Jenkins Unveils 2026 Budget Proposal Amid Unprecedented Federal Fiscal Strain

Watch the Press Conference

$2.5B plan trims most departments by 8%, eliminates 180 vacant positions, and maintains key services without layoffs.

Westchester County Executive Ken Jenkins has released his proposed 2026 Operating Budget, a $2.5 billion spending plan shaped by what he described as historic and unpredictable financial pressure originating from Washington.

The proposal reduces nearly every County department’s budget by 8%, including his own office, and removes 180 positions through attrition—amounting to almost a 5% cut to the County workforce. Jenkins emphasized that despite the reductions, the budget preserves essential programs and avoids layoffs.

“This has been one of the most difficult budget cycles in recent memory,” Jenkins said during the announcement. “Decisions coming out of the Trump Administration—cuts to federal funding, formula changes, tariffs—have created a level of instability that has made long-term planning extremely challenging. This is the reality we are operating in, and we’re meeting it with transparency and integrity.”

A $197.7 Million Gap to Close

Facing a projected $197.7 million shortfall, Jenkins said the administration first focused on internal reductions:

• 180 positions eliminated through a hiring freeze – $28M savings

• Cuts to contracts, technical services, and operating expenses – $34.5M

• Overtime and hourly staffing reductions – $11.6M

• Adjustments to social services relief – $5.2M

• Reductions in equipment and supplies – $7.1M combined

“There is no secret pot of money—this is the impact of federal turbulence,” Jenkins said. “This budget is Trump turmoil.”

Cost Pressures Driven by Federal Mandates

Even with aggressive reductions, the County continues to face rising costs tied to obligations it cannot reduce:

• Healthcare costs: +$65M

• Pension obligations: +$22M

• Social services needs: +$21M

• Children’s transportation/special needs services: +$10M

• Debt service: +$8M

Sales Tax Stagnation and Casino Bid Fallout

Sales tax, the county’s largest revenue source, has slowed dramatically. Year-to-date 2025 collections are flat compared to 2024, leading to a newly revised forecast of $943.5 million, down $26.3 million from budgeted expectations. The 2026 estimate—$970.4 million—reflects only modest improvement.

Compounding the fiscal challenge is the County’s loss of MGM’s bid for a full-scale casino in Yonkers, which Jenkins estimates would have generated $17 million annually in revenue, not including broader economic impacts.

Jenkins said the broader slowdown is being felt nationwide: “People are holding back on spending because of the chaos coming out of Washington. Westchester is not immune. Local governments across the country are facing the same headwinds.”

Essential Programs Protected

Despite the cuts, the proposal safeguards core services and assistance programs. Funding will continue for:

• Food security programs

• Domestic violence support services

• Free vaccine clinics

• Recycling initiatives

• Workforce development efforts, including One Stop services and job training

• Senior nutrition programs

• TIPS telehealth

• Mobile crisis teams and youth mental health programs

Additional allocations include:

• $16.6M for low-income child care

• $3.7M for eviction prevention/access to counsel

• $2M in child care scholarships

• $1.5M for mental health clinic support

• $1M for federally qualified health centers

• $300K for the HERRO Program

Proposed Tax Levy Increase

To stabilize the budget without tapping reserves, the County proposes a 5.27% property tax levy increase, the maximum allowed under New York State law. For a property assessed at $500,000, the increase amounts to approximately $60 per year.

The plan also uses the full tax cap to direct $4.5 million toward sewer districts, protecting critical infrastructure investments.

“This is, without question, a Trump tax increase,” Jenkins said. “We’re making tough choices to preserve essential services and protect residents while keeping the County on solid financial footing. Even after these cuts, we still face future federal uncertainties. But we are committed to avoiding layoffs, maintaining vital programs, and managing this moment responsibly.”