Municipalities across Erie County are grappling with rising operational costs as they finalize their 2026 budgets, leading several towns to propose property tax increases. Factors such as inflation, increased expenses for employee healthcare, salaries, and state retirement contributions are placing significant pressure on local governments, with some seeking to exceed the state-mandated property tax cap.
Key Takeaways
- Several Erie County towns, including Cheektowaga, Hamburg, and the Town of Tonawanda, have proposed 2026 budgets that exceed the state's property tax cap.
- Rising costs for labor, healthcare, and retirement are the primary drivers of increased municipal spending.
- Some towns like Amherst and Clarence are managing to stay within the tax cap, largely due to an expanding tax base from new development.
- Town boards are required to hold public hearings and formally adopt their final budgets by the November 20 deadline.
Fiscal Pressures Mount on Suburban Budgets
Local governments throughout Erie County are navigating a challenging fiscal landscape while preparing their 2026 spending plans. Persistent inflation and escalating contractual expenses have made it difficult for some communities to adhere to New York State's tax cap, which limits the annual growth of property tax levies.
While some towns have successfully absorbed these rising costs, others have drafted preliminary budgets that surpass this legal limit. This sets the stage for important discussions and decisions by town boards, which must finalize their budgets by mid-November.
Understanding the New York State Tax Cap
The New York State property tax cap, enacted in 2011, generally limits the annual growth of property tax levies by local governments and school districts to 2% or the rate of inflation, whichever is less. Municipalities can override the cap, but it typically requires a supermajority vote from the governing board, providing a significant check on tax increases.
Town-by-Town Budget Proposals for 2026
The financial outlook for 2026 varies significantly across Erie County's suburbs, with some homeowners facing notable tax increases while others may see minimal changes or even a slight decrease. Here is a detailed breakdown of the proposed budgets in several key towns.
Amherst: Growth Offsets Spending Increases
Amherst's tentative 2026 budget proposes a 2.5% increase in overall spending to $146 million. Despite this, the town's property tax levy is set to rise by only 1.9%, remaining within the state tax cap.
A significant factor is the town's growing tax base, which expanded by approximately $83 million in value. According to Supervisor Brian Kulpa, this growth, driven by new commercial developments, allows the town to fund services without overburdening existing taxpayers. As a result, the owner of a home assessed at $341,000 is projected to see their town tax bill decrease by 32 cents to $2,021.86.
"When you can grow your tax base in value, then you have the ability to increase and better your services," Supervisor Kulpa stated.
Cheektowaga: Facing a Significant Tax Hike
In Cheektowaga, Supervisor Brian Nowak has proposed a $116 million budget for 2026, representing a 5.45% increase in spending. The plan includes a 7.6% increase in the tax levy, which is well above the state tax cap.
If adopted, this budget would result in an estimated $149 tax increase for the average homeowner, whose property is assessed at $155,400. This brings their total town tax bill to around $1,984. Nowak described the budget as having "no frills," with rising labor costs—which account for 70% of town spending—being the primary driver. The proposal faces an uncertain future, as the Town Board's Republican majority previously voted against a measure to override the tax cap.
Clarence: Modest Increases and New Investments
The tentative budget for Clarence shows a 2.3% spending increase, bringing the total to $30.7 million. The tax levy is planned to rise by 2.2%, staying under the state cap. For the owner of a typical home assessed at $482,274, this translates to a minor increase of $4.49 on their annual town tax bill.
Supervisor Patrick Casilio noted that the town is still moving forward with projects, including funding for two additional school resource officers and the conversion of a former highway building into an indoor recreation center.
Varying Approaches to Rising Costs
Other towns in the region are taking different paths to manage their finances for the upcoming year, from creating new service districts to utilizing reserve funds to soften the blow for taxpayers.
Key Budget Drivers for 2026
- Labor Costs: Contractual salary increases and benefits are the largest expense for most towns.
- Healthcare Premiums: The rising cost of health insurance for municipal employees is a major budget pressure.
- Retirement Contributions: Increased mandatory payments to the state retirement system are impacting budgets.
- Inflation: Higher prices for fuel, equipment, and materials affect all town operations.
Hamburg: New Garbage District Drives Levy Increase
Hamburg's proposed 2026 budget includes a substantial 20% increase in its property tax levy, which will rise to $38 million. Town officials explained that the majority of this hike, about $4 million, is due to the creation of a new town-wide garbage district.
Under this new system, Modern Disposal will provide service to all households, with an annual fee of approximately $240 billed through property taxes. The remaining increase is attributed to rising operational costs. The budget currently exceeds the state tax cap, and a public hearing is scheduled to consider an override.
Lancaster and Orchard Park: Staying Under the Cap
Lancaster's proposed budget of $43.86 million includes a 2.8% increase in the tax levy, which remains under the state cap. For a home assessed at $400,000, the tax bill would rise by $56 to $2,831. Supervisor Robert Leary cited healthcare, retirement, and garbage contract costs as the main drivers.
Similarly, Orchard Park plans to increase its tax levy by 2.99% to $19.9 million, also staying within the cap. Supervisor Eugene Majchrzak mentioned that his administration has delivered five consecutive budgets under the tax cap despite rising costs. He expressed hope that future development around the new Buffalo Bills stadium will eventually provide a boost to town revenue.
Tonawanda (City and Town): Different Strategies
The City of Tonawanda plans to use $3.4 million from its fund balance to limit tax increases. Mayor John White's budget proposes a 2.76% tax levy increase, below the cap, which would result in a $52 increase for a typical homeowner.
In contrast, the Town of Tonawanda's tentative budget would raise the tax levy by 2.99%, exceeding the state cap for the second consecutive year. Supervisor Joseph Emminger said the increase is necessary to maintain the high level of services residents expect, including municipal sanitation and paramedics.
West Seneca: First Tax Rate Increase in Five Years
West Seneca is proposing its first property tax rate increase in five years. The $49 million budget calls for a 2.95% increase in the tax levy, translating to a 1.97% property tax increase for residents. For an average home assessed at $60,000, this means a $26 increase in the annual town tax bill.
Supervisor Gary Dickson pointed to personnel costs and a surprising $500,000 increase in required payments for police retirement as major factors. He noted that economic development is helping to keep the tax increase modest.
