In recent years, Warren County’s budget expenditures have increased exponentially due to rising energy prices, weather-related cost increases in road and sewer repairs, rising equipment and truck prices, high inflation, the general functioning of local government, and other driving factors.

Warren County’s budget for 2024 is $192,837,622, of which 41% comes from sales tax. The budget has increased by 2.2% over the past 13 years.

“We’ve increased spending by about $9 million over the last two years,” said Supervisor Frank Thomas, chairman of the Warren County Finance Committee.

“If we continue like this, we will run out of money,” Thomas said.

Warren County had to rely on unallocated general budget surpluses to offset runaway spending, particularly on road repairs.

Over the past three years, the county has taken $1.5 million to $2.5 million from the general fund’s unallocated surplus to balance the budget and avoid exceeding the property tax cap, said Warren County Executive John Taflan. The surplus, or reserve balance, is $34.6 million.

This year, the county took $7.7 million from the General Budget’s unallocated surplus to fund necessary projects and complete road repairs required as a result of storms in 2023. Taflan said costs for road construction projects have increased 53% since 2020 due to rising material costs and tightening federal and state regulations.

State guidelines for the general budget’s unallocated surplus state that there must be enough reserves to cover two months of county expenses, an amount that equates to about $32.5 million.

As previously reported, a 1% sales tax increase would generate over $24 million in additional revenue for Warren County. Administrator Taflan said the county needs at least $10 million to $12 million to meet current budget needs.

“This is basically just to meet today’s budget needs, assuming we see everything increase,” Taflan said of the $10 million to $12 million estimate. “Every time we turn around, there’s another increase, so this isn’t going to stay stable.”

At a public workshop on Wednesday, August 14, to discuss the sales tax, many supervisors were divided on the issue. However, the feeling remained that an increase was inevitable given budgetary demands and the fact that most counties in the state already charge an 8% sales tax.

“Who in this room wants to raise costs for anyone? The answer is nobody, but that’s the reality we’re facing,” said Bolton Supervisor Ron Conover.

“Do it now or do it later, but in the end you will do it,” Thomas added.

A 1% sales tax increase would cost a typical family of four in Warren County an average of $384 extra per year.

Robin Larkin, a resident of Queensbury, spoke out against the proposed sales tax increase during the public workshop. “I wanted to come as a middle class person. I’ve been poor before. 1% on a $700 purchase is $7,” Larkin said.

“For $7, a family can have lunch for a week. You can buy new toothbrushes and toothpaste. That’s my experience, that’s the life experience of many of our residents, and I want you to remember that,” Larkin told supervisors.

Larkin also reminded supervisors that many Warren County consumers will instead drive to Saratoga County for their shopping, which has a 7% sales tax.

John Peter “JP” Garvey of the Garvey Automotive Group was also present at the workshop, representing numerous auto dealerships across the country that oppose the sales tax increase.

“We understand the county’s reasoning for raising the sales tax,” Garvey said. “As business owners, we also face inflationary pressures on a daily basis that make it difficult to operate. However, if we pass these costs on to our customers, your constituents, they would be hurt.”

“Amid a cost of living crisis that is placing a heavy burden on our customers, we are particularly concerned about a regressive tax that disproportionately affects those who can least afford it,” Garvey continued.

Garvey cited economic opportunities and the tax burden as the main reasons people leave New York State. The state ranks first among the 50 states in terms of tax revenue per capita, he argued.

“We regularly hear from our local and state officials that the largest tax burden in the country is not enough to cover government expenses. That is why, as local business people and property owners, we oppose this tax increase, which would be extremely harmful to the residents of Warren County,” concluded Garvey.

“You open any newspaper, any business section, go to any news channel, and everywhere you see one word: possible recession, and you want to raise taxes? That’s unbelievable,” Dave LaBelle, a resident and retired Warren County clerk, told supervisors.

“I’m telling you what you need to do. You do what the public needs to do. We tighten our budgets, we cut spending, we find ways within our own budgets to pay for things,” LaBelle said. “Cut your spending. That’s not hard to figure out. Everyone else needs to do it, too.”

The alternatives are bleak. Warren County could, for example, consider raising property taxes or cutting essential services.

As a possible compromise, Supervisors-At-Large Ben Driscoll of Glens Falls and Nathan Etu of Queensbury proposed raising the sales tax to just 7.5%.

“That brings in half of the $24 million,” Etu said. “If the county says we need about $10 to $12 million, then 7.5% seems to be the answer.”

“It really doesn’t seem like we should tax too much,” Etu continued.

In addition, Supervisor Thomas has asked the heads of all departments to cut their budgets by 5% this year to offset rising expenses.

“I think it’s a difficult task, a challenge, especially for the smaller departments,” Thomas admitted of his goal of a 5% budget cut.

The sales tax debate in Warren County could be a lengthy process that will drag on for the next few months. If the board approves a sales tax increase, it would still have to be submitted to the New York State Legislature for approval and then signed by Governor Kathy Hochul. Therefore, a sales tax increase would likely not take effect until January 1, 2026.