At a Town Board meeting last week, officials were told recasting costs would total about $6,000. The rest of the replacement cost is expected to come from the village and private donations.
The plaque, on a stone monument in front of the firehouse on Plattekill Avenue in the village, lists the names of New Paltz residents who served in the armed forces during World War I and World War II. It incorrectly spells the last name of Douglas Erwin as "Irwin."
"It's a responsibility that we as a municipality have," said town Councilwoman Kathleen Healey. "We can't leave a plaque there that supposedly honors veterans but spells one of their names wrong. ... We need to fix it."
It was not immediately clear when the plaque was installed, but Town Clerk Marian Cappalino said it was probably dedicated about 50 years ago. She said the misspelling was reported last year by a town resident and verified by Erwin last week after officials found him living in Connecticut.
"I spoke with Mr. Erwin, and he's quite charming," Cappalino said. "There was no way he could be available to attend this meeting, and having no relatives in New Paltz, there's no representation from the family."
Reached by telephone Wednesday, village of New Paltz Mayor Terry Dungan said village trustees will vote on contributing a $2,000 share at the July 19 Village Board meeting.
"I would assume we would match the town's contribution ... with the expectation there would be fundraising and a $2,000 match from the community," he said.

