Yonkers Mayor Spano Proposed FY27 Budget, with 5.25% Tax Increase

State Budget Still Not Final

YONKERS MAYOR MIKE SPANO PROPOSES FISCAL YEAR 2027 EXECUTIVE BUDGET

No Cuts to Municipal Services and Active Workforce;

Maintains Historic Funding to Education

Watch Mayor’s Spano Budget Message

Yonkers Mayor Mike Spano today released his Fiscal Year 2027 (FY27) Executive Budget proposal, which contains no cuts to municipal services or active workforce and maintains historic funding to Yonkers Public Schools.

“As we await the passage of New York State’s Budget, this year’s Executive Budget is based on the Governor’s proposed budget and must take into account the current global economic climate, such as cuts in federal funding, tariffs, inflation and a volatile market,” Mayor Spano said. “As such, this Executive Budget is honest and lean, and will look to offset the uncertainties left by many of these economic stressors.”

Executive Budget Overview:

The Executive Budget for Fiscal Year 2027 for the combined City and Board of Education (BOE) operating funds is $1.57 billion. Both the municipal and Board of Education spending will remain steady, yet take into consideration contractual union costs, reimbursable service expenses, garbage disposal costs, special education needs, water rate increases and other rising costs.

Yonkers Board of Education

The Executive Budget includes a $298.4 million appropriation for the Board of Education.

This year’s Executive Budget recommits to education and Yonkers students despite a difficult fiscal outlook. The transfer to education will provide an additional $16.3 million through an equivalent increase to the Maintenance of Effort (MOE) of $5.2M that includes the absorption of the district’s IT department, a $4.6M contribution towards the Joint School Construction Board costs, and assumption of $6.5M in textbooks and equipment costs that will collectively assist in freeing up funds to be spent in the classroom.

In addition, the Executive Budget includes an additional $17.3 million in capital expenses for improving the infrastructure of the schools and updating and enhancing the Wi-Fi connectivity, helping to modernize the aging school structures.    

Mayor Spano commented, “Together, we have fought hard over the years to build the District back — that includes our 90 percent graduation rate and programs like sports, music and art. However, during recent years, we have lost critical federal dollars that once helped stabilize our schools in the aftermath of COVID-19. Today, Washington leaders are unwilling to fully recognize the unique challenges facing urban school districts like ours and provide additional funding.”

Mayor Spano added, “As a result, pending additional state aid, Yonkers Public Schools will need to restructure and consolidate to accommodate for the changing District that has seen a 10% reduction in-district regular students, a substantial increase in the number of special education students and rising transportation costs.”

Municipal Operating Budget

Included in the Executive Budget is a municipal operating budget of $775 million.   City General Fund Department Expenditures are budgeted at $354.1 million. 

Overall, the 2027 Executive Budget minimizes departmental spending, except for contractual and state mandated increases, eliminates three vacant positions and comes with internal instructions to limit travel, fill vacant positions only when necessary, preserve spending flexibility, and emphasize additional efficiency measures where possible.

The Executive Budget proposes a tax rate increase of 5.25%, which is a result of settling union contracts and prudently setting aside funds through a contingency for outstanding contracts at similar wage increases to the settled, paying for a 9% increase to health insurance, or $9.4M, which is a 2% tax levy increase alone, and supporting the district.   Under the proposal, a typical home at the median assessed value of $10,900 would see their annual property tax bill increase by $551, or approximately $45.91 per month.

Mayor Spano stated, “The Administration’s hope is that the 2027 Executive Budget is a basis for discussions and decisions as we are provided more clarity on New York State’s adopted budget in the coming days. We will work with the Council and adjust the proposed budget accordingly. I am calling on our partners including our state leaders and City Council to continue to build upon the spirit of cooperation that has passed consecutive bipartisan budgets during my time in office.”

Budget Snapshot:

• $1.57 billion total budget
• Sets the combined city and school tax rate at $1,013.69 per one thousand of assessed valuation, an increase of 5.25% over last year’s $963.14.  
• $298.4 million appropriation for the Board of Education
• $17.3 million in school construction in its capital budget 
• The City’s water and sewer usage rates are proposed at a combined 3.17% increase, which is approximately half of the increase proposed in water rates charged by New York City to Yonkers.
• Includes a $64 million Capital Budget for City operations. 
• The FY27 Budget is the 50^th under the Special Local Finance and Budget Act of 1976
• General Fund Wages and Fringe Benefits represent approximately 74% of General Fund Expenditures

The Yonkers City Council must review and adopt the City budget for the new fiscal year, which begins July 1, 2026.

To view Mayor Spano’s proposed Executive Budget, visit [www.yonkersny.gov]www.yonkersny.gov.