The proposed Yonkers Executive Budget for Fiscal Year 2026 that totals $1.49 billion for the city and the public school system would raise property taxes by 2.68%. Mayor Mike Spano’s office points out that the increase is within the state-mandated tax cap. They also note that the proposed budget would not cut municipal services or reduce the active workforce.
The budget includes internal instructions to limit travel, activate hiring freezes, and emphasize additional efficiency measures where possible until the economic outlook from the federal and state governments becomes clearer.
The city’s water and sewer usage rates are proposed to increase by 3.17%, which is below the approximate 4% proposed increase in water rates charged by New York City to Yonkers. Wages and fringe benefits make up approximately 83% of the city’s general fund expenditures
“This year’s Executive Budget is based on the governor’s proposed budget and must take into account the current global economic climate, such as potential cuts in federal funding, tariffs, inflation and a volatile market,” Spano said. “As such, this Executive Budget is honest and lean, and will look to offset the uncertainties left by many of these economic stressors.” The state budget still was being negotiated when the Yonkers budget was released.
In addition to covering city operations, the proposed budget includes the Yonkers Public Schools, with $298 million for the Board of Education, including $4.6 million to help pay off debt and a capital expenditure of $17 million for school construction.
Both the municipal and Board of Education spending take into consideration changes in the payroll resulting from increases in existing union contracts, reimbursable service expenses, garbage disposal costs, special education needs, water rate increases and other rising costs.
More than $10 million in Board of Education administrative costs are being shifted to the municipal budget.
“We are encouraged the state is considering a change in the Regional Cost Index (RCI), which will affect funding formula calculations for FY26 and beyond,” Spano said. “If the state approves a change in the RCI, Yonkers Board of Education could receive upwards of $22 million in additional annual aid. Until that happens, we continue to advocate our state leaders for fair, additional funding for our schools.”
The Yonkers City Council is required to adopt a budget by June 1 in order for it to go into effect on July 1.
