Smithtown is proposing to pierce the state's tax cap with a 10.7% levy hike in a budget that prevents 46 employee layoffs and cuts to town services, officials said.

The $141.4 million budget hikes spending by 5.3%. In his budget note, Supervisor Ed Wehrheim said the town was facing a $7.1 million shortfall due to inflation, as well as increased costs for employee health care and retirement contributions. Liability insurance is projected to cost the town an additional $3.2 million in 2026. To stay within the state's 2% tax cap, the town would have only been allowed to increase the levy by $1.5 million, officials said.

“This is not a recommendation made lightly. It is, however, necessary to ensure that Smithtown can meet its obligations and continue providing high-quality services in a fin

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