The Schenectady City Council has approved the city’s 2026 Operating Budget on October 21, 2023, with modifications aimed at remaining within the state-mandated tax cap. The approved budget totals $119.96 million, a reduction from Mayor Gary McCarthy’s initial proposal of $120.4 million presented earlier this month.
Key changes to the budget include a significant reduction in the proposed property tax increase. Originally set at 17%, the increase has been adjusted to 1.8%. Additionally, the garbage collection fee per unit has been lowered from $104 to $54. These adjustments were facilitated by an increase in the city’s fund balance utilization, rising from $2 million as suggested by McCarthy to nearly $4 million.
Revenue and Expense Adjustments
To balance the budget, the council increased revenue projections by nearly $1 million, primarily from sales and use taxes, along with additional funds from cannabis excise taxes and parking fines. Simultaneously, budget expenses saw a decrease of approximately $130,000 for code officer salaries, bringing the annual expense down from slightly over $650,000 to around $520,000. Seasonal labor loader expenses were cut by more than $100,000.
The approved budget now awaits the decision of Mayor McCarthy, who may choose to veto it. City Council President Marion Porterfield expressed her belief that McCarthy was dissatisfied with the modifications, stating, “My sense is he wasn’t really happy with it and he will veto it.” Overriding any potential veto would require the support of at least five council members.
Political Tensions and Reactions
Political tensions have emerged following the budget approval. On October 22, city Republican Chair Tom Kennedy issued a statement calling for Porterfield to be censured for her handling of the budget process, citing a lack of adherence to recommendations from the Corporation Counsel. Porterfield, who is seeking re-election on the Working Families Party Line, defended her actions, asserting that the recommendations were not mandatory. “I do not feel what was recommended is supported by our Charter, so we moved ahead,” she stated.
In a broader context, Schenectady County lawmakers recently passed a $460 million operating plan for 2026, which aims to keep property taxes flat for the upcoming year. The decisions made at both the city and county levels highlight ongoing efforts to manage fiscal responsibilities while addressing community needs.
As Schenectady navigates these financial decisions, the implications for residents and local services will continue to unfold, particularly depending on the mayor’s forthcoming decision regarding the budget. With political dynamics at play, the community remains attentive to the developments in their local governance.
