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Business official explains district budget timeline and tax-cap calculation; district projects 2.6% levy increase
Summary
District staff presented the budget development schedule, demonstrated how the New York State tax-cap calculation works, reviewed fund-balance trends and said foundation aid is up roughly 2% on the executive-state aid runs; the administration is planning a 2.6% tax levy below the levy limit.
The Rockville Centre Union Free School District’s finance presentation at the Jan. 23 board work session outlined the budget-development timeline, recent fund-balance activity, and the district’s current tax-levy planning.
A district finance presenter (identified in the meeting as Miss Rehak) walked the board through the schedule of budget presentations and hearings that lead to the May 20 annual budget vote: budget-detail sessions are scheduled for Feb. 26 (administration, benefits, capital), March 13 (curriculum and Pupil Personnel Services), March 27 (music, arts, PE, athletics), with a preliminary budget hearing on April 10, a formal hearing by May 8 and the budget vote on May 20.
On fund balance, the presenter said the district closed the most recent fiscal year (2023–24) with an unassigned fund balance of about 3.5% of the budget as of June 30, which the presenter described as "within the 4% limit." She explained that recent swings in applied/appropriated fund balance were largely due to planned capital work (the middle-school field and roof), and that the district has modestly increased both unassigned and reserved balances in the last fiscal year.
The presenter then reviewed how the state tax-cap calculation is applied. She described the growth factor applied to a prior-year levy as the lesser of inflation or 2% and showed recent examples when inflation exceeded 2% while the allowable growth factor stayed capped at 2%. Using the calculation inputs, the presenter said the tax-levy limit (tax cap) for 2025–26 stands at $109,251,846, a 2.61% increase over the prior levy. The administration is planning a levy of $109,240,000 for 2025–26, reported as a 2.6% increase and described as under the tax cap so the district would not need a supermajority board vote to exceed the cap.
The presenter reviewed exemptions that affect the calculation: payments in lieu of taxes (PILOTs) are subtracted because they are treated as nonproperty-tax revenue, while projected exemptions such as debt-service principal and capital transfers are added back in the formula. She illustrated how keeping capital transfers steady (the example was $1.8 million) can neutralize the effect of that line item on the levy calculation.
The presenter also said the state’s executive aid runs — released the week of the meeting — showed foundation aid up roughly 2% (approximately $250,000). She noted that part of the larger percentage change on the runs was driven by Universal Pre-K (UPK) aid, which does not affect the general fund. Transportation aid on the exec runs showed a decline; the district submitted an amendment to its state reporting to reflect higher projected transportation costs and said it will use its own projection for budget planning if the February runs do not reflect the change. The presenter cautioned that state runs sometimes come after April 1, which can require late adjustments.
No formal vote on the budget or levy occurred at the Jan. 23 meeting; the presentation was informational. The board asked follow-up questions about foundation-aid recommendations, timing for final state runs and whether the district intends to restore fund balance to the 4% limit; the presenter said the administration and board will discuss fund-balance goals and monitor monthly projections.
