In 2025, Delaware County collected $13.2 million extra in sales tax revenue than county budget planners anticipated. The Finance Committee of the Board of Supervisors estimated they would collect $21.5 million in sales tax revenue in 2025 to support budgeted expenses, yet the County was fortunate to bring in $34.7 million (61% more than budgeted). Residents can celebrate that ‘unexpected’ revenue. However, a five-year comparison (2021-2025) of our County budgets vs. the New York State Comptroller’s reports on sales tax revenue shows this is a recurring trend here in Delaware County, and raises questions about the County budgeting process.
Data shows that Delaware County budget planners consistently underestimate sales tax revenue, enjoying an annual windfall of an extra $10-13 million every year since 2021. Grossly under estimating sales tax revenue - by about 50% a year – has provided the County a comfortable cushion to pay for things that were not properly budgeted. It is wise to have a cushion in financial planning to account for rising costs, but it can go too far. After all, local taxpayers pay for that cushion through property taxes that could have been lowered if sales tax projections had been more accurate.
How has the County’s repeated cash windfall from sales tax revenue – totaling $54 million in surplus funds over the past five years - benefited you? Property and sales tax rates did not go down.
Instead of finding ways to liquidate millions in extra sales tax revenue each year ($13.2 million in 2025), Delaware County could do like 80% of the other counties in New York State and redistribute some of that windfall back to the Towns to help alleviate local tax burdens. Forty-six of New York’s 57 counties do just that (data does not include the five boroughs of New York City). This concept of sales tax revenue sharing was suggested years ago to the County Finance Committee by Delhi’s current Town Supervisor, but the Committee members refuse to bring it to the full County Board of Supervisors for a discussion. Keeping this issue in committee does not seem right, since it is something that could significantly benefit every town.
If the full County Board of Supervisors had the opportunity to discuss this subject, perhaps they would agree to redistribute some part of that surplus back to the Towns. If they did, there is a better chance those extra millions could benefit your community and your wallet. Please ask your elected Town Supervisor why Delaware County does not share sales tax revenue with your town. Even if the Finance Committee refuses to bring this for a discussion by the full County Board of Supervisors, you still have a right to know where your Supervisor stands on sales tax revenue sharing, and if they are willing to take a stand for it.
Matthew Krzyston
Delhi
