Orange County Legislature Approves $2 Million Cut to 2025 Tax Levy

ORANGE COUNTY, N.Y.—On December 5, Orange County legislators voted unanimously to reduce the county tax levy by nearly $2 million for the upcoming fiscal year.

The approved property tax levy for 2025, which funds just over 10% of the county’s annual budget, is set at $120.6 million.

This marks the third consecutive year in which the county has implemented significant cuts to its tax levy, following a $9.6 million decrease in 2023 and a $2 million reduction in the 2024 budget.

Legislators attribute most of the levy reductions to utilizing the county’s substantial surplus reserves, along with minor expense adjustments in the planning, mental health, and sheriff’s departments, as outlined in a document attached to the legislative meeting agenda.

“Once again, the Legislature has adopted my budget with minimal adjustments,” stated County Executive Steve Neuhaus. “I am thankful for the cooperative relationship I have with the Legislature, and I look forward to maintaining our positive momentum.”

County Legislature chairwoman Katherine Bonelli remarked at the meeting, “This budgeting process has gone very smoothly. Thank you to each of you for your hard work and diligence.”

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During the November 6 Ways and Means committee meeting, county legislator James O’Donnell urged his colleagues to utilize surplus funds to ease the tax burden after a close vote led to the rejection of legislator Michael Paduch’s spending reduction initiative.

The county’s unrestricted fund balance, considered surplus with no stipulations, is projected to be approximately $205 million by year-end, as discussed at the meeting.

This amount represents around 23% of the county’s overall budget.

“We have approximately $111 million beyond our recommended 10%. I recommend using these funds to reduce our taxes,” O’Donnell stated during the committee meeting.

While congratulating the reduction in the tax levy, Paduch noted that the budget should have addressed the numerous job vacancies for additional cost savings.

The budget presented by Neuhaus to the legislature included close to 350 job vacancies out of nearly 2,500 funded positions within the county government, according to accountants from PKF O’Connor Davies during a budget analysis in early November.

These vacancies are estimated to cost approximately $10 million.

During the review, O’Connor Davies accountants mentioned that the Neuhaus administration plans to fill some of these positions in the upcoming year.

Previous reports indicated that Orange County ended 2023 with a surplus of approximately $49 million, largely attributed to lower-than-anticipated hiring rates, which contributed $20 million to the surplus.

The total budget for 2025 stands at nearly $988 million, reflecting about a 7% increase compared to 2024.

Sales Tax as Primary Revenue Source

Just like in previous budgets, sales tax remains the county’s primary revenue source, comprising over 40% of its projected income for 2025.

The county anticipates generating $412 million in sales tax revenue next year, with $108 million, or one-quarter of that total, earmarked for distribution to local municipalities based on population size.

Among the neighboring counties of Rockland, Sullivan, Ulster, Dutchess, and Broome, Orange County is the second most reliant on sales tax revenue for its operational budget.

“[That is] largely due to Woodbury Common Premium Outlets, which significantly contributes to our funding,” noted an O’Connor Davies representative during the budget review.

This popular outlet, located just an hour north of New York City, attracts shoppers both domestic and international with its extensive collection of 250 luxury and designer brands.

“These funds are influenced by economic conditions, yet they have proven to be a stable revenue source for Orange County over the years,” the representative added.

In 2024, Orange County was the least dependent on property tax revenue compared to the aforementioned five counties.

Thus far this year, the county has exceeded its sales tax revenue targets slightly based on the latest Ways and Means committee discussions.

New Salary Structures

During the meeting on December 4, county legislators also approved new four-year salary schedules for themselves, as well as for the positions of county executive and clerk.

From 2026 to 2029, the average annual salary for county lawmakers is projected to rise from approximately $41,000 to $46,100. Wages for committee chairs will increase from about $47,100 to $52,600, and salaries for both majority and minority leaders will grow from approximately $53,200 to $59,400.

The chairperson of the 21-member legislature will earn around $71,600 in 2026, with an increase to $80,000 by 2029.

The annual compensation for the county executive is set to rise from about $205,600 in 2026 to $231,200 over the next five years.

The salary for the county clerk position will also see a gradual increase, reaching $146,100 by 2029.