SCHENECTADY COUNTY — Deteriorating economic conditions are costing local municipalities money this year in mortgage recording fees, but several leaders expected the losses and budgeted accordingly.

That’s the good news. The bad news is mortgage tax recording fees are expected to decline further next year due to the meltdown in the housing and mortgage markets. Municipalities budget for the money.

The Schenectady County Legislature distributes mortgage recording fees semiannually, the first time during the summer. The Legislature presented the latest distribution, covering April 1 to Sept. 30, at Wednesday night’s committee meeting. Legislators are scheduled to vote on the distribution Nov. 12.

The latest distribution is $1.9 million, a decrease of $298,000 from a similar period last cycle. The distribution is down $810,000 for the year, compared to $4.3 million collected in 2007.

The county clerk collects 1.25 percent of the value of mortgages recorded with the office. People record their mortgages after buying or refinancing their homes.

Municipalities in the county receive 0.5 percent of the fee. The county keeps 0.25 percent, the Capital District Transportation Authority gets 0.25 percent and the state Mortgage Agency gets 0.25 percent.

Local officials said they anticipated the economic downturn and budgeted mortgage fees conservatively for the year.

“We are coming in right as projected,” said Rotterdam Comptroller Patrick Aragosa. “I budgeted $756,000.”

Rotterdam will receive $402,000 for its final installment this year, bringing its total for the year to $752,513. The town received $943,136 in total last year.

Scotia also budgeted mortgage tax receipts conservatively this year, said Mayor Kris Kastberg. The village is slated to receive $39,946 this cycle, for a total of $75,666 for the year. Last year, the village received $96,012.

Unlike other municipalities, however, Scotia knows exactly what it will receive for the year, Kastberg said. This is because the village’s budget cycle begins June 1, after receipts are distributed, while other municipalities begin their fiscal calendar year Jan. 1. They, therefore, must estimate their mortgage tax receipts for the year, Aragosa said.

Kastberg said Scotia’s finances are more sensitive to revenue changes, due to its size, than some other municipalities. For example, every $10,000 represents a 0.3 percent change in the village’s tax rate, he said.

For Glenville, the figure is $50,000, said Town Manager Tony Germano.

Germano said the town will see an extra $32,000 in mortgage recording fees this year, based on his 2008 budget of $700,000. “It is a pleasant little surprise. The hope is that it will at least continue, as we budgeted conservatively for 2009,” he said.

Niskayuna Supervisor Joe Landry said the town’s total of $746,000 is right on budget. Next year, however, the town expects to receive $100,000 less in fees.

Elsewhere, the city will receive $893,397 for the year, down $237,674 from 2007.

other business

The Legislature also:

u Discussed a proposed four-year contract with the U.S. government and Air National Guard to provide air traffic services at the county airport. The proposed contract provides the county with $100,000 more per year but still requires the county to cover 10 percent of tower costs. The government will pay the county $544,426 annually through 2012 to operate the control tower. The lease will increase 3 percent each year.

u Will take possession of a new road at the county airport. The road, to be called Tech Park Road, connects to Fortitech’s industrial site off Rudy Chase Drive. The county built the road, using funds from Fortitech, and will be responsible for its maintenance.

u Began the process to make it a violation to text on a cellphone while driving. The fine would be $125. The local law would take effect in January.