Islip Town to pierce tax cap with 8% levy hike

The Town of Islip has proposed to pierce the state tax cap for the second straight year with an 8% levy increase and a $73 boost in town taxes for the average household, officials said.

The $289 million budget calls for a roughly $10.5 million increase in spending over this year's plan. Town officials cited an uptick in employee expenses ranging from health care and pension costs, to raises projected if the town approves a new contract with its employee union. 

The town plans to increase its tax levy by $11.9 million under the proposal to cover those costs and cope with expected revenue shortfalls. The state cap on levy increases is 2% but can fluctuate based on each municipality's finances. Islip's cap for 2026 is 2.1%, town spokeswoman Caroline Smith said.

Town taxes on the average Islip home would be $771.65 next year, up from $698.88 in 2025, when Islip also pierced the tax cap.

"We were facing a pretty large shortfall in order to be cap-compliant," Supervisor Angie Carpenter said in a phone interview. "Without the tax increase in the budget that has been proposed, we'd be forced to make cuts to town services, [and] there would be layoffs. It's not easy making that decision. Nobody wants to see taxes going up. We worked really hard to keep it as modest as we possibly could."

Carpenter told Newsday the proposal prevents cuts to town staffing and services. Had it stayed within the cap, Islip would have had to cut roughly 60 full-time staffers, she said.

Town officials pinned the proposed tax increases on a number of factors that are driving costs up and revenue down.

Carpenter said the town expects to lose nearly $900,000 in interest earnings because of forecast federal rate cuts, for example. She also cited a roughly $750,000 decline in revenue from district court. 

Meanwhile, employee health insurance and pension costs are increasing by 10% and 11%, respectively. And an upcoming contract between Islip Town and its employee union will add another $3.5 million to $4 million in expenses annually, according to Carpenter, who said the pending union deal is expected to be in place for seven years.

Before adopting the 2025 budget last year, Islip Town hadn’t pierced the tax cap since 2017.

Town officials have proposed new terms for employees, according to Smith. Representatives for United Public Service Employees Union, which represents Islip Town staffers, did not respond to requests for comment.

Islip’s elected officials will also receive raises in 2026. Town code stipulates that elected leaders receive an annual pay bump equal to either the rate of inflation or 4%, whichever is less.

Town Board members will each make $96,569.63 in 2026, an increase of $3,265.64 from 2025. Carpenter, as supervisor, will make $128,218.09, up from her 2025 salary of $123,882.21.

The five-member board has until Nov. 20 to adopt the proposed budget, according to state law. If the board doesn’t vote to adopt a budget by that deadline, the preliminary budget automatically becomes the adopted budget.

The board is expected to vote on whether to schedule a public hearing to consider the budget proposal at its meeting on Tuesday.

By Sam Kmack

sam.kmack@newsday.com

Sam Kmack covers the Town of Islip for Newsday. He is a graduate of the University of Southern California and previously worked as a city watchdog reporter in the Phoenix metro area, as well as an investigative journalist at the Arizona Center for Investigative Reporting.