Ulster County legislators debate $11M tax rebate amid $210M budget surplus

During the Ulster County Legislature's special session on December 10, 2024, a heated debate erupted over the county's substantial budget surplus, currently projected to reach $210 million by the end of the year. Legislators discussed the implications of this surplus, with some advocating for a reduction in property taxes to return funds to taxpayers, while others cautioned against potential future financial uncertainties.

Legislator Nolan highlighted the county's unallocated fund balance, which has swelled to $171 million, emphasizing that the surplus is not a result of overtaxing but rather prudent financial management. He argued that returning funds to taxpayers could jeopardize the county's ability to respond to emergencies, such as natural disasters, which have become increasingly common.

Conversely, Legislator Maloney criticized the county's spending habits, suggesting that the surplus indicates a failure to manage resources effectively. He called for a reassessment of budget priorities, urging the legislature to consider tax breaks for residents who have been overtaxed in previous years. "It's not our money," he stated, insisting that the surplus should be returned to the taxpayers.

Legislator Collins echoed these sentiments, noting that the county has not raised property taxes in a decade, effectively cutting taxes due to inflation. He expressed concern over the reliance on savings to balance the budget, warning that this approach is unsustainable.

The discussion also touched on the impact of rising living costs on residents, particularly renters, with Legislator Harmon pointing out that property tax rebates would not alleviate the financial strain faced by many in the community. He suggested revisiting the budget discussions in a year when more information about federal funding changes is available.

As the session progressed, the legislators grappled with the balance between maintaining a healthy reserve for future needs and providing immediate relief to taxpayers. The outcome of these discussions could significantly shape the county's financial strategy moving forward, with potential tax relief measures on the horizon.