Courtesy of Adirondack Regional Chamber of Commerce
By Paul Post
Warren County officials say a sales tax increase is inevitable as the state keeps passing costly programs on to local government.
Medicaid, juvenile detention and mental health services are among the fiscal burdens contributing to a $4 million gap in the county’s proposed $207.1 million 2025 budget that’s $14.3 million higher than this year’s spending plan.
A public hearing is scheduled for November 15.
“Costs are going up, we’re going to have to find revenue somewhere either now or in the future,” said Board of Supervisors Chairman Kevin Geraghty, of Warrensburg. “We do get aid from New York State, but they always seem to find a way to shift costs to us each year.”
Budget Officer and Stony Creek Supervisor Frank E. Thomas said a 1 percent sales tax hike from 7 percent to 8 percent would raise an estimated $12 million, enabling the county to cover rising costs for at least several years. The county would keep approximately half this amount with the rest distributed to towns and the City of Glens Falls.
“Do it now or do it later,” said Thomas, regarding a higher sales tax. “Sooner or later we’re going to have to.”
Geraghty, Thomas, county Administrator John Taflan and tourism Director Heather Bagshaw discussed a variety of issues during a recent “Warren County Outlook” seminar with dozens of local business leaders on hand at Crandall Public Library.
Warren, Washington and Saratoga are the state’s only counties with a 7 percent sales tax. Every other county is at 8 percent or higher.
But January 1, 2027 is the earliest a higher rate could take effect. Even if the county adopts such a plan next year, both houses of the state Legislature and governor would also have to approve it, which wouldn’t occur till 2026.
“It does quite frankly make a lot of sense and I think it will be something we ultimately have to do,” Taflan said. “But we are probably in a hold pattern. I suspect there’s a good chance we will not move until Saratoga and Washington counties also want to do that.”
While acknowledging the need for a higher sales tax, Geraghty said, “The only way I would ever vote for (it) is if we lowered the property tax in the county.”
“With all the visitors we get in, maybe we should get them to share some of the burden (with higher sales tax),” Geraghty said. “I believe it would be doable.”
Tourism is one of the county’s main economic engines especially during the busy Lake George summer season.
The overall property tax levy increased by 6.1 percent under the proposed budget. However, a $1.1 billion countywide increase in property values sees the countywide tax rate decrease by two cents to $3.262 per $1,000 in assessed value.
Rates in each municipality vary based on equalization rate.
Thomas said sales tax, which had increased about 5 percent annually for several years, only rose 2 percent in 2024, which he attributed to overall economic conditions. “With inflation I think people are buying what they need more than what they want to buy,” he said. “I think that’s probably the cause.”
Inflation has also impacted county operations across the board, from higher food prices for county jail inmates to expensive highway paving projects related to high oil costs.
“And an increase in salaries kind of blows each budget apart,” Thomas said. “Everyone wants a pay raise. As you increase the pay, that inflates the budget. It goes around and around and gets harder and harder.”
Retirement benefit and health insurance costs have gone up 14 percent and 9 percent, respectively, and severe storm damage cost the county $5 million during the past year.
Thomas said state-imposed mandates are especially problematic, with various requirements affecting many departments from law enforcement to public works.
For example, there are court-ordered psychiatric exams and treatment for a defendant or accused person that the court determines isn’t competent for trial.
“They’re sent to a state-run facility to gain competence so they can go on trial, but the state decides when the time is up and we pay the bill,” Thomas said.
Such costs, which previously didn’t exceed $50,000, are now almost $2 million, he said. “New York State used to pay half; not any more,” he said.
Similarly, the only juvenile detention facility is in Westchester County, which “takes two deputies down and back to them bring back to court,” Thomas said. “It gets very expensive, very quick.”
Regarding highway projects, the state now requires much larger “climate-resilient” culverts. “They’ve gone to an extreme,” he said. “You’ve got to study the wetlands and do all kinds of engineering. It’s added all kinds of unnecessary expense. A culvert that might have cost $800,000 to $1 million is now $2 million.”
Thomas said the county saved $100,000 by combining its Civil Service and Human Resources departments under the new budget and that more consolidation might be forthcoming. “In 2025 the county will begin hauling waste for the towns, a 50 percent reduction in cost to towns. Overall it’s not the best budget in the world, but it is what it is.”
Pressing issues such as rural broadband and cell phone service, expanded public transportation and affordable housing for middle-income workers such as teachers, first responders and healthcare employees were also discussed. But officials said there appears to be no near-term solution for any of them.
“I was at a meeting in Lake Placid where the governor’s representatives told us everyone would have broadband the next year,” Geraghty said. “That was in 2016. It’s still not solved. During the pandemic kids in outlying towns had to sit in town hall parking lots to use their computers.”
Taflan said more than 1,300 sites have been identified where broadband is needed, but not available. “We can apply for grants to see if we can get assistance from the state for some of those areas, but connecting all of this county is going to be a very difficult challenge to get to 100 percent,” he said. “We need support from the broadband service providers, but they aren’t going to spend $40 million to $60 million to connect the rest of our folks.”
Similar profit-driven fiscal challenges are preventing more complete cell phone service, officials said.
Geraghty said many people in northern towns need rides to work in Glens Falls, now served by Capital District Transportation Authority, but there are no immediate plans to expand such service.
Housing for essential middle-income workers is a serious issue as many jobs don’t pay enough for people to buy homes in the $250,000 to $300,000 price range. Most new-home construction is a great deal more as the cost of building materials has gone up and contractors need to make a profit.
Recent studies have addressed the situation, but the issue is quite complex and would require a commitment from builders and government alike to make housing both affordable and financially possible.