Niagara Falls City School District leaders presented a proposed 2025–26 budget at a board review session that relies on reserve balances to close a roughly $4.8 million gap rather than increasing the tax levy.

"Before we used any reserve, we had a $4,800,000 gap," Mark Lohrey told the board, and staff explained they applied available reserves and one‑time adjustments to eliminate the shortfall in the draft that will be presented as a resolution next week.

Staff said the district will not assume additional Foundation Aid in the state budget and therefore did not budget for extra Foundation Aid dollars. The presentation said several expiring or uncertain grant lines informed the proposal: the McKinney‑Vento homeless grant has not had a new RFP released and the district is not assuming continuation for budgeting purposes; staff also included a small reduction in Head Start funding in the draft. Julie (finance staff) and Becky (business office) explained they reallocated reserves proportionally and that the TRS reserve usage was limited by statutory contribution limits; staff said $850,000 is projected from the TRS reserve this year.

The board was told the district still plans to pursue up to 98% state reimbursement for capital work but is not relying on additional state education aid beyond baseline Foundation Aid. Officials said they hope to replenish reserves when year‑end surpluses become clearer in the fall, but emphasized the risk created by a delayed state budget.

An internal audit was previewed: staff said auditors will likely issue two to four findings related to paperwork and documentation (missing dates or signatures), not to missing funds. The presentation cited a 1998 personnel form that lacked a date as an illustrative example.

Other items staff flagged for next week’s board packet include: a required property tax report card (to be submitted to the State Education Department), a resolution to exceed the equipment line for a boiler replacement in the administrative building (staff said the boiler replacement contract is about $186,000 and recommended a board resolution to authorize the expenditure), and a tick‑spraying resolution for athletic fields timed to minimize exposure during spring break.

School calendar and personnel updates were also discussed: staff said the 2025–26 school year will begin on the Wednesday after Labor Day to meet required minute counts and accommodate winter holiday timing. Maria (personnel) outlined resignations and appointments that will appear in the personnel report.

On student assessments, board members asked why state ELA and math results take months to return; district staff said setting cut scores and finalizing statewide reporting adds time and that the district uses local, real‑time assessments (NWEA, iReady, AIMSweb) for instructional decisions.

Next steps: staff will add formal resolutions to next week’s packet for board action (budget adoption for presentation to voters, property tax report card, equipment/boiler resolution, tick spray), and will submit required documents to the State Education Department by statutory deadlines.