Consultant warns Saugerties Central School District faces multi‑year budget shortfall; urges long‑range planning

A financial consultant hired by the Saugerties Central School District told the board the district has built significant reserves in recent years but faces a multi‑year structural shortfall unless it adopts long‑range planning and/or reduces costs or raises revenue.

The consultant said the district’s combined reserves grew from roughly $1.6 million to about $12.6 million over three years, partly thanks to federal pandemic funds, but warned some cash is sitting in operating balances that exceed limits under New York law and should be moved into voter‑approved capital reserves.

The consultant framed the issue around three points: reserves and capital planning; state aid and revenue assumptions; and how the New York tax levy limit (the tax cap) interacts with debt service and voter‑approved capital projects. He said the district is over the 4 percent unassigned fund balance threshold and cited “Real Property Tax Law §1318” when urging the board to take corrective steps before the controller could require a return of excess funds.

Why it matters: without changes the consultant’s five‑year scenario shows expenses outpacing revenues, producing a cumulative gap the presentation estimated at several million dollars. The consultant…