Board hears $375.1M proposed budget and tax‑levy calculation; district projects $16M year‑over‑year increase

The Newburgh City School District presented a draft $375,100,000 budget for 2025–26 at the March 11 Board of Education meeting, representing a projected $16 million increase over the prior year and a 4.5 percent budget change year‑to‑year.

Assistant Superintendent for Finance (presenter listed as Miss Roaring) and budget staff detailed factors driving the increase, including projected new out‑of‑district and in‑district special‑education placements, a growing contract‑for‑excellence set‑aside and capital exclusion amounts used in the state tax‑levy calculation. Administration said it anticipates a net increase of 34 special‑education placements and used a rough per‑student tuition estimate of $100,000 to project an added $3.4 million in tuition costs for 2025–26.

Roaring told the board the district completed its tax‑levy calculation and the allowable levy limit for 2025–26 is $117,300,000, an increase of about $3,700,000 (3.28 percent) over the levy submitted to voters in 2024–25. The calculation incorporates multiple state factors outside the district’s control, including local tax base growth, pilot payments and a capital exclusion tied to projected debt service less state building aid (the district cited a roughly $4 million capital exclusion amount in the calculation).

The administration said key revenue assumptions include a flat tax levy, projected increases in utility tax receipts and projected excess‑cost aid increases; the presentation also included an estimated $5.2 million appropriated fund balance to support the budget. Presenters warned of federal and state funding risks — notably the potential loss or reduction of school‑meal funding and changes to Title and IDEA grants — which could materially affect revenue and require adjustments.

Contract‑for‑Excellence set‑aside funding, a portion of foundation aid that must be earmarked for specified categories, is expected to grow from roughly $17.7 million in the current year to about $21,955,979 for 2025–26 (the presenters said 75 percent of that set‑aside must go to the district’s highest‑need schools). Administration outlined proposed uses including added coordinators for restorative justice, AIS teachers, social workers, bilingual teachers and other positions targeted to data‑driven needs.

The budget calendar shared with the board sets presentation of the acting superintendent’s proposed budget on March 25 and a potential board adoption on April 8 in alignment with the adopted calendar. The district also briefed the board on additional budget changes under consideration: targeted staffing additions and reductions, locker‑room repairs and playground replacements identified by the insurer. The presenters said several staffing reductions and administrative reconfigurations were proposed and that notifications would be provided after March 17.

Board members asked for clarity on staffing changes and on the involvement and start date of a budget‑consulting firm recently contracted to help the district; the board was told the firm’s no‑later‑than start date was discussed for March 15 and that the board would be notified when the firm began work.

Ending: The acting superintendent’s proposed budget will be presented to the board on March 25; the board may adopt the budget on April 8. Any changes after state budget adoption or federal grant adjustments could require further revisions and identification of offsetting revenues.