LEGISLATURE STUFF - Good Old Same Old Budget

CATSKILL - It has been a while, six straight years to be precise, since there was a tax levy increase contained in the Greene County budget, and that financial fun fact will very likely be repeated.

County legislature members are expected to make it seven in a row after a public hearing on the proposed 2026 spending plan is held on October 27 in the auditorium at Catskill Central School.

Tentative figures were revealed by county Budget Officer Charles Martinez during a legislative Finance Committee session, earlier this week.

Martinez, the ranking member of the legislature with over four decades of public service, noted that keeping taxes at an even keel wasn’t easy.

“The development of this year’s budget has been more difficult than usual due to potential fiscal changes from both the Federal and State governments,” Martinez said.

Over the past several months, lawmakers have been forewarned that dollars usually coming in to help offset costs for various programs, particularly within Social Services, may be substantially cut.

In addition to those forecasted slashes, resulting in the county needing to find the money to maintain services, “there is much uncertainty as the Federal government is currently in shutdown,” Martinez said.

And meanwhile, “the State will not address budget reductions until after January 2026,” Martinez pointed out. “This leaves many unanswered questions that may very well compromise our financial plan.”

Despite the doubts, Martinez expressed optimism, saying, “absent those dilemmas, this Tentative Budget will not result in any property tax levy increase for fiscal year 2026.

“Once again, the overall property tax levy will remain at $27,404,370,” Martinez said. “This is the same levy amount as Fiscal Year 2020,” uninterruptedly continuing to today.

“That is a remarkable accomplishment and one that we should all be proud of,” Martinez said, noting concerted effort was required to stay put.

“Overall, the budget expense line has increased approximately $5,670,000, or 4.17 percent,” Martinez said.

“However if we adjust for known changes being made by the Federal and State, and just factor in county expense increases, the growth is only $3,870,000 or 2.8 percent,” Martinez said.

Some of the significant changes to expenses are payroll increases subject to collective bargaining agreements and inflation rises along with retiree pensions and health insurance expenses, the tentative budget shows.

Decreases in Federal and State aid would most directly impact HEAP (the Home Energy Assistance Program and SNAP (Supplemental Nutrition Assistance  Program).

County Social Services Commissioner Kira Pospesel has been preparing local officials for the painful-to-swallow pecuniary pill, allowing county administrator Shaun Groden and his office to proactively adjust.

And there’s good news. “On the other side of the ledger, revenue increases have been gained from sales tax receipts, interest earning from investment yields and mortgage taxes,” Martinez said.

“Certainly, sales tax receipts continue to rise each year, and they remain our primary source of revenue.  As past budget messages have outlined, at some point soon we must determine where the apex of sales tax receipts may lay,” Martinez said. 

As has been true since 2020, “while the property tax levy will not change overall, the amount to be raised by each town does,” Martinez said.

“Based upon adjustments made by New York State and the town’s equalization rate, eight of our fourteen towns will see a tax rate reduction while six towns will experience an increase,” Martinez said.

“This reality is driven by real estate market activity as compared to town assessing practices and is outside the control of the county. This change is consistent with previous years’ adjustments,” Martinez said.

“If there [is] a central message of this budget proposal and the overall status of the county’s fiscal condition, [it is that] this proposal once again holds the line of property tax increases while not sacrificing the budget to future threats,” Martinez said.

“Our establishment of reserve funds and property tax stabilization funds marks sincere efforts and accomplishments in fiscal security,” Martinez said.

“The number of previously approved Capital projects, while using idle funds to support, outlines our use of funds outside of bonding and future debt,” Martinez said.

“We have invested millions of dollars in direct service level facilities that our community needs.  Many of our primary buildings have been replaced or improved with additional improvements pending,” Martinez said.

And at the risk of being resplendently redundant, Martinez concluded, “I trust that the community will once again embrace the results of this fiscal plan that provides no increase in property taxes. Truly remarkable.”

A copy of the 85-page tentative budget is available on the county website, showing $141,858,252 in Total Appropriations balanced by a combined total of $114,453,882 in Estimated Revenue ($108,749,955) and Appropriated Fund Balance ($5,703,927) plus the $27,404,370 tax levy.