Putnam County Executive Kevin Byrne unveiled a proposed $229.7 million budget Monday night (Oct. 5) that he said would make the largest reduction in the county's property-tax levy in its history while expanding mental health programs and continuing investments in transportation, health care and early childhood services.
During his annual budget address before the County Legislature, Byrne also called for taking $6.5 million, which had been set aside for a taxpayer rebate program that never materialized, and distributing it to Putnam's six towns and three villages for infrastructure and other eligible expenses.
The proposed 2027 budget represents an increase of less than 1 percent from the adopted 2026 spending plan. Byrne attributed the increase in part to higher transportation, energy, materials and contractual costs, along with employee compensation and health insurance obligations.
The centerpiece, however, is a $6.5 million reduction in the county property tax levy, from approximately $45.2 million this year to $38.7 million in 2027—a decrease of more than 14 percent.
The levy represents the total amount the county collects through property taxes. A 14 percent reduction in the levy does not necessarily mean every homeowner's county tax bill will decline by 14 percent. Individual bills are affected by factors including property assessments and equalization rates.
The countywide tax rate is projected to decline from $2.39 to approximately $2.04 per $1,000 of full property value. Byrne noted that the lower rate reflects both levy reductions and increased property assessments.
The administration says the $6.5 million levy reduction would easily surpass the previous record $1 million cut adopted for 2026. Byrne said the county levy would be nearly $8 million below where it stood when he took office in 2023.
The proposal comes amid an ongoing debate over Putnam's sizable fund balance, with critics, including Byrne's Democratic challenger Brett Yarris, arguing that the county has accumulated more taxpayer money than it needs in reserve and should put more of it to use.
Byrne addressed that criticism directly, arguing that maintaining strong reserves has allowed the county to weather economic uncertainty, reduce debt and pay cash for major capital projects rather than borrow and incur interest costs.
"That is not hoarding taxpayer money," Byrne said. "That is responsible financial planning."
The county plans to continue using money from its assigned capital reserves for infrastructure projects instead of borrowing. Byrne said Putnam maintains an Aa1 bond rating from Moody's and has requested a review in hopes of receiving an upgrade.
But Byrne also acknowledged there is a limit to how much government should retain.
"Healthy reserves are important," he said. "But there comes a point when government has collected enough to meet its obligations, protect against uncertainty, and plan responsibly for the future. Anything beyond that should remain where it belongs—in the pockets of the people who earned it."
A separate $6.5 million became another major focus of Byrne's address.
The Legislature placed that amount in the 2026 budget for a proposed taxpayer rebate program. Byrne said the county subsequently determined a direct rebate program would require special state legislation, and the money has remained in a sub-contingency account.
If it is not spent by year's end, Byrne said, the money would return to the county's fund balance.
Instead, Byrne proposed distributing the money among Putnam's six towns and three villages for roads, bridges, dams, culverts, equipment, sewer and water projects and other eligible expenses that otherwise could fall on local property taxpayers.
The proposal is separate from the 2027 budget because the money was already appropriated for 2026. Byrne submitted a letter of necessity Monday asking legislators to act on the plan.
This would be in addition to the county's sales-tax-sharing program, which is projected to provide approximately $2.3 million to municipalities this year and would continue in 2027.
Byrne also detailed plans for the $2.1 million mental health reserve created after the county's proposed 24-hour stabilization center failed to move forward (see "Carmel settles lawsuit over stabilization center," page 11).
The first year of the plan calls for approximately $672,000 in spending, with the remainder preserved for future years.
Initiatives include expanded mental health education and mobile crisis services; expansion of the LEAMERS program connecting law enforcement and residents with services; mental health diversion training for 911 dispatchers; and enhanced support for county employees and emergency responders.
The proposal also would establish a countywide peer-support program for first responders.
The budget continues funding for the county's Community Paramedicine program, which sends specially trained paramedics into residents' homes to monitor chronic conditions, conduct follow-up visits and connect patients with health and social services.
Funding also continues for the Putnam County Early Learning Center. Byrne said enrollment has doubled for the current school year, while a permanent facility under construction will allow the program to serve additional children.
Putnam On-Demand, the county's microtransit service launched in Patterson, would expand into Putnam Valley and Philipstown.
The budget also accounts for Byrne's proposal to make permanent the county's sales-tax exemption on qualifying clothing and footwear purchases under $110.
The administration calculates that previous property-tax reductions, targeted sales-tax cuts and gas-tax relief, combined with the proposed 2027 measures, would amount to approximately $23 million in cumulative tax relief over four years.
The proposed budget now goes to the nine-member County Legislature for review and possible amendments before adoption.
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