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A meeting to vote on a budget override in Schenectady has been cancelled. The Schenectady City Council had planned to meet on Monday to address the budget vetoed by Mayor Gary McCarthy. The council had previously passed a $119 million spending plan, which McCarthy rejected, citing concerns over unrealistic revenue projections and potential financial instability.
Mayor McCarthy vetoed the 2026 budget, arguing that the council's revenue estimates were inflated to avoid exceeding the state tax cap. He stated that the budget could deplete the city's savings and negatively impact its financial standing. McCarthy emphasized the need for a balanced budget to maintain the city's fiscal health, saying, "It is our responsibility to ensure that the City of Schenectady remains on sound financial footing, and this budget fails to meet that standard" according to the Times Union.
The council's budget included a 2.6% tax increase, significantly lower than the 17% initially proposed by McCarthy. However, McCarthy pointed out that the budget relied on unrealistic projections for revenue from cannabis excise taxes, foreclosed home sales, and parking fines. He also criticized the plan to use an additional $3.9 million from the city's fund balance, which he argued would leave no reserves for 2027 as reported by iHeartRadio.
City Council President Marion Porterfield defended the council's budget, highlighting the discovery of $2.2 million in unreconciled federal Community Development Block Grant funding. Porterfield stated that this funding was used to reduce capital spending and borrowing according to Spectrum News.
The cancellation of the meeting leaves the future of the budget override uncertain, with no word yet on whether the vote will be rescheduled. The council will need five out of six votes to override the mayor's veto, a challenging task given the current vacancy on the council.