District finance staff gave a third budget presentation to the Massapequa Union Free School District Board of Education covering transportation, recreation, benefits, debt service and capital plans.

Transportation: Presenters said the district moves about 5,227 students daily to 133 locations, including public, private and specialized placements, and operates roughly 106 buses and vans. The district reported nearly 400 field trips and about 350 athletic trips annually and estimated 117,000 miles traveled. The main transportation contract line was presented at $554,400 with an expected 4% increase under the current RFP; staff warned that districts without existing RFPs are seeing double-digit rate jumps. A consultant engagement previously yielded more than $1 million in annual savings; staff recommended reducing consultant spending because the district has trained an internal leader to keep efficiencies in place.

Recreation: The summer recreation program grew in participation. The current-year budgeted amount of about $700,000 was exceeded by actual spending of about $793,000, which staff said was offset by higher program revenue.

Benefits and staffing costs: Health insurance was highlighted as the largest single budget driver; staff noted a 0% family-plan increase in the most recent rate release and modest individual-plan increases but nevertheless budgeted conservatively. The district reported 632 active employees enrolled in district health coverage, about 400 active employees who decline coverage for a district payment, and 684 retirees for whom the district pays some form of health insurance (most Medicare primary).

Debt service and capital: Staff called out new debt service related to an energy performance contract that will increase in the 2026–27 fiscal year but should be offset over time by electric-cost reductions and potential building-aid increases. The administration recommended a $250,000 transfer to the capital account in year one and proposed asking voters to authorize use of an existing $4 million capital reserve for a second proposition; projects under consideration included lighting for a softball field, HVAC work at district offices, piping/abatement and window work, audio-visual upgrades in auditoriums, and classroom/science room renovations.

Revenues and levy: Staff said updated state aid databases point to approximately $1 million of additional state-aid revenue in categories such as building aid, transportation aid and BOCES adjustments. Using those projections and some reserve uses could reduce the preliminary levy projection that appeared in early drafts (presented around 3.56%) toward the district’s allowable levy guideline (3.09%) and potentially into the low twos. Staff said final reductions will depend on the enacted state budget and the board’s choices on reserves and program adjustments.

Next steps: Staff said they may convene a brief public meeting on April 10 if a state budget becomes available, and reminded the board of the budget hearing process and the May budget vote timeline. No final budget adoption occurred at this meeting; the board discussed options, reserve use and scheduling for further review.