Three Village sees roughly $7.5 million gap; board weighs staffing cuts, transport changes and property options

Three Village Central School District officials told the district Budget Advisory Committee that, under current assumptions, next year’s projected revenues total about $237.5 million while proposed expenditures total about $245 million — a gap of roughly $7.5 million that the district must close before the board adopts a budget.

The figure matters because the shortfall would require reductions, use of reserves or increases in the tax levy. The district’s presenter said the board plans to adopt the budget on April 9 and that the revenue estimate shown to the committee uses the governor’s executive budget figures; the presenter added the district’s net state-aid increase for general operations is about $238,000 when building aid is excluded. “We’re, actually adopting the budget on April 9,” the staff member said.

The tax levy limit (the district’s “tax cap”) and how the state reports aid were central to the discussion. Administrators said they reduced next year’s planned capital projects from $3,000,000 to $1,500,000 to lower the tax-cap impact; under that capital number the draft levy increase would be about 2.78 percent. The presenter explained that state “building aid” is a reimbursement stream tied to capital projects and is reported differently by the state; including building aid in a year-to-year total can make state aid appear to rise or fall even when operational aid is little changed.

Board members and staff described the largest expenditure pressures: health insurance increases, contractual salary lines (including an added $1 million separation-pay line to cover retirement incentives), and transportation. Transportation costs are estimated to rise by about $1.1 million next year after the district factors in the state CPI adjustment on busing contracts and route changes tied to the proposed start-time shift. The presenter said the start-time change would allow removal of two buses but would require nine added buses (six full-size and three mini buses), a net increase of seven vehicles for next year.

One board member urged caution about using staff or program cuts to pay for the transportation change. “I’m 100% against that,” the board member said, arguing it would be irresponsible to increase class sizes or cut student-facing positions to preserve a transportation-based start-time shift. Teachers and principals at the meeting emphasized the hidden costs of turnover — recruitment advertising, substitute costs for interviews, mentor and training time — and warned that bringing in replacement teachers erases investments in recently hired staff.

Retirements are both a budget pressure and a potential source of savings. The district reported 22 teacher retirements this year and several administrative retirements. Officials said replacement of a retiree with a new hire is estimated to save roughly $100,000 on average (salary plus benefits adjustments), but the district must budget increased separation-pay and assume some retiree benefits continue. The presenter said if positions are not replaced at all that produces larger savings; he asked the committee to recognize the uncertainty because retirements are voluntary and timing unpredictable.

Administrators also discussed reconfiguration savings: a prior presentation showed the current reconfiguration plan would save roughly $800,000 compared with an alternate staffing configuration. The presenter said enrollment declines are concentrated in several grades and buildings (one elementary school’s kindergarten registrations fell from 82 last year to 31 registered for next year), and that declining cohorts will force staffing adjustments under a 0-based staffing approach.

To identify nonoperational revenue options, the board announced the formation of a Property Analysis Committee. The committee’s charge includes reviewing deeds and covenants for district-owned parcels and identifying opportunities to rent or sell portions of property, including land along Route 25A, the Nichols Road building (old administration), and other district holdings at North Country. Staff warned moving central technology and maintenance facilities (the district’s “knock” central processing and garage) could cost an estimated $1 million to $2 million, so any rent/sale plan must preserve access to those functions.

Next procedural steps are staffing work meetings later this month (administrators said a March 17 staffing meeting and a March 19 board meeting will refine cuts), more detailed state-aid numbers once the state budget is finalized, and the board budget adoption scheduled for April 9. Administrators asked the Budget Advisory Committee to identify potential reductions and noted the FY estimates shown to the committee do not yet include any planned cuts: the $7.5 million gap is the starting point for reductions, replacements and other options.