FOR IMMEDIATE RELEASE JULY 7, 2011 CONTACT: DENISE SHEEHAN, 518-429-6924 |

SHEEHAN: TOWNS FINANCES DONT ADD UP

Supervisor Candidate concerned taxpayers are not getting the real story on the Towns finances Denise Sheehan, candidate for Colonie Town Supervisor, today took the Mahan administration to task over the Town of Colonies growing deficit and her administrations lack of fiscal transparency. Sheehan noted that the data compiled by the Town Comptrollers office and submitted to the NYS Comptroller shows that Colonie is currently facing over a $21 million deficit. In addition to the growing deficit, the Mahan administration has also failed to disclose any reports of the Towns financial condition to residents for the 2010 fiscal year, which concluded over six months ago. Its outrageous that were half-way through the 2011 fiscal year and we still havent received a report from the Supervisor on the Towns performance last year. Other municipalities shared their year-end reports with taxpayers weeks ago and were still waiting. Taxpayers of Colonie have a right to know where their money is going and our elected leaders need to be held accountable. said Sheehan. The hard-working families of Colonie should be receiving regular quarterly updates on the Towns financial condition. According to Towns reports, the Towns deficit has grown from $16 million in 2009 to over $21 million in 2010. Sheehan stated that this is the result of continuing financial mismanagement on the part of the current Town supervisor and her administration. The fact that the town is facing a $21 million deficit, even after Supervisor Mahan imposed her one-time-deficit reduction tax, is a clear indication of the current administrations fiscal mismanagement and lack of executive management experience. This problem cannot be blamed on economic conditions alone. Supervisor Mahan continues to over-spend, relies too heavily on rosy revenue projections and one-time quick fix asset sell offs, said Sheehan. This is threatening the Towns financial health and jeopardizing the stability of our future. Sheehan noted that when the Mahan administration took office, the town deficit was approximately $19.7 million. In 2009, after imposing her now infamous one-time deficit reduction tax, Supervisor Mahan, as part of her re-election campaign, claimed she had reduced the deficit to $10 million and stated that Colonie was on the road to financial recovery. Since then, despite the one-time $6 million tax increase, which was passed under the premise that it would dramatically reduce the deficit, as well as the $2.7 million

in one-time revenues from the sale of Heritage Park, the Towns finances have significantly worsened and the deficit is at an all time high. When Paula Mahan took office in 2008 the deficit was at $19.7 million. Since then, she has taken in over $8 million in one-shot revenues that should have gone to pay down the deficit. However, despite this infusion of cash, the deficit has still grown, said Sheehan. The taxpayers of the Town paid the one-time deficit reduction tax because they believed the Supervisor when she said it was in the best interest of the Town and was necessary to reduce the deficit. Unfortunately because of Supervisor Mahans poor financial decisions and lack of proper financial controls, those funds went into a fiscal black hole and the deficit has grown. The towns financial statements reveal that Supervisor Mahans claim, that she reduced the deficit by 45% to $10 million, was false and the deficit in 2009 was actually over $16 million. Since then, based on Sheehans analysis of available data, continued overspending has caused the deficit to grow to over $21 million. Its important to me that Colonie residents get the real story of the Towns finances before the current supervisor presents her latest election year gimmick turning the landfill over to a corporate waste conglomerate. Without honest executive leadership and the necessary financial controls in place, we could be taken on another financial roller coaster ride. The Town needs disciplined financial leadership to bring spending under control and balance our books. Our valuable assets, like the landfill, should be used for the longterm benefit of the residents and not used as a band-aid for continued financial malfeasance. We cannot continue to rely on smoke and mirror fiscal gamesmanship to solve our on-going fiscal challenges. We need honest sound financial management to ensure a stable long-term financial future for Colonie. Editors note: Supervisor Mahans August 2009 press release on the Town of Colonies deficit and her claims that she reduced it is attached for reference. Sheehans analysis of the Towns financial conditions is based on audited financial statements for 2007, 2008 and 2009 and on the Towns AUD report, as submitted to the NYS Comptroller.