County manager outlines tentative 2026 budget, highlights Medicaid and daycare funding risks and 0% tax-levy proposal

Schenectady County Manager Fluman told the Ways and Means Committee on Sept. 30 that the tentative 2026 budget carries significant mandated costs and risks from state and federal changes, while proposing a 0% increase in the county property tax levy.

"0% increase that I'm suggesting," Manager Fluman said as he summarized revenue and spending assumptions for 2026. He told legislators the budget is driven by mandated programs — including Medicaid, child care supports, foster care and justice-related services — and that several federal and state changes could alter the countyexposure next year.

Why it matters: Fluman said the county's Medicaid share for 2026 was budgeted at about $38,400,000 and described that exposure as a large portion of county financing. He warned that federal and state shifts could increase local costs and said counties statewide would face similar pressure if higher-level policy changed.

Key budget details and risks

- Medicaid exposure: Manager Fluman said the county is budgeting roughly $38.4 million for Medicaid-related costs in 2026 and described that as a major exposure for the levy and for sales-tax-funded revenues. He cautioned that changes at the federal or state level could increase that obligation and said Schenectady would not be alone if that occurred.

- Daycare block grant and equalization: County staff said Schenectady has high utilization of state and federal daycare block grant funds and that the county served 1,488…