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Breaking down the budget

Posted 11/13/26

Sullivan County homeowners—did you know that a 27.67% tax increase is being proposed for fiscal year 2027?

Residents will have the chance to weigh in at two public hearings scheduled for …

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Breaking down the budget

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Sullivan County homeowners—did you know that a 27.67% tax increase is being proposed for fiscal year 2027?

Residents will have the chance to weigh in at two public hearings scheduled for December, although the dates haven’t been announced yet.

But before jumping in, perhaps it’s best to hear about the budget breakdown straight from the horse’s mouth, County Manager Josh Potosek.

In October, Potosek proposed the tentative budget to the county legislature that “avoids cuts to programs but also squarely faces the reality of significantly increased costs and declining sales tax revenues.”

Originally, budget estimates indicated a tax increase of 35% might be necessary, but Potosek said they brought that down to 27.67%; “as a taxpayer myself, I recognize this remains a sizeable increase.”

The total $299,886,220 budget, as currently proposed, is lower than 2026’s Adopted Budget and does not include utilization of fund balance (surplus) in the General Fund.

Potosek says the proposed tax increase is due to steeply rising, inflation-fueled costs and an anticipated $6.5 million decline in sales tax revenue versus what was budgeted in 2026.

Sales tax revenues have “plunged precipitously,” falling from $80 million (which was above historic norms) collected in 2024, to an expected $71-$73 million in 2027.

But county taxes are only one part of the picture. Many towns have also already passed or are considering their own increases—going above the %2 state-mandated tax cap. And financial pressures on everyone in this country continue to compound, with rising costs of everyday goods to fees and services like health insurance and utilities.

How can people be expected to stay above water?

As we recently wrote, the legislature last year voted (with a 5-3 vote) to bring the tax increase down from 9.1% to 2% to alleviate the burden on taxpayers. But did this just create a bigger burden down the road?

Now as they face an even larger number this year, what will they decide to do?

As we await further discussions, it’s important for residents to know more about the proposed 2027 budget, which can be found in full on the county’s website at www.sullivanny.gov.

“Knowing the impact this budget will have on taxpayers,” Potosek writes, “the goal is to stay highly focused on cost control and prioritize only those projects—like roads and bridges—that are necessary to public safety and economic development. It’s a strategic and thoughtful adjustment.”

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