Budget Cuts, Job Eliminations Loom in 2026
As Westchester Faces $197M Budget Gap
WHITE PLAINS—Westchester County Executive Ken Jenkins submitted his $2.5-billion 2026 Operating Budget to the County Board of Legislators on Nov. 7 that calls for an 8% cut by every department and the elimination of 180 positions.
The County Executive said his plan, while eliminating positions, will not entail any worker layoffs. Westchester County faces a staggering projected budget gap of $197.7 million, Mr. Jenkins stated. The proposed Operating Budget calls for a property tax levy increase of 5.27%, as allowed by New York State, which translates to an average annual impact of $60 for every $500,000 in assessed property value. It also proposed for the use of the full tax cap to allocate $4.5 million in support for sewer districts, ensuring critical infrastructure needs are met.
“This has been an extraordinarily difficult year, and the budget process reflected that,” he said. “We are operating in a moment of unprecedented uncertainty driven by the Trump administration’s decisions beyond our control. Federal cuts, shifting aid formulas and tariffs have created instability in local planning in a way we have not seen in recent memory. There’s no way to sugarcoat it; this is simply the reality of this moment —and we are committed to leading through it with transparency, partnership and integrity.”
Mr. Jenkins blamed rising costs along with lower-than-expected sales tax revenue as the chief contributors to the significant budget gap the county is facing. He cited massive increases in health care costs ($65 million), pension growth ($22 million), social services relief ($21 million); transportation and utilization for children with special needs ($10 million), and pension costs ($8 million).
The 2026 proposed Operating Budget is based on flat sales tax revenue projections for 2026. In 2025, sales tax was originally budgeted to grow 3.5% over the 2024 forecast. However, year-to-date collections through September 2025 are flat compared to 2024. The full-year 2025 forecast is now $943.5 million, which is $26.3 million below budget.
For 2026, the county estimates $970.4 million in sales tax revenue, which represents a 2.8% increase over the revised 2025 forecast of $943.5 million but is essentially flat when compared to the original 2025 budget projection of $969.8 million.
“People are not spending money because of the chaos and uncertainty coming out of Washington,” Mr. Jenkins said. “The instability created under Trump has seeped into Westchester County and is wreaking havoc on our finances—and we are not alone. Local governments across New York State and across the nation are confronting the very same pressures.”
The County Executive also pointed to the fiscal fallout from the decision by MGM not to pursue a full casino gaming license at its Empire City property in Yonkers. That decision represents an estimated $17 million in lost annual revenue for the county, not including the ripple effects across Westchester’s economy in the form of lost sales tax growth that would have followed, he noted.
Published: November 11, 2025.