MONTICELLO – Discussions of the county’s financial situation during the Management and Budget Committee meeting on September 10 reflected the looming threat of a difficult budget process for legislators.

Committee Chair Brian McPhillips said the rising costs of goods and services are unsustainable for local governments across the state. “We are trying to carry services for the people that we represent in a time of reducing funds. It’s a very tough position to be in,” he said.

McPhillips said the legislature would act with transparency as it makes budget decisions so the public is informed about the realities of the county’s fiscal health.

District 5 Legislator Cat Scott said health care and other employee benefits have forced local municipalities to raise their tax cap: “I was at the Town of Tusten board meeting; they have a resolution to raise their tax cap because their worker’s compensation came back with a double-digit percentage [increase].”

Agreeing with Scott, McPhillips pointed to the committee’s resolution that calls upon the United States Congress to enact a two-year delay of the Supplemental Nutrition Assistance Program (SNAP) administrative cost shift.

New York is one of only ten states in which counties are required by state law to administer SNAP and to share in its administrative costs. The “One Big Beautiful Bill Act” reduces the federal share of SNAP administrative costs from 50 percent to 25 percent effective October 1.

“We’re potentially going to be hit with the mandate and a cost to the state that they want us to pay for,” said McPhillips.

Added Scott, “And at the end of the day, we’re the ones responsible for providing services to the citizens of this county.”

McPhillips said one possible tool legislators could employ to lighten the burden of increasing costs is a use tax. “We have the ability to raise the percentage on automobile purchases, we have the ability to change sales tax by percentage rates,” he said.

McPhillips also floated the idea of raising the mortgage tax to offset rising costs. “The side effect of that is it’s an additional expense to the cost of the house. Is somebody not going to be willing to purchase the house knowing that 1% of $450,000 is an additional $4,500 when they go to mortgage that house? These are the things that we’re juggling and balancing… We’re trying to do what is the least painful for the public,” he said.

Scott warned that increasing sales tax could counter tourism, which is why the county should look at “economic development beyond tourism and retail.” Scott said she wants to attract industries with good-paying jobs so the economy will benefit from the spending power of residents instead of relying on tourism dollars which tend to dry up in tough times.

“We’ve seen it time and time again: when the bottom falls out, people stop coming,” she said. “And then we have to make adjustments and we have to sacrifice service and employees.”