Elwood projects $2.3 million shortfall; board to review final 2025–26 budget March 27

The Elwood Union Free School District is projecting a roughly $2.3 million budget shortfall for the 2025–26 school year, Assistant Superintendent for Business Lorraine Dunkel told the Board of Education on Wednesday.

Dunkel said the district has reduced its projected deficit from about $2.7 million to approximately $2.3 million through targeted reductions totaling about $360,000. She also reported that the governor’s current proposal reduced the district’s state aid by roughly $115,000 compared with earlier estimates.

‘‘We are still looking at a deficit of roughly $2,300,000,’’ Dunkel said, and noted the district is ‘‘cutting with a scalpel’’ to avoid programmatic losses where possible. She said the three major expenditure categories still under review are special education, technology and BOCES services. The administration plans to present a final expenditure budget to the board on March 27.

Dunkel warned of an additional risk if federal support changes: she said public reporting about the U.S. Department of Education’s status has raised concerns that a loss of federal aid could add about $1 million to the district’s required reductions. The district also noted that the statutory tax‑levy cap is currently 1.29 percent, a constraint Dunkel and board members described as limiting given current inflationary pressures on transportation, insurance and other costs.

Board discussion emphasized the difficult tradeoffs ahead. Board members asked how much of the deficit could be covered by reserves, what program reductions might be necessary, and whether the district should propose a levy that exceeds the cap. Dunkel said administrators are exploring reductions across categories—administrative positions, teaching and support staff, materials and contractual services—but had not finalized specific staffing or program cuts.

Dunkel urged an informational campaign to educate voters and increase turnout for the budget vote, saying ‘‘educating and informing the community about the budget and all that Elwood is offering will be key to having a large photo turnout allowing residents to make an informed decision.’’ The board scheduled the next budget presentation for March 27, when the administration will seek guidance on whether the proposed budget is acceptable or requires further reductions to meet the tax cap target.

The budget discussion occurred during the regular board meeting; no final budget vote was taken at this session.