Schenectady County Passes Budget as City Faces Tax Clash
Schenectady County Legislature approved a $501 million budget with a 2% tax hike while the City Council debates a proposed 42.5% property tax increase.
The Schenectady County Legislature passed a $501 million budget for 2027 in a 14-0 vote, implementing a 2% tax increase. This marks the first tax raise in five years and the highest in over a decade. The budget increases spending by 8.9%, or roughly $41 million, primarily to cover employee wages and benefits. These costs are partially offset by a $15 million rise in sales tax revenue and new Social Security grants. The county also increased its sponsorship of SUNY Schenectady County Community College by 50% to $5.4 million.
County officials cited rising expenses and federal funding uncertainty as drivers for the hike, specifically a projected $8.3 million hit in October 2027 due to federal SNAP benefit cost-sharing changes linked to New York State error rates.
Simultaneously, the Schenectady City Council began negotiations on a separate city budget proposal that includes a 42.5% property tax increase to close a $14 million gap. During a public hearing, residents criticized the proposal, citing housing affordability and suggesting the city review salary increases for police and fire chiefs or revise payments-in-lieu-of-taxes agreements. Mayor Gary R. McCarthy stated the budget will not pass in its current form, while Council President Carl Williams noted the proposal expects too much from a city with limited resources. The council faces a November 1 deadline, though residents have requested an extension to avoid a potential government shutdown.
