Superintendent previews FY26 budget: $8.9 million gap, energy project and capital priorities highlighted
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Summary
Superintendent Dr. Russo presented the first budget preview of the season, outlining a projected revenue-appropriation gap of about $8.9 million, cost drivers including health insurance and transportation, and an energy-savings improvement project (ESIP2) that would use solar carports and local matches to fund HVAC and other upgrades.
Dr. Russo, the district superintendent, told the Board of Education that the administration is starting a series of budget presentations leading to a March 18 action to adopt the FY26 budget and a March 20 filing deadline.
"This is the first of several presentations. We'll start to do this monthly as we move towards a final budget," Dr. Russo said, describing the process and strategic priorities that guide spending decisions.
Russo said the district is operating under two fiscal constraints: the state—ap on local tax levy growth (noted at 2% in the presentation) and the constitutional requirement that revenues equal appropriations. He identified major cost drivers: negotiated salary increases, healthcare, transportation inflation, out-of-district special-education tuition increases and technology and program subscriptions adopted during COVID.
Current gap: Dr. Russo presented a working shortfall between projected revenues and appropriations of about $8,900,000. He said several estimates are still preliminary and will be adjusted when state aid figures are released.
Health insurance and staffing: The superintendent said the district moved into a self-funded school health insurance fund after several years of increasing reinsurance costs. He said negotiations produced a 10.6% increase in the first-year budget projection for healthcare and that the district recently learned of 43 newly enrolled employees whose coverage will increase costs further. Dr. Russo cautioned that some of those figures arrived late and could change.
Transportation and facilities: Russo said transportation costs have risen sharply over recent years; he estimated transportation at roughly $19 million in recent years and projected a 4% increase for the coming year. Facilities items headed for the capital plan include a roof replacement at Town Center (previously submitted for an ROD grant but excluded after a submittal error), Grover—lectrical work including robotics-room upgrades, High School North theater seating and flooring, and an electrical and hot-water upgrade for the culinary arts lab.
Energy Savings Improvement Project (ESIP2): Dr. Russo described a proposed ESIP2 that combines energy-conservation measures and solar carports to fund HVAC and equipment upgrades. Schneider (the firm assisting the district on ESIP) is providing $1,100,000 from corporate tax savings tied to the first ESIP project; the district is budgeting a $500,000 local share. If implemented as planned, about 71% of the district—lectricity load would be supplied locally and three to four schools could approach net-zero electric usage, Russo said. He also noted that some planned carports were not allowed by the local utility due to grid constraints.
Budget calendar and next steps: Dr. Russo outlined the calendar: budget work through winter, the district—inance committee and county office reviews, a March 18 board action to adopt and a March 20 filing with the county. The superintendent said a public hearing on the final budget is scheduled for April 29.
Dr. Russo closed by saying the administration will bring further budget detail in monthly sessions and that the board and public will have additional opportunities to shape priorities before adoption.
No formal budget vote took place at the Jan. 27 meeting; figures presented are working estimates ahead of state aid announcements.
