District finance director reviews fiscal‑stress score, cost drivers and 2025–26 budget plan

Doctor Rella, presenting the district's 2025–26 budget development overview, summarized the Office of the State Comptroller fiscal‑stress indicators and the district's recent reliance on reserves.

Rella said the district’s unassigned fund balance and total fund balance are below the Long Island averages cited by the comptroller and noted the district’s fiscal‑stress score was approximately 21.7 points — below the 25‑point threshold used to place districts on the comptroller’s susceptible list. She told the board the district has used reserves and fund balance in recent years but has reduced the prior $4.5 million deficit to near neutral as part of recovery efforts.

On the expenditure side, Rella listed the primary cost drivers in order: contractual obligations, health care costs, special‑education expenses (including additional praise classes and related IDEA grant costs), transportation, utilities, additional teacher aides required by IEPs, loss of pre‑K grant funds shifted to the general fund (about $400,000 cited) and increasing liability insurance and technology costs. She said the district had contained transportation increases through a contract extension and that prior solar installations limited electricity cost growth but could no longer fully offset rising utility prices.

Rella explained the three required budget components — administrative, program and capital — and said programmatic spending remains the largest share. She summarized capital priorities and the proposed transfer to capital: the district proposes a $3.5 million transfer to capital for 2025–26, with the top priority being Center Reach High School’s chiller and boiler project. Other listed capital needs included the Hawkins Path roof, a Jericho playground, electrical transformer relocation at Hawkins Path, sidewalk and paving work and other site and mechanical upgrades. Rella described the district goal of shifting dollars into a transfer to capital as existing bonds roll off, allowing district funds to fund projects without borrowing.

On revenues, Rella walked the board through the tax levy calculation and allowed capital exclusions and pilot adjustments; she calculated a district tax levy cap of 2.21% and said the proposed budget stays within that cap. She reviewed the governor’s executive budget proposal for state aid and noted a projected increase in foundation aid for 2025–26. Rella warned, however, that excess cost aid (reimbursement for special‑education excess costs) was not increasing at the same rate as special‑education expense growth.

Rella closed by listing next steps: await adopted state aid around April 1, finalize revenue and expenditure plans, adopt the budget by 04/23 and hold the public vote on 05/20. She urged continued financial advocacy on several points: fewer restrictions on pre‑K grant usage, higher aid for students with disabilities and continuation of universal free meals.

Ending: Board members thanked staff; Rella provided links to prior presentations and asked the trustees to continue financial advocacy at the state level.