Schenectady City Council Passes 2027 Budget With 14% Tax Hike

The Schenectady City Council passed the 2027 municipal budget on November 5, 2026, establishing a property tax rate increase of 14%. The final rate of approximately $15.48 per $1,000 of assessed value is a significant reduction from an initial proposal of 42.5%, though the budget was approved three days after the official charter deadline.

To lower the tax burden, the council implemented $1.7 million in cuts to vacancies, overtime, and stipends. The city also increased casino license fees by $300,000 and projected $6.5 million in state aid to balance the books. In a 5-1 vote, the council approved breaking the tax cap, a move that still requires a public hearing.

Mayor Gary McCarthy signed the budget but described the process as "painful." He warned that the city lacks fund balance reserves and remains in a precarious cash flow position. Council President Carl Williams pushed for the final passage, stating that the council had exhausted every possible mechanism to avoid the delay.