Ithaca school board previews 2025–26 rollover budget, proposes tax levy near cap to reduce shortfall

The Ithaca City School District board on March 11, 2025 reviewed a preliminary “rollover” budget for 2025–26 that would keep most programs at current levels while proposing a $169,811,365 spending plan, a 4.17% increase from 2024–25.

District staff presented comparative figures showing projected revenues of about $164.07 million at a flat tax levy, leaving a gap of roughly $5.1 million. Staff modeled revenue scenarios from a 1% levy increase up to the calculated tax levy limit of 3.76%; at the 3.76% cap the shortfall falls to a little over $900,000, which staff said they expect to address through continued budget refinement, investment returns and use of fund balance if necessary.

Why it matters: the board must set a levy and finalize a budget this spring. Changes in the levy and in assessed values will affect individual property tax bills; the board and staff also stressed that last year’s program and administrative reductions remain part of the baseline for the 2025–26 proposal.

District staff framed the proposal as a three-part budget: administrative, capital and program expenditures. Staff noted the administrative component includes more than central-office salaries (for example, a portion of BOCES costs), the capital component covers debt service, leasing and bus purchases, and the program component covers instructional costs and remains the largest share. The presentation reported the administrative component as a share that falls from 11.03% to 10.07% year over year.

Presenters told the board the governor’s preliminary budget increased New York State foundation aid, which staff said was a net positive that mitigates some pressure on local revenues; officials noted building-aid changes partly offset that gain. Staff also said they are awaiting final state aid figures in April and that they have settled all but one collective bargaining agreement — assumptions about those agreements are built into the preliminary numbers.

Board members and staff discussed prior-year reductions: last year’s budget included substantial administrative cuts and a decision to set minimum class-size thresholds (a 15‑student threshold was cited) that resulted in some courses not running. Several board members said those reductions are likely to remain and that the district should focus on maintaining quality in programs that continue.

The board and staff addressed options to close the remaining gap: targeted reductions, use of fund balance, stronger-than-expected investment returns and the prospect of slightly higher state aid when final numbers arrive. The district said it has issued an RFP to study long-term enrollment and demographic trends to help identify efficiencies beyond the short-term budget cycle.

No final budget vote or levy decision was taken at the meeting. Staff asked for board guidance on whether to proceed with parameters based on the tax levy limit; several board members signaled support for staying at or near the tax cap and for continued public engagement as the budget is refined.

Next steps: district staff will return with the formal funding request and a finalized levy recommendation at an upcoming meeting; the finance committee meets next week and the board will present a final budget for deliberation and possible adoption in subsequent meetings.