Middletown board presents $276 million budget; three propositions headed to May vote

Superintendent and district officials presented the Middletown City School District’s adopted 2025–26 spending plan to the City Council, describing a $276 million budget that the board will put before voters on May 20.

District officials said the proposed budget represents a 5.23% increase from the prior year and would require a 1.99% increase to the tax levy — described in the presentation as about $1.4 million more in local levy revenue. Assistant Superintendent for Business Michael Tuttle said the district typically sees $8 million to $9 million in year‑to‑year increases for salaries and benefits and that this year’s levy increase remains under the district’s 2% tax‑cap reference point.

The board placed three propositions on the ballot. Proposition 1 is the operating budget (the $276 million figure). Proposition 2 would establish a $20 million capital reserve; district officials said this would be the third such reserve after the two prior reserves were depleted. Proposition 3 would authorize a set of capital projects totaling about $45.6 million, with work described for multiple schools including an addition and exterior work at Twin Towers, restroom and playground upgrades at William May Carter and Maple Hill, library and cafeteria upgrades, HVAC and electrical repairs and masonry work at Middletown High School, and exterior security and fire‑alarm work at Monhagen.

Tuttle said the district plans to fund the capital program with a mix of the remaining capital reserve balance (about $8.4 million), an appropriation from fund balance (about $10 million) and bond financing for the remainder (~$26 million). He stated the district expects high state building aid (reported in the presentation at approximately 89.9% aidability for the capital package), which officials said would offset much of the local share. When asked, a district presenter described that when aid flows as projects are completed, aid receipts will be applied against bonding costs, which the presenter characterized as “basically a wash.”

Officials noted contingency rules should the operating budget fail: a simple majority is required for passage, and failing that the district would operate under the prior year’s tax levy and face limitations on new equipment purchases and free facility use by community groups.

The district scheduled a public hearing for May 8 and planned to adopt the budget on May 12 before the voter referendum on May 20. District officials also noted uncertainty about potential federal policy changes that could affect programs such as the school lunch program (cited as roughly $6 million in federal revenue) and other federal grants (roughly $4 million), saying the district has reserves that could temporarily cover shortfalls.

Why it matters: The operating budget and capital propositions will determine tax levies, capital improvements to several neighborhood schools and whether the district establishes a new capital reserve. Voter approval on May 20 will determine whether the projects and levy changes take effect.