Higher-than-Expected Revenues Offset Rising Costs, Reducing Projected 2026 Deficit
(White Plains, NY) – Westchester County’s Second Quarter Financial Forecast projects a modest improvement in the County’s fiscal outlook for 2026, reflecting strong revenue performance and continued disciplined financial management despite ongoing economic uncertainty and rising operating costs. Based on actual operating results through the first six months of the year, the County now projects a General Fund deficit of approximately $9.4 million for 2026, an improvement from the First Quarter Forecast.
Westchester County Executive Ken Jenkins said: “Our Second Quarter Forecast demonstrates that disciplined financial management continues to produce results, even as counties across the nation face significant economic uncertainty and rising costs. While we are encouraged by stronger-than-expected revenues, we remain vigilant. We will continue making responsible decisions that protect essential County services while safeguarding taxpayers and maintaining Westchester’s long-term financial stability.”
Deputy County Executive Joan McDonald said: “While higher revenues have improved our outlook, we remain focused on controlling costs, identifying efficiencies and making thoughtful investments that allow us to deliver the essential services residents depend on today while preparing for the fiscal challenges that lie ahead.”
The County is projected to spend about $43.4 million more than budgeted for 2026, but stronger-than-expected revenues are projected to bring in an additional $34 million, offsetting much of those costs. Much of the improvement is driven by stronger-than-anticipated sales tax collections and additional state funding, which have helped offset increasing expenditures in several key areas.
Westchester County Director of Operations Emily Saltzman said: “While the County’s financial outlook has improved due to increased sales tax collections and higher than anticipated state reimbursement for child care and transportation programs, we still face challenging fiscal times ahead.”
The forecast also reflects continued cost pressures, including:
- $5.3 million in employee healthcare costs.
- $7.0 million in self-insurance costs for liability and workers’ compensation.
- $3.0 million in overtime expenses.
- $2.9 million in preschool services for children with special needs.
- $4.2 million shortfall in Bee-Line fare revenue.
- $1.6 million revenue shortfall at Playland, primarily due to weather-related impacts.
- $17.3 million associated with the removal of tax certiorari bonding and pension amortization from the financial plan.
Westchester County Budget Director Larry Soule said: “Our Second Quarter Forecast reflects the progress we’re making through sound fiscal management and disciplined budgeting. Based on our current projections, we do not anticipate the need to borrow to finance tax certiorari settlements or amortize the County’s pension obligation. These are important indicators of our commitment to maintaining structural balance, protecting taxpayers, and ensuring Westchester remains on strong financial footing.”
While the County’s financial outlook has improved, several external factors continue to create uncertainty for 2027, including:
- Potential reductions in federal funding.
- Continued inflationary pressures.
- Rising labor, healthcare, and insurance costs.
- Uneven economic conditions affecting businesses and residents.
Jenkins said: “Despite these looming challenges, Westchester County remains committed to maintaining sound fiscal stewardship, protecting essential public services and making strategic investments that preserve the County’s long-term financial health.”
