Office of Real Property Services

The Executive Budget recommends (analysis as January 30, 2008):

A FY 2008-09 workforce of 384.  This decreases the level of FTEs from the adjusted FTE level for FY 2007-08 by 8.  The following chart identifies adjustments in the current fiscal year’s FTEs along with the recommended differences in FY 2008-09 FTEs by program (if the FTE’s are the same the program is not listed):

• The decrease of 8 FTEs according to the Executive Budget Agency Presentation can be attributed to reduced staffing needs resulting from restructuring agency administrative support functions.  The Agency Presentation also states that the Executive Budget will seek “greater operational efficiencies” through a “host agency arrangement intended to reduce overall costs for administrative support functions.”  The restructuring and change in staffing should be clarified with management.

• The total appropriation for Personal Service is $24,705,000, which maintains personal service funding level for SFY 2007-08.

• An All Funds increase of $235,000, (+0.5%) from SFY 2007-08.  This increase is due to the Policy and Organizational Support Services’ Improvement of Real Property Tax Administration Account (SRO), nonpersonal service funds, and more than half of that increase was for contractual services (+$137,000).  According to the Assembly the increase to this Program reflects actual operating costs for nonpersonal service. 

• The Office of Real Property Services employed an estimated 46 employees under consultant contracts in SFY 2007-08 at an estimated cost of $600,520 or an average cost of $13,055 per consultant contract employee.  It is estimated that $493,000 will be allocated for consultant contracts in SFY 2008-09 for 43 employees at an average cost of $11,465 per consultant contract employee, which is an 18% decrease from SFY 2007-08.

• Article VII language proposes to authorize an increase in real estate transfer fees.  This proposal would increase the real property transfer tax fee that is paid whenever a deed is recorded.  According to the Assembly, the Executive estimates that this proposal will generate an additional $30 million in special revenue funding.  The revenue generated will be used to fund new targeted local aid programs, to provide the necessary funding to invest in technology to improve real property tax administration and to ensure adequate support for the Office of Real Property Services operation. 

Article VII bills would also: delay scheduled increases for the Basic Middle Class STAR rebate (1 year), for savings of $169 million for SFY 2008-09 and 175 million for SFY 2009-10, and the NYC Personal Income Tax credit (1 year, saving $40 million,; eliminate the NYC STAR income tax credit for taxpayers with income that exceeds $250,000, saving $20 million; increase the “floor” adjustment used in computation of STAR exemption benefits from 5 to 10 percent, saving $110 million ; and allow the state to offset against the Middle Class STAR rebates certain legal obligations such as delinquent child support payments and delinquent taxes, saving $15 million.