The news from the financial markets continues to be dour. The Dow Jones lost another 190 points Wednesday and during the preceding week, the New York Stock Exchange closed down some 1,000 points. While this news will greatly impact the budgetary decisions of both Washington and Albany, local property owners may also feel the pain, even if they have nothing to do with the sub-prime mess nor even their banks.

The sub-prime disaster, that has left large swaths of upstate New York's banking and financial sectors untouched, is financially squeezing both the nation's and state capitols. Because of it there is going to be a strong desire for an easy way out of this financial mess, which seeks to minimize bad news.

That may lead to the issue that Cayuga County Manager Wayne Allen is most worried about right now - that the state Legislature, if in an effort to extricate itself from this financial trouble, keeps its promise to not raise property taxes, localities like Cayuga County may find themselves in that role, by default.

While it is nice that leaders in Albany make such a pledge - pushed largely by new Senate Majority Leader Dean Skelos and backed up by Gov. David Paterson, Albany doesn't raise or lower property taxes directly - that is a local decision made by city councils, county legislators and school, town and village boards. They are the ones who make that decision directly, not the 211 members of the state Legislature or the governor.

That in itself is what has local leaders worried. Sure Albany lawmakers may make that pledge, but by their actions or inactions, they will be the ones that impact localities to do just what they can't - raise property taxes. How will this come about? Simple, cuts in program funds, already promised or expected, current funding not keeping up with inflation or shifting reimbursement formulas are the likely culprits.

Auburn City Manager Mark Palesh says the city already received its first cut from Albany, after everyone touted the 7 percent increase in state aid in April.

Allen said the county has already been hit twice - once by the Executive Branch, with mandated cuts ordered after the April 1 budget was approved, and then this summer when the Legislature was called back to make more cuts. In the case of Allen, who is knee deep in preparations for the budget he will release by the end of the month, he could see his fiscal plan dramatically altered after the Legislature returns to Albany on Nov. 18.

Cosentino is a former mayor of Auburn and can be contacted at cozguytho@aol.com