Elwood UFSD budget workshop: shortfall possible pending state aid; transportation and benefits update

Lorraine Dunkel, assistant superintendent for business, told the Elwood Union Free School District Board of Education on Jan. 13 that the district expects revenue uncertainty for the 2025–26 budget because final state aid and tax‑cap calculations are not yet available.

Dunkel said Elwood should receive no less state aid than the current year and described the district’s planning assumptions: building aid tied to the district’s 2017 bond will be fully implemented for the coming year; the district is still awaiting the governor’s foundation‑aid numbers and a final tax cap. “Presented at the next board meeting in February,” Dunkel said, the district will present the tax levy calculation and the initial revenue side of the budget.

On the expenditure side, Dunkel listed several items that could press the budget: transportation rates are expected to rise roughly 7.6% for 2025–26 as the district enters the fifth and final year of its current contract; special‑education costs may increase because of a larger incoming kindergarten cohort with high needs; and the district is anticipating a number of teacher retirements (staff have until March 1 to submit retirement paperwork), which may moderate salary line increases depending on replacement costs.

Dunkel also reported benefit‑cost trends: the district is projecting an approximate 3% increase in health‑insurance costs, “the lowest it’s been in over a decade,” she said. She walked the board through New York State’s required three‑part budget presentation (administrative, capital and program components), noting the district’s current split at roughly 12% administrative, 16% capital and 72% program.

Dunkel outlined three broad tools to address any shortfall: reduce expenditures, “pierce” the tax gap (increase the levy), or increase the use of fund balance and reserves. She said the next budget presentation is scheduled for the Feb. 13 board meeting, when the district expects to present an initial tax‑levy calculation and seek board guidance.

Ending: No formal vote was taken at the workshop. Dunkel said the district will return with more detailed revenue runs once the state releases foundation‑aid numbers and will present expenditure details at subsequent meetings leading to the May budget vote.