SCHENECTADY — The Schenectady City Council has successfully passed a $116.7 million budget for 2025, marking a significant shift from the contentious budget discussions of 2024 that almost extended into the new year. The budget was approved on Monday night with a 5-2 vote.
However, the budget did not pass without some opposition. Council members Doreen Ditoro and Damonni Farley voted against the budget for different reasons. The budget was supported by City Council President Marion Porterfield and council members John Mootooveren, Carmel Patrick, Damonni Farley, Joseph Mancini, and Carl Williams. The approved budget will now be sent to Mayor Gary McCarthy for his signature or veto.
The council managed to pass the budget four days before the city’s Nov. 1 deadline, a significant improvement from last year when the final budget was approved on Dec. 21.
During the budget discussions, Farley had proposed that the city’s youth employment program budget be increased from $150,000 to $300,000 in the 2025 budget. However, the council did not approve this increase, with the majority agreeing to find additional funding for the program later in the year when the city determines the amount of American Rescue Plan Act (ARPA) funds that will be available if previously allocated funds are returned.
Farley expressed his disappointment, stating that he could not support the budget without a firm commitment to increase the funding for the youth employment program.
“Some of our council members were clear that, ‘We support this and we can support this through ARPA funds,’” Farley said after Monday’s meeting. “But some of the pushback is that we’re not sure about how much ARPA funds we’ll have once we start to settle our contracts. I don’t think the kids should have to wait for us to see what’s left over. I feel like we just need to prioritize our youth a little more.”
Farley emphasized that his push for additional funding for youth employment was not just about the youth, but also about the return on investment for the community.
“That money stays within our community,” he said. “It’s also an investment when it comes to public safety, because when you have kids doing something and engaged in pro-social activities or working, they’re less likely to be in behaviors that require police and fire. It’s not just about making that investment for the youth, but it’s one of the few investments that we know that dollar will circulate in our community.”
Mootooveren, who chairs the council’s Finance Committee, said the council hopes to provide additional funding for the youth employment initiative when the city determines how much ARPA funding will be returned from projects that do not reach the finish line.
“Not one council member ever said they were against it and that we were not going to increase the funding,” Mootooveren said after the Monday meeting. “Where do we find the funding? That was the biggest question. Currently, we have $846 available under the ARPA line. We agreed across the board that we would fund that increase when we started to bring back the ARPA funding in the next couple of weeks.”
Mootooveren said he pushed for the youth employment line to increase from $43,000 in the 2022 budget to $150,000 for the past three years.
Mootooveren said he disagreed with Farley opposing the budget over the youth services funding.
“The no vote from Mr. Farley was unfortunate,” Mootooveren said. “He was promised by all of us [to increase youth spending] and he decided to do that. It’s bad. It’s sad to see him vote no on something when all of us promised him.”
The plan now heads to McCarthy. The mayor vetoed the council’s first two approved budgets last fall, but noted on Monday that the budget approved the council only included slight changes from his proposed budget. The council added $78,324 in spending to McCarthy’s original $116.6 million budget.
The budget, which includes a 3% property tax increase for city homeowners, includes an $18,281 salary increase for McCarthy, whose salary will rise to $118,849 annually. The plan also includes a $20,803 salary increase for Deputy Finance Commissioner Derek Gugumuck and a $12,041 salary boost for City Clerk Samanta Mykoo.
“I think the actual changes are relatively insignificant,” McCarthy said following the budget vote. “We’re going to review the process and look at some of the things and look forward to working with the council going forward.”
McCarthy said on Tuesday that he is still reviewing the approved budget, with the plan expected to arrive on his desk in the next several days for potential approval.
Ditoro said she voted no on the budget because she did not believe it was fiscally sound and would have an adverse impact on the 2026 spending plan.
“Unless there is a large amount of unforeseen revenue next year, this budget will lead to a minimum of a $10 million deficit with yet another tax increase for 2026,” Ditoro said. “At a time when residents are struggling given the state of our economy, we should be looking to find ways to reduce as a city government, just like our residents must do. Instead, this budget raises taxes and fees, amounting to hundreds of dollars for most households, while giving major salary increases to administrators and management. I cannot in good conscience vote yes for this budget.”
Farley also cited the raises given to city officials in the budget as part of his reasoning for opposing the plan.
“We’re dealing with inflation and staring down a deficit and that’s not just a Schenectady thing,” Farley said after Monday’s meeting. “I think we just need to be really intentional about how we talk about staff raises — when we start to make increases — that we can stand behind them and they’re equitable.”
The council passed a resolution during its Monday night meeting to authorize McCarthy to conduct a research analysis on salary levels for management-level employees in the city moving forward.
“I felt like, until we did that work, then maybe we shouldn’t have done anything outside of cost-of-living increases for our staff, because obviously they work very hard,” Farley said.
Mootooveren said he was proud of this year’s budget and noted the difficulty in securing a unanimous vote.
“People are entitled to their own position and I respect that throughout the whole process,” he said. “But make sure when you vote no, it’s legit. You don’t vote no for just one little item that you were told that we were going to put in. It doesn’t make sense. It just shows that you’re not genuine or that you don’t trust the other members.”
The all-Democratic council is composed of the nearly same personnel as last year’s budget process, with the exception of Councilman Joseph Mancini, who succeeded former councilman John Polimeni on the board starting in January.
During the 2024 budget process, the council was clearly divided into two blocs, with Porterfield, Mootooveren, Farley and Williams voting for each of the council’s three budgets and Ditoro, Patrick and Polimeni opposing each plan.
Porterfield said that the council worked together better during this fall’s budget process.
“There’s at least one different personality at the table and that person [Polimeni] just brought a lot of angst to the process unnecessarily,” she said after Monday’s meeting. “This year, we didn’t agree on everything, as you can tell by the vote, however, we presented our arguments in a more positive and professional manner.”
More Schenectady:
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I agree with the split decision on the budget. It shows that the council members are considering different perspectives and weighing their options carefully.
Agree – It’s important to see different viewpoints being considered when making budget decisions.
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