Rising costs for health care, salaries and state retirement contributions are straining municipal budgets across Erie County as towns craft their 2026 spending plans.
Inflation and higher contract expenses have left some local governments struggling to stay within the state’s tax cap – the limit on how much they can raise property taxes each year.
Preliminary budgets in Cheektowaga, Hamburg and the Town of Tonawanda all exceed this cap, while other communities have managed to absorb more of the increases.
Town boards must hold public hearings and adopt their final budgets by Nov. 20.
Here’s a roundup of spending plans in Buffalo’s larger suburbs.
Amherst
Amherst’s tentative 2026 budget raises overall spending by 2.5%, to $146 million, while spending in the general fund, alone, rose 6.23%.
However, the tax levy – the amount the town collects in property taxes – would go up by only 1.9%, within the state property tax cap.
And, because the total value of property in the town rose by about $83 million, officials estimate the owners of a typical home in Amherst, assessed at $341,000, would see their town property tax bill drop by 32 cents in 2026, to $2,021.86.
That figure includes fire, lighting and other special district taxes.
Supervisor Brian Kulpa said new development in the town is driving this growth, to the benefit of existing property owners. It is a trend he expects to continue next year, as the Costco, Dick’s House of Sport and Station 12 projects advance.
“When you can grow your tax base in value, then you have the ability to increase and better your services, right?” Kulpa said.
Cheektowaga
Cheektowaga Town Supervisor Brian Nowak has proposed a $116 million 2026 budget that would raise spending by 5.45% and increase the town’s tax levy by $5.9 million, or 7.6% – exceeding the state’s tax cap.
For the average homeowner with a property assessed at $155,400, the proposed budget would mean an estimated $1,984 town tax bill, up $149, or 8.12%.
Cheektowaga Supervisor Brian Nowak’s proposed 2026 budget calls for increasing the tax levy – the total amount the town collects in property taxes – by nearly $5.9 million. That is a 7.59% increase compared to 2025, which exceeds the town’s tax cap.
Nowak called the proposal a “no frills” budget driven by rising labor costs, which make up roughly 70% of town spending.
However, the budget is unlikely to pass as is. The Town Board’s Republican majority voted down a measure to override the tax cap earlier this year, though Nowak and fellow Democratic board member Brian Pilarski recently introduced another resolution seeking to exceed the tax cap. Five out of the seven board members must approve raising taxes above the cap.
The board met Thursday and Friday to discuss possible amendments to the budget before holding a public hearing on Oct. 28.
Clarence
Spending in Clarence’s 2026 tentative budget rises by 2.3%, to $30.7 million.
The combined tax levy for the general and highway funds rises by 2.2%, within the state tax cap, Supervisor Patrick Casilio said.
The tax rates, per $1,000 of assessed value, for those funds rise by just 0.68%.
The owner of the typical Clarence home, with an assessed value of $482,274, would pay $4.49 extra in 2026 on a town tax bill of $667, excluding special district taxes.
The assessed value of all Clarence property grew by nearly $80 million, or just over 1%, this year, spreading the tax burden over a larger base.
Clarence doesn’t have a town-wide garbage district, or police department, for that matter, but it provides important services, Casilio said.
For example, the tentative budget includes money for two more school resource officers and renovations to turn the town’s former highway building into Clarence’s first indoor recreation center.
“So, even though we’re keeping the tax rate flat, or staying underneath the tax cap, we’re still moving forward with projects that, really, the community benefits from directly,” he said.
Grand Island
The town Supervisor’s Office declined to provide a copy of the 2026 tentative budget, saying the document was not yet ready for release. Budget workshops are set to begin Tuesday.
Hamburg
The Town of Hamburg’s proposed 2026 budget calls for $60.8 million in total spending and a 20% increase in the tax levy. The levy would rise to $38 million, up from $31.6 million in 2025.
Town officials said most of that increase, about $4 million, comes from the creation of a new garbage district. Instead of residents contracting individually for trash collection, the town signed a deal with Modern Disposal. Each household will pay about $240 annually for pickup, billed as part of their property taxes.
Rather than have town residents arrange their own trash pickup with Modern Disposal, Waste Management or Casella, every household will be serviced by the same provider.
The rest of the tax increase stems from rising costs for salaries, benefits, utilities and insurance.
For town residents outside the villages, the proposed tax rate is $13.03 per $1,000 of assessed value – a 7.46% increase. That means a home assessed at $100,000 would see a $90 tax hike.
The budget currently exceeds the state’s tax cap, and the Town Board has scheduled a public hearing to authorize an override, if needed. Supervisor Cathy Rybczynski said the proposal maintains all town services, but includes a staffing reduction in her office.
“We’re doing the best we can to service our residents at the lowest tax rate,” Rybczynski said.
Lancaster
Town property owners would see a slight bump in their tax bills under Supervisor Robert Leary’s proposed 2026 budget, which totals $43.86 million in spending.
The plan calls for raising $27.17 million through property taxes – a 2.8% increase over 2025, or about $739,974 more. That is under the tax cap.
Nearly $13 million would come from revenues such as fees and grants, and about $3.7 million from fund balances and reserves.
For a home assessed at $400,000 in the Town of Lancaster, the estimated tax bill would be $2,831, an increase of $56, or 2.01%, with a tax rate of $6.60.
Leary said the increase is largely driven by higher health
care and retirement costs, along with expenses tied to the town’s contract with Modern Disposal for garbage pickup.
“You really can’t control those costs,” he said.
To help offset those pressures, the town has relied more heavily on grants and focused on “streamlining administrative functions.” Leary said the new budget is part of a multi-year fiscal strategy to maintain essential services while planning for sustainable growth.
Orchard Park
Orchard Park’s proposed 2026 budget would raise the property tax levy by 2.99%, an increase of nearly $580,000 to a total of $19.9 million. That increase keeps the town under the state’s tax cap, Supervisor Eugene Majchrzak said.
For a while, the Buffalo Bills said it was premature to answer questions about the potential for future development surrounding the Orchard Park stadium now under construction. But, as it turns out, stadium development was being considered all along.
“Labor and equipment costs are up, fuel costs have not come down,” Majchrzak said. “That all contributes to it, and it’s very difficult. But we’ve been fortunate with the help of responsible department managers. I’ve been able to deliver five budgets in a row that have been under the tax cap.”
Majchrzak said he hopes development around the new Buffalo Bills stadium will eventually boost the town’s revenue. The town is updating its comprehensive plan to attract investment in that area.
“We’re hoping that by updating that and showing developers what we have changed that’s to their advantage, they might invest monies into the Town of Orchard Park, which would help. But we’re not counting on anything, right now,” he said.
City of Tonawanda
Mayor John White said he’ll continue for as long as possible to use the city’s fund balance – its savings account – to limit how much Tonawanda collects in new property taxes.
Overall spending would rise by 5.8%, to $30.9 million, as the cost of providing city services goes up.
The mayor’s proposed 2026 budget applies $3.4 million from its $15 million fund balance.
“We are healthy,” White said. “But is it coming? I know it’s coming. I’m not foolish. But I’m just not going to increase my taxes to the taxpayers of this city and put this burden on them and hold $15 million in my general fund.”
The budget raises the tax levy by 2.76%, below the state cap. The tax rate per $1,000 of assessed value would rise from $12.88 to $13.17.
The typical city home was assessed at $180,000 last year. The city treasurer declined to provide an updated figure.
That homeowner would pay $52 more in 2026 on a city tax bill rising to $2,371.
Town of Tonawanda
The town’s tentative 2026 budget would raise the tax levy above the state tax cap for the second year in a row.
The 2025 budget raised the levy by 5.58%. The typical town homeowner paid $109 more in property taxes this year.
Under Supervisor Joseph Emminger’s proposed 2026 budget, the tax levy would rise by 2.99%.
The owner of a typical town home, with an assessed value of $50,000 and a market value of $239,000, would pay $36 more, for a total town tax bill of $1,582 that includes special district taxes.
Spending would rise 2.3% in 2026, driven by inflation and the cost of employee pay and benefits, he said.
Emminger said the town provides its residents with services offered by few other suburban governments – including two golf courses, municipal sanitation and paramedics – but they come at a price.
“I could cut taxes tomorrow. But then that means you’re cutting services,” he said, “and I don’t want to cut services.”
West Seneca
West Seneca’s proposed 2026 budget would raise the property tax rate for the first time in five years, though Supervisor Gary Dickson termed the increase “modest.”
The $49 million ad valorem budget – which covers the general and highway funds, but not special districts such as sewer, water and lighting – calls for $28.8 million to come from taxes. That’s up $827,868, or 2.95%, from last year’s levy.
That will translate into a 1.97% property tax increase for West Seneca residents, with a tax rate of $22.25. For the average West Seneca home, assessed at around $60,000, the estimated 2026 town tax bill would be $1,335, up $26.
Personnel costs are the town’s largest expense at $31 million, roughly 63% of the budget, with increases in healthcare, retirement contributions and contracted raises for three of the town’s unions.
“The contracted pay increases are going to happen, pretty much, no matter what. What was a surprise was the amount that the retirement system increased,” Dickson said, noting the town must pay an additional $500,000 for police retirement.
The budget does not cut staff or services and includes money to hire new employees, purchase new police vehicles and replace playground equipment. Economic development, including an expansion at Upstate Niagara Cooperative, new apartments and redevelopment of the former Seneca Mall site, is helping keep tax increases low.
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