Levy address will propose tax cap drop

Anticipating a new state property tax cap, Suffolk County Executive Steve Levy Tuesday night will propose reducing Suffolk's 4 percent cap on discretionary spending to 2 percent.

Levy will call for a voter referendum in November to impose the tighter cap during his annual State of the County message, to be delivered at the West Sayville Fire Department.

"I've always been in favor of caps because it forces elected officials to make priorities," Levy said Monday. "And unless we control spending it will be impossible to live within the state tax cap."

Levy's proposal for a new spending cap comes as the two-term county executive faces re-election this fall for a third and final term, because of term limits.

Levy, a recently minted Republican who has not formally announced his candidacy, also will be making his televised speech for the first time without the county legislature present.

"The fact he's raising the issue now in an election year is not a coincidence," said Legis. Jon Cooper (D-Lloyd Harbor), the majority leader. "He's hoping it will play to his political advantage, which is a shame . . . because in reality . . . it means nothing or, in some cases, could be counterproductive."

But Legis. John M. Kennedy Jr. (R-Nesconset), the minority leader, said, "Taking the hard cap down to 2 percent warrants evaluation and we as Republicans would be looking to support it," though lawmakers first need to see details.

The county adopted its 4 percent spending cap on nonmandated expenditures in 1983, and a 4 percent cap on property taxes used for discretionary costs in 1989. The limits can be pierced with a 14-vote legislative supermajority.

Legislative budget analysts, in their report on Levy's 2011 budget, criticized the caps because the county executive has often "misclassified" mandated and discretionary expenditures, making the caps a "meaningless exercise."

Levy acknowledged that further steps might be needed because Suffolk is facing $20 million in Medicaid cuts, $40 million in state health aid reductions, and $50 million next year in higher pension costs.

Suffolk County Executive Steve Levy's state of the county message will be televised live at 7 p.m. Tuesday on News 12 Long Island and FIOS 1, and streamed online at Newsday.com.