CLAREMONT — At its annual convention, the Sullivan County delegation of state representatives unanimously approved a $38.7 million budget for the fiscal year beginning on Saturday.

The budget represents a 1.4% increase from the current budget of $38.15 million and carries an estimated increase in the amount to be raised in taxes for the county’s 15 municipalities of slightly less than 10%, or $1.5 million.

An earlier budget proposal of $39 million had a tax increase of more than 16%, but combined spending reductions and increases in projected revenue of nearly $1 million reduced that figure.

Cut from the expense side was about $400,000 that was to be put in capital reserve funds for equipment at the county nursing home, which is currently undergoing a $75 million renovation and expansion, and the sheriff’s department for vehicles.

Added to revenues is an increase of $377,500 in the county’s ProShare funding, which is money the county receives from the state Department of Health and Human Services to help cover the difference between Medicaid reimbursement and what Medicare would have paid. Also added to the revenue side is an increase of $90,000 from unassigned fund balances to offset taxes and $89,000 of American Rescue Plan Act money.

A 4.5% cost-of-living increase for county employees totaling $800,000 and bond payments of $750,000 for the nursing home project are two of the big drivers of the budget increase. Also pushing the budget up is a loss of revenue due to a population decrease at the nursing home during the renovation work and an increase in the cost for short-term contracted nursing staff.

The increase in the county tax rates will differ based on the share of the expenses for each municipality and property assessments. The rates are set by the state in the fall.

Patrick O’Grady can be reached at pogclmt@gmail.com.