Horseheads board weighs cuts, tax-cap challenge and reserves to close $2.47M budget gap

The Horseheads Central School District superintendent presented a preliminary 2025–26 budget Thursday showing a $2,471,043 shortfall and a proposed tax-levy increase of 7.12 percent, and asked the board for direction on whether to cut programs or pursue a tax-cap challenge.

The budget presentation delivered to the Board of Education broke down revenues and tools already assumed — allowable levy growth, ERS reserves, interfund transfers and a $1 million use of fund balance — and still showed the 2.471-million-dollar gap, the superintendent said.

Why it matters: the board must set a tax levy and certify what to present to voters; choices this spring will determine whether programming and staffing are cut, reserves are used, or the district asks voters for a levy above the legal tax-cap threshold that requires a 60 percent approval.

The superintendent said state aid remains uncertain, noting the governor’s budget proposal includes increases in foundation aid but that the district is among “the 300 school districts that received the bare minimum increase of 2 percent.” He warned federal and state program changes — including possible changes to school meals — could affect revenues and costs.

Board members pressed for concrete scenarios. Board member Dan (first name given in the transcript) proposed taking off the list of proposed additions presented by administration as a first step and asked for a scenario that would keep the levy under 10 percent. Board member Gina said she would be comfortable challenging the cap to preserve programs but wanted to see how much additional revenue a modest increase (for example 2–2.75 percent over the cap) would generate. Several board members said they preferred not to further draw down the district’s minimum recommended unassigned fund balance.

Administrators outlined tools already included in the package: the allowable tax-levy limit calculation, about $500,000 in ERS reserve use, interfund transfers and $1 million in fund balance. The superintendent described a phased plan for using debt-service funds over several years to avoid a single-year spike in required taxes.

Board members and administrators discussed other budget drivers: rising health insurance and retirement costs, staffing shortages, growth in student enrollment that increases transportation and extracurricular cost pressures, and the need to phase technology and equipment spending to avoid large single-year purchases.

Several members asked for three scenarios to be prepared for the board: (1) cuts sufficient to stay at the tax cap (7.12 percent levy as presented), (2) a balanced scenario that uses limited reserves or debt service to lower immediate tax impact, and (3) a scenario that proposes a tax-cap override with estimates of likely dollar impacts and required voter thresholds.

Votes and motions at the meeting included standard procedural items and consent agendas. The board also discussed timeline constraints: final levy decisions and required public notices must fit the district’s calendar for voter consideration. Administrators said clearer numbers from Albany on state aid are expected before final adoption and asked for direction from the board by the board’s upcoming deadlines.

The board did not adopt a final levy or formal cuts at the meeting; members directed administration to return with the scenarios described and continued discussion at later work sessions and meetings.