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Budget workshop: district faces roughly $7.5 million gap as health insurance and transportation costs rise
Summary
Business official Jeff Carlson told the Three Village Board of Education that the district faces a roughly $7.5 million gap driven by a 12.7 percent health‑insurance increase and higher transportation costs tied to possible start‑time changes; board members discussed using reserves as a one‑time bridge.
The Three Village Central School District’s business official, Mr. Jeff Carlson, told the Board of Education at the March 5 workshop that the district is projecting a revenue‑to‑expense shortfall of about $7.5 million for the coming year if current staffing levels are maintained.
Carlson said the district’s tax levy limit for the year is calculated at 2.78 percent, based in part on a decision to lower planned capital projects from $3 million to $1.5 million; he also said the governor’s executive budget as presented in January would yield a net increase in state aid of about $238,000 for the district but that final state aid will be set when the state budget is completed. “That’s not going to be millions of dollars more,” Carlson said of potential state aid increases.
Major cost drivers: Carlson identified several large increases that together account for most of the gap: a net health‑insurance cost increase of about $5.3 million (described as a 12.7 percent net rise after a mid‑year adjustment and a July 1 rate increase), transportation costs rising from roughly $11.8 million to a bit more than $13 million largely because start‑time changes require additional buses, and retirement/benefit increases of roughly $900,000. He said the transportation increase stems from having to condense pickup windows and add vehicles; the district’s estimate for additional vehicles connected to start‑time and reconfiguration work is a net seven vehicles (four large buses and three mini buses), with an associated cost a little over $1 million.
Reserves and proposals: Carlson and board members discussed the possibility of using a portion of unreserved fund balance to “bridge” the start‑time implementation for one year while the district stabilizes its finances. Carlson noted the district’s unreserved fund balance is near state guidance limits and said drawing it down bears risk if cost pressures continue. One board member proposed using reserves to implement later start times immediately to avoid staff reductions; other members warned that doing so could repeat the same hard choices next year if health‑insurance costs remain high.
Board reaction and next steps: Several trustees pushed for a longer‑range financial plan. Trustee Dr. McKinnon (board member) said the district needs a formal multi‑year financial plan and said he would propose policies to begin that work. Superintendent Dr. Scanlon and trustees said the administration would continue staff, program and contract reviews and that additional budget workshops are scheduled for March 19 and April 9 ahead of a planned April 9 budget adoption and the district budget vote on May 20.
Ending: Mr. Carlson said the district will continue to refine staffing assumptions, meet with building principals and union leaders, and present updates at the next workshop; board members said they will weigh one‑time reserve options against longer‑term structural changes that could affect programs or staffing.
