County Executive proposes 4% sales tax rate to cover higher costs

Dutchess County Executive Sue Serino has unveiled a $722 million budget proposal for 2027 that would increase spending by 10.5%, raise the county sales tax and use $28.5 million from general fund reserves.

Serino presented the proposal Oct. 30 after her administration sought to close a gap between projected costs and revenues that approached $90 million. County officials cited rising operating expenses and government mandates, including $1.8 million in additional costs from changes to the federal Supplemental Nutrition Assistance Program’s administrative funding formula.

“Despite tremendous fiscal pressure from ever-increasing state and federal mandates and rapidly rising costs,” Serino said in a statement, “we are delivering a 2027 budget that includes no cuts to services and no layoffs.”

The budget aims to keep the overall tax levy increase to less than 1%. To do so, Serino proposes using more than $28 million from the general fund balance — plus an additional $3.75 million from American Rescue Plan funds — to minimize the effect on taxpayers.

To cover the increase, Serino plans to raise the sales tax from 3.75 to 4%. That would generate an additional $9.3 million, the County Executive estimates. Serino’s budget would preserve an exemption on clothing and footwear under $110.

Property tax levies, under her plan, would stay under the tax cap, and the average property tax rate would fall 4.5% across the county. The current tax rate of $2.11 per $1,000 of assessed value would fall to $2.02. Those savings, however, are likely to be offset by higher property value assessments.

Other big items in the budget include $22 million from the state for the “First 3” early education program. Dutchess was one of three counties—chosen to create 1,000 additional childcare seats in the county. The program has set a target date of March 2027 for enrollment.

Serino’s budget also includes $3 million for the Dutchess County Drug Task Force, with $1 million going to local police departments.

EMS services would receive $2.5 million from the aforementioned ARP funds to launch a new community paramedic and telemedicine program. Community paramedicine allows paramedics to deliver non-urgent and preventative care to high-risk patients, reducing overall system strain.

There’s also a proposed $1 million investment that would go to the County’s Housing Trust Fund, designed to address the area’s lack of housing.

A Humane Law Enforcement Officer would be hired to strengthen animal welfare enforcement by investigating animal cruelty, neglect and abuse.

The budget now heads to the County Legislature, which has until Dec. 10 to propose changes. A full copy of the 2027 Dutchess County Budget is available at dutchessny.gov/2027budget.