Hempstead's 2027 tentative budget: 2.7% spending increase, flat tax levy

The Town of Hempstead has proposed a tentative budget of $591.7 million for next year, a 2.7% spending increase over the current year.

The town also proposed freezing the tax levies it controls at $284.8 million.

The budget projects to use $30 million in reserves, town Comptroller John Mastromarino said in a statement. 

In a break from past practice, the town has issued two tentative budgets: one for the town's operations directly controlled by the town board and another for commissioner-run special districts. 

Supervisor John Ferretti, during a news conference at Town Hall Wednesday, said the budget would still "provide residents with the top-notch services and infrastructure improvements that they that expect and deserve."

Ferretti is running for reelection next month against Democrat Joe Scianablo. Ferretti would receive an 3.4% raise under the tentative budget, with his salary increasing from $184,577 to $190,853. 

A hearing on the budget is scheduled for Oct. 15, town spokesperson Brian Devine said. 

Ferretti said the town was able to maintain services thanks in part to a retirement incentive program that has led to Hempstead's smallest workforce "in over a decade."

"The town workforce is lean, efficient and committed," he said. "They continue to provide high-quality services at the lowest possible cost." 

The tax levy of $284.8 million doesn’t include 14 commissioner-run special districts that set their budgets independently.

The 2026 budget also kept the levy essentially flat but allowed the town to draw up to $50 million in reserves, a practice that credit rating agencies have criticized. The 2025 spending plan pierced the state tax cap for the first time with a 12.1% levy increase.

The town attributed the increase in spending to a 23% hike in utility costs, a 3.5% increase in refuse disposal expenses, and 3% and 5% increases in pension fund and health insurance costs, respectively.