Vanderhoef: Plan to Spin Off County Nursing Home Not Fiscal Gimmickry

When County Executive C. Scott Vanderhoef was on the campaign trail this year in his race for state Senate, he says the most common message he heard from Rockland residents was for him and other government officials to cut the size of government.

Vanderhoef says the Rockland County Legislature has a chance to do that tonight when it votes on Vanderhoef's proposed $700 million 2011 budget plan, which calls for the county to spin off its nursing home and hospital in Pomona as a standalone non-profit public agency that would no longer be part of the county government.

The plan, which calls for establishing a new public benefit corporation to own and operate the facilities that are a part of the Dr. Robert L. Yeager Health Complex, has been met with mixed reaction from lawmakers since Vanderhoef made the proposal in October.

Vanderhoef contends the plan would maintain services currently provided by the county, but also provide the county with cash to close a big gap in the county budget by selling the Summit Park Hospital and Nursing Care Center to the new corporation. The total budget package for 2011 includes a 3.9 percent tax increase, which Vanderhoef says translates to about a $24 tax hike for the average property owner.

"More and more counties will be looking at this type of move because of the nature of the nursing home business," said Vanderhoef, noting that the state government's funding policies are moving toward encouraging home-based care instead of counties operating facilities such as Summit Park.

The public benefit corporation proposal would require approval by the state Legislature. The project would sell Summit Park to the new non-profit group, and an estimated 700 county workers would then become employees of the new corporation.

A two-year transition period would maintain current staffing. Additionally, Vanderhoef contends the new corporation would be established to carry out the goals of the current Summit Park operation - providing care to residents who cannot afford privately-run nursing facilities.

"We have an opportunity to cut the size of county government by a third and still provide the services needed by the public," said Vanderhoef, who noted that voters were quick to criticize the growing cost and size of government when he met them during his bid for state Senate.

Vanderhoef, an Orangetown Republican, lost on Nov. 2 to Clarkstown Town Clerk David Carlucci, a New City Democrat, for the 38th District seat that was held by the late state Sen. Thomas Morahan, R-New City. Carlucci takes office in January.

With the size and scope of the plan for Summit Park, some Rockland lawmakers are concerned that not enough time and effort has gone into nailing down all the details of the proposal and its economic and human costs.

Legislator Ed Day, R-New City, said he does not believe the County Legislature has had enough time to review the proposal and whether it will be an economically viable, longterm solution to Rockland's financial problems. Additionally, he is not convinced the proposal has enough safeguards to guarantee the new public benefit corporation would maintain services at current levels - or better.

Vanderhoef responds to the plan's critics that the public benefit corporation concept does not need lengthy study, arguing that Rockland doesn't really have any other longterm options.

Vanderhoef said the county will face increasing financial pressures if it continues to manage Summit Park as it currently does, with the state government actually encouraging county governments to get out of the nursing home business. Vanderhoef said the county could sell its nursing home and hospital to a private, for-profit company to operate. However, Vanderhoef said he does not believe that is a viable solution becuase the county could not get a guarantee that the current services would be offered.

"This plan is not fiscal gimmickry like some people claim," said Vanderhoef.

Vanderhoef said the initial step of approving the Summit Park plan is fairly simple, but the time-consuming details would come later as the county government puts together the public benefit corporation, set up its goals and the board of directors that would overee the management and operation of Summit Park.

The current plan calls for creating a board that would have officials appointed by the county and by the governor.

Vanderhoef said the new entity would be able to run the facility more cost-effectively, with an estimated savings of $45 million over the next five years.

Budget proposal

The budget proposal being considered by the County Legislature tonight would keep county spending down by eliminating about 150 jobs – saving $14.5 million — through a state-backed retirement incentive program and cutting funding to county contract agencies by $2.8 million.

Vanderhoef said the county plans on spending $10 million on capital improvement projects to maintain the local infrastructure. However, Vanderhoef said that capital plan was reduced by $60 million.

The county would also save $1 million by cutting all departmental supply accounts by 6.8 percent, Vanderhoef said.

Without the funding that would come in through the sale of Summit Park, the county government faces a big budget gap. Vanderhoef said the county government has been hurt by declining sales tax revenues and lower income from the mortgage recording tax - both victims of the ongoing national recession.

Vanderhoef admits that his administration had been too optimistic on its projetions for sales tax revenues, hoping the county would see better results from the sales tax and mortgage tax as the nation moves away from the worst of the recession.