Schenectady Mayor Gary McCarthy has vetoed the 2026 city budget, citing concerns over unrealistic revenue projections and long-term financial impacts. The budget, passed by the City Council on November 1, proposed a $120 million spending plan that included a 2.6% tax increase, significantly lower than the 17% increase initially proposed by McCarthy.

According to McCarthy, the budget relies on "incorrect and wholly unrealistic assumptions" regarding revenue, which could deplete the city's fund balance and negatively affect its credit rating and borrowing ability. McCarthy emphasized the need for a balanced and sustainable budget, stating, "It is our responsibility to ensure that the City of Schenectady remains on sound financial footing, and this budget fails to meet that standard."

News10 reports that McCarthy's concerns include unrealistic projections for revenue from cannabis excise taxes, foreclosed home sales, and parking fines. The council's budget also planned to use an additional $3.9 million from the city's fund balance, which McCarthy argued would leave the city with no reserves for 2027.

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, which was used to reduce capital spending. Porterfield stated, "We made decisions based on not only the information that he provided but our discovery of that money."

The council passed the budget by a 4-2 vote, with members supporting the plan for its taxpayer-friendly approach, including a reduced garbage collection fee. However, McCarthy's veto means the council will need five out of six votes to override it, a challenging task given the current vacancy on the council.

The Times Union notes that McCarthy's veto follows a similar pattern from 2023, where he vetoed two council-approved budgets before reaching a final agreement. The ongoing budget negotiations will determine whether the council can address McCarthy's concerns and pass a revised budget.

The Herd with Colin Cowherd