Hempstead has released its 2026 budget proposal, which would essentially keep tax levies flat and use up to $50 million from the town’s reserves, according to budget documents.
Supervisor John Ferretti’s budget proposal decreases the general fund tax levy by 18%, or about $5 million. The special district tax levy, which the town does not control, is proposed to increase by about 5%, or roughly $5 million. The two changes together result in an essentially flat tax levy from 2025 to 2026.
In 2025, the town’s total tax levy, or the amount of money collected from residents, was $389,004,668.40. Its 2026 preliminary budget proposes collecting a total of $389,328,226.75 from residents, or 0.1% more than last year, according to the budget documents.
In 2025, the town raised taxes by approximately 12%, piercing its tax cap for the first time.
“This budget is the result of fiscal responsibility, bipartisan collaboration, and a deep commitment to preserving the suburban quality of life that makes the Town of Hempstead so special,” Ferretti said in a statement.
Ferretti’s budget proposal increases town spending by $26.5 million, or 5%, to $576 million and uses roughly $50 million of the town’s reserves, which Town Comptroller John Mastromarino said were running out last year.
Drawing from reserves can affect bond ratings, but published reports indicate that Wall Street credit agency Moody’s Investment Services has given the town a triple-A rating on its bonds, the highest rating the agency gives.
Ferretti said the budget “maintains all our municipal programs and services” and “continues” investment in parks, roads, and other essential infrastructure.”
The town is set to hold public hearings on the budget at Hempstead Town Hall on Thursday, Oct. 16, at 2:30 p.m. and 7 p.m.
It is likely that the budget will be adopted following those hearings.
