2007 (lowest since 2001) Foley said, “Although we live on an island, Brookhaven is not isolated from our nationwide economic downturn.”

   He continued, “As a result of local fallout from the national economic slump, we must take responsible action now to address any possible shortfall to our 2008 budget, so that we don't have to take drastic measures later. Managing a budget is an active process-- we cannot just sit around and see how events unfold.”

   Councilman Tim Mazzei reinforced the need to take action now, “The better prepared we are to meet financial contingencies, the better it will be for Brookhaven Taxpayers.”

   He continued, “We need to solve problems such as this as a team, the entire Town Council working together. As we’ve watched the national economy sour, the need to be prepared has increased. This is a prudent step.”

   One indication of the local effect of the national fiscal problem: Brookhaven's mortgage tax revenue dropped dramatically in the last two months of 2007; and in December 2007 falling to its lowest level since at least 2001. Brookhaven's mortgage tax revenue dropped from $4,898,269 in the last two months of 2006 to $3,002,878 in the same months of 2007, a drop of $1.9 million.

   Further, according to most economists the real estate sector is not expected to improve in 2008. Should the current trends continue, Foley reported, the Town could face a revenue shortfall of approximately $10 million in the 2008 budget on mortgage tax revenue alone.

   Foley has sent a memorandum to all commissioners and department heads requesting the 5 percent cut plans be submitted to the Town’s Finance Commissioner no later than Friday, February 22, 2008. Working with the Finance Commissioner and Town Council, who’s input Foley is asking for, the Supervisor will craft a plan for belt-tightening measures to minimize any impact to Brookhaven taxpayers.

   Foley noted that the declining mortgage tax is just one immediate indicator of lower revenue stemming from the worsening economy the Town is facing. A decrease in mortgage tax revenue has a far greater impact on Brookhaven's budget than other towns in Suffolk County, because Brookhaven has by far the lowest property tax rate (only 12 percent of total town revenue comes from taxes) in the County. “Past years of relying on town revenues that vary at the whim of the economic cycle could put residents at risk of a tax hike, unless we take action now,” he said.

   Foley concluded, “These measures will help mitigate the problem, but they are just a first step. I am very confident members of the Town Board, who have spoken extensively about the need to reduce our expenditures, will be coming forward with their ideas and proposals and we can work together to enact them.”

Office of the Supervisor
One Independence Hill • Farmingville • NY 11738 • Phone (631) 451-6955 • Fax (631) 451-6677