Syracuse City School District projects $36.2M state-aid increase; plans STEAM high school and reduced fund-balance use

Syracuse — The Syracuse City School District told the Syracuse City Council at a budget hearing that it expects roughly $36.2 million in additional state aid for the coming year and is planning to open a STEAM high school in fall 2025 while using $15.5 million of fund balance to balance its operating budget.

Superintendent Tony Davies, presenting the district’s preliminary numbers, said the projected state-aid increase stems largely from recent adjustments to the Foundation Aid formula and updated poverty estimates. "This budget is based upon the Governor's original proposal," Davies said, adding the district will "make the adjustments as necessary once we hear a little bit more" when the state aid runs through.

The increases detailed by Davies include roughly $13.9 million from changes to Foundation Aid inputs — about $5.2 million tied to a new measure of economically disadvantaged students and about $8.7 million from changes to the district wealth floor and ceiling — plus an estimated CPI-driven increase and other categorical aids for a total state-aid boost of about $36.2 million. The district projects foundation aid of roughly $29.4 million (a 7.8% increase) and transportation aid of about $6.4 million (a 25% increase).

District leaders said the state modified the Foundation Aid formula to use a three-year average of poverty (Small Area Income and Poverty Estimates, or SAPE) and a three-year average for economically disadvantaged students, replacing older Census-derived measures. Davies said the changes made Syracuse’s need appear greater in the formula and that further adjustments to account for differences among English-language-learners and special-education severity may come in future years.

The presentation included program and capital plans: the district intends to put $8 million of fund balance toward the STEAM high school, $2 million toward phase-in costs for Delaware Montessori, and $4 million into capital projects, including improvements at I.C. Thornell and Roosevelt stadiums. District staff said the STEAM high school will open in fall 2025 with a planned class of 250 ninth-graders and that the county owns and is funding the building renovations; the district will lease the facility and has budgeted about $7 million per year in related professional services/lease costs over 15 years.

Davies and staff also flagged federal funding uncertainty. The district reported roughly $72 million in federal funds this year, including about $18 million for food services and about $20 million in Title I dollars that fund interventions and after-school programming. "We are unsure of what's going to happen with those funds," Davies said, noting potential federal changes could require future adjustments.

Transportation costs are rising. The district reported a roughly $4.5 million increase in transportation expenditures, tied in part to new contracted rates with providers including First Student. The district also cited higher costs stemming from obligations to transport McKinney-Vento–identified homeless students who live outside Syracuse; Davies said some students must be transported up to 50 miles to reach district schools.

On student needs and services, Davies said chronic absenteeism has improved but remains a concern, with kindergarten historically the most impacted grade. The district plans to continue ARPA-funded initiatives that address attendance and social-emotional supports, shifting some successful programs into the general fund. The budget includes investments in mental-health staffing, social workers and a trauma-response team; district staff said those services are critical given local community trauma and tragedies.

Workforce and contract issues remain part of the fiscal picture. The district budgeted an $21.4 million increase in salaries and wages (8.1%) and a $5.4 million increase in benefits. Davies said some retention measures and incentives are still under negotiation and that he expects the district’s adopted budget to reflect current contract talks.

Other details raised at the hearing: the STEAM school will accept non-district students on a tuition basis using a commissioner-approved, expense-based tuition formula modeled on BOCES practice; preliminary planning counted about 45 non-district students expected to attend, roughly 30 of whom are from the county. The district said it would include ninth graders in CTE aid calculations if the state formula is changed to cover ninth-grade CTE participation.

The district did not request additional city funding or a change to the property tax levy. Officials said their goal for the coming years is to reduce reliance on fund balance until revenues and expenditures are balanced without using reserves.

The hearing concluded without formal votes recorded on budget adoption; a motion to adjourn was made late in the session.