MCS Closes Gap on 2025-26 Budget

MIDDLEBURGH - Middleburgh Central School officials will eliminate the gap for the 2025-26 budget by reducing spending and using funds from two reserves.

School business administrator Robyn Bhend detailed the budget changes at the third budget workshop last Wednesday evening.

Officials came into the budget session facing a budget gap of $276,882 on a $25.18 million budget proposal. Ms. Bhend said that by reducing spending to $25,139,180 and by using funds from the Teachers Retirement System and Employee Retirement System will eliminate the gap.

The district, Ms. Bhend said, will conduct a thorough final review of all budget-line items to identify potential reductions of approximately $39,000. "We are confident that we can achieve the necessary budget reductions to reach a $25.1 million budget," she said.

To eliminate the rest of the budget gap, the district will use about $65,000 from the ERS and $100,000 from the TRS.

The tax levy increase will be 1.5 percent, the same as this year. MCS officials said that the 1.5 percent hike in the tax levy could be the lowest in the region.

"We've come a long way," Ms. Bhend said. "We're going in the right direction."

Officials are still waiting for the final state aid numbers. Currently, state aid revenue stands at $12.7, down $107,000 or 0.84 percent from this year. There are talks in the state legislatures to increase state aid by three percent.

As of last week, both the Senate and Assembly have presented their "one-house" budget proposals to the Governor suggesting a potential increase in Foundation Aid, Ms. Bhend said. For Middle burgh Central School, a one percent increase in Foundation Aid equates to about $85,000. "However, the final amount of additional aid will remain uncertain until the State Budget is negotiated and finalized," she added.

MCS officials cut the 2025-26 budget gap from $403,315 to $276,882 in February.

Officials had been looking at a rollover budget that totaled $25.46 million, about $556,000 or 2.33 percent more than the current budget.

Among the changes in the current proposal is a health insurance hike of 6.5 percent, down from 10 percent in the first plan, Ms. Bhend said. Other changes were: an increase of five percent for drug prescriptions instead of 15 percent, workers' compensation down by $18,000, and a hike of $20,000 in the cost for the Capital Project bond anticipation note.

The tax levy is projected at $10.556 million, a hike of  $156,000, or 1.5 percent.

The school  board will approve the spending plan in April, which will go to the voters in May.

In addition to the budget, other voter propositions expected for consideration:

* School Bus Purchase ‐ Total cost not to exceed $484,000. As per Bus Replacement Plan – diesel engine buses, two-65 passenger buses with luggage compartments, one-30 passenger Wheelchair bus.

* Capital Project/Capital Reserve Proposition, $8 million total project cost. Withdrawal $2.1M from 2023 Capital Reserve for no additional tax impact.  Ability to continue funding reserve for next project after withdrawal (additional $2M through 2033). Anticipate a capital project every five years to maintain/upgrade buildings and grounds.

* Repair Reserve Transfer. Per Reserve/Fund Balance plan - Reserve balance as of December 31, 2024, $421,011. Transfer not to exceed $600,000 (voter approval required/actual amount TBD by board). Funds set-aside for one-time unanticipated repair expenditures