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Cayuga County faces building crisis and deep fiscal challenges (video)

Cayuga County faces building crisis and deep fiscal challenges (video)

Cayuga County Legislature Chairman Jonathan Anna spent nearly half an hour on Inside Government with Guy Cosentino outlining the county’s deep fiscal challenges, a looming capital decision on the county office building, and the structural issues that limit the Legislature’s ability to steer finances. Here are the five biggest takeaways from the conversation, with a focus on government operations and fiscal policy—using Anna’s own words from the interview.

#1 — A mandate-driven budget gap leaves little room to maneuver

11/04/25 - Inside Government - Cayuga County Legislative Chairman

Anna made clear the county’s multi-million-dollar budget gap is rooted in rising mandated costs the Legislature can’t avoid. He said the initial projection showed a $9.9 million shortfall even if the county taxed to its cap.

“The 9.9 represents increases in salary, increases in foster care, increases in safety net, Medicaid, retirement, health care, health care for our employees. These are built-in costs,” he said.

He added that state policy continues to push costs down to counties: “The mandates continue, the cost of mandates continue to rise, while the funds provided by the state and federal government continue to decrease. So that gap continues to widen.”

Anna said that while he’s heard claims that 85 to 92 percent of the budget is outside legislative control, auditors told him “70 percent” is a reliable number—still a substantial share of spending that cannot be cut.

#2 — The county office building crisis is now a major fiscal decision

The vacancy of the 1966 county office building—shuttered after vermiculite and asbestos contamination—has triggered a major capital planning issue, temporary relocations, and new operational costs.

Testing showed “a large amount of vermiculite was in the building,” Anna said, adding that additional asbestos was confirmed in the basement. Remediation alone is estimated at about $9 million.

On the broader replacement cost: “You’re looking at about a $70 million project potentially,” he noted.

Departments are currently scattered around the county in leased spaces and temporary offices. Some leases, including the one at 63 Genesee Street, are costly and nearing renewal. “The lease is not really, I don’t think, price friendly or cost friendly,” he said.

Anna expects to bring a formal recommendation to the Legislature in the first quarter of next year, after the 2025 budget is resolved.

#3 — The fund balance is below policy, and Anna wants to avoid heavy draws

Cayuga County’s fund balance policy calls for roughly $18–$24 million in reserves, but Anna said the county is outside that range and can’t rely on year-after-year withdrawals.

He pointed to past practice: “The budget that was passed in 2023… had a $7.2 million draw. Last year… we were able to reduce that down to 5.6.”

This year, he said he wants a far smaller withdrawal: “My goal this year is to reduce it down further… to try to get between two to $3 million” in fund balance use.

He warned that relying too heavily on reserves only perpetuates the cycle: “I’m tired of being in fiscal crisis. It’s time to look and solve problems.”

#4 — The tax-cap override is likely, because without it cuts would be far deeper

Anna signaled strong movement toward overriding the state tax cap—an action requiring seven votes in the 11-member Legislature.

He said discussions with both caucuses show “mixed, but… support” for an override. But he stressed this is not about a large tax hike; it’s about preventing sharper service cuts.

If the Legislature does not override, he said, “I go back to the drawing board and I have to come up with more cuts. And that’s something I don’t want to do… I’ve made a lot of cuts in this budget already.”

He also explained the financial penalty for failing to override while presenting a budget above the cap: “Those additional funds are set aside, and we cannot utilize those funds… It’s kind of like putting it away in a lockbox and you can’t touch it.”

A full, no-cut solution would require an extreme increase: “If we were to close this gap without making cuts, we’d be looking at 20 to 25 percent. And I can assure you, that is not going to happen,” he said.

#5 — Long-term operational reform is coming: A charter commission is likely

Anna acknowledged the county’s administrative structure is strained. With no county administrator for “four or five years,” he is effectively leading the Legislature and acting as chief budget officer simultaneously.

He said there is bipartisan agreement to form a charter commission next year to evaluate whether the county should adopt an elected executive, return to an administrator model, or retain the current chair-driven system.

“There is support for it,” he said. “Our county attorney’s office is issuing guidance and looking into this.”

Anna said consistency matters, and he is willing to continue as chair if legislators want him in the role. “I will serve at the pleasure of the Legislature… Consistency of leadership is key,” he said.