Ellenville’s Budget Deficit Deepens: Mayor Warns of Tax Hikes, Says ‘No Bailout Coming’

WJFF - The Local Edition - Special Report

Ellenville’s Budget Deficit Deepens: Mayor Warns of Tax Hikes, Says ‘No Bailout Coming’

The Village of Ellenville is at a financial crossroads, facing a $450,000 deficit for the 2025-2026 fiscal year. With rising costs and stagnant revenues, local officials are warning that tax increases may be unavoidable—and dissolution of the village itself is being openly discussed.

“This budget is bare bones,” said Mayor Evan Trent at the March 24 Board of Trustees meeting. “We’ve cut what we can, but the reality is, the cost of everything—insurance, fuel, wages—is going up.”

Reporter Chris Rowley spoke to the issue in an appearance on the Local Edition, helping unpack the village’s grim financial landscape.

“They have no fund balance after losing so many businesses and taxable properties,” Rowley explained. “They're on the edge, but they’ve worked hard to avoid a deficit this year. Still, they’ll need a tax levy override—somewhere between a 4.5 and 7 percent tax increase.”

Deficits, Dissolution, and Difficult Decisions

The village’s fiscal distress is not just about this year. Mayor Trent warned the board that the long-term picture remains troubling, and that Ellenville may need to raise its tax take by as much as 20% over the next few years to stay solvent.

Rowley highlighted a more existential issue: whether Ellenville should remain a village at all.

“At a certain point, a municipality has to consider whether it can remain in business,” said Rowley. “There are voices calling for the village to dissolve and become part of the Town of Wawarsing.”

That idea—once fringe—is gaining traction. The town has a healthy fund balance and could, in theory, absorb the village. But concerns over local control, services like policing, and political resistance could complicate the process.

If the village dissolved, the Ellenville Police Department might be replaced by Ulster County Sheriff’s deputies—a move the sheriff’s office may be reluctant to take on given its own budget constraints.

Infrastructure & Legacy Costs

Despite austerity measures, some investments continue. The village recently completed renovations to the Berme Road Park ball courts—a $100,000 project. But a larger issue looms: Ellenville must contribute 5% toward the long-delayed Clinton Avenue Bridge repair, a $130,000 price tag that would require dipping into reserves that no longer exist.

“That sum alone represents a 2% increase in the tax levy,” Rowley said. “It’s the kind of expense that would typically be covered by a fund balance—but there is none.”

Is There a Lifeline?

There is one possible route out of crisis: the New York State Financial Restructuring Board, which helps municipalities restructure debt and access low-interest loans and grants. But Ellenville must stabilize its books before it can apply.

“There is a way forward,” said Rowley, “but it won’t be easy.”

What Happens Next?

A follow-up public meeting is scheduled for Monday, where trustees are expected to discuss the potential for dissolution, additional cuts, and the long-term financial outlook. With fewer than 4,000 residents and the loss of industry and commercial tax base, Ellenville’s future may depend on tough decisions being made in the coming weeks.

The Big Question: If Ellenville Dissolves, Does the Name Disappear?

In a lighter moment during the interview, host Patricio Robayo asked whether the village’s name would vanish if the municipality dissolved.

“The administrative unit would disappear,” Rowley said. “But the place is still the place. People would still call it Ellenville.”