New Rochelle Board proposes $359M budget with 3.95% tax levy increase

During the recent Board of Education meeting held at the Central Admin Building by the New Rochelle City School District, key discussions centered around the proposed budget for the 2025-2026 school year. The meeting highlighted significant changes in expenditures, tax levies, and the district's financial planning strategies.

The proposed budget totals $359,468,597, reflecting an overall increase of 3.3% from the previous year. Notably, the budget allocates $189,286,825 for instruction and community services, marking a $3,000,187 increase, or 1.7%. Transportation costs are projected to rise by 16.1%, totaling $26,169,768, while employee benefits are set to increase by 8.4%, reaching $87,136,000. Conversely, debt service and transfers will decrease by 23.2%, amounting to $14,744,336.

A significant portion of the budget, approximately 73%, is dedicated to salaries and benefits, which combined total $260,710,122. Contractual services, which include transportation, account for 13% of the budget, while BOCES services and supplies represent 6% and 1%, respectively.

The proposed tax levy is set to increase by 3.95%, generating $240,741,929 in revenue. This translates to an average increase of $34.26 per $1,000 of assessed value, equating to an annual increase of $548.08 for an average New Rochelle home assessed at $16,000. It is important to note that this tax increase requires 60% voter approval for an override due to exceeding the allowable limit.

Looking ahead, the district aims to enhance its financial forecasting and strategic planning. Officials emphasized the need for a long-range financial outlook to avoid past pitfalls and ensure sustainable budgeting practices. The district plans to engage in a comprehensive programmatic review to assess current and future needs.

Overall, the meeting underscored the district's commitment to transparency and proactive financial management as it prepares for the upcoming budget vote. The discussions reflect a broader effort to align educational funding with community needs while navigating the complexities of fiscal responsibility.