Maine-Endwell projects $3.8 million operating surplus for 2024-25; long-range outlook shows deficits after 2027-28

Maine-Endwell Central School District staff told the board Wednesday that the district is projecting roughly $73,000,000 in revenue and just above $69,000,000 in expenditures for the 2024-25 school year, producing an operating surplus of about $3,800,000.

The projection comes from Angela Rogers, director of business operations in the district’s Central Business Office, who presented the district’s long-range projections and current budget performance at the first of four budget workshops. "Through June 30, we are projecting revenue of about $73,000,000 and expenditures just above 69, which would leave us with an operating surplus of about $3,800,000," Rogers said.

Why it matters: the surplus is driven in part by higher-than-budgeted interest earnings and stronger state aid this year, but district staff cautioned the figures depend on assumptions about future state aid, interest rates and expense growth. Rogers and Superintendent Van Pothan urged caution about the multi-year outlook, which shows deficits beginning in the 2027-28 fiscal year under current assumptions.

Most significant revenue and expense items

Rogers attributed much of the near-term improvement to several one-time or timing-related items: projected interest earnings of about $1,000,000 (about $600,000 of which would be applied directly to reserves), state aid above budget by roughly $840,000, excess cost aid about $305,000 over budget, BOCES-related aid about $388,000 over budget and an increase of about $144,000 in basic state aid tied largely to higher transportation and building-related spending last year. "Interest earnings are going to be...about a million dollars, but 600,000 of that is really attributable to the reserve accounts," Rogers said.

On the expenditure side, salaries and fringe benefits are below budget at present. Rogers reported salaries under budget by about $137,000 and health insurance under budget by about $1,500,000, while cautioning that recent upticks in claims could reduce that savings before year end. Special-education placements at BOCES are below budget by 14 placements, producing current savings that could change if spots become available.

Reserves and planned funding

The presentation showed the district expects to fund reserves from available funds, with estimated additions including about $1,950,000 to the ERS reserve, roughly $90,000 to the TRS subfund and about $1,800,000 to a capital reserve. Rogers said the district plans to use investing at the Central Business Office to bolster reserves without using operating funds.

Long-range assumptions and outlook

District staff presented assumptions underlying the long-range projection: a tax levy set at the district’s legal limit, foundation aid modeled at 6.5% for 2025-26 per the governor’s executive proposal and a 1% annual increase thereafter for out years; health insurance growth estimated at 7% annually; and modest increases for other expense-driven aids and regional BOCES costs (around 4–5%). Rogers noted the projection treats staffing based on positions currently filled and does not include new positions that might be added.

Rogers and Van Pothan emphasized that interest income is unusually large relative to past years and that the district modeled surplus/deficit both including and excluding interest earnings to make the effect transparent. "We don't typically do that, but because of how high interest rates have been over the last couple years, that number is significant," Rogers said.

State budget proposals and data changes

Rogers reviewed elements of the governor’s executive budget proposal and related technical changes: a proposed statewide increase in education aid, a move from the old 2000 census poverty measure to small-area poverty estimates, and a shift from free-and-reduced-price-lunch counts to an "economically disadvantaged" measure the state already reports. Rogers said those methodological changes helped generate the district’s projected 6.45% foundation-aid increase in the executive proposal.

Rogers also reported larger statewide numbers included in the governor’s plan: approximately $1,700,000,000 in additional education aid statewide and about $1,460,000,000 aimed at foundation aid. She cautioned those figures could change as the legislature considers the executive proposal.

Timeline and next steps

The budget calendar presented to the board begins the district’s budget development work for 2025-26. Rogers outlined the next workshop in March, a third workshop and expected finalization at an April 16 session, and a public hearing and board vote scheduled as part of the May 8 meeting. "For our next budget workshop, in March, we will have draft 1 of the 25-26 budget," Rogers said.

Board questions and caveats

Board members asked for clarity on the foundation-aid assumption (why 1% in later years rather than 2%). Rogers said the 1% projection is conservative given recent volatility and the potential for future legislative choices. Superintendent Van Pothan echoed the caution and noted the district will monitor changes in state and federal policy as they develop.

The district recorded no formal votes at this workshop; presentations and discussion were informational and set the timetable for later formal actions.

Ending

District staff said the presentation and materials will be posted on the district website. Rogers and Van Pothan encouraged the public to review materials ahead of the March workshop and the May 8 public hearing.