Sullivan County Approves 2% Tax Hike – and Bets on Ambitious Revenue Projections

Sullivan County legislators approved the 2026 county budget Thursday, voting 5–3 to adopt a spending plan that raises property taxes by two percent and relies on ambitious revenue projections.

The vote followed weeks of debate after County Manager Joshua Potosek initially proposed a 9.1 percent tax hike in October, drawing sharp criticism from residents at two public hearings in Monticello.

After nearly two hours of floor debate, lawmakers signed off on the $305.7 amended budget with a 2% tax levy increase, under the State-mandated tax cap. Legislators Terry Blosser-Bernardo, Joseph Perrello, and Nicholas Salomone voted against the measure.

The approved 2026 budget increases the county’s anticipated revenue in several categories, including more airport fuel, cannabis sales, and EMS billing revenue. The budget does not include any staff layoffs.

Legislature Chair and District 2 Legislator Nadia Rajsz told Radio Catskill that it was “a very difficult decision” for the legislative body to find consensus and pass an operating budget so reliant on ambitious revenue projections.

Potosek said the increase was needed to account for the county’s anticipated $5 million sales tax decrease, with building and construction costs accounting for the largest category dip.

“We are hoping that in the future the sales tax revenue decline will revert back to being higher. We don’t know. If it stays status quo the way it is, if it’s stable the way it is, we may be looking at some difficult times in the future,” said Rajsz.

How the county will recuperate this year’s $5 million sales tax budget gap is still unclear: “[It’s] wishful thinking,” said Rajsz.

In a press statement, Rajsz said that “this was the hardest budget I’ve ever had to work on as a legislator,” though “in the short term, I am very pleased we were able to figure out a way to stay beneath the tax cap, but in the long term, it will be challenging.”

“This budget reflects what a responsible, collaborative government can accomplish. By working closely with my colleagues and County staff, we were able to reduce a proposed 9% tax increase to about 2%, coming in below the state tax cap and keeping affordability front and center for Sullivan County residents,” said District 1 Legislator Matt McPhillips in a press release. “At the same time, this budget supports living wages for County employees, strengthens public safety through our EMS fly car program and continues critical investments in roads, emergency response, and essential services.”

READ: Sullivan County Legislature Postpones Budget Vote After Residents Push Back

Several final-hour resolutions were passed right before the 2026 budget and tax levy vote, leaving both legislators and the public unclear about the final tax increase. For instance, lawmakers voted 4-3 to adjust and raise the Sullivan County sheriff salary from $120,000 to $145,000 – leaving legislators scrambling to rework the numbers on the fly.

District 7 Legislator Perrello, who voted against the amended budget, says that the approved budget is filled with “false numbers to show revenues to bring the tax rate down.”

“These amendments are reckless. It’s going to be putting the county next year in a worse position than we are today,” said Perrello.

Although District 3 Legislator Brian McPhillips voted in favor of the budget, he warned that the budget leaves the county’s economy stagnant and will require legislators to tightly control spending.

McPhillips added, “ I do not think that that vote is going to produce the county forward. From where it is today. I think we’re producing a status quo budget.”

Update: The article was updated to include final budget figure and a press statement from Legislature Chair Nadia Rajsz and District 1 Legislator Matt McPhillips

Image: Sullivan County legislators at Dec. 18 county legislature meeting at the Government Center in Monticello, N.Y. (Photo Credit: Kimberly Izar)