The Village of Ellenville is at a financial crossroads, facing a $450,000 deficit for the 2025-2026 fiscal year. With rising costs and stagnant revenues, local officials are warning that tax increases may be unavoidable—and dissolution of the village itself is being openly discussed.
“This budget is bare bones,” said Mayor Evan Trent at the March 24 Board of Trustees meeting. “We’ve cut what we can, but the reality is, the cost of everything—insurance, fuel, wages—is going up.”
“They have no fund balance after losing so many businesses and taxable properties,” Rowley explained. “They’re on the edge, but they’ve worked hard to avoid a deficit this year. Still, they’ll need a tax levy override—somewhere between a 4.5 and 7 percent tax increase.”
“At a certain point, a municipality has to consider whether it can remain in business,” said Rowley. “There are voices calling for the village to dissolve and become part of the Town of Wawarsing.”
That idea—once fringe—is gaining traction. The town has a healthy fund balance and could, in theory, absorb the village. But concerns over local control, services like policing, and political resistance could complicate the process.
If the village dissolved, the Ellenville Police Department might be replaced by Ulster County Sheriff’s deputies—a move the sheriff’s office may be reluctant to take on given its own budget constraints.
“That sum alone represents a 2% increase in the tax levy,” Rowley said. “It’s the kind of expense that would typically be covered by a fund balance—but there is none.”
“There is a way forward,” said Rowley, “but it won’t be easy.”
A follow-up public meeting is scheduled for Monday, where trustees are expected to discuss the potential for dissolution, additional cuts, and the long-term financial outlook. With fewer than 4,000 residents and the loss of industry and commercial tax base, Ellenville’s future may depend on tough decisions being made in the coming weeks.