Saugerties school officials outline $76.9M revenue plan, warn of a "fiscal cliff" and possible cuts

SAUGERTIES, N.Y. — District staff told the Saugerties Central School District Board of Education on Tuesday that the district anticipates about $76.9 million in revenue for the coming year and faces a roughly $3.1 million gap between that projection and an $80 million “starting point” reference.

The presentation, which included federal, state and local revenue estimates and reserve balances, emphasized constraints tied to state aid timing and tax-cap limits. A district staff member said, “this current school year allocation is roughly, like, dollars 1,300,000,” referring to a federal funding line the district uses for specified programs.

The revenue picture matters because it helps determine whether the board will need to use fund balance, reduce nonmandated programs or request a higher tax levy. The staff presentation showed a tax levy of about $47.3 million — up approximately $1.568 million from the previous year — and noted that increasing the levy beyond the cap would require voter approval and that the board must hope for timely state budget data to finalize its numbers.

Board members and staff discussed cost pressures and choices. The presentation listed potential reductions across several nonmandated items — including armed security (estimated at about $350,000), athletics (noting reduced game schedules could save several thousand dollars), and noninstructional positions — and flagged one-time and ongoing reserve options. The district reported $3.0 million in an employee retirement reserve and $4.7 million in a capital reserve, both earmarked for specific purposes, and staff noted those constraints when discussing possible fund-balance use.

Staff also flagged mandate-driven increases: teachers’ retirement contributions (TRS) and other fixed costs. The presenter said local inflation for some staff costs was about 2.95 percent, but the state formula would permit a 2 percent cap in certain calculations. The district estimated that changes in state aid formulas, reimbursements tied to completed capital work and unsettled pilot payments could change next year’s revenue by tens of thousands of dollars.

Board members repeatedly framed the board’s budget task as long-term fiscal stewardship. One board member urged the group to prioritize long-range health over “pop-ups” and to avoid treating the budget as simply repeating prior-year spending.

Votes at a glance - Personnel items J1–J3 (resignations, leaves of absence, appointments): motion moved by Myers, seconded by Belarosa; approved by voice vote. - Motion to enter executive session for a superintendent hearing appeal and contract negotiations: moved by Brunel; seconded; approved by voice vote. - Motion to reconvene and approve a resolution arising from executive session: motion approved by voice vote.

Why it matters: The board must adopt a budget by the statutory deadline while uncertain state aid numbers and fixed cost increases constrain options. Staff told the board it could fill gaps with reserves, proposed cuts to nonmandated services or both; board members stressed the need to consider long-term impacts of near-term cuts.

The board took multiple procedural votes during the meeting, including approval of personnel recommendations and passage of a resolution arising from executive session. Board members asked staff to continue refining revenue and expenditure estimates before the board adopts a final budget.