New Rochelle board hears plan to close $20.2M gap with 3.95% levy, up to 200 job cuts proposed

The New Rochelle City School District on Thursday continued budget work session No. 7 as Superintendent Dr. Reynolds and district finance staff outlined a proposed $359,468,597 budget that would close a roughly $20,200,000 revenue gap largely through a proposed 3.95% tax-levy increase and reductions in staff and contracted services.

"We have a $20,200,000 gap to close," Superintendent Dr. Reynolds said, describing changes to the state's foundation-aid formula and other cost pressures that have reduced expected state funding. She told the board the district is asking voters to approve a 3.95% levy increase that exceeds the local tax-cap calculation and therefore would require a 60% voter approval to take effect.

The nut graf: the administration presented a balanced-draft budget that combines a tax-levy override request with proposed operational changes — including a staggered elementary bell schedule to reduce bus runs, higher planned class-size ranges for budgeting, and a workforce reduction target the administration described as “as many as 200 positions” — while maintaining legally required special-education placements and certain student-facing programs.

Most important details and decisions

- Budget total and gap: Assistant Superintendent for Business Carlos Leal presented the proposed total of $359,468,597. Dr. Reynolds and staff said the district faces a budget gap of about $20.2 million driven by lower state aid after a formula change, rising health-insurance and transportation costs, and the end of several federal grants.

- Tax levy and approval requirement: The administration said the district's calculated tax-cap limit this year is 0.33%. The proposed 3.95% levy exceeds that limit and would require a 60% voter override. The proposed levy amount presented was $240,741,929.

- Workforce reductions: The administration proposed reducing the workforce by a range that it repeatedly described as a middle-ground estimate of about 193–200 positions districtwide. Assistant Superintendent Mr. Liao and others broke the totals down by category: building instructional staff reduction ~111 positions (from 1,168), building operations/support reductions of 48 (from 491), district administrators cut 7 (from 42), and district operations/support reductions of 25 (from 152), yielding an overall proposed reduction of 193 positions (10.2% of 1,892 positions shown in the slide deck). The superintendent said special-education classrooms are mandated by law and would be preserved.

- Transportation changes: To reduce transportation costs the district proposed a staggered elementary bell schedule so contracted buses can make two runs; the administration said that could reduce the number of buses, drivers and monitors by up to half for yellow-bus elementary runs. Staff said transportation costs rose about $9,900,000 in one year and that the proposed budget includes a planned $4,221,416 (16.1%) increase in the transportation line that reflects both contractual increases with the existing vendor and the proposed route/ bell changes.

- Charter-school set-aside: The budget includes a $1,900,000 contingency set-aside to cover tuition obligations if local students enroll in the newly authorized charter (Capital Preparatory). Dr. Reynolds and staff said that tuition is paid to charter operators for participating local students and that the district must budget for that possibility.

- Program priorities and reductions: The proposal preserves core instructional programming and legally required special-education services, maintains co-curricular stipends and athletic programs where possible, shifts some staffing costs out of federal-carryover grant funds into the general fund, and seeks reductions in contracted services, hourly allocations and overtime.

- Other revenue and reserves: The administration proposes a $1,000,000 transfer from reserves (a reduction from prior years’ uses) and an appropriation from fund balance of $1,750,000. Staff stressed they do not want to continue heavy use of reserves in future years.

- Superintendent’s cabinet: Dr. Reynolds announced that her extended cabinet members have elected to forego pay increases for the 2025–26 budget year. "The superintendent's extended cabinet has elected to join me in foregoing our pay increase," she said.

Timeline and next steps

The board is scheduled to consider adoption of a proposed budget at its March 20 meeting at Davis Elementary School. If the board adopts the 3.95% proposal, the district’s public budget hearing is set for May 6 at New Rochelle High School and the budget vote is scheduled for May 20; because the proposal exceeds the tax cap it would require a 60% voter approval to enact. If the budget is defeated, staff outlined options including a revised budget and a possible June 17 revote or adoption of a contingency budget. The administration warned that a contingency budget would impose stricter limits on district spending and could require significantly deeper cuts: staff estimated a contingency-level shortfall could require an additional reduction on top of the proposed workforce cuts (district staff said a 0.33% levy scenario could require somewhere between roughly 350 and 400 positions cut, depending on final actions adopted).

Public comment and community outreach

During public comment residents urged more transparency on bus-route utilization, asked for details about which positions would be reduced and urged unions and administrators to seek temporary concessions. Staff described plans for community outreach between March 20 and May 6 (roadshow presentations, PTA meetings and community sessions) and provided a phone contact (914-576-4200) for scheduling budget presentations.

What the board acted on tonight

The board approved routine procedural motions recorded in the meeting (motions to enter and reconvene from executive session; consent agenda items and general resolutions including a site agreement with Fuse and the district). Those motions were carried by voice vote during the meeting.