A Deep Dive into Sullivan County’s 2026 Budget: Rising Costs, No Cuts, and a 9% Tax Hike

Sullivan County Manager Joshua A. Potosek presented a $305.7 million tentative 2026 budget that avoids service cuts but raises property taxes by 9.1% to offset declining revenues and rising costs.

“We were looking at a double-digit hike,” Potosek said. “Through careful planning and use of our fund balance, we brought it down.”

Sales Tax Decline Drives Increase

Sullivan County is facing one of the steepest sales tax drops in New York, with revenue expected to fall more than $5 million from 2025. Potosek said that decline makes up about two-thirds of the tax increase.

“The biggest hit has been in construction and building materials,” he said. “Other sectors, like restaurants and lodging, have stayed flat.”

Inflation Adds Pressure

Inflation has pushed up costs across departments, especially Public Works, where plow trucks now cost more than double what they did before COVID. “These are not optional purchases — we have to plow roads,” Potosek said.

Rising health insurance and pension costs also continue to strain the county budget.

Services Maintained, Investments Continue

Despite the challenges, the budget preserves all current programs and continues funding key projects, including:

• $15 million for roads and bridges

• $1.3 million for SUNY Sullivan upgrades, including new elevators

• $500,000 for the Sullivan Promise Scholarship

• $150,000 for a composting facility design

• $100,000 for Land Bank property rehabs

Potosek called the Promise Scholarship “one of our most successful programs,” helping more students attend college and boosting local enrollment.

What’s Ahead

Potosek warned that state-level cost shifts could bring more pressure next year. “We know health insurance and pensions will rise — what worries me is the unknown from Albany,” he said.

Public hearings on the tentative budget are set for December 2 at 5 p.m. and December 4 at 10:45 a.m. at the Government Center in Monticello. Legislators must adopt a final budget by December 20.

Residents can view details and comment at sullivanny.gov.