The South Huntington Union Free School District Board of Education spent the bulk of its March meeting on a second budget work session, reviewing the tax-levy formula, fund balances and a proposed capital reserve that administrators say could be seeded with roughly $3.5 million.

Board finance presentations outlined why the district’s eligible tax-cap figure is currently 3.97 percent and explained how exclusions (pension increases, capital expenditures, debt service and bus purchases) change the calculation. Staff emphasized that the levy setting is a formula-based calculation and that the board can propose a levy lower than the allowable maximum.

Chief budget discussion points included fund balance and reserves. Staff reported the district’s unassigned fund balance stood at the recommended 4 percent and that the district allocated $2.79 million of fund balance toward the 2024–25 budget. Officials said last year’s higher-than-expected state aid, interest income and FEMA reimbursements allowed the district to add about $6.6–$6.7 million to reserves.

Administrators recommended exploring a voter-authorized capital reserve to fund future permanent structures to replace aging portable classrooms. The district presented a notional funding strategy that would rely on savings in multiple budget lines — lower-than-expected health insurance increases, reduced short-term interest costs on tax anticipation notes, transportation savings from route changes, and other underspends — and estimated a feasible initial deposit around $3.5 million. Staff said the reserve would require a separate, standalone proposition on a future ballot and could not be funded and spent in the same fiscal year.

Board and staff discussed where permanent construction might be required, noting enrollment variations across buildings (lower at Countrywood and Maplewood, higher at Oakwood and Birchwood). Administrators cautioned that permanent replacement of portables could be staged over multiple years rather than completed in a single year and that costs previously discussed are roughly in the $5 million range per building.

Transportation was a parallel theme. Staff described a transportation committee that has reclaimed several routes from vendors and estimated savings from converting contracted routes to in-house service. As part of fleet planning, the district said it is considering the purchase of six 66-passenger buses and six 29-seat vehicles to keep the fleet current and support bringing routes in-house. A traffic count study delayed by winter weather was expected to produce preliminary results the week following the meeting, and the Transportation Committee planned to review those findings at its March 13 meeting.

Facilities updates included an energy performance contract (EPC) the district closed in May 2023. Facilities staff reported the EPC is nearing completion and that weatherization, boiler work, LED lighting and solar arrays have been installed; solar interconnection to the grid has already produced preliminary savings. Staff said additional EPC work may be issued via RFP to identify more energy-efficiency projects.

State aid projections from the governor’s executive budget were summarized: the presentation showed foundation aid and expense-based aid increases in the governor’s proposal, but staff reminded the board that the legislature often modifies those figures.

Administrators closed by noting next budget work-session dates and that the budget referendum and BOE election are scheduled to conclude on May 20. The board plans a focused levy discussion at the next meeting before adopting a proposed budget for the voters.

Ending: Board members asked questions, and staff said they will provide updated revenue and expense estimates, the Transportation Committee will distribute its traffic-count report, and any decision to place a capital-reserve proposition before voters would follow additional board discussion and a required voter authorization process.