Marlboro board hears uncertain revenue picture as major PILOT and state aid figures shift

Superintendent Michael Milazzo and Emerson Segarra, the district's director for business and finance, told the Marlboro Central School District Board of Education at its March 6 meeting that the district's revenue outlook remains fluid because a major PILOT (payment in lieu of taxes) is ending and state aid figures are unsettled.

Milazzo said the district's pie-chart revenue picture is dominated by the local tax levy, which contributes roughly 60% of the district's revenue, followed by state aid at about 36% and smaller sources such as PILOTs and rentals. He said the largest single PILOT currently comes from the peaker plant and from "Dan's camera," a contract that contributes just over $1,300,000 and that this year is the final year of that agreement. "This graph is not meant to be alarming. It's rather just meant to be informational," Milazzo said.

Segarra summarized state and federal figures. He said total federal Title and related funds for the district amount to about $922,784, and that specific Title I Part A allocations total roughly $266,623. Segarra also said the district faces roughly $944,000 in reduced state, expense-driven aid next year, which he described as about a 3.5% revenue loss: "Total revenue loss for the district for the next, school year is about 3 and a half percent, or 900,000 944,000, dollars." He added that foundation aid has been held "hold harmless," so that portion should remain stable unless the Legislature changes the formula.

Board members and administrators stressed multiple layers of uncertainty. Milazzo and others noted that if the PILOT is not renewed, the property currently covered by the PILOT would return to the tax rolls at its assessed value, which would change how revenues are shown but not necessarily eliminate local tax receipts. Milazzo said the district is meeting with the company and the industrial development agency and that approvals would also involve Orange County IDA and the town of New Britain. "We have to plan for a worst case scenario and then hope for, you know, [an agreement]," Segarra said.

The presenters included a slide showing the tax-cap formula for the district. Milazzo emphasized that the commonly used phrase "2% tax cap" is a misnomer: based on the state formula and current inputs the theoretical maximum levy the district could adopt with a simple majority would be about 9.1%, a figure he said is not a recommendation but a mathematical output of the formula. Board members warned that posting that figure without context could alarm the public.

During questions, Board member Trish Benninger asked whether the district pursues other federal or competitive grants. Milazzo and Segarra said most federal Title funds are formula entitlements (not competitive grants) and that eligibility for many grants is limited by district wealth or other criteria. Segarra and Milazzo said the district does pursue ancillary and competitive funding when eligible and that staff will compile a breakdown of grants and external funding requests the district has submitted and those outcomes for board review.

Why it matters: the combination of an expiring seven-figure PILOT, shifting expense-driven state aid and an unclear state budget timeline means the board may need to make budget decisions before final state figures are known. Milazzo said the district's finance committee will meet to consider the numbers and that the board will return to expenditure slides after revenue discussions.

Board members emphasized transparency in public communications. Several asked administrative staff to ensure any public materials show the underlying assumptions and note the open negotiations and the possibility that figures could change.

No formal vote was taken on budget policy at the meeting; the presentation was informational and intended to prompt follow-up work by the finance committee and staff.