Iroquois Central School District officials told the board that state aid and tax-cap rules will sharply limit revenue growth for next year and urged caution as they finalize budget assumptions.

The district’s chief finance presenter said almost 80% of the district’s revenue comes from two sources—foundation aid and the tax levy—and that both are tightly controlled by state formulas and local assessments. The presenter noted the district cannot generate new operating revenue outside the tax levy and state aid streams and therefore must protect instructional programs from fluctuations.

Board members discussed several specific uncertainties. The district flagged the Rockefeller Institute’s December report on foundation aid as a potential driver of future change but said it contains recommendations rather than an implementable formula; the superintendent said the district does not yet know whether any recommendations could be adopted quickly or would help or hurt Iroquois. The presenter also said the governor’s upcoming executive budget (discussed in the meeting as expected on January 14) is unlikely to propose large increases in foundation aid and that district staff are instead modestly hoping for small percentage increases through legislative negotiations.

District staff reviewed tax-cap mechanics and recent levy history. The business presenter said the district’s allowable tax levy growth will depend on the tax base growth factor (already known to be 1.006 for the year discussed), the allowable growth factor derived from the Consumer Price Index and other components such as service payments. The presenter estimated the district’s tax-cap calculation will likely yield an allowable levy growth in the mid-to-high 2 percent range (example ranges cited in discussion: 2.7–3.6 percent), noting the final CPI and other inputs normally arrive later and that the finalized number is expected in February.

Staff also reviewed expense-side pressure: the State Teachers’ Retirement System (TRS) employer rate was discussed as likely to be roughly flat in the next budget year (presenter referenced an estimate “between 9.5 and 10%” and said the current rate being budgeted is about 10.11%). The superintendent emphasized that a flat TRS rate still produces higher costs because salary steps increase payroll. Health insurance was described as producing lower-than-market increases for Iroquois this year, attributed to local self-funding and a change in the pharmaceutical plan; staff estimated health premiums may rise 2–3 percent in the coming year, below market trends.

Several board members asked about BOCES contract growth and whether BOCES could trim costs if state aid remains flat; the superintendent reported ongoing conversations with BOCES leadership and said the district will review each BOCES line item (technology, programs, service counts) before finalizing next year’s budget.

The presentation also previewed an upcoming proposition proposal: staff said they intend to present a vehicle-replacement proposition (small buses and full-size buses) similar to the prior year in May, and that the district will continue to apply for grants (NYSERDA and EPA clean bus grants were discussed) though the district has not qualified as a priority district for at least one federal program and has not yet secured sufficient grant funding to make electric buses cheaper than diesel or gas alternatives.

Why it matters: With roughly four-fifths of operating revenue tied to state formulas and the tax levy, the district has limited capacity to offset rising costs. Board members said they will weigh program protections and reserve use against taxpayers’ capacity to absorb levy increases.

Next steps: Staff will finalize the district’s tax-cap calculation when state inputs arrive, continue BOCES line‑by‑line reviews, monitor the governor’s executive budget and produce a further update at the board’s February meeting.