Union City School District previews 2025-26 revenue budget, outlines tax-levy calculation

Brigid Siena, assistant superintendent for business and operations, presented the Union City School District's 2025-26 revenue budget at the Board of Education meeting on March 18, 2025. The presentation focused on revenue sources, tax-levy calculations and the calendar leading to the May 20 budget vote and school election.

Siena told the board that "the tax levy for is the largest source of revenue for the district at 73% of the revenue budget." She said state aid is the next-largest revenue category at about 15%, and that other revenue (including building rentals and interest) is roughly 5%. Historically the district has applied reserves and fund balance totaling about 4% of the revenue plan.

The presentation explained the district's tax-levy limit calculation step by step: start with the prior year levy, apply the tax base growth factor provided by the Office of Real Property Services, add prior-year payments in lieu of taxes (PILOTs), subtract prior-year exemptions (capital levy components such as debt service and building aid), and then apply allowable growth factors from the State Comptroller's Office. Siena emphasized that PILOTs can change before March 31 as properties are added to or removed from the tax rolls and that those changes could alter the levy calculation between this presentation and later drafts.

Siena described state aid as primarily composed of foundation aid plus other categories, with the district's revenue plan listing $20,700,000 as a snapshot figure based on the Oct. 15 database that informed the governor's initial proposal. She noted the April 1 state proposal and the final aid figures could shift that number. Other revenue items Siena cited included tuition and health-service reimbursements, building rentals, Medicaid and E-rate reimbursements, and interest income; she observed that higher market interest rates (about 5% compared with COVID-era lows) have increased earnings on some district deposits.

Siena said the district has used specific reserves historically to meet obligations tied to collective bargaining agreements (named in the presentation as HTA and ESSAFA) and to offset employer retirement costs, which helps stabilize the tax levy. She summarized the near-term calendar: the next budget presentation is April 1 (curriculum, instruction, technology, health and safety), the budget adoption is scheduled for April 22, the budget hearing is May 13 and the annual budget vote and school election is May 20.

The presentation was informational; the board did not take a formal budget adoption vote at the March 18 meeting and Siena noted some revenue line items remain estimates and subject to revision.