On January 1, 2012, the Town of Seneca Falls became a unified municipality for the first time since 1831. Communities across New York State have their eye on Seneca Falls to see what lessons can be learned from the dissolution of the historic village. As the largest village to dissolve in New York State, the process and outcomes will serve as a great test case for many years to come. However, some may be prone to draw conclusions from the outcomes that aren’t warranted.
Dissolution studies in most villages are initiated by citizens or elected officials because they believe it will save them money. The most common argument is that two layers of government are more expensive than one, and eliminating a duplicate layer must produce savings that will cause a tax bill to go down. When CGR models the fiscal impact of dissolutions cost savings are typically modest, usually in the 3-10% range. This was true in Seneca Falls as projected cost savings were a little over 7% of the combined budgets. Cost savings was not what pushed the lever in favor of dissolution. Read more »