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Peekskill proposes $131.7 million 2025-26 budget; board to use $2 million in fund balance to limit levy increase
Summary
Business official Mrs. Hawthorne presented a 2025-26 budget snapshot showing a proposed $131,740,528 spending plan, the governor's executive aid figure and tax-levy calculations; the board signaled intent to set a levy below the maximum and to assign $2 million of fund balance to offset taxes.
Mrs. Hawthorne, the district's business official, presented the Peekskill City School District's 2025-26 budget snapshot to the board and community, saying the executive budget proposal would yield state aid in the range described by the governor and that the district plans to rely in part on fund balance to limit tax increases.
Hawthorne said the proposed 2025-26 budget totals $131,740,528, which she described as a 7.06% increase over the current budget. She listed the governor's executive-state-aid number as $74,644,238 for the K'12 portion (excluding universal prekindergarten). Hawthorne explained how the state's tax-cap calculation yields a maximum allowable levy increase and how the board planned to set the levy below that maximum: "For this year, our maximum allowable levy is 4.59%... Our levy is 4.59%, which would be an increase of $2,080,950. ... the board has decided to go under our usual 2% tax cap down to 1.55% to give the community a bit of a break," she said.
Hawthorne said the board plans to assign $2,000,000 of unassigned fund balance, contingent on adoption and final state aid figures, to keep the levy increase lower. She provided a levy comparison: last year's levy was $45,354,204 and the proposed levy figure cited in the presentation was $46,034,517. Hawthorne presented estimated tax-rate effects, saying a 1.5% levy increase would raise the district's tax rate by roughly $4.59 per $1,000 of assessed value and result in an estimated $44.03 increase for a property with an assessed value of $9,600, as shown on her slide.
Why it matters: The budget numbers determine the district's taxing requirement and funding available for personnel, programs and capital work. Hawthorne said the board will present and adopt the full budget on April 8, hold a public hearing May 6 and submit the budget to voters on May 20.
Other details
- Revenue and reserve strategy: Hawthorne said the district has built reserves and plans an interfund transfer for capital work; fund balance and reserves will be used to smooth tax impacts while maintaining programs.
- Capital work: Hawthorne described continuing floor replacements and improvements across schools, funded via capital allocations and an interfund transfer; projects cited include work at Woodside, Hillcrest and other campuses.
- Tax certiorari reserve: Board members and Hawthorne discussed the district's tax-certiorari reserve, noting the typical conservative estimate attorneys recommend (roughly 30% of exposure) and the process for paying court judgments out of the reserve when cases resolve.
Discussion and next steps
Board members asked clarifying questions about the source of the $2 million (Hawthorne said it would come from unassigned fund balance) and how tax-certiorari payouts are handled. Hawthorne said state aid finalization is expected on April 1 and the board's next steps are adoption of the budget and submission to the public vote on May 20.
Ending: Hawthorne closed by restating the budget timeline and reminding the community that the district's financial decisions are intended to support programs highlighted during the board's budget presentations.
