County Executive Andy Spano today ordered all department heads to freeze non-essential hiring and spending in the wake of a state budget that leaves the county with a $14,8 million budget gap in 1999.

"I am committed to reducing property taxes, but unfortunately these devastating cuts by Albany have placed an increased burden on us," said Spano. "Since the Governor and the Legislature have decided to pass these costs on to us, we have to do the responsible thing, and find ways to insulate residents from this burden."

At the direction of the County Executive, Budget Director Kathleen M. Tooher-Carrano issued a letter to all Commissioners and Department heads today ordering the following:

The orders are the latest in a plan by the County Executive to reevaluate all new and existing programs in the wake of state budget cuts that are expected to cost Westchester $40 million over the next two years. The $73.3 billion State budget adopted by Albany on Wednesday not only reduces State aid to counties, but forces them to pay millions in federal aid penalties - penalties that are the result of the State's failure to bring its regulations in line with new federal laws. The budget also forces counties to absorb the entire cost of federal cuts in social welfare programs like Food Stamps.

As a result of these cuts, Westchester will have to make up for $14.8 million in unplanned expenses in its ~1999 budget as well as cover for an additional estimated loss of $25 million in 2000. To close this gap, Westchester may have to use some of the $15.8 million it is expected to receive as part as the first payment for its settlement of tobacco lawsuits. The County Executive said yesterday that he will have to rethink his plan to spend 75 percent of the money on a tax cut for residents and 25 percent on anti-smoking programs and other public health initiatives because of the state aid cuts.

"This has put us in a really untenable position," said Tooher-Carrano. "We didn't count on these additional costs when we put together our budget. Now with these cuts and federal penalties - penalties we have because of the State!& inaction - everything is back on the table for review."

Westchester will lose nearly $1.8 million in federal aid due to the state's failure to adopt by January new lations to meet the federal government's Adoption and Safe Families Act, a program designed to move children out of foster care more quickly. The county will also have to pay an additional $2.3 million in Medicaid expenses because the Legislature failed to continue the Medicaid cost containment waiver by June 30.

In addition, the county will lose funds for Food Stamps, welfare to work programs and to house prisoners at the county jail.

"We have some difficult months ahead, but we have no choice but to reevaluate the many new initiatives we have planned," said Spano. "We have to find ways to pay for state and federal programs these levels of government have failed to fund."