Hempstead Town Board passed a $576 million budget for 2026 that increases spending by $26.5 million and draws $56 million from reserves to keep the town-wide tax levy flat.
The town’s total tax levy from 2025 to 2026 went from $389,004,668.40 to $389,328,226.75. This year’s levy amount is primarily made up of a $22.9 million general fund tax levy, down 18%, or $5 million from last year and an $104 million special district tax levy, up 5%, or about $5 million from last year.
Supervisor John Ferretti used the Oct. 16 budget hearings to emphasize that the town does not have any control over the taxes levied by the 14 special districts within the town, which have their own elected boards that set their own taxes for the residents who lives within them.
Ferretti said the town is required by state law to publish those districts’ tax levies and include them in the town tax bill. He said the town does have control over the general fund levy, which he worked to cut by 18%.
“This $5 million tax cut represents real relief for our residents,” Ferretti said during Thursday’s first budget hearing. “It puts money directly back into the wallets of every single taxpayer in the Town of Hempstead.”
While Hempstead residents may experience some degree of that tax cut, where they live will determine how much their total town tax bill decreases if at all. This is because no one person will experience the entire special district tax levy increase; each person who lives in each district will be taxed according to the district(s) they live in.
“Each tax bill is unique,” said Brian Devine, the town’s communications director, after the afternoon budget hearing.
Hempstead’s board voted to raise taxes by 12% last year, piercing the tax cap for the first time.
The budget’s use of $56 million in reserves was also a point of contention during the hearing, with some residents expressing concern over the amount.
Last year, Town Comptroller John Mastromarino said the town’s reserves were running out, but Ferretti indicated the reserves were in a good place during the Thursday budget hearings.
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, its highest rating. Ferretti has said the 2026 budget “maintains all our municipal programs and services” and “continues” investment in parks, roads, and other essential infrastructure.
