NEWPORT — The Sullivan County delegation of state representatives approved a $41.7 million budget at its annual convention on Tuesday.

The budget, approved in a 9-3 vote, carries an increase of nearly 10% in the amount to be raised by taxes and, according to County Manager Derek Ferland, would add $60 in annual county taxes to a home assessed at $250,000.

The tax increase, which began at 24% under Ferland’s proposed budget and the county commissioners cut to 18%, was further reduced by the delegation’s five-member Executive Finance Committee.

The committee did not make any cuts in expenses but instead found about $1.4 million in projected higher revenues. Among the sources are $550,000 from the nursing home reserve fund, reducing the fund to $500,000, and $300,000 from interest earned on the bond for the renovations to the nursing home, now underway. The interest total of $600,000 was to be used for future capital projects but the EFC agreed to use half the money to lower the tax impact of the next budget, which takes effect July 1.

The EFC also put into revenues $400,000 from the expected $2 million the county is projected to receive from the opioid abatement trust that reimburses the county for medication assisted treatment.

Also affecting the revenues are a decrease in “one-time” revenue to $2.3 million from nearly $3 million, the loss of COVID money and lower reserve funds to draw on to offset taxes, EFC Chairwoman Judy Aron, R-Acworth, said in her presentation to the delegation.

The budget is up nearly 8% from this year. A full-year bond payment for the nursing home renovation project and a 16% increase in health insurance costs are the main factors behind the increase.

Democratic representatives Gary Merchant and John Cloutier, both from Claremont, and Hope Damon, of Croydon, voted against the budget because of the nearly 10% tax increase. It is the second year in a row taxes have increased by that amount after years of tax decreases made possible by use of the county’s unassigned fund balance, which has fallen to $3.25 million.

Merchant said 9.6% is asking taxpayers for more than they can give and Cloutier said he hears constituent complaints about the increases in property taxes.

“I am not sure I can vote for a budget with a 9.6 percent increase,” said Cloutier, who wanted to look at cuts.

EFC member Walter Spilsbury, R-Charlestown, said he examined and questioned all the spending and though “frustrated” with another 10% increase, said the EFC pushed the tax increase down as far as they reasonably could.

“If we could have found another way to bring the number (tax increase) down, we would have,” Spilsbury said. “We looked everywhere to make cuts. I don’t like where the budget ended up but I will vote for it, not with glee, but with the resignation. This is the best we could do.”

Delegation Chairman Steve Smith, R-Charlestown, supported the budget but said the initial tax increase of 24% was simply never going to happen.

“I hope next year we start out closer to reality,” Smith said.

Also looming is another bond for possibly $15 million for the ongoing nursing home project. The delegates approved $20 million to pay part of the $75 million project. There is still money left in the GOFERR (Governor’s Office for Emergency Relief and Recovery Fund) and the county is hopeful it can secure a grant for $15 million, but that decision will not be made until early fall. It also anticipates higher nursing home revenues after the renovations are complete in the spring of 2026 and more beds are available.

Besides Aron, Smith and Spilsbury, Republicans Margaret Drye, Jon Stone, Walt Stapleton and Skip Rollins, and Democrats William Palmer and Brian Sullivan voted for the budget. Democrat Linda Tanner was absent.

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