To the average student, Binghamton seems like a cheap place to live. Nightly drink specials, $5 movie tickets and discounted groceries make college life fun and affordable. For this reason, it may come as a surprise that Binghamton residents pay the highest property tax rate in New York state. Not Manhattan, not White Plains. Over the past 12 years, the city’s property tax rate has doubled. If Binghamton is to avoid bankruptcy, the city government must consolidate services with Broome County.
City-county consolidation is a drastic measure, but a necessary step to avoid the cycle of a dwindling taxable population and rising property tax rates. As unemployment rates rise, the city loses revenue and raises taxes, causing even more residents to leave. It is no coincidence that Binghamton’s unemployment rate is the second highest in the state. Increased budget cuts will not solve the problem. Certain fixed costs, like funding for the fire and police departments, cannot be cut.
The city government is caught between a rock and hard place. Essential services cannot be eliminated and rising property taxes dampen out any hope for economic stability. When trapped in such a position, unpopular decisions need to be made.
Consolidation of services increases efficiency and reduces costs. Duplicate services can be merged and administered by a centralized body. In turn, a more centralized administrative government creates an economy of scale, allowing more savings and bargaining power. Given Binghamton’s shrinking population, the city is an ideal candidate for consolidation of services.
Though Binghamton may benefit, city-county consolidation is far from a perfect solution. Opponents argue that consolidation increases corruption and takes away voters’ ability to hold officials accountable. Consolidation also carries the risk that budget allocations will not reflect the preferences of local communities. In some cases, comprehensive city-county consolidation resulted in an overall rise in expenses.
While consolidation has its drawbacks, it can be executed in a gradual, politically adept manner. Binghamton and Broome County officials can collaborate and identify the areas best suited for consolidation. Last Thursday, Chemung County Executive Tom Santulli announced the consolidation of Elmira’s public works department, resulting in an estimated $1.8 million in savings. This success demonstrates that coordination is both possible and cost-efficient for upstate communities.
Consolidation alone will not reverse Binghamton’s financial ruin, but city officials must act now. Property taxes are expected to rise again this year. The longer city officials wait to institute change, the more people are forced to leave the place they call home.