O’Neil sets county budget, including sales tax increase

POUGHKEEPSIE — Dutchess County Executive William F. X. O’Neil proposed a $599 million budget for 2024 that reduces the county’s property tax rate by 10.6% while increasing the sales tax rate from 3.75% to 4%.

O’Neil’s budget marks the 11th consecutive year of reduced property tax rates. Due to a growing tax base in the county, the rate will drop from $2.49 to $2.23 per $1,000 assessed valuation. 

The proposed spending in the tentative budget represents an overall increase of 1.1% over the 2023 modified budget, as of Oct. 18. 

O’Neil noted in announcing the budget that New York state has increased mandated spending for the county by $16 million, primarily for Medicaid, child institution costs, and preschool special education/early intervention, among others, according to his announcement. 

“Governor [Kathy] Hochul unilaterally increased the County’s annual costs, and took $15 million owed to the County by redirecting federal funding intended to help counties offset local taxpayer costs into State coffers,” he wrote. 

Adding that “as Albany continues to spend recklessly in deficit [...] we must brace for multi-year, negative impacts to our County budget, requiring we bring our County Sales Tax rate level with the majority of other New York counties.”

The Democratic Caucus of the Dutchess County Legislature immediately condemned the sales tax increase. 

Dutchess County Legislative Minority Leader, Yvette Valdés Smith said in a statement: “I will not support a sales tax increase. Our residents cannot afford it. Proposing such an increase at a time when most residents are struggling to pay bills is incompetent and shameless.”

Other Democrats echoed her comment, including Legislator Kris Munn, who stated, “Our Democratic Caucus proposed a sales tax decrease this year, which the Republicans rebuked immediately. This decrease would have put money where it belongs: back in the pockets of Dutchess County taxpayers when they needed it most.” 

O’Neil countered that Dutchess County’s 3.75% rate has been one of the lowest in the state for decades, adding that Ulster and Columbia counties are at 4%. Dutchess has an exemption on sales of clothing and footwear under $110. 

At the cash register, Dutchess County currently levies a 3.75% sales tax; New York state levies a 4% tax and an add-on MTA sales tax is 0.375%. Besides the counties in New York City boroughs, others that levy the MTA tax are Rockland, Nassau, Suffolk, Orange, Putnam and Westchester.

“The 2024 Budget has no cuts to services, no layoffs and decreases the property tax rate by 10.6% and tackles tough challenges like affordable housing, public safety, homelessness and much more,” O’Neil said in a statement to The News. 

“Expenses are rising primarily due to contract salary and benefits costs—contracts which were authorized unanimously by the County Legislature—and due to $16 million in additional mandated costs from New York State.

“Expenses must be balanced by revenue, which we have done each and every year with property tax cuts for the last 10 years,” O’Neil added. 

“Our fiscal stewardship is evidenced by Dutchess County’s AA++ bond rating and high marks from the New York State Comptroller. It is dishonest for the Democrats to claim ‘fiscal irresponsibility’ and it’s obvious these are simply political lies just before Election Day.”

New York state is one of the few states in the nation to push Medicaid costs to county taxpayers. Additionally, the state will not be reimbursing Dutchess County $15 million due from  federal funding for prior Medicaid costs incurred by the county.

The Legislature will hold a public hearing on Dec. 4 in the Legislature’s chambers on Market Street in Poughkeepsie. The budget is scheduled to be approved on Thursday, Dec. 7. 

Speaking of the budget review to come, O’Neil said: “Over the next few weeks, both the Republicans and the Democrats [...] can make changes to the Executive Budget plan. I urge them to consider all changes wisely, as we must protect our residents and ensure fiscal stability for years ahead in the final adopted budget.”

Some other highlights from O’Neil’s budget as published last week: 

—The addition of two deputy sheriffs specially trained as community resource officers to enhance safety and policing services in Poughkeepsie.

—The new Dutchess County Justice and Transition Center, operational in 2024, aims to reduce recidivism. 

—Addressing homelessness with a plan that includes eight new positions, including shelter director, case managers and program specialists, to provide necessary wrap-around services as the county works toward establishing a permanent emergency housing facility for single individuals.

—Funding is also included for an additional housing navigator position through Hudson River Housing (HRH) to help residents facing housing instability, as well as funding for a vehicle to enhance HRH’s street outreach to homeless individuals.

—Opioid settlement funds will be used for new and existing behavioral health and recovery efforts.

—Expanded community partner support with a 4% cost of living adjustment (COLA) funding increase for not-for-profit community partners that deliver a wide range of vital programming, from domestic violence victim support to 4-H youth programming.

—$200,000 grant program to expand composting opportunities for residents with a matching grant program for municipalities to install and operate in-vessel aerobic composting equipment.

—Therapeutic meal delivery program for older adults to help meet specific nutritional needs.

—Continued outreach to and recognition of Dutchess County veterans, including bringing a traveling Vietnam exhibit to Bowdoin Park in 2024 and hosting the third annual “Red, White & You!” veterans appreciation picnic at Camp Nooteeming.

—Completion of new and existing radio tower site construction and upgrades, as well as installation of system radio equipment to establish a common radio network providing interoperability and countywide coverage for all public-safety radio system users.