Lancaster Central presents $141.2 million draft 2025-26 budget with modest levy increase

Jamie, the district's budget presenter, gave the Lancaster Central School District Board of Education a draft 2025-26 budget on April 7, presenting a $141,200,000 estimated expenditure plan that maintains current programs and staffing while adding special-education and music faculty.

The draft assumes $55,600,000 in New York State aid and shows a budget-to-budget expenditure increase of $6.7 million (4.95 percent). "The current budget estimate for State Aid is $55,600,000," Jamie said, attributing most of the state-aid increase to foundation aid and noting recent adjustments to transportation and building aid estimates.

The overview matters because the board must finalize a proposed budget for public presentation and a voter referendum. The board plans to finalize the proposed budget at its April 22 meeting; the public budget hearing is set for May 12 and the budget vote for May 20.

Key revenue and expenditure figures in the draft include: state-aid estimates up about $2.9 million (5.58 percent) year to year; an increase in foundation aid of about $1.3 million (based on the governor's proposal and Rockefeller study adjustments); building-aid revenue up roughly $450,000; excess-cost (special education) aid up roughly $550,000; and BOCES aid up about $200,000. Jamie said some of those revenue increases reflect expenditures (for example, building aid tied to finishing construction phases) and therefore are more certain than other state estimates.

On the expenditure side, Jamie presented the budget both by functional category and by object classification. Instruction accounts for about $76,200,000 (54 percent of the total) and is rising by about $4.5 million, driven by contractual salary increases, staffing requests and increases in special-education tuition and BOCES services. General support is 10.2 percent of the budget (up about $420,000), transportation is about $8,800,000 (a reduction of $125,000 from the current year budget figures after adjusting to actual spending), and undistributed costs (including debt service and employee benefits) are about 29.5 percent of the total.

Jamie said debt service increased by about $600,000 because the district is financing more of ongoing projects, and employee-benefit costs rose about $1.2 million, driven largely by pension contribution rates and health insurance costs. "Salaries and benefits are 70 percent of our overall total budget," Jamie said, calling the district a "people business."

The draft revenue side includes a proposed property-tax levy of $62,400,000. Jamie reported a levy increase (two slightly different figures were referenced during the presentation): $1,100,000 in one slide and later described as a $1,200,000 levy-to-levy increase (1.85 percent). Jamie also noted the draft levy is about $700,000 below the district's maximum allowable cap increase for 2025-26 and that, if unchanged, the levy increase would be roughly $0.20–$0.27 per $1,000 of assessed value, assuming assessed values and equalization rates are constant.

Other revenue details include an estimated $350,000 increase in Erie County sales tax receipts, a rise in local revenue (driven by higher interest earnings on invested district funds), and an increased planned use of reserve funds and appropriated surplus. Jamie said the district is "being very aggressive with investing in responsible investments," noting interest revenue has risen materially since 2010.

No formal budget vote or adoption occurred at the work session; the presentation was an informational draft. Jamie said staff will update revenue estimates if the New York State budget is finalized before the board's April 22 deadline and will make any necessary adjustments at that meeting. A board member thanked Jamie and staff for the work amid state budget uncertainty, saying, "great work to you and your team," and noted the draft continues current programs while adding staff for music and special education.

The meeting concluded with a motion to adjourn that carried. The board's next meeting will be April 22, 2025, at Lancaster High School Auditorium, where the board expects to finalize the proposed budget for public presentation.