As the fiscal watchdog elected by the people of Ulster County, I believe it is important to help residents understand the fiscal implications of major policy proposals.
There has been considerable confusion surrounding the proposed Ulster County Fair Taxes Act, Property Taxes, and the Supplemental Nutrition Assistance Program known as SNAP. Public debate is healthy, but it should be grounded in accurate information. Below are some of the most common questions I’ve heard, along with the answers as I understand them.
Question: If we do not pass the Ulster County for Fair Taxes Act, will SNAP benefits be cut?
Answer: SNAP benefits are safe. As long as people receiving SNAP continue to meet eligibility requirements, their benefits will continue regardless of whether the Ulster County for Fair Taxes Act passes. SNAP is a mandated program. It remains to be seen whether the State or the County will have to pick up the costs being shifted by H.R. 1; however, the program will continue. The new law did change eligibility requirements, imposing new work requirements on some recipients. Those requirements went into effect March 1, 2026. Therefore, if you are receiving benefits now, you have met the requirements. Passage of the Ulster County for Fair Taxes Act will not change the eligibility requirements.
Question: Will H.R. 1 push $8 million in additional SNAP costs on to the County?
Answer: H.R. 1 has added additional administrative costs (approximately $800,000 annually) for Ulster County because it increased the state/local share of SNAP administration from 50% to 75% of the administrative costs. In New York State, that cost is pushed down to the counties. In addition, H.R. 1 requires that states with error rates above 10% share 15% of the costs of SNAP benefits. New York State’s most recent error rate was over 12% so we will be taking on a portion of benefits costs here in New York. In the past, the federal government paid 100% of the benefits costs. If those costs are passed on to counties, Ulster County could pay an additional $7 million in benefits costs. Combined, the administrative and potential benefits costs total approximately $8 million. There is a draft Farm Bill introduced that would delay the SNAP benefits cost shift by one year from 2028 to 2029. What is not clear is whether New York State will push any or some of the added benefits costs on to its counties or absorb those costs into the state budget.
Question: Have the new work requirements substantially decreased the number of people on SNAP?
Answer: Work requirements mandated in H.R. 1 began on March 1, 2026. We have seen a decline in households, individual people served and total benefits over the last year. These declines occurred prior to the passage of H.R. 1. It may be too soon to fully understand the impact of work requirements because we only have three months of data available after the March 1 date. During the pandemic SNAP benefits increased substantially reaching a high point of $5,277,612 in monthly benefits in November 2022. In contrast, the high point of households on SNAP occurred in June of 2024 with 11,159 Ulster County households on SNAP. The highest number of individuals on SNAP occurred in July of 2024 with 18,035 individuals benefited by SNAP.
Question: Are enhanced SNAP and Medicaid costs forcing the County to find new revenues?
Answer: Even if new SNAP costs are absorbed by the state, the County has to prepare in case that cost is pushed to the counties. But without the increased SNAP administrative costs, the potential SNAP benefit-sharing costs, and the additional staffing required to implement work eligibility requirements for SNAP and Medicaid, the County would still need to find additional revenues. The County’s adopted 2026 budget appropriated $36.5 million in fund balance to make up the difference between revenues and expenditures. However, Ulster County only has $18.8 million in unassigned fund balance as of the close of 2025. The County’s budget gap is larger than H.R.1 alone, so, unless we find new revenues, we will have to cut expenses, increase revenues, or identify other ways to achieve a balanced budget moving forward.
Question: Has Ulster County found a way to offset the SNAP cost shift to counties?
Answer: The proposed income tax surcharge could generate enough revenue to offset the potential SNAP cost shift in Ulster County. However, it does not solve the broader issue for counties across NYS. Ulster County has enough high-wage earners that the surcharge is projected to generate significant revenue. Other counties may not have a sufficient number of wealthy taxpayers to make up the difference to support the SNAP cost shift. New York State is one of only nine states in the country that shifts these costs down to counties.
Question: If we pass the Ulster County for Fair Taxes Act will it lessen property taxes?
Answer: the Ulster County for Fair Taxes Act may limit the need for increases in property taxes, but the legislation does not currently include a mechanism to guarantee lower property taxes or prevent real property tax increases. The County’s website description of the Act could imply that property taxes will be lowered:
The County has not raised the tax levy in years. However, the County continues to face increasing operating costs, including contractual salary increases, workforce growth, inflation, and the continuation of programs started with one-time federal grant funds. Whether property taxes increase in the future will depend on the County’s overall financial condition and annual budget decisions, not solely on whether the Ulster County Fair Taxes Act is enacted.
Question: Why do County taxes keep going up?
Answer: The County’s property tax levy has actually come down over the last fourteen years. The last increase to the County’s property tax levy was in 2012. The Ulster County portion of a resident’s total property tax bill is approximately 12% of the total. The increases that taxpayers have felt in property tax come from rising school, town/village/city, and special district taxes.
