Albany Mayor Kathy Sheehan has presented the proposed 2026 city budget, highlighting fiscal stability, public safety improvements, and investments in infrastructure and community resources. The full proposed budget is available at https://albanyny.gov/budget, and a video presentation can be viewed at https://www.albanyny.gov/299/Speeches-Events.
Reflecting on her tenure since taking office in 2014, Sheehan said, “On a wintery New Year’s Day in 2014, you placed your trust in me as I took the oath of office to become Albany’s 75th Mayor – an honor I am grateful for every day.”
She continued, “The last 12 years have been marked by transformation, resilience, and progress. We have improved the delivery of essential city services, secured historic investments in our parks, streets, and community centers, reduced poverty, led through a global pandemic, enhanced public safety, brought City Hall into the 21st century, and expanded our tax base. It is undeniable: we have overcome challenge after challenge and positioned Albany for a thriving future.”
Sheehan noted that when she first took office the city faced a $16 million structural deficit and relied heavily on landfill revenue. She stated that over her administration they eliminated the deficit, increased the rainy-day fund to $15 million, extended landfill life expectancy to 2028 (up from its previous projection of closure in 2020), ended reliance on landfill revenue streams for budgeting purposes and secured recurring state funding through collaboration with Governor Kathy Hochul.
Discussing infrastructure achievements during her term as mayor—described as likely “the largest infrastructure improvement plan” in Albany’s history—Sheehan listed new recreational facilities such as Lincoln Park Pool and several community centers; paving more than 200 miles of streets; replacing over 70 miles of sidewalk; building more than 13 miles of new bike/pedestrian paths; revitalizing nearly all parks/playgrounds; along with major water/sewer upgrades.
In terms of taxes and spending control over twelve years: “We also worked tirelessly to hold the line on taxes…only increasing the property tax levy approximately 1.2% annually…our budgets have only grown approximately 2.4% annually…less than inflation.” She credited these outcomes to efficiency efforts across city government.
Thanking key staff involved in preparing this year’s budget document—including Acting Commissioner Gideon Grande—Sheehan said it “very clearly reflects what we as a city value.”
The mayor highlighted several main priorities for the coming year:
Public Safety
A significant investment from New York State enabled expansion of crime analysis capabilities at APD Headquarters. As a result:
– Shooting incidents decreased by 54%
– Shooting victims down by 49%
– Property crime down by 20%
– Overall crime down by 21% during Sheehan’s tenure
An allocation of $2 million will upgrade police body camera systems.
Mental Health & Substance Abuse Response
The joint mental health/housing program Albany Navigates began operations in June:
– Street Outreach Team had 287 encounters
– Resulted in housing for 41 people
Youth Support Initiatives
$500,000 is allocated toward piloting a youth support hub within Recreation (pending grant funding).
Traffic Safety & Walkability
In recent months:
– The city added speed humps,
– Implemented a new default speed limit (25 MPH),
– Installed speed cameras near schools,
– Partnered with local schools for bus stop-arm cameras.
These measures reportedly contributed to traffic accidents dropping by about 40%, with injury accidents cut by half.
For next year: $30 million is set aside for resurfacing roads/sidewalks and upgrading signals throughout neighborhoods.
Recreational Facilities
This summer saw opening of Lincoln Park Pool (over 32,000 visits). Construction continues on other recreation projects scheduled into late next year. In total since Sheehan took office: over $17 million invested into park revitalization efforts.
Tax Base Growth & Housing Policy
Over twelve years Albany’s tax base grew from $4.7 billion to $7.8 billion due to new development investments exceeding $1 billion across both market-rate/subsidized housing sectors.
Sheehan called for reverting inclusionary zoning rules back to pre-2023 policies which she argued were more effective at generating affordable units without hindering development.
Reduced Payments In Lieu Of Taxes (PILOTs) are cited among reasons behind this year’s property tax levy increase.
Financial Stability Measures
From 2014 onward:
– Property tax levy up just over one percent per year,
– Total spending up less than three percent per year,
– Tax rate fell almost thirty-seven percent.
For fiscal year beginning January: A proposed three percent increase in property tax levy aims to cover higher debt service costs tied mainly to recent capital projects plus rising retiree healthcare expenses.
There is also an increase planned for solid waste collection fees ($90 per unit/year), reflecting rising disposal costs while remaining lower than regional averages.
Revenue challenges include declining federal COVID relief funds and reduced PILOT payments due partly to changes in zoning laws affecting development incentives.
Grant Funding & State Partnership Initiatives
The proposed budget includes over $24 million expected from grants supporting roadways ($11M), other infrastructure ($3M), youth/workforce programs ($3.8M), sustainability initiatives ($575K), urban forestry ($1.3M) and public safety/health including gun violence reduction programs ($1.6M).
Looking ahead—with reference made to lessons from Albany’s past—Sheehan underscored ongoing partnership with Governor Hochul’s administration on major revitalization efforts under Championing Albany’s Potential Initiative (“CAP”), described as “a transformative once-in-a-generation investment” totaling $400 million targeting downtown redevelopment/cultural institutions/I-787 corridor/public safety enhancements.
Concluding her remarks about future opportunities for growth—and referencing historical attitudes found in a letter discovered beneath Schuyler Statue—Mayor Sheehan urged residents: “we must be bold…we have an opportunity to shape progress…I hope our City government will continue to support the Governor’s efforts…because we have built the foundation…”
“I look forward to working with the residents of the City of Albany and members of the Common Council to approve this budget so that our next Mayor can continue investing in New York’s Capital City…”
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