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Schenectady is grappling with a projected $6 million budget deficit for 2026. In response, Mayor Gary McCarthy has implemented a hiring freeze and directed department heads to reduce their budgets by 20%. The city is preparing for challenging budget discussions in the coming months, with a public hearing set for next month to address the deficit.
According to Times Union, the mayor aims to strengthen the city's financial position by the end of 2025. City Council members have acknowledged the difficulties ahead, with Councilwoman Carmel Patrick expressing concerns about the budget's impact on residents. "The budget is really bad," she said, emphasizing the need for smooth discussions.
The city's financial challenges come after a 3% tax increase and significant pay raises for top officials in the 2025 budget. Council President Marion Porterfield hopes to avoid another property tax hike. Mayor McCarthy plans to unveil his budget proposal later this month, which will be crucial in addressing the deficit.
The public hearing will allow residents to voice their concerns and suggestions as the city seeks solutions to its financial woes. The outcome of these discussions will shape Schenectady's financial strategy for the coming year.