Bethlehem Central approves $116.6 million 2025–26 budget; tax levy set at state cap

The Bethlehem Central School District Board of Education approved a $116,600,000 budget for the 2025'026 school year and set the tax levy at roughly $73,900,000, an increase of about 1.12% that the district said is the maximum allowable under New York's property tax cap law.

The budget decision follows a detailed presentation from district business staff outlining a revised baseline with $116.6 million in proposed expenditures and roughly $115.8 million in revenue, leaving a funding gap the board closed with a mix of revenue adjustments and a planned use of fund balance. "I am proposing for the board's consideration the use of roughly $715,000 in the district's undesignated fund balance to bring things in line," a district staff member presenting the budget said during the meeting.

Why it matters: the budget preserves core programs while minimizing immediate tax impact on residents but relies on restricted one-time revenues and reserves. District staff said the plan assumes some use of the undesignated fund balance for 2025'026 and stresses that future years will require continued monitoring and likely further difficult decisions.

Details of the budget and revenues District staff summarized the budget as a revised spending plan of about $116.6 million and revenue of about $115.8 million, producing a roughly $820,000 gap that the district addressed by adjusting revenue estimates and using fund balance. The presentation listed roughly $73.9 million from property taxes, about $34.6 million in state aid, and pilot payments that increased after recent calculations.

The presenter said the district recorded unanticipated pilot revenues during the prior fiscal year and increased state building-aid estimates tied to the close-out of the 2021 capital project. The slides showed about $5.8 million in building aid tied to the closed project, and the presenter noted the district typically receives roughly 70% reimbursement on eligible capital costs. The district also reported reductions of about 17.5 full-time-equivalent positions through vacant-post eliminations, yielding an estimated $1.4 million in salary and fringe savings.

Use of reserves and fund balance The board was asked to approve using about $715,000 of undesignated fund balance for 2025'026. The presenter explained that a portion of that amount reflects one-time pilot payments received in 2024'5 (described later in the meeting as roughly $613,000 that the district did not anticipate earlier) and that the district's undesignated fund balance was roughly $4.6 million as of the close of the last fiscal year. The business staff noted the statutory limit for fund balance under New York law is 4% of the operating budget and said the district monitors reserves and closeouts closely.

Ballot propositions and other items for May 20 The board placed several items on the May 20 ballot, including: - A bus proposition to purchase up to six buses (three diesel and three gasoline) not to exceed $814,770, with anticipated state aid reimbursement of roughly 66% over five years; and - A proposition to create a 2025 capital reserve not to exceed $30,000,000 with a 10-year term (the board clarified that establishing the reserve is not an authorization to spend the funds; any use would require voter approval). The full list of propositions for May 20 will include the district operating budget, the bus proposition, the capital reserve proposition, the Bethlehem Public Library operating budget, two district Board of Education seats, and two library board seats.

Board discussion and next steps Board members thanked staff for the work on a tight budget, asked about the mechanics of replenishing fund balance and about state and federal funding uncertainty, and discussed whether to propose a larger tax levy. One board member moved to amend the proposed tax levy to cover planned expenditures (a motion described as roughly a 2% levy), but the motion failed for lack of a second. The board then adopted the budget items, including the tax levy as presented.

The district's business staff repeatedly warned that the budget relies in part on one-time or uncertain revenue streams and said he would provide regular updates during the fiscal year. "Whatever the board adopts today is just the starting point for the 25'026 fiscal year," the presenter said, noting that monthly or quarterly updates could be used to alert the board and public to material changes.

Votes at a glance - Approval of minutes from the March 19, 2025 regular meeting: approved. - Finance items (scholarships and donations listed on the agenda): approved (donors read into the record included Michael Big Dog Madewski; Donald Rubiard; Robert Salamone; James Coach Connolly). - Professional personnel action items (items 1—63 on the agenda): approved. - Support personnel action items (items 1—4): approved. - Other action items (policies, including policy on student members of the board): approved. Board members noted state law limits student board members from voting and entering executive session. - 2025'026 budget and propositions: items 1, 2, and 4 were approved first; an attempted amendment to increase the tax levy to cover the full projected expenditures failed for lack of a second; item 3 (the tax levy as presented at roughly 1.12%) was then approved. - Notice of 2025 annual election: approved.

The board set May 7 for the public hearing on the proposed budget, May 14 for a Meet the Candidates night, and May 20 from 7 to 9 p.m. for the district vote in High School Gym A.

Closing and context Board and staff members emphasized the district's limited control over revenue sources, noted inflationary pressure on health care and pharmaceutical costs, and flagged the need for ongoing monitoring. The business staff said the district will return with updates during the fiscal year and will present future-year projections to give the board and public advance notice of emerging pressures.