As in many places across the region, one Hudson Valley town is considering a steep property tax increase. But Wallkill residents say they cannot afford to pay a proposed 64% tax hike.
Jeannine Allen, a near-lifelong resident of the Orange County town that forms a "U" around Middletown, said the proposed property tax increase is ridiculous.
“I personally think everybody needs to be voted out and redone. I mean, I'm not voting for the same guy again. He's out. Sorry, you don't have my vote," Allen said. "You mishandled it. Every single person on that board should be voted out. Absolutely. Everybody, all the town, anybody responsible should be gone.”
Town Supervisor Frank DenDanto said the tax increase is a result of a town financial crisis that began in 2021 and has grown exponentially. The crux of the situation: the town has been spending beyond its means. DenDanto said, since taking office, the town has been trying to balance the books and was finalizing town financial records going back to 2022, when officials made an uncomfortable discovery.
“The Town Board had been consistently pushing forward a $43 million operating cost, which was in fact fictitious," he said. "In fact, the dollar amount to operate the town was $54 million. This, if left completely alone, generates a 64% increase in the tax levy against what the town was currently being levied at.”
Allen said a 64% tax increase is not right and is unrealistic.
"We just paid school taxes. You know, school taxes are due in September, and then right after the holidays, you get boomed with your town bill. How is that fair to people? You know, they don't know about it," she said. "Who has that extra couple thousand just lying around?"
She added that she does not think she can afford to pay if the increase is in the final budget.
"It's gonna be a financial strain on me and my father. Like, we both reside in the town of Wallkill. You know he has a house, I have a condo, but still, it's the same thing," she said. "Like, again, he's on a fixed income. How many people are here on a fixed income? This is why people are leaving New York.”
DeDanto said the Town Board had been aware of the financial inconsistencies. WAMC reached out to all current town board members, but they did not respond to requests for comment.
The budget concerns in Wallkill echo those of other municipalities, as the loss of federal funding and rising costs have crunched budgets across the state.
Still, mismanagement in Wallkill is a significant factor.
An October report from New York State Comptroller Thomas DiNapoli’s office said the town has not had audited financial statements since 2022. The report also pointed to concerns with the town’s financial records.
The report noted several concerning items in the 2026 budget — like a golf course operating at a $100,000 loss and underestimating debt payments by almost $2 million. Other budget items like health insurance and retirement for police and firefighters were overestimated, according to the comptroller.
The report also noted turnover in key accounting positions in the town between 2023 and 2026, including three different comptrollers and deputy comptrollers.
When asked about other communities in New York that are facing similar financial struggles, the comptroller’s office pointed to a recent report that showed six communities are in “significant financial stress,” including Albany, Kent in Putnam County, and New Hempstead in Rockland County.
DiNapoli said the report notes that local governments are facing increased financial pressures, including “the end of federal pandemic aid, higher inflation, rising operating costs and moderating sales tax revenue growth.”
An August report from the comptroller said more towns and villages in New York have overridden or plan to override the property tax cap in efforts to balance budgets. The decisions to do so have angered residents in many locations, especially in Wallkill, where the proposed property tax increase is among the highest in the state.
Outside a Hannaford, Holly Callan, a resident of the Wallkill hamlet of Scotchtown, was not aware of the proposed tax hike. But she said it’s too much for most people.
"I probably could [afford it], but I think most people it would be too high. Yeah. I think the majority of people that would be too high," she said.
DenDanto said the town will not be implementing the 64% tax increase and called it “untenable.” He said he plans to “reorganize the budget, streamlining costs where possible, and aggressively pursuing added ratables.” He said his plan should have the town financially solvent within three years.
But that still means property taxes are likely to be higher than usual this year.
“I would be remiss to say it will be very difficult to stay within a tax cap of 2%," he said, "which seems a little arbitrary and actually very low to me, given the current cost of living.”
