Tax levy increases proposed in 2026 Albany, Schenectady budgets

ALBANY, N.Y. (NEWS10) — City officials in Albany and Schenectady have released their 2026 proposed budgets, composed of infrastructure, public safety, and other improvement projects. In Albany, Mayor Kathy Sheehan’s final proposed budget invests in the Albany Police Department, local parks and playgrounds, and youth support.

The proposed Albany budget is $228.7 million and includes a 3% tax levy increase, which has only increased annually since 2014 by 1.2%. Of the $228.7 million, Sheehan said the city proposed that debt services increase by $4 million as Albany begins repaying for improvements to the Lincoln Park Pool, City Hall’s roof, Albany West Community Center, Albany South Recreation Center, and Washington Park playground.

The Albany Police Department is allocated $2 million in the proposed budget, investing in the replacement and upgrades to body cameras. The funding would also support hardware and software to enhance efficiency, transparency, and accountability.

Albany has also budgeted $500,000 for the Department of Recreation for expanding youth support in the city, offering teens the chance to develop workforce skills while also earning money. City officials said the expense is anticipated to be funded by state and federal grants that are hoped to be secured in the coming months.

Other investments include $30 million in street resurfacing, updating traffic signals, adding more speed humps throughout the city, and adding traffic-calming as part of the Washington Park Complete Streets Study. The city is also looking to improve walkability by revitalizing sidewalks and increasing retiree health care.

In Schenectady, the city has proposed a $120.4 million budget and a tax rate of $15.77 per $1,000 of assessed value. The budget is a 3.17% increase from the adopted 2025 budget and a $2.39 tax levy increase.

Mayor Gary McCarthy said the proposed tax levy increase “is the first in many years,” but the council approved a 3% tax levy increase in 2025. Therefore, the budget vote will need a supermajority from the city’s council members.

McCarthy said the budget features an increase in garbage collection fees, bringing the annual cost for non-exempt properties to $450 and exempt properties to $304 annually. The city also said the water, sewer, and golf funds don’t have any significant changes.

The budget also proposes $17 million allocated to health care costs, going over the 2025 adopted budget’s health care expenses by roughly $3 million. Also reflected in next year’s budget is the loss of American Rescue Plan Act funding.