Contentious budget discussions in Schenectady expected to end soon

SCHENECTADY, N.Y. (NEWS10) – At the most recent city council meeting things were contentious. However, Schenectady leadership said budget talks have started to move forward.

At Monday’s meeting things got heated when Mayor Gary McCarthy threatened legal action against the Schenectady City Council. 

“We’re moving, hopefully, toward a balanced and functional budget. I’m having ongoing discussions with city council,” said McCarthy.

The mayor's office and council had been at odds over the budget. McCarthy said by not passing a budget plan by November 1, as is required in the charter, the council waived the right to amend the budget.

“The council, as part of our ongoing discussions, has made some modifications that I am now in agreement with and we are looking to formally adopt on Thursday,” McCarthy said.

His position is that by not passing the budget by November 1st, as it is required in the charter, the council waived the right to amend the budget. Which makes his version the operating budget for 2024.

The main points of contention have to do with the overtime budget requested by the police department and fire departments –  as well as fees associated with water, sewer and trash. the mayor’s budget wants to increase fees.

“And we wanted to raise those funds so that we weren’t raising taxes for taxpayers so that was really contentious. I think that was one of the sticking points,” said President of Schenectady City Council Marion Porterfield.

She said another major point of contention was the American Rescue Plan Act (ARPA) funding.

“There was a utilization of ARPA to offset ongoing expenses, it’s one of those where I just could not support it. ARPA money is one-time money that’s given to a municipality by the federal government and it really should not be used for one time projects,” said McCarthy.

The city council had wanted to use a portion of those funds for waste management but one thing they can all agree on, things do need to change to avoid this kind of mishap in the future.

A proposed 2024 ballot measure would specify, in the charter, what to do in case this happens again. 

“The reason that was introduced, and it’s a reasonable thing to discuss, is because at this point in time the charter is silent on what happens if the budget is not passed by November 1. So the conversation about having that put on the ballot for the referendum makes sense, so there are some clear guidelines on what happens if the council does not pass the budget by the date that’s specified in the charter,” said Porterfield.

Porterfield and McCarthy believe the budget will be passed on Thursday.

“Hopefully it will move in a smooth manner, but there are still a lot of emotions at play with different individuals,” said McCarthy.