$6.5M County Tax Cut Proposed

By Holly Crocco

Putnam County Executive Kevin Byrne is proposing $13 million in tax relief in 2027, through the gifting of $6.5 million to local towns and villages for infrastructure projects, and a $6.5 million reduction to the tax levy.

“A budget is far more than a financial document,” Byrne said during his presentation of the county’s 2027 tentative budget, which took place during the Legislature’s Oct. 5 Budget & Finance Committee meeting. “It is a statement of our priorities. It is a reflection of the choices we make about how government operates, how taxpayers dollars are spent, and what kind of county we want to leave behind.”

The $229.7 million spending plan represents a less-than 1 percent increase from the current budget, while still accounting for rising costs to gas, oil, highways and facilities materials, contractual expenses, and more. It fully funds all of the county’s contractual obligations, as well as a reduction in employee and retiree health insurance contributions.

Last year, the Legislature set aside $6.5 million with the intention of creating a “rebate” program for taxpayers, in which homeowners would receive a check in the mail. However, due to state laws and regulations, such a program has been roadblocked. Rather than leave the money in subcontingency, Byrne has proposed that money be distributed among the six towns and three villages in the county – in addition to the sharing of sales tax revenue.

Last year, the county shared about $2.3 million of sales tax revenue with the municipalities. Byrne said much of that revenue comes from online sales, and that local roads feel the effects of those deliveries. Therefore, it makes sense to share more revenue with the municipalities.

“It doesn’t matter which layer of government provides the tax relief – the taxpayer only has one wallet,” he said, asking that the $6.5 million go toward infrastructure or other eligible costs, which will reduce pressure on taxpayers. “Letting $6.5 million sit and idle in subcontingency for 10 months is long enough.”

Simultaneously, Byrne’s budget proposes the largest property tax cut in the county’s history.

“If $6.5 million was the amount this county government believed should be returned to taxpayers, then let’s return $6.5 million to taxpayers,” he said. That brings the tax levy down from $47 million when he first took office, to $38.7 million.

According to Byrne, the finance commissioner predicts this will drive the county tax rate down to 2.04 per $1,000 of assess value – the lowest rate since 2005.

Byrne said the county will continue to invest in public safety and infrastructure, including the purchase and installation of new radio equipment for the Bureau of Emergency Services, as well as major road and facilities investments – without borrowing.

“We’re getting the work done and we’re planning responsibly for how we pay for it,” he said. “It also means that sometimes a responsible budget can show higher spending in the short term, precisely because you’re avoiding paying higher costs in the long term. That’s the difference between simply balancing a budget and managing one.”

The county executive said that having healthy reserves, a long-term plan, a favorable bond rating, and low debt has allowed the county to provide targeted tax relief through a number of channels.

In 2023, the elimination of sales tax on clothing and shoe purchases less than $110 was approved, and it has been renewed every year. “These aren’t luxury purchases, they are necessary,” he said.

Now, he is proposing to make that tax exemption permanent.

In addition, earlier this year, the county capped its gas tax at $3 per gallon, through 2028.

Earlier this year Byrne announced that $2.1 million would be put aside for mental health services. Of that funding, he’s proposing using $672,000 to expand mental health education and support through the National Alliance on Mental Illness, access to mobile services with expanded hours, enhanced programs for veterans and servicemembers, a mental health diversion program for dispatchers, and a strengthened network of support for first responders and law enforcement.

“The goal is to provide first responders throughout Putnam County access to trained peers who understand the unique stresses of the profession and help connect their fellow first responders with assistance when they need it,” he said. “This is not a one-size-fits-all approach, it’s a continuum of care.”

Also receiving continued support will be the community paramedicine program that was rolled out last year, as well as the early childhood learning center which has doubled enrollment, and the Putnam on Demand transit service which is expanding to Putnam Valley and Philipstown.

Byrne addressed the county’s $163-million-plus fund balance, noting that budgeting is not just about balancing revenues and expenses for 12 months, but looking beyond the next year and preparing for what’s to come, and for things that can’t be predicted.

Matters beyond the county’s control include uncertainty of state and federal funding, international affairs that affect pricing, weather events, and more. Byrne also recalled the years after the 2008 recession when the county experienced “massive” property tax increases.

“When times are good, responsible government doesn’t assume they will stay good forever,” he said. “We plan, we save, we pay down dept, we avoid unnecessary borrowing, we make thoughtful investments and effective tax cuts, and we maintain the financial strength necessary to protect taxpayers for when circumstances change… That is not hoarding taxpayer money, that is responsible financial planning.”

Putnam continues to maintain an “exceptional” Aa1 bond rating from Moodys Corporation, and even expects an upgrade to the highest possible rating in the state.

Byrne said he’s proven the county – and taxpayers – can save money while still serving the public. “We have to leave something stronger than we found it. That idea has guided the budget presented tonight,” he said.

The County Legislature will take the next several weeks to dissect the budget, making adjustments where deemed fit, and a public hearing will be held Oct. 26 at 7 p.m., at the Historic County Courthouse in Carmel, before adoption. The county executive will then have the opportunity to veto certain changes.

Praise & Criticism Follow Budget Presentation

Following the county executive’s budget address Oct. 5, members of the County Legislature, and the public, weighed in on the proposed spending plan.

“I’ve heard more over this past year about government hoarding – it boggles my mind,” said Legislator Amy Sayegh, R-Mahopac Falls. “Previous Legislatures and county executives and administrations have used good budgeting practices, being good stewards of taxpayer money, to leave a good fund balance for future generations so that we don’t have to continue borrowing, so we can pay for infrastructure, we can pay for employees, we can fund our union contracts.”

Legislator Bill Gouldman, R-Putnam Valley, said he was happy to hear the administration plans to share an added $6.5 million with the local municipalities next year, in addition to sharing sales tax revenue.

“Currently, the towns and villages throughout Putnam County are really struggling to make their budget this year,” he said.

Legislator Nancy Montgomery, D-Philipstown, stated that, despite the proposed tax levy cut, the budget is larger overall and relies more heavily on the fund balance to fill the gap between revenue and expenses.

“The proposed use of unassigned general fund balance rises from $3.2 million in 2026 to $21.9 million for 2027,” she said. “The budget summary shows additional usage of assigned reserves in the fund balance as well.”

Therefore, the “tax decrease” is being paid for with money that has already been collected from taxpayers, she said.

“The big help to the 2027 budget is that debt service drops from about $10.5 million in the 2026 budget to $4.8 million in the 2027 budget,” continued Montgomery. “How much of the tax reduction comes from general lower ongoing expenses, and how much of it comes from drawing down the fund balance?”

She pointed out that the sheriff’s department budget grows under the proposed spending plan, from $26.1 million to $29.6 million, and yet money earmarked for mental health services is also being allocated to first responder, dispatcher, and law enforcement services, thus taking away from funding meant for the public.

While Montgomery said she’s happy to see mental health being addressed internally, she noted that “we as a Legislature have the opportunity over the next three weeks to develop our own plan for this $2.1 million, because we’ve long promised a mobile mental health criss unit.” (See related story.)

Heidi Metzger of Putnam Valley said she wouldn’t call the funding for mental health services for first responders and dispatchers inward facing.

“Putnam County is one of the last bastions of the volunteer agency in the country,” she said. “It’s not just New York State. We’re raising generations that don’t understand volunteerism and don’t want to learn… You don’t get more forward-facing than your volunteer agencies in this county. We are your taxpayers, we are your neighbors, and we are there on your worst day.”

Crystal Stowell of Putnam Valley asked the Legislature to consider restoring the full $170,000 sought by the Soil & Water Conservation District – “the same historical baseline amount funded in 2026” – as opposed to the $104,000 that’s been allocated.

Martha Elder, founder and CEO of Second Chance Foods in Brewster, asked the Legislature to reconsider the $20,700 allotted for the agency that helps fight hunger in Putnam.

“We request that the county establish a new baseline of $80,000 for 2027 – a level of funding that better reflects the scope and value of services we provide to Putnam County residents today,” she said, noting that what Second Chance Foods gets from the county is about 1 percent of its total revenue, when other nonprofits get about a third of their total revenue from county government.

Scott Seaman of Southeast also voiced support for additional funding for anti-hunger operations.

“I’m glad to see that supported and I would ask to see that expanded,” he said. “When the end of the year rolls around and more of the federal cuts come through – you think it’s bad now, wait till next year. As the county executive pointed out, we need to plan now.”

Seaman also urged motion on any additional funding that can be put toward mental health services in the county. “We need to do something, we need to do it now, we need to do it faster, and we need to do it more,” he said.

Legislator Dan Birmingham, R-Southeast, encouraged the public to show up to committee meetings throughout the next month and advocate for services they feel are important.

“This is really the first draft,” he said. “This is something we’re going to be working on over the next several weeks, publicly.”