Middletown board approves budget measures, puts $20M capital reserve and $45.6M project before voters

The Middletown Board of Education on March 20 reviewed the instructional portion of the 2025–26 budget, approved a package of personnel and financial items, and passed resolutions to put a $20 million capital reserve and a $45,645,000 capital project before district voters on May 20, 2025.

Superintendent Amy Creedon told the board the instructional component accounts for about 58% of the district’s total budget and is proposed at roughly $161,000,000—an increase of about $8,200,000, or near 5 percent. Creedon said some increases reflect the end of federal CARES Act funding for social-emotional supports; positions previously paid with federal grants are now assumed in the general fund, increasing lines such as social work and psychology services.

The superintendent outlined program and staffing changes included in the instructional proposal. Creedon said the district plans to abolish several part-time clerical positions and one human-resources specialist post that were vacant or consolidated, and to create two audiovisual production specialist positions and two human-resources coordinator positions. She said the changes reflect a strategic reorganization and do not alter core instructional programs.

Nut graf: The board approved motions that move the capital plan to voters and cleared routine personnel and financial measures. If voters approve the propositions on May 20, the district proposes to fund a multi-school capital project largely with New York State building aid and existing reserves so there would be no increase in the tax levy for taxpayers, the superintendent said.

Key facts and funding details - Capital project: maximum estimated cost $45,645,000. The board package identifies a mix of state building aid, capital-reserve dollars, unappropriated fund balance and 15-year bonds to fund the work. Creedon said state aid could return about $41,000,000 over 15 years, with the district’s local share covered by capital reserves and existing balances. She characterized the plan as producing “no tax levy increase to the taxpayer.” - Proposed new capital reserve: the board approved submitting a proposition to create a 20-year capital reserve fund with an ultimate amount of up to $20,000,000. That resolution cites Education Law §3651 as authority for the reserve. - Instructional budget: proposed at roughly $161,000,000; increase of about $8.2 million (about 5%). Creedon said roughly 58% of the total budget is instructional spending (teachers, counselors, nurses, busing, special education, co-curricular activities and related services). - Federal-to-local funding shift: the district is moving some psychologists, social workers and other positions from federal (CARES/ESSER-era) funding into the general fund now that the federal funding has ended. - Transportation: superintendent and staff described a 19.9% increase in transportation costs tied to specialized out-of-county placements and services required by individual education programs (IEPs); aid is available for many of those routes but costs rise in the near term.

Board action and votes - The board unanimously approved routine agenda items, minutes and memoranda earlier in the meeting: approval of the agenda (motion carried 7–0), approval of the March 6, 2025 regular meeting minutes (7–0), personnel memorandum 18B (items 1–11) (7–0), noninstructional personnel memorandum 18C (items 1–10) (7–0), financial memorandum 18D (items 1–2) (7–0), and special services memorandum 17E (items 1–2) (7–0). - The board approved the appointment of John Gallo as field technician for the May 20, 2025 budget vote (7–0) and approved a board of election workers salary increase (7–0), which board members said reflected a local minimum-wage adjustment. - The board approved by unanimous vote a resolution to establish a 2025 capital reserve fund (to appear as Proposition 2 on the May 20 ballot). Mover: Pastor Williams; second: Mitchell Williams/Ed Perino (motions recorded in the minutes). Vote: 7–0. - The board approved by unanimous vote a resolution authorizing construction and bond issuance for the capital project (Proposition 3 on the May 20 ballot), including use of capital reserves and bonding. Mover: Andrew Moore; second: Ed Perino. Vote: 7–0. - The board passed a resolution of necessity and a SEQRA (State Environmental Quality Review Act) determination (the district declared the project a Type II action under 6 NYCRR Part 617, stating it will not have significant adverse environmental impact). Both resolutions were approved 7–0.

Discussion highlights Board members asked for and received clarifications about enrollment projections, transportation drivers and the district’s fiscal reserves. Members emphasized the district’s Moody’s rating (reported as a low A3) and the role of reserves in keeping borrowing costs lower; the board and superintendent described a long-term strategy of using capital reserves and short-term BANs (bond anticipation notes) before issuing long-term bonds to limit annual interest costs.

Calendar and next steps Creedon and staff noted several upcoming public engagement events: a budget recap session on April 22 (virtual and in person), an April 10 revenue discussion (timing contingent on the state budget), and the May 20 budget vote and annual election. The board recorded that the budget presentation materials are available on the district website.

Ending: The board’s actions move the district’s capital and budget measures to public referendum. Voters will decide on May 20 whether to create the $20 million capital reserve and whether to authorize the $45,645,000 capital project and associated borrowing. All board motions recorded in the meeting minutes were adopted by unanimous votes (7–0).