Fairport CSD presents 2025‑26 draft budget with $3.5 million shortfall; benefits and health‑insurance costs drive majority of increase

The Fairport Central School District presented the first draft of its 2025‑26 instructional budget at the March 18 board meeting, showing a proposed total budget near $165.7 million, a $5.9 million (3.71%) increase in expenses and a projected $2.4 million increase in revenue — producing a funding shortfall of approximately $3.5 million at this stage of the process.

Matt Stevens, the district’s treasurer (speaking in his final weeks before a job transition), reviewed the figures for the board. Stevens said the district recorded beginning general‑fund cash of about $118.5 million, receipts in the month of roughly $7.1 million and disbursements of $31.3 million (for an ending cash balance of about $94.3 million). He said a $17.9 million transfer to the capital fund in the period reflected approved 2023 projects and that the district recognizes state aid and property tax as the largest revenue sources.

Stevens and superintendent Brett Provenzano attributed the bulk of the budget increase to employee salaries and — primarily — benefits. The district reported an overall benefits increase driven by higher health‑insurance costs: the Rochester‑area school health plan saw heavier claims activity and a roughly 14% premium increase at renewal, which Stevens said translated to a 9.36% increase in the district’s benefits budget. Stevens told the board that “about 66%” of the budget increase is attributable to benefits and “about 34%” to salary growth.

Transportation costs, including bus purchases, were also detailed. The district proposed purchasing nine large buses in the coming cycle and reported a total bus‑purchase cost of about $1,806,000 (trade‑ins estimated at roughly $22,500). Stevens explained the district uses a roughly 10‑year replacement schedule for a fleet of more than 100 vehicles and receives building‑aid support spread over multiple years for bus purchases.

On the revenue side, Stevens said the district anticipates about a $490,000 foundation‑aid increase in the governor’s proposal, offset by declines in some expense‑based aids (notably a $1 million reduction in building aid when compared budget to budget) and a $400,000 one‑time bus grant that was available in 2024. Overall, the draft shows a roughly $2.4 million revenue increase, leaving the draft gap near $3.5 million.

Board members and district staff outlined the three main levers for balancing the budget: raising additional revenue (including a potential tax levy override that would require 60% voter approval), using assigned fund balance and reserves, or reducing expenditures (including staffing or non‑instructional costs). The district said it aims to keep appropriated fund balance in the historically familiar 3–4.5% range and that the current draft uses assigned fund balance to limit immediate programmatic reductions.

Stevens reviewed reserve balances and history: the capital project reserve showed about $15.6 million at fiscal‑year end; a new bus reserve created in 2024 had roughly $729,000; and the pension reserves had roughly $9.1 million (ERS) and $4.9 million (TRS) at 6/30/24. The district has not relied heavily on operating reserves in recent years, Stevens said, and noted that reserves are finite and intended to buy time while longer‑term adjustments are made.

Superintendent Provenzano summarized next steps and timeline: the board will hold further budget workshops (April 8 and April 22 were cited), expects a public hearing on May 6, and scheduled the budget vote and school board election for May 20. Provenzano and staff emphasized they expect additional clarity when New York’s final state budget is released and that the district will continue to refine revenue and expense estimates.

No budget vote occurred on March 18. Administrators said they would present more detailed options for closing the gap in subsequent workshops and urged continued public input as the process unfolds.