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Three Village officials explain use of reserves and staff contract concessions amid health‑insurance spike
Summary
District officials said staff and union concessions helped avoid midyear layoffs, and the board authorized drawing on reserves to cover flood repairs and a multiyear health‑insurance cost increase; officials said they expect partial FEMA reimbursement and plan to replenish reserves when funds arrive.
Three Village Central School District officials at the July 1 organizational meeting described how staff contract concessions and reserve funds were used to stabilize the 2024–25 and 2025–26 budgets after a midyear health‑insurance increase and storm damage.
Business official Mister Carlson told the board that two reserve draws were approved at a prior meeting: roughly $1.75 million to cover repairs and cleanup from August flooding, and about $800,000 for a midyear health‑insurance increase. He said those earlier costs, combined with an additional health‑insurance increase effective July 1, raised the district’s total health‑insurance cost by a little over $5 million year‑to‑year.
Nut graf: District leaders said several employee groups agreed to 0% salary increases or other concessions to avert deeper midyear cuts, allowing the district to preserve positions. Officials described the reserve withdrawals as intended for one‑time or emergency expenses and said they expect FEMA and other reimbursements; they recommended replenishing reserves when those payments arrive.
Superintendent Dr. Scanlon and other administrators thanked teachers, administrators and confidential staff who accepted pay freezes or contract extensions, saying those concessions prevented larger cuts. “The teachers’ unit took a freeze, a 0% increase for next year, as did the administrative unit,” Dr. Scanlon said; he said some units extended contracts or accepted zero increases to avoid eliminating positions.
Mister Carlson said the flood repair expense was about $1,750,000 and that he is “pretty confident” FEMA will reimburse a substantial portion of that amount; he said officials expect the district to return receipts to reserves when reimbursement arrives. On health insurance, Carlson said the district absorbed an $800,000 midyear increase (Jan. 1–June 30) and faces roughly $1.6 million of that cost on an annualized basis; a subsequent increase effective July 1 added roughly $3.8 million more, accounting for the “little over $5 million” total.
Officials emphasized the difference between using reserves for one‑time emergency costs (flood recovery, unexpected facility repairs) and relying on reserves for recurring operational expenses. Carlson cautioned that sustained operational draws would need to be reflected in future budgets or would otherwise deplete reserves.
Ending: District leaders said they will continue working with FEMA and other agencies on reimbursement and will report back on replenishing reserves; no additional reserve draws or midyear cuts were proposed at the July 1 meeting.
