Orange County Town Faces Insolvency, Potential 64% Tax Hike
What happened
A town in Orange County could face a 64% property tax increase to generate sufficient revenue to stay solvent. Town Supervisor Frank Dendanto stated that the town ran out of funds for payroll and that the town board had mismanaged funds for years. A report from the New York state comptroller found the town lacked complete, accurate, and current accounting and financial records.
From wamc.org
Why it matters
The financial issues stem from alleged mismanagement, including fraudulently reporting the town's cost as $43 million when the actual cost was $54 million. If state lawmakers do not deliver $4 million in aid from the Ways and Means committee in time, the town may be unable to finish the year.
From wamc.org
Who's involved
- Orange CountyThe county where the town facing insolvency is located
- Frank DendantoTown Supervisor who stated the town ran out of funds and was mismanaging finances
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Orange CountySpeculative
The county might see changes in local property tax revenue or municipal funding due to the town's financial crisis.