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Salaries, Retirement Drive Over-the-Cap Town Budget

Wed, 11/12/2025 - 13:45
In an East Hampton Town budget of about $110 million, 63 percent of it goes to salaries and retirement benefits.
Durell Godfrey

The East Hampton Town Board held two public hearings on its 2026 preliminary budget last Thursday: one to allow it to pierce the state-mandated 2-percent cap on tax levy increases, and the other on the details of the budget itself. 

For the second year in a row, the board is set to pierce the state cap. For 2026, the budget will be about $110 million, an increase of $5.9 million, or 5.73 percent, over this year’s budget. 

Rebecca Hansen, the town administrator and chief budget officer, said that brings it $2.1 million over the tax cap. 

The budget has received scant public comment since it was first unveiled by Ms. Hansen on Oct. 7, and the only comment at last Thursday’s hearing came from Kirby Marcantonio, who admitted to never looking at, or reading it. 

“I just assume that it is a well-proportioned budget that does the things that have to be done,” he said. However, he then pivoted to speak powerfully about the need for the board to find more money to combat hunger in the town, with food pantries struggling to meet need. 

“Hunger is a priority that traditionally has not been addressed by this budget,” he said. He applauded the recent $30,000 allocated by the board to local food pantries during the government shutdown. “It’s very welcome, but I know it’s barely one week’s food for one pantry.” 

Acknowledging that it wouldn’t happen this year, he proposed a “1-percent solution.” 

“In a budget of $110 million, a million dollars, however it’s found, could be given to the four local food pantries that are fighting this fight,” he said. 

Ms. Hansen has consistently explained that keeping the budget under the 2-percent cap is nearly impossible when 63 percent of it goes to salaries and retirement benefits. Most union employees this year are due to receive 4-percent raises. 

Further, the police and fire retirement system requires a 14-percent hike this year and the regular town employee retirement system is seeing a 23-percent increase. 

“For a home that is located inside one of the two villages and has an assessed value of $1.25 million, your tax increase in 2026 will be $27. For a home outside of the village, your tax increase will be $83.08,” she told the board. 

The board closed the two hearings. A resolution to pass legislation allowing the board to pierce the tax cap was on yesterday’s agenda. The budget must be adopted by next Thursday, the deadline under state law. 

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