Tompkins County Faces Potential 2% Tax Hike to Cover Rising Costs in 2025 Budget

In Tompkins County, County Administrator Lisa Holmes presented preliminary budget considerations for 2025 to the legislators. Holmes explained that a 2% increase in the tax levy might be necessary to meet the fiscal goals for the upcoming budget. This increase would help cover rising costs in the county.

Holmes identified state-mandated expenses, particularly in the Social Services and Whole Health departments, as major contributors to these rising costs. She also noted that employee wages are expected to increase by $2.3 million, totaling $47.5 million in 2025. This includes adjustments from a recent salary review.

The county's Capital Program is set to increase its funding by $1.378 million. Holmes mentioned a projected 5% employee vacancy rate, which could save about $1.878 million. However, these savings might be balanced out by lower-than-expected sales tax revenue from the first quarter of 2024.

Holmes suggested using the financial results from 2023 as a conservative base for planning the 2025 budget. She highlighted the difficulty of managing rising costs with stagnant or declining revenues. To maintain current services, the county would need a 5.9% tax increase, adding approximately $155 to the tax bill of a median-priced home at $300,000.

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