Schedule for Review and Adoption of the 2026 Budget

Monday, November 17, 2025

• 3:00 p.m. Labor Relations
• 3:15 p.m. Human Services

Tuesday, November 18, 2025

• 3:00 p.m. Development & Agriculture
• 3:30 p.m. County Operations/Public Safety
• 4:00 p.m. Public Works

Wednesday, November 19, 2025

• 4:00 p.m. Finance
• 6:30 p.m. Special Board Meeting, Public Hearing, and Budget Adoption

Introduction of the 2026 Tentative Budget

To the Honorable Members of the Cattaraugus County Legislature:

I am pleased to present the 2026 Tentative Budget and Financial Plan to the Legislature and Cattaraugus County residents. Included with this submission are all required supplemental documents that support the financial plan presented herein. The budget is balanced and meets all thresholds under the New York State Property Tax Cap.

Tax cap limitation compliance, collective bargaining agreement obligations, contractual requirements, rising healthcare costs, and a nearly $2,000,000 increase in mandated program spending without a revenue offset are just a few of the challenges that made this budget preparation the most difficult that the county has encountered in many years. Given these significant challenges, the goal remains the same as it has always been: to provide excellent service to the taxpayers of Cattaraugus County in the most efficient and fiscally responsible manner.

When we started the budget process in early July, a directive was issued to county departments that budget requests submitted to my office be reduced at least 2% from the adopted 2025 budgeted amounts. While not all were able to meet their target, each was diligent in their efforts and worked cooperatively with the County Administrator’s Office to develop the plan I am presenting to you today.
It is important for you to understand where we started. The county’s allowable tax levy increase, without an override of the tax cap, is approximately $1.5 million. The total departmental-level budgetary requests submitted would have required the use of roughly $9 million of fund balance, which is not sustainable or acceptable.

I have been employed by Cattaraugus County for over 25 years in various capacities, but this is my first budget as County Administrator/Budget Officer; therefore, this budget contains a few firsts. With new roles and duties comes a fresh set of eyes and rejuvenated review and focus. Given the current financial and economic uncertainty, we are obligated to examine county operations in more detailed and granular terms. This financial plan alters aspects of county operations positively and optimizes certain programmatic revenue projections to realistic levels.

REAL PROPERTY TAX

The average full-value tax rate for taxpayers in Cattaraugus County has decreased by 1.76% year-over-year. This Tentative Budget proposes an average full-value tax rate of $8.15 per $1,000 of assessed valuation. This is the lowest full-value tax rate for Cattaraugus County since 1983.

Comparative County-Wide Tax Data

BUDGET LANDSCAPE & PRIORITIES:

Continued Investment in Capital Infrastructure

Cattaraugus County has made a concerted effort to maximize its investment in Capital Infrastructure. The 2026 Capital Infrastructure Improvement Plan contains an approximate $33,000,000 investment in county roads, bridges, culverts, and building improvement projects for the year. The Capital Plan spans a five-year period with approximately $18.4 million in available funding and $14.6 million in new funding.
Capital plan funding includes New York State and federal allocations, county funds, and the issuance of Serial Bonds. Debt service expenditures (Principal and Interest payments) in this budget decreased by $458,469. Cattaraugus County has effectively developed a debt strategy in which annual debt retirements and issuances work together, without hindering our borrowing capacity or negatively impacting our property tax cap calculation.

Decreased Reliance on the use of Undesignated Fund Balance:

In past years, the county’s Undesignated General Fund Balance has been a necessary staple in balancing the financial plan. This approach, while sometimes necessary, does not ensure the stability of future tax rates, negatively impacts the county’s credit rating, and makes risk mitigation and planning more difficult.
The 2026 Tentative Budget is structurally balanced. There is no use of Undesignated General Fund Balance. Fund balances appropriated in this budget represent reserves earmarked for specific purposes via prior legislative action or Fund balance use in the individual enterprise funds (The Pines, Onoville Marina).

USE OF SURPLUS/RESERVES

To reduce the real property tax levy

Unfunded Mandates:

A frequent topic of discussion is unfunded/underfunded statutory and/or regulatory-mandated spending passed down to county government by federal and/or state government. While some of these programs and services may be necessary and viable, Cattaraugus County policymakers have no authority or control over the implementation, goals, and objectives of these programs. Local taxpayers, however, are legally required to fund them.

The budgeted tax levy impact of the eleven most significant mandates is $48,678,496, representing an increase of $1,987,540 over 2025, or 4.26%.

Mandated spending accounts for 80.49% of the proposed tax levy, leaving the Cattaraugus County Legislature with control over 19.51% of the levy for local programs and services.

See attached as Appendix A the 2026 Mandate Analysis / Tax Levy Impact (in the attached PDF)

Declining Revenue Projections:

In the 2026 Tentative Budget, a deliberate effort was made to align all revenue projections to appropriate levels, supported by analyzing current and historical revenue trends and cash collections. The major adjustments are as follows:

Consolidation of Accounting Functions:

As I mentioned in my opening message, this is a year of firsts. In several non-human service departments, long-vacant positions have provided an opportunity to shift basic accounting, budgetary, and payroll functions from within those departments to a more centralized location under my direction in the County Administrator’s office.

This operational alteration serves many purposes, some of which are outlined as follows:

• Appropriate supervision over budgetary and financial functions, which are a key element in the county's financial plan;
• Continuity and stabilization of critical tasks;
• Cross-training and multi-department functional knowledge;
• Enhanced monitoring and auditing capability of all county spending;
• Improved ability to fully adhere to county purchasing and financial policy.

At this time, consolidation of accounting functions will be limited to non-human service departments. This change represents significant financial savings to the county, and just as importantly, operational gains in efficiency and effectiveness.

Consolidation of Medical Billing Functions:

Another first to get off the ground this year is a consolidated, centralized Medical Billing team. Our Department of Community Services, the Health Department, and The Pines Healthcare and Rehabilitation Centers together submit over 23,000 medical claims annually. These departments regularly manage complex billing systems and software, bill Medicare/Medicaid, and work with multiple private insurance companies, all while navigating frequent and complicated regulatory changes enacted by federal and state governments.

The Pines and the Health Department have medical billing and coding specialists on staff, while the Community Services Department employs a mix of on-staff and contracted billing personnel. Over the past year, several county staff members and I have conducted a detailed study of these three departments, their billing practices, and the revenue generated. Additionally, we have relied on expert consultants to recommend ways the county can maximize the full revenue potential from services provided.
For reasons similar to those outlined in the consolidated, centralized accounting message, the Financial Plan proposes that a centralized Medical Billing function be housed in the Administrator’s office under my direction.

This new division will enable standardized billing practices across all departments, with increased scrutiny and oversight, to ensure the maximization of revenue from the services provided.

Reduction of County Workforce:

As previously mentioned throughout this budget message, financial uncertainty, mandated spending increases, declining revenues, and contractual obligations have put severe limitations on workforce growth and affordability.

Unfortunately, this budget includes the elimination of 84 positions across 10 Departments, most of which are vacant, but some of which are occupied by current county employees.

In line with the Legislative Labor Committee’s vacancy process over the past year, the county is faced with the reality of optimizing its workforce against mandated staffing levels, mandated programs, and the economic affordability of staff. Our primary focus will always be to do more with fewer staff, rather than having to lay off dedicated employees.

Unfortunately, this year, we were not able to make that goal a reality.

Change to Retiree Health Insurance:

On a year-over-year basis, county health insurance costs were initially projected to increase by 8.8% after a complete review by the County Administrator’s Office in conjunction with our contracted consultant.

In an effort to mitigate costs, the Legislature recently approved a contract with Aetna to offer a customized, county-sponsored Medicare Advantage Plan to retirees and their spouses aged 65 and over. This plan meets or surpasses all contractual requirements by providing the same or better coverage to our dedicated retirees.

This change, along with some minor operational and contractual modifications to our Self-Insured Health Plan, resulted in a cost reduction of approximately $ 2.5 million.

Finances of the County Nursing Homes:

As noted in every budget message I can recall, the Pines facilities depend on Intergovernmental Transfer payments (IGT) from the state and federal governments as a key source of revenue. The 2026 Tentative Budget includes IGT revenue of $8,821,738 to the Nursing Homes, requiring a local match of $4,410,870. Overall, this amounts to a 14% increase over the amounts budgeted (but not yet received) for 2025.

Although IGT payments are helpful to the facilities' bottom line, there is still a need to use reserves to cover operating deficits.

Currently, The Pines Machias does not have any reserves available, and is operating by receiving a loan from The Pines Olean in the amount of $833,688 for the year 2026. The Pines Olean must also use $61,322 of its reserves to balance its budget. It is essential to note that these reserves are limited and must be replenished to maintain the facilities' operations without additional revenue increases.

In Summary:

First and foremost, I compliment the staff of the County Administrator’s Office. Their knowledge, expertise, and hard work made this financial plan possible and the process more bearable. Human Resources, Information Services, and the Treasurer’s Office were also instrumental in the production of this document, and I thank each of them for their assistance.

I owe a great deal of gratitude to our department heads, who throughout the process demonstrated professionalism and their commitment to Cattaraugus County. I am incredibly proud of all of them.

In closing, the 2026 Tentative Budget is balanced and its parameters sustainable, but the work is not complete. It is imperative that we monitor all spending, local service revenue, grant reimbursement, state and federal program reimbursement, and policy and regulatory changes that could impact our bottom line. As I said previously, we will continue to examine the programs and services provided by the county to ensure they are done efficiently and in the most fiscally responsible manner.

My office is always ready and able to assist the Cattaraugus County Legislature in its review, modification and adoption of the 2026 budget. If you require any additional information, data, explanation or the like, that will assist in your review, please let me know.

View the Complete 2026 Tentative Budget

Questions

Contact the Administrator's Office