Bethlehem Central presents $116.6M 2025–26 budget proposal; recommends $715,000 fund‑balance use to close gap

John McPhillips, district business official, presented an updated 2025–26 budget to the Bethlehem Central School District Board of Education on March 19 and outlined proposals to close a remaining structural gap.

McPhillips said the adjusted proposed operating budget that would be presented to voters is about $116,600,000. After additions and reductions presented across departments, the remaining gap for 2025–26 stood at roughly $1,300,000 (about 2.3 percent of the budget). To balance the 2025–26 budget without exceeding the tax‑levy cap, McPhillips proposed using roughly $715,000 of the district’s undesignated fund balance and highlighted an unexpected $610,000 in revenue from a PSEG pilot program that reduced the immediate pressure on the levy.

He told the board that the district can increase the tax levy by $820,000 (about 1.12 percent) under the tax‑cap calculation included in the plan; the staff recommendation is to use the full allowable levy increase and cover the remaining gap with fund…