Sullivan County has presented a tentative $299.9 million budget for 2027 that maintains funding for existing programs and services while proposing a 27.67 percent property tax increase to address rising expenses and declining sales tax revenue.

The proposed $299,886,220 budget is lower than the county’s adopted 2026 budget and does not rely on the use of General Fund reserves to balance the plan.

County Manager Manager Josh Potosek said initial estimates indicated a property tax increase of as much as 35 percent might be necessary. County officials worked to reduce that figure to 27.67 percent, although Potosek acknowledged the remaining increase would place a significant burden on taxpayers.

“The 2027 Tentative Sullivan County Budget represents months of effort to navigate serious revenue declines while maintaining the county’s fiscal stability and providing the services taxpayers need and demand,” Potosek said.

The proposed increase reflects inflation-driven expenses and an anticipated $6.5 million decline in sales tax revenue compared with the amount budgeted for 2026. Potosek said the revenue shortfall, combined with the decision not to continue drawing down county reserves, accounts for 15.5 percentage points of the proposed property tax increase.

Despite the financial pressures, the spending plan preserves funding for existing services, including public health, public safety, the Sheriff’s Office and emergency medical services.

Among the major investments proposed for 2027 is $21 million for county road and bridge improvements, with approximately two-thirds of the funding expected to come from state and federal sources.

The budget also includes $1 million in bonded funding to demolish the aging Division of Public Works station near Callicoon and design a replacement facility. Another $500,000 is earmarked to complete a water storage tower at the county airport, a project intended to make the site more attractive to businesses that could generate revenue.

Other proposed allocations include $300,000 to continue designing a composting facility near the Monticello Transfer Station, with half the cost expected to be covered by state aid, and $250,000 to continue the Sullivan Promise scholarship program. The scholarship program covers two years of tuition at SUNY Sullivan for local high school graduates.

The spending plan also provides $100,000 for the Sullivan County Land Bank to continue rehabilitating deteriorating properties and $75,000 to update the Department of Motor Vehicles permit examination room in Monticello, completing a two-year renovation of one of the county’s most frequently visited offices.

Potosek said the county is avoiding major new projects and additional staffing in the coming year because of the proposed tax increase. He also emphasized the importance of attracting businesses and industries that will expand the county’s tax base and help distribute costs more broadly.

County legislators have until December 20 to review and adopt the budget and may amend the tentative proposal before final approval.