The county controller updated the Ways and Means Committee on Aug. 14 on revenue, audits and potential federal funding risks, saying year-to-date sales tax and occupancy-tax receipts are on track and that cannabis-tax receipts are close to budget, while flagging audits and the potential fiscal impact of federal program cuts.

Key figures provided by Controller Gallagher included year-to-date sales tax receipts of $90,774,257 and occupancy-tax recordings of about $3,423,559 to date. The controller said cannabis tax payments for 2025 totaled $505,222,000, of which the county will recognize 25 percent as revenue (approximately $126,305,000) and that collections are at about 97 percent of budget for that line item.

On audits, the controller said an audit of Ulster County Community Action was released and that the agency accepted the controller's recommendations. The audit flagged three areas: personnel billing practices (billing based on budgeted personnel rather than actual monthly hours), inventory management and separation of duties for commodities purchased with county funds, and documentation and reporting gaps related to residents placed in motels.

The controller also said an occupancy-tax audit identified $251,756 in unpaid taxes, penalties and interest and that the county is recovering those amounts. The controller noted the county has not closed its 2024 books and recommended attention to internal accounting practices, and said the county should prepare for federal funding changes. Citing a New York State Association of Counties (NYSAC) estimate, the controller said SNAP cuts could cost the county around $7 million annually beginning in October 2026 and warned of possible Medicaid changes that could affect local hospitals.

On capital projects the controller reported $42.5 million spent in capital investments at fiscal-year 2024 end and roughly $16.6 million spent as of August; two projects exceed $5 million in construction budgets: the emergency communications center (ECC) and the Ulster County pool.

The controller closed by noting the controller's office had issued a memorandum to the county executive and legislative chair with observations and recommendations surrounding the Alara breach discussed separately in the meeting.

No committee vote was recorded on these informational items; they were presented as the controller's regular report to the committee.