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Council member proposes move to separate school tax money from city money

By WKTV News

Story Created: Feb 22, 2012 at 2:09 PM EDT

Story Updated: Feb 22, 2012 at 2:09 PM EDT

UTICA, N.Y.(WKTV) - The Utica City Council is taking steps to improve the city's financial condition now that the city is broke, but the comptroller says the council's idea would only make matters worse.

The city spent the school taxes it collected for the Utica City School District, and now must take out a short-term loan for $10 million in order to make its own pay roll.

Councilors are proposing legislation to make sure the school tax money is not raided again.

One of the newer council members, Joe Marino is proposing segregating the school tax money in a separate account and not using it for anything other than its intended purpose.

Right now, the money goes into a general fund and in past years the city has always used it for operating expenses.

The problem this year is that the cushion was gone and there were no reserves when the money was spent.

While vowing not to use the school tax money sounds like a simple fix, the city's comptroller says its a disastrous move.

Councilperson Marino says there is support for his move on the council and hopes it will pass tonight.
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