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In Schenectady, another meeting is scheduled for tonight to address the city's 2026 budget after Mayor Gary McCarthy vetoed the City Council's fiscal plan. The City Council had passed a $119 million budget in November, but McCarthy rejected it, citing inflated revenue projections used to reduce taxes. The council must cut $5 million from McCarthy's $120 million proposal to avoid exceeding the state tax cap.
The City Council is considering laying off more than 20 city workers to reduce spending by $2 million. Councilman Damonni Farley emphasized the need to reconcile federal Community Development Block Grant funding, which could potentially offset some expenses. However, Mayor McCarthy believes the adjustments will not significantly impact the city's finances.
The mayor's original budget proposal included a 17% property tax increase, which exceeded the state's tax cap. The council's amended budget reduced the tax hike to 2.6%, but McCarthy vetoed it, arguing it relied on unrealistic assumptions and could deplete city reserves. The council's inability to override the veto has led to ongoing discussions.
A budget session will take place at 5 p.m. at City Hall, followed by the council's regular meeting at 7 p.m. According to the Times Union, the council is exploring various options to balance the budget, including potential layoffs and financial reconciliations.
CBS6 Albany reports that Mayor McCarthy is open to negotiations to achieve a balanced budget. The finance committee will meet to discuss the next steps in resolving the budget impasse.