MCS Sees 403K Gap in Early 2025-26 Budget

MIDDLEBURGH - Middleburgh school officials see a $403,315 gap as they begin work on a budget for the 2025-26 school year

School business manager Robyn Bhend gave board members and the public the first budget workshop of the year on January 8.

Officials are looking at a rollover budget that totals $25.46 million, about $556,000 or 2.33 percent more than the current budget. The rollover budget maintains all current programs and services for students and maintains all current staffing levels, with some small additions and changes.

The gap between spending and revenues currently stands at $403,315, but will decline as budget talks continue through the spring until the public vote in May. A gap of $403,000 is not excessive and has been much more in priors. It is usually lowered to a manageable amount by the time the budget is approved by board members in the spring.

"We do anticipate the gap to decrease as we continue developing the budget," Ms. Bhend said.

Currently, the proposed 2025-26 budget totals $25.46 million, up from this year's  $24.9 million. The tax levy is projected at $10.556 million, a hike of  $156,000, or 1.5 percent.

Items added to rollover budget include: Security improvements, a district-wide visitor management system, +$2,500, (similar to the one at Schoharie Central School), continuation of safety enhancements at the elementary school in addition to capital outlay work , NYS contract cost, +$39,509, building aid plus a 10 percent NYS SAFE Act incentive (89.8 percent), IP Intercom camera system, and electronic security system (door monitoring for 20 door locations), ARP grant backfill (ARP grants expired September 30, 2024, Summer Professional Development Opportunities, +$25,000, Summer Fitness Program, +$5,000.

Budget reductions include: Washington D.C. Trip, -$50,000, debt paid in full – no Principal or Interest on old debt (2010 SB), -$286,000. No more debt payment means no more building aid to offset the debt payment (revenue will also decrease) Budget Increase for Liability Insurances, +$21,940 ,mount dependent on type/coverage.

Roll-over budget assumptions: Salaries and fringe benefits salaries: Employment agreements known through June 30, 2026,  fringe benefits: NYS Retirement Systems, Teacher (TRS) – 10.00 percent • Estimated to be 9.50 -10.00 percent-- using high estimate until rate is finalized in February, decrease of 0.11 percent (10.11 percent),  local (ERS) – varies by tier, health insurance, CASHIC - estimates until late March, Medical,, +10 percent increase for PPO plans, +8 percent increase for MAP plans, Rx, +15 percent increase Tier 24-25 Rate 25-26 Rate Increase. by Tiers 3-4 17.6 percent, 19.3 percent, +1.7 percent Tier 5 15.2 percent, 16.3 percent +1.1 percent Tier 6 11.2 percent 12.6 percent +1.4 percent.

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, $8.1 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