Onondaga County Legislature passes $1.7 billion 2027 budget, puts $25 million into new housing loan fund

The Onondaga County Legislature voted unanimously on Tuesday, October 6, 2026, to adopt a 2027 county budget of about $1.7 billion that lowers the county property tax rate. In separate votes the same day, lawmakers created a county housing loan corporation called ONHOME and approved $25 million from the county’s reserve fund to start the corporation, Central Current reported on October 7.

The housing money arrived only hours before the vote, when County Executive Ryan McMahon sent lawmakers a plan to move $35 million out of the fund balance, the county’s reserve of nearly a quarter-billion dollars. ONHOME will make low-interest and no-interest loans to builders of “missing middle” housing such as duplexes and townhomes.

The 2027 budget at a glance

These are the main pieces of the spending plan, drawn from Central Current and WRVO coverage of the October 6 vote.

• The budget totals about $1.7 billion and passed with all 17 legislators voting yes.
• The county property tax rate falls by about 9 percent, according to WRVO.
• A $25 million transfer from the county’s fund balance seeds ONHOME, the new housing loan corporation.
• Central Current reported $7 million for the Onondaga County Industrial Development Agency to buy land for Micron supplier sites.
• A $1.5 million pilot program will make low-interest loans to farms.
• Lawmakers kept about $3 million in contingency until county departments explain how they would spend it.

What the tax rate cut means for property owners

When McMahon presented his proposal in September, the rate was set to drop from $2.93 to $2.67 for every $1,000 of assessed value, Central Current reported on September 15. That would make 2027 the ninth straight year the county has cut its rate. WRVO reported that the adopted budget carries a rate decrease of 9 percent.

A lower rate does not guarantee a smaller bill. Central Current noted in September that rising property values could still push some county tax bills higher, and that the county expects to spend about $100 million more in 2027 than in 2026. McMahon said in September that Micron, whose semiconductor project is in the Town of Clay, put about $1 billion into the county economy in 2026, leaving sales tax revenue at nearly double what the county expected.

Ways and Means Chair Maurice “Mo” Brown told colleagues the amendments changed less than 0.06 percent of McMahon’s proposal and added no net spending. “It’s the people’s budget,” Brown said before the vote, according to Central Current.

How the $25 million housing fund will work

ONHOME grew out of the Housing and Transportation Citizens Advisory Board, which the legislature created in April. The board, co-chaired by Legislature Chair Nicole Watts, unveiled its proposals at an open house on September 1 at CenterState CEO‘s Inspyre Innovation Hub. One of its four proposals was a fund of no-interest and low-interest loans for builders facing high construction and labor costs, Central Current reported at the time. The same report noted that Mayor Sharon Owens has said Syracuse has more than 1,000 housing units under construction, less than half of what the city needs to keep pace.

McMahon’s September budget included the local law creating the corporation but did not fund the corporation. He said he would provide the money later if the budget cycle went smoothly, and on the morning of October 6 he sent the legislature an executive initiative for the $35 million transfer, of which $25 million goes to ONHOME. Because the corporation lends money instead of giving grants, repaid loans can be lent out again.

The $25 million will sit in a county grant fund until ONHOME adopts bylaws, and only then move to the corporation, according to Central Current. The corporation will have a nine-member board, appointed this way.

• The county executive appoints two members directly.
• The legislature’s chair, majority leader and minority leader each appoint one member.
• The county executive also names four members representing labor, finance, housing and the community.
• Those four nominees need the legislature’s approval before they can serve.

Watts said she expects outside donations could double the fund within two years. McMahon told legislators in September that the corporation could lead to about 1,000 more housing units in the county.

Who voted which way

The budget itself passed 17 to 0. The local law creating ONHOME also passed 17 to 0. The $25 million transfer passed 16 to 1, with Legislator Ken Bush voting no after he asked whether the money could be held in contingency instead. Chief Financial Officer Kristi Smiley told lawmakers that was possible but that she believed McMahon would withdraw the initiative if they did.

Minority Leader Brian May said he supported the corporation but wanted more oversight, and Legislator David Knapp asked whether the legislature could require regular reports from the new board. Legislator Chad Ryan told Central Current he had been ready to offer his own amendment adding the $25 million if the executive had not sent it.

Other changes lawmakers made

The Ways and Means Committee amended the plan on September 29 and sent it to the full legislature, WRVO reported. The committee’s changes and the floor amendments approved October 6 include the following.

• The budget adds six more caseworkers to protect children.
• The plan expands overdose response and food security work.
• The Onondaga County Sheriff’s Office gets money for needed patrol vehicles.
• The Shape Up for Veterans program, which helps disabled and older veterans stay in their homes, gets $250,000.
• A separate $100,000 goes to farm and food security efforts.

According to a September 29 announcement from the legislature, several of the new positions are paid for with grant money lawmakers had already approved. Legislators also held back McMahon’s proposed $2 million Gen Z Housing Fund, a down payment and closing cost program aimed at about 200 first-time buyers, until they get more detail on how it would run. McMahon said after the vote that he was frustrated by that decision but comfortable with most of the changes.

Money for Micron suppliers and family farms

The $7 million for the county IDA is meant to buy land and prepare shovel-ready sites for companies that would supply Micron’s planned chip plants in Clay. McMahon said that without such sites, those suppliers could choose other states or other parts of Upstate New York.

The $1.5 million agriculture pilot will make low-interest loans, mostly to help farms upgrade technology or steady family operations. McMahon estimated it could fund 15 to 20 loans and said the county would ask for more if the pilot works.

The county also goes into 2027 with a better credit rating. S&P Global raised Onondaga County to AA+ this month, the second-highest S&P rating, Central Current reported, and McMahon said the upgrade will save the county about $1 million when it borrows.

What residents told lawmakers

Sixteen people spoke at the hour-long public hearing on October 1 in the legislature chamber, WRVO reported. A trustee of the county’s public library board thanked lawmakers for more library money. A Sierra Club volunteer and the head of an environmental nonprofit asked for more environmental staff and oversight as the Micron project grows. Another speaker praised the added caseworkers but asked the county to publish results so families can see whether the spending helps.

What happens next

Several pieces of the budget still need follow-up work before the money moves.

1. ONHOME has to adopt bylaws before the $25 million leaves the county’s grant fund.
2. The county executive and legislative leaders will appoint the nine board members, and the legislature must approve four of them.
3. The roughly $3 million in contingency stays frozen until departments give lawmakers the detail they asked for.
4. The Gen Z Housing Fund stays on hold until the administration explains how it would work.

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