Tompkins County budget staff told the Budget, Capital and Personnel Committee on Aug. 14 that maintenance‑of‑effort requests from departments produced roughly an $11 million projected gap for 2026 and that work to narrow the gap had reduced it to about $9 million ahead of a recommended budget.

County Budget Director Nasir Corso reported that the component making up the $11 million estimate was about $6 million in increased expenses and roughly $5 million in lower revenue projections. Corso said staff were asking departments to revise historic inflows and make candid projections, and that several departments had already revised revenues upward while trimming expenses. Corso said the administration expected to deliver a recommended proposed budget by the end of the following week but cautioned it would be "extremely tight." Corso said the current gap in his update was about $9 million.

Committee chair Mike Lane and others discussed fund‑balance policy. External auditors and committee members recommended targeting about 25% unassigned general‑fund balance as a prudent reserve; the county's unassigned balance was presented at roughly $44 million during the audit review.

Legislators and staff also raised immediate revenue‑risk items. At the Tompkins Intergovernmental Relations Committee meeting summarized to this committee, an outside presenter cited an estimate that federal/state changes to SNAP and Medicaid administration could increase county annual costs by an estimated $2.5 million to $3.5 million if new work‑verification and monitoring requirements take effect. Committee members said some of the SNAP and Medicaid implementation provisions may take effect after the midterm elections and some Medicaid changes could affect counties in 2027; speakers warned the changes could increase demand on county social‑service programs and providers.

Transportation funding volatility was another factor discussed in the budget outlook. Budget staff and committee members said that one reason 2024 revenue exceeded expectations was a one‑time or previously unclaimed set of transportation grants and that similar inflows may not recur. That contributed to conservative revenue projections for 2026.

Committee members and staff described several actions to manage the shortfall: asking departments to reexamine revenue and expense projections, asking external agencies to consider reduced county allocations, reviewing multiyear and one‑time items for possible removal from the ongoing budget, and instituting or strengthening quarterly reporting and receivables policies to improve midyear visibility. Corso said those departmental and agency conversations were ongoing and that staff would provide a list of adjustments and one‑time items accompanying the recommended budget.