Depew board hears 2025–26 budget outlook, proposed $8–9 million capital project to go to May vote

The Depew Union Free School District’s interim superintendent presented the district’s Feb. budget update, telling the Board of Education the draft 2025–26 budget contains a $785,301 gap and that the board will consider a capital project for voter approval in May.

The presentation projected 1,779 students for fall 2025 (cohort size about 38) and described key cost drivers: a combined 6.8% increase for retirement systems (ERS/TRS), a 6.3% estimated increase in health insurance and a 4.7% increase from negotiated salary commitments. District staff said those factors account for roughly $1.7 million of increased costs in the fiscal plan.

The superintendent reviewed state budget signals the district is monitoring: a Division of Budget midyear update that projected a $1 billion structural deficit for 2025–26 and the governor’s preliminary executive budget that the presenter said proposes a 4.7% increase in total aid and a 5.8% increase in foundation aid. The presenter told the board that about 55% of districts would be on “safe harmless” under the governor’s approach, up from just under 50% the previous year, and said the district expects continuing negotiation and clarification of state aid through the April budget process.

On local revenue and levy calculations, staff described the tax-cap formula steps used by the district, including use of the Office of Real Property Tax Services (ORPTS) growth factors and payments in lieu of taxes (PILOTs). Staff projected a tax levy increase of about 4.61% — described as roughly $942,761 — after applying allowable exemptions and adding planned capital expenses back into the levy calculation. The presenter emphasized the district would remain under the statutory cap and noted the district’s combined wealth ratio (about 0.608), free-and-reduced-lunch rate (48.5%) and census poverty measure (5.2%) as local context for levy decisions.

The presenter outlined planned uses of reserves for 2025–26: approximately $1.3 million from the Employee Benefit Accrued Liability Reserve (for retiree sick- and vacation-day buyouts) and about $800,000 from a capital reserve (principally for bus purchases), for a total planned reserve draw of $2.1 million.

District administrators listed current new budget requests totaling approximately $291,000, including a new reading program ($230,000), BOCES curriculum supports ($30,000), $25,000 for high-school equipment tied to a capital project and building-level furniture/equipment requests. The draft budget presented was $55,451,247 with draft revenues of $54,665,946, leaving the $785,301 shortfall staff said they would close by protecting programming, prioritizing requests, seeking final state aid figures in March/April and using fewer reserves if aid increases materialize.

Staff also described capital-outlay rules under current state law that allow districts to undertake a modest, single-trade project annually (the presenter noted a current $100,000 limit under discussion at the state level to be raised toward $250,000–$350,000). For a larger scope, the district plans a capital project — described as an $8 million to $9 million proposal with “minimal tax impact” — that would be placed before voters in May. The proposed scope includes unfinished items from a prior project (bathrooms, HVAC/air conditioning), track resurfacing, parking-lot and site-lighting repairs, bus garage roof and masonry restoration, and conversion of a Hugo Heights multipurpose area into a family support center with outside access and added storage. The presenter outlined a projected schedule: design work in summer 2025, State Education Department (SED) review in fall/winter 2025 and construction starting in spring/summer 2026 if approved.

Board members asked clarifying questions about PILOT agreements and their typical terms; staff answered that PILOTs noted in the presentation generally run about 10 years and come through local IDAs. The board did not take a formal vote on the budget or the capital project at the meeting; staff said additional draft budget presentations would occur in March before adoption in April and a public hearing and vote in May.