Committee hears workforce board budget squeeze as county approves final year of LEAP contract

Washington County’s Agriculture, Planning, Tourism & Community Development Committee on May 19 reviewed a proposed fiscal year 2026 budget from the Saratoga‑Warren‑Washington (SWW) Workforce Development Board and approved the county’s final year of a three‑year contract with LEAP.

Gretchen Steffan, Executive Director of the SWW Workforce Development Board, said the board’s proposed PY26 budget totals $331,735 and reflected a recent 10% reduction in the Department of Labor allocation to the region. "We were surprised by the 10% reduction because we were told to expect flat funding," Steffan said, and she told the committee the cut had been accounted for in the draft budget.

Steffan said the board wants to retain a budgeted Deputy Director position and has left the Executive Director salary at the current level while planning for a leadership transition tied to her upcoming retirement. "There are options with the salary" when recruiting a new executive director, she said.

Gary Dake, board chair, described the board’s conversations about a possible consolidation with the larger Capital District Workforce Development Board as a response to "unsustainable" overhead amid shrinking state and federal support. Dake said a merger would likely not take place until July 1, 2027, and noted that the Capital Region board is merging with Columbia‑Green that will be effective July 1, 2026. He said consolidation could allow the board to eliminate some administrative positions and reduce some budgeted expenses.

County supervisors and staff raised concerns about preserving frontline services in Washington County if a consolidation proceeds. Supervisor Fedler said the county has previously made clear it does not want reductions to services at workforce centers and emphasized the need to ensure funding stays with local centers. Chairman O’Brien said the county must guard against "watering down Washington County’s impact" and losing services locally.

Supervisor Campbell asked for performance data, including placement and retention rates and cost per person served; Shelley Smith, Executive Director of LEAP, said staff were working to obtain those figures. Al Nolette, the county treasurer, asked whether LEAP’s status as a not‑for‑profit created alternative options for addressing administrative costs.

Melissa Fitch, county administrator, told the committee the county will proceed with the third year of its three‑year contract with LEAP and that final dollar amounts will be inserted once state and federal allocations are finalized. Mr. Campbell moved to approve the LEAP contract for the final year of the three‑year agreement; Mr. Hahn seconded the motion and the committee adopted it. The committee was told the proposed SWW budget will return for committee consideration next month and then to the full Board of Supervisors for approval after the Workforce Development Board finalizes its budget.

The meeting adjourned at 11:08 a.m.