By RICK MILLER
Olean Star
LITTLE VALLEY — A tentative 2026 Cattaraugus County budget of $296.7 million that eliminates 84 mostly vacant positions was presented Tuesday by County Administrator Kelly Reed.
The county administrator pointed out that 22 of the 84 positions are currently filled, although she thinks only a handful of current employees will be without a job next year due to the union contract that allows bumping to other positions.
“It’s a very sad day to lay off employees,” Reed told the Olean Star afterward. “We clamped down on backfills early in the year.” Many of the vacant positions are ones that were not “backfilled” when someone left or took another job in county government.
Reed said she hopes to find county employment for all but about five of the 22 county employees whose positions are being eliminated. “I have great confidence in county employees to step up and provide services for the public.”
Union officials did not immediately comment on the budget’s job reduction proposal.
The tentative budget, which is up about $3 million from the 2025 budget, is $10 million below the amount initially requested by county department heads.
The tax levy, or amount to be raised by property taxes, is $60.4 million, up from $58.9 million, a $1.5 million increase.
The tentative 2026 budget marks the first time since 1991 that use of undesignated fund balance or surplus was not included to reduce the tax rate, Reed pointed out. It is not sustainable with the uncertainties the county faces in the future, she said.
Last year the county used $2.7 million in surplus to reduce the tax rate. With other surplus uses, the total was $4.7 million. With no surplus being used to reduce taxes in 2026, the use of surplus is limited to less than $1.2 million.
The current fund balance was not specified by the county administrator. In most years, the fund balance has been used to purchase intergovernmental transfer (IGT) funds at a discount for the two nursing homes and reduce the property tax levy.
Reed also introduced a proposed 2026 capital program of nearly $33 million. It includes $10.8 million for county roads, $15.3 million from federal aid and Bridge NY, $2.3 million for state culvert aid, $2.2 million for buildings and grounds, and $890,000 for hazard mitigation.
Reed said the county would issue about $6.5 million in serial bonds to pay for the share of projects that are not already funded. The county has $18.3 million available for the projects and another $1.6 million from money left over from projects that have been closed out.
The county administrator pointed out the full value tax rate in the tentative budget is $8.15 per $1,000, down 1.76%. “This is the lowest full-value tax rate for Cattaraugus County since 1983,” she said.
The full value of property in the county increased 4.4% to $7.4 billion, while the assessed value rose 4.3% to $5.2 billion. For comparison, the full value of property in the county was $2.5 billion in 2000, $3.8 billion in 2010 and $4.5 billion in 2020.
Reed said the challenges in this budget, her first since being named county administrator in June, included the state property tax cap limitations, collective bargaining agreement obligations, rising healthcare costs and a $2 million increase in state mandated programs without offsetting revenue.
In a move designed to realign revenue projections, Social Services was decreased by $1.1 million, Home Health Care revenues were decreased by $525,000 and income from refuse fees was cut by $125,000
Reed also told county lawmakers that the budget consolidates non-human services accounting functions now carried out in each department to a more centralized location under the direction of the county administrator’s office. Medical billing operations will also be consolidated and centralized.
Reed noted the county’s plan to cut retirees’ healthcare costs by $2.5 million was in response to projections of a 8.8% increase in the self-insured health plan. The county instituted a customized Medicare Advantage Plan to get the savings.
On the nursing homes, Reed said they count on the IGT funding as a key source of revenue. The $8.8 million projected for 2026, which is up 14%, will require a county match of $4.4 million.
“Although IGT payments are helpful to the facilities’ bottom line, there is still a need to use reserves to cover operating deficits,” Reed said.
“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 of 2026,” Reed said. “The Pines Olean must also use $61,322 of its reserves to balance its budget.”
Some of the state mandates Reed referred to and the percent of the 2026 tax levy they receive include: Medicaid, 35.6%; pensions, 20.1%; community college, 4.7%; legal defense of indigent, 4.5%; public assistance safety net, 6%; special education/Pre-K, 3%; probation, 3.1% and child welfare, 2.1%.
The Labor Relations and Human Services committees meet Nov. 17 to review the portions of the budget they oversee and the Development and Agriculture, County OPerations/Public Safety and Public Works committees meet on Nov. 18.
The Finance Committee will meet at 4 p.m. Nov. 19, to approve the committee reports, followed by a special meeting of the full legislature and public hearing at 6:30 p.m. Following the public hearing, the legislature will vote on the budget and capital program for 2026.
The tentative 2026 town and city tax rates were also released with the tentative budget. They are:
Allegany — $12.53, 0.25%
Ashford — $8.14, -1.74%
Carrollton — $14.54, 5.28%
Coldspring — $8.14, -1.83%
Conewango — $19.86, -0.51%
Dayton – $9.41, 2.26%
East Otto – $8.14, -1.7%
Ellicottville — $15.22, 0.10%
Farmersville — $8.14, -1.75%
Franklinville — $8.15, -1.7%
Freedom — $8.31, 0.24%
Great Valley — $8.14, -38.09%
Hinsdale — $13.57, 5.4%
Humphrey — $13.80, 4.9%
Ischua — $13.57, 4.87%
Leon — $12.72, -2.88%
Little Valley — $20.36, 10.57%
Lyndon — $13.35, 9.59%
Machias — $8.85 6.78%
Mansfield — $10.11, 6.01%
Napoli — $8.14, -1.72%
New Albion — $8.14, -1.76%
Olean (City) — $11.47, 2.47%
Olean (Town) — $16.29, -3.76%
Otto — $8.14, -1.72%
Perrysburg — $8.14, -1.73%
Persia — $8.14, -1.7%
Portville —$14.54, 3.51%
Randolph — $16.45, 6.20%
Red House — $8.14, -1.76%
Salamanca (City) — $74.17, 5.9%
Salamanca (Town) — $13.35, 3.1%
South Valley — $16.97, 6.43%
Yorkshire — $74.07, -1.75%
