Board reviews 2025–26 budget; gap about $3.4 million as property tax report card shows 5.5% allowable levy increase

The Niagara Falls City School District board reviewed the latest draft of the 2025–26 budget during a Feb. 27 work session and was told the gap before using reserves was about $3.4 million.

Board members were shown adjustments on both the revenue and expense sides. Revenue improvements included an increase in expected tax collection and interest income and a $12,000 reduction in a hardware/textbook/software line, producing roughly $50,000–$60,000 in net additional revenue. On the expenditure side, staff said it was possible to shift about $300,000 of personnel costs onto federal grant funds and that one federal grant that previously covered roughly half a salary is expiring and must be counted against the general fund.

Why this matters: the district must close the remaining gap while preserving full-time employees and key programs, staff said. The presenters emphasized they plan to avoid involuntary staff reductions and that reserves will be used if necessary.

Details and near-term steps - The board was told the budget-to-budget growth (excluding capital-project revenue) is about 3.9%. - Staff said last week’s projected reserve use for debt was roughly $915,000; after accounting for that the remaining gap reported Feb. 27 was about $3.4 million. - Staff reported increased nursing costs for services that extend beyond the regular school day (after-school activities and sporting events) and recommended increasing the nursing line to reflect those obligations. - The district separated its general elementary summer school program from Camp Wolverine (the district’s summer program for exceptional children). The presenter foreshadowed a recommendation to restore Camp Wolverine funding to the general fund; that restoration would enlarge the budget gap if approved. - Staff said they had identified opportunities to shift more staff costs to federal grants but noted that at least one grant is expiring and will raise general-fund obligations.

Property tax report card and tax-cap math Staff explained the district’s property tax report card, which must be submitted to the New York State Comptroller by March 1. The board was told the tax-cap formula allows an allowable levy increase of 5.5% for this year under the district’s specific debt and tax-base factors; staff repeatedly said they do not intend to recommend raising the levy to that maximum but confirmed the district will file the report showing the 5.5% allowable increase. Staff also provided the district’s estimate that each 1% increase in the levy would generate about $258,290.

Budget timeline and next steps Staff outlined a timetable: a more refined budget will be presented March 13 and March 27, with a final budget presented for a board vote in early April (staff cited April 10 as the anticipated final vote date). The presenters said insurance rates, property-casualty numbers and final state foundation-aid figures (dependent on the state budget) will be incorporated before the final vote.

What the board directed or agreed - Staff will file the property tax report card with the New York State Comptroller by March 1 showing a 5.5% allowable levy increase while stating the board does not plan to seek an override or supermajority vote. - Staff will return with strategies to close the roughly $3.4 million gap while preserving current FTEs and programs; one likely near-term approach is limited use of reserves.

Community and funding context Board discussion and later public remarks noted the district receives substantial federal funds (Title programs, IDEA special-education funds, Head Start and other grants). Staff estimated roughly $11.5–$12 million in federal funds overall, including about $2.3 million in IDEA special-education funding and about $2.3 million for Head Start. Board members and staff said they are monitoring national and federal budget developments and have begun outreach to state officials to preserve funding streams.

Ending Board materials and staff presentations indicated the district will continue refining assumptions and present updated budget drafts at the March meetings before asking the board to adopt a final budget in April.