A new state law meant to reduce the number of duplicated services provided by local governments has some officials concerned it may have the opposite effect.

Skaneateles Village Mayor Robert Green said The New New York Government Reorganization and Citizen Empowerment Act fails to consider options for improving local government efficiency outside of dissolving villages and combining them with towns.

The act, which was drafted by the state Attorney General's Office and goes into effect on March 21, is suppose to improve efficiency and decrease taxes by dissolving or combining some of the 10,500 municipal governments and special tax districts that exist at the town and village level.

Green said the New York Commission of Mayors will ask state officials to consider adding alternatives, such as allowing cities and villages to expand their boundaries to accommodate for urban sprawl, to help alleviate the state's high property tax burden.

“If Skaneateles were dissolved, the town would need a new electric district, water district, sewer district, street light district, sidewalk district - the list just goes on and on,” Green said. “Basically all you're doing is creating more layers of government instead of less.”

While that could be true in Skaneateles, Jim Malatras, a policy advisor for the state Attorney General's Office, said the savings could be significant elsewhere.

“Consolidation won't work for everyone, that's why it's not mandated,” Malatras said. “Studies have shown in some cases it can provide significant savings for taxpayers.”

According to studies submitted to the attorney general, if the village and town of Albion consolidated, taxpayers could save 18 percent on property taxes. Savings could also be achieved if municipalities combined or shared fire, water, sewer and other special tax districts.

With the new law, local governments would have 30 to 60 days to hold a referendum if enough voters signed a petition supporting consolidation, Malatras said. Depending on the outcome of the referendum, the municipalities would have to conduct a consolidation study before holding a final vote to either approve or reject those findings.

While Green said some people don't believe 30 to 60 days is enough time to have an informed referendum, Malatras said the attorney general wanted to ensure the initiative does not get bogged down by politics.

To encourage efficiency, the state has offered to increase aid to municipalities that consolidate.

According to the commission, when the village of Pike dissolved, the town of Pike received $62,117 more per year in aid. The town of Limestone saw its state aid increase by $47,877 per year when the village of Limestone dissolved.

Given the size of the state's current budget deficit, Green said he doubted the state government would be able to continue that level of funding.

“The selling point the attorney general makes is it would raise town appropriations,” Green said. “With this economy, if people think these appropriations will continue, I think they are going to be crushed.”

While some, including Green, believe the act was rushed to a vote without examining all of the alternatives for improving efficiency, Malatras said the state Senate and Assembly had nearly six months to consider the proposal before it was signed into law on June 24.

With special interest groups stalling passed attempts to reform local politics during the last half-century, Malatras said the current law was long overdue.

“Our point is we've waited long enough,” Malatras said. “It wasn't rushed, it's already been delayed decade after decade after decade.”

Staff writer Nate Robson can be reached at 253-5311 ext. 248 or nathan.robson@lee.net