During a recent government meeting, Assistant Superintendent for Finance and Operations Stacy O'Connor presented a comprehensive review of the school district's fund balance, highlighting the implications of changes to Foundation Aid and the impact of recent financial trends.

O'Connor began by addressing a recent article in Newsday that reported on reserve levels across various school districts, including their own. While acknowledging the accuracy of the reported fund balance, she emphasized the importance of understanding the underlying factors that contributed to this financial status.

Foundation Aid, a critical source of funding for the district, was a focal point of the discussion. Established following a lengthy court case that concluded in 2006, Foundation Aid is designed to ensure that school districts receive adequate funding to provide a sound basic education. For the Brentwood district, Foundation Aid constitutes 86% of their state aid, making any potential changes to this funding formula a significant concern.

O'Connor detailed the historical context of Foundation Aid, noting that its implementation faced numerous challenges, including freezes during economic downturns and inconsistent funding methodologies. The district experienced a substantial increase in Foundation Aid over the past three years, coinciding with the distribution of COVID-related stimulus funds, which totaled approximately $64 million.

The presentation included a review of the district's unassigned fund balance, which has recently exceeded the 4% compliance threshold due to increased revenues. O'Connor explained that this financial cushion allowed the district to maintain a stable tax levy, despite the rising costs associated with expanding programs.

Looking ahead, O'Connor expressed concern regarding the ongoing review of the Foundation Aid formula by the Rockefeller Institute, which lacks representation from school districts. She highlighted that any adjustments could severely impact the district's revenue, particularly given that the formula relies on outdated census data.

In response to these challenges, the district is considering increasing its tax levy to better align with its financial needs. O'Connor noted that while the district had previously kept the levy flat, the current budgetary pressures necessitate a reevaluation to ensure sustainability in the face of potential funding changes.

Overall, the meeting underscored the complexities of school funding and the critical need for proactive financial planning as the district navigates an uncertain fiscal landscape.