MCS Looks to the Future in Three-Year Plan

MIDDLEBURGH - Costs and taxes for Middleburgh Central School should be steady for the next three years - as long as the State of New York cooperates.

School Business Manager Robyn Bhend gave school  board members a projection of costs, expenditures, revenues and taxes at their December board meeting for each year through the 2027-28 school year.

Costs such as health insurance and salaries would increase but the tax levy would continue to rise by 1.5 percent per year through the 2027-28 school year, as long as the state maintains foundation aid (the bulk of the state aid package) at current levels. MCS, not unlike other school districts in the Capital Region, has seen decreases in its enrollment and trends forecast a continued drop in the next few years, which would mean less foundation aid for the district, which could mean a loss of more than $1.9 million for each of the upcoming two years. 

Luckily for school districts, for the last several years, the state has protected districts from sudden decreases in state aid with a "save harmless" clause.

MCS Superintendent Mark Place explained the clause.

"'Save harmless' in New York State education funding means that a school district is guaranteed to receive at least the same amount of funding it received in a previous year, even if the formula used to calculate aid suggests the district should get less. It's a way to protect districts from sudden drops in funding, ensuring stability for planning and operations." he explained.

"Middleburgh CSD has been on 'Save Harmless' for many years. We either only get the minimum Foundation Aid increase approved by the legislature. The last two years, we have received zero percent increases. If the formula was allowed to run without 'Save Harmless' being in place, MCS would receive about $1.9 million less in Foundation Aid."

Ms. Bhend said a three-year projection is important for school officials and the district.

The projection allow "decision makers to set long-term priorities and work towards goals, rather than making choices based only on the needs and politics of the moment. If there is a need for change, a plan can help identify and manage potential fiscal difficulties before crises emerge. "Fiscal stability and responsibility are critical aspects to ensure the success of a school district," she told board members.  

All items in this forecast are meant to highlight future budget scenarios based on the current financial information that will impact district budgets. "The budget increases are realistic as are the changes in revenue," she noted. The forecast reflects, past, present and estimates future budget performance. This report’s purpose is to be a reference tool for the development of the 2025-2026 school year. The purpose of this report is to become aware of how current budget decisions impact future budgets. This year’s long-range plan addresses and includes information on projected increases as well as the impact of inflation on major budget categories. "It is important to state that this annual three-year financial plan is meant to remind us that we must always plan for the future."

Highlights in the three-year projection are:

* All union contracts are settled through June 2026. The teachers' contract is through June 2028 and the non-teachers' one is through June 2027.

* There are 153 employees in the district, including 80 teachers and 64 non-teachers.

* Current grants run through 2028.

* The district has a fund balance of more than $9.4 million with $2 million in unassigned accounts and $6.36 million in assigned reserves.

* Foundation aid remains at $8.5 million through 2027-28 if the state continues "save harmless."

* If there is no "save harmless," there would be a gap of $1.57 million in 2025-26, $2.28 million in 2026-27, and $3 million in 2027-28.

* Salaries would increase from $9.2 million to $9.9 million in 2027-28.

* Total expenditures will go from $23.4 million to $25.79 million in 2027-28.