TOWN OF WALLKILL – Facing a proposed 64% property tax hike, the Town of Wallkill is now under pressure from state lawmakers to find a way to close its financial gap.

Senator James Skoufis (D, Orange County) and Assemblywoman Paula Elaine Kay (D, Rock Hill) are calling on the Town of Wallkill’s new administration to find alternatives to a proposed property tax increase in 2027.

“We learned about the proposed budget the same way everyone else did: in the news,” Skoufis and Kay said in a joint statement.

The lawmakers said the $4 million in state funding they secured for Wallkill earlier this year helped prevent a potential mid-year financial crisis and the loss of 97 town jobs.

“Securing this funding was and remains necessary,” Skoufis and Kay added. “That said, a 64% property tax hike for 2027 is an untenable outcome for our constituents. We urge the new town administration to identify solutions instead of these dramatic property tax hikes.”

Town of Wallkill Supervisor DenDanto said that it is his job to find a solution to close the gap.

“I have to figure it out. It is my lift,” said DenDanto, who won re-election last November after being out of office for four years. “I am sitting in the (Supervisor’s) chair, and I have to get us closer to the boat. The $4 million was a lifeline, without that, the town would be closed already.”

Meanwhile, State Comptroller Thomas DiNapoli released a critical budget review of the Town of Wallkill on Friday.

The audit found that the town’s adopted budget for fiscal year 2026 risks negatively impacting the town’s financial condition and putting the town in a declining financial position. DiNapoli added that the town did not have complete, accurate and current accounting and financial records, and that auditors’ ability to determine the reasonableness of the town’s significant revenue and expenditure projections was limited.

“While the one-time state aid of $4 million will ease concerns for the 2026 fiscal year, the combination of these factors puts the town at risk of having a declining financial condition,” DiNapoli said.

According to DenDanto, a Democrat, the proposed increase stems from significant financial problems identified by the town earlier this year. DenDanto said the town had overstated revenue beginning in 2022 and operated with what he characterized as an improperly structured budget.

Former Town of Wallkill Supervisor George Serrano, a Republican, has vehemently denied DenDanto’s claims.

Wallkill’s preliminary 2027 budget totals $54.6 million, compared with $52.4 million last year. The town used its remaining $2 million in fund balance last year, according to DenDanto. He said the proposed tax increase remains preliminary and will be reviewed with the Town Board. Town Board members Eric Johnson, Don Sileo and Steve Vinella did not return messages seeking comment for this story. Councilmember Mark Coyne said he will not comment on the proposed massive tax hike until he fully reviews the budget.

The town is awaiting the $4 million in state funding secured by Skoufis and Kay. DenDanto has said Wallkill could have difficulty making payroll if the funding does not arrive by the end of November.

As one potential option for reducing the tax burden, Skoufis and Kay said they have proposed dissolving the Town of Wallkill Industrial Development Agency. They said transferring the IDA’s reserves to the town could generate about $400,000.

The proposal would require a formal request from the Town Board and state legislation. Skoufis and Kay said they are prepared to advance such legislation if the town requests it. Skoufis has been an outspoken critic of IDAs.



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